Sector Update: Energy


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Energy stocks are lower this afternoon with the NYSE Energy Index down 0.12% and the S&P Energy Index sinking 0.20%.

In company news, Chesapeake Energy Corp ( CHK ) is up around 2.5% today at $15.94 but off a day high $16.24 with a pair of high-powered investors reportedly taking sizable stakes in the natural-gas producer.

CHK shares rallied into the close late yesterday after a Bloomberg story reported billionaire investor Carl Icahn may now own as much as 4% of the company's stock, citing a person with knowledge of the matter.

There have been no stock ownership reports filed yet with regulators detailing Icahn's prospective CHK stake and calls to his office by Bloomberg were not returned. But in a new research note issued today, analysts at Wells Fargo Securities reportedly said many investors may be comforted by the prospect of Icahn buying again into CHK. The brokerage also credits CHK for recently securing a $3-billion short-term loan through Goldman Sachs and Jeffries, providing the firm with additional liquidity while it sells assets to raise cash.

Blackrock Inc. ( BLK ) also is said to have recently increased its CHK stake, with CNBC reporting late yesterday that the firm buying as many as 4 million shares to increase its overall position to 5 million shares.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing Commodities
Referenced Stocks: BLK , CHK

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