Sector Update: Energy

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Energy stocks are marginally lower with NYSE Energy Sector Index slipping 0.2% while the S&P Energy Index is down about 0.1%. Crude oil for September delivery is up 11 cents at $95.71 a barrel.

In company news, shares of ION Geophysical Corp. ( IO ) are down over 10% and hit a day low $6.55 after a federal jury late yesterday decided against the oilfield services company, ordering it to pay $105.9 million after infringing patents owned by a Schlumberger Ltd. ( SLB ) subsidiary.

The jury panel in Houston said IO should compensate WesternGeco $93.4 million for lost profits as well as paying $12.5 million in royalties. Jurors also said IO intentionally infringed on the SLB patents, allowing the company to ask that the damage award be increased.

The case targeted IO's DigiFin lateral-streamer control system, which like the SLB unit's equipment, provides underwater seismic data. IO plans "immediate steps to pursue all available legal options to overturn the verdict," according to company statement.

(-) APC, (-0.9%) Signs farm-in pact with state-owned PetroSA for exploration blocks off the South African coast. APC will operate the field, owning an 80% stake.

(-) PDCE, (-0.9%) Canaccord Genuity lowers price target for the stock to $36 from $39. Reiterates Buy recommendation.

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) 2016 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
Referenced Symbols: IO , SLB

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