Sector Update: Strong Gains for Energy Stocks This Afternoon; American Midstream Edging Higher After Pricing Pared-Down Stock Offering

By Staff,

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Energy stocks were broadly higher Tuesday with the NYSE Energy Sector Index rising about 1.3% while shares of energy companies in the S&P 500 were up about 0.9% as a group. Crude oil for September delivery slid another $1.01 today, falling to $95.40 per barrel while September natural gas was up 10 cents to $3.90 per 1 million BTU.

In company news, American Midstream Partners ( AMID ) was slipping in mid-day trade Tuesday after the pipeline company late yesterday priced a scaled-down private placement of 4.6 million equity units at $26.09 each, a 12% discount to Monday's closing price for the stock.

After first paying underwriter discounts and other offering expenses, the company will use the $120 million in gross proceeds to repay the $115 million in debt borrowed through its revolving credit facility to last week complete its acquisition of natural gas processing and gathering assets from DCP Midstream.

Prior to the Aug. 11 acquisition closing, one of DCP's customers told the company it was moving its production from Mobile Bay and Dauphin Island in the Gulf of Mexico, reducing the value of the acquired assets. The companies subsequently amended the purchase price and AMID cut the size of its stock offering from its original $200 million.

AMID shares recently were up about 0.3% at $29.74 apiece, today see-sawing between small gains and losses. The stock has traded within a 52-week range of $17.51 to $32.01 a share, rising slightly more than 51% over the past 12 months.

In other sector news,

(+) MNGA, (+5.1%) Signs letter of intent to buy an unidentified industrial gas-distribution company with around $2 mln in estimated 2014 gross revenue. Details will be released once definitive agreements are signed, expected in around 90 days.

(-) TLLP, (-2.6%) Prices public offering of 2.1 mln common units representing limited partnership interests to generate $144 mln in gross proceeds. Shares were priced at $68.57 each, a 2.75% discount to Monday's closing price for the stock.

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: AMID

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