Energy Stocks Broadly Lower; Bonanza Creek Energy Falling on $150-Mln Note Offering
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Energy stocks are mostly lower, with the NYSE Energy Sector Index falling 1.0% while shares of energy companies in the S&P 500 are down 1.1% as a group. Crude oil for December delivery is down $2.10 at $93.04 per barrel while December natural gas is up 4 cents to $3.62 per 1 million BTU.
In company news, Bonanza Creek Energy ( BCEI ) is down more than 2% at $50.21 a share after announcing plans to sell an additional $150 million of its its 6.75% senior notes due 2021, subject to market conditions.
BCEI previously sold $300 million of the 6.75% senior notes in April. The company plans to use $68.5 million of the net proceeds to repay all of its outstanding borrowings under its revolving credit facility, with the remaining $78.1 million to be used for general corporate purposes.
Moody's Investors Service assigned a B3 rating to the senior notes offering, with Moody's vice president Andrew Brooks saying the new funding will further fund the company's 31,700 acres in the Wattenburg field in Colorado, adding "the high liquids content from Wattenberg production (should yield) attractive cash margins and provides substantial growth opportunities for Bonanza Creek."
In other sector news,
(+) NTI, (+3.3%) Western Refining ( WNR ) agrees to buy a 38.7% limited partnership stake in the oil and gas company for $775 million from Acon Investments and TPG.
(-) GTE, (-7.5%) EPS of $0.12 trails Thomson Reuters consensus by $0.07 per share. Revenue rises 12.3% year over year to $189.7 million, also missing estimates by around $28.74 mln. Revises FY13 daily production forecast 2% higher.