Energy Stocks Ending With Small Gains; Denbury Resource Approves Quarterly Dividend, Expands Stock Buyback
Top Energy Stocks
Energy stocks are modestly higher today with the NYSE Energy Sector Index gaining about 0.2% and shares of energy companies in the S&P 500 rising about 0.1% as a group. Crude oil for December delivery settled 54 cents higher at $95.14 per barrel late in today's floor session while December natural gas was up 2 cents to $3.57 per 1 million BTU.
In company news, Denbury Resources ( DNR ) is down nearly 6% at $18.25 a share, getting little apparent traction from its afternoon announcement it will now begin paying a quarterly dividend of $0.625 per share starting in Q1 of 2014. It also said that based on current financial projections and anticipated commodity prices, DNR is expecting the annual dividend to grow to between $0.50 to $0.60 per share by 2015.
The company today also approved an increase in its stock buyback program to $250 million, up from the $109 million remaining for share repurchases under its current authorization.
In other sector news,
(+) RIG, Resolves proxy fight with activist investor Carl Icahn, paying a special dividend of $3 per share out of additional paid-in capital as well as reducing the size of the company's board of directors by three members to 11.
(-) AR, Deutsche Banks starts coverage of the oil and gas company with a Hold recommendation and a $62 a share price target, citing its post-IPO valuation.