Energy Stocks Lower; Crosstex Energy Surges in 3-Way Merger of Pipeline Firms
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Energy stocks are slightly lower, with the NYSE Energy Sector Index sinking 0.2% while shares of energy companies in the S&P 500 are down 0.3% as a group. Crude oil for November delivery is down $1.08 at $99.73 per barrel while November natural gas is down 3 cents to $3.73 per 1 million BTU.
In company news, Crosstex Energy Inc. ( XTXI ), Crosstex Energy LP ( XTEX ) and Devon Energy ( DVN ) all climbed to new 52-week highs after the companies agreed to combine substantially all of their midstream assets throughout the United States.
The new company will operate 7,300 miles of gathering and transportation pipelines as well as 13 processing plants with a net processing capacity of 3.3 billion cubic feet per day. It also will operate six fractionator facilities along with barge and rail terminals, product storage facilities, brine disposal wells and an extensive crude oil trucking fleet.
At last look, XTXI was up 60.5% at $33.07 a share, earlier climbing to a new 52-week high of $33.72. XTEX is up 37.6% at $28.00 a share after topping out at $29.50, while DVN shares are up 2.5% at $64.82 each, establishing a new 52-week high of $66.82 earlier.
In other sector news,
(+) DK, (+4.6%) Goldman Sachs upgrade to Buy from Neutral, citing favorable risk/reward profile. The research shop also sets a $37 a share price target.
(-) HAL, (-2.0%) Q3 revenue climbs 5% year over year to $7.47 bln, trailing estimates by $20 mln. EPS of $0.83 is up from a $0.65 per share profit during the year-ago period, also beating the FactSet consensus by a penny.