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Sector Update: Energy

Posted
11/20/2013 2:11:00 PM
By: MT Newswires
Referenced Stocks:DVN

Energy stocks are narrowly higher, with the NYSE Energy Sector Index climbing 0.1% while shares of energy companies in the S&P 500 are up 0.2% as a group. Crude oil for December delivery is up 14 cents at $93.48 per barrel while November natural gas is up 9 cents to $3.65 per 1 million BTU.

In company news, Devon Energy Corp. ( DVN ) is narrowly lower this afternoon at $62.54 a share, slipping 0.4% after saying it is buying oil-producing assets and other property in the Eagle Ford shale formation in Texas from GeoSouthern Energy for $6 billion.

The purchased assets currently produce about 53,000 barrels of oil equivalent per day, DVN said. It also acquired 82,000 net acres with at least 1,200 undrilled locations and the company expects the asset to eventually generate around 140,000 barrels daily.

DVN plans to fund the deal with available cash and borrowings. The deal is expected to close in early 2014.

In other sector news,

(+) HNR, (+5.4%) Reaches tentative $400-mln deal to sell its 32% stake in Petrodelta SA to Pluspetrol, which also will buy HNR's 80% interest in Harvest-Vinccler Dutch Holding BV. HNR also scraps proposed sale of 66.7% stake in offshore Gabon project to Vitol SA.

(-) E, (-0.5%) Sells its stake in a natural gas field in Russia's far north for $2.9 bln to Gazprom, the state-owned Russian natural gas company, and Novatek, the country's largest private natural gas producer.