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Sector Update: Energy
By: MT Newswires
Energy stocks are edging higher today with the NYSE Energy Sector Index rising about 0.1 and the S&P Energy Index climbing almost 0.4%. Crude oil for May delivery is up 13 cents to $96.71 per barrel. May natural gas is flat at $4.07 per 1 mln BTU.
In company news, Suncor Energy ( SU ) is now up about 0.7% at $30.10 a share, turning around after a small dip earlier today as the Canadian oil and gas company said it is not proceeding with the Voyageur upgrader project in Alberta oilsands and the purchase of its partner's 49% stake in the joint venture for $515 mln. This is going to result in SU taking a $140-mln charge against its Q1 earnings with quarterly cash flow reduced by around $180 mln.
The company said the decision follows a strategic and economic review it began late last year with Total SA ( TOT ), its joint venture partner in the project. Separately, TOT last night said it will book a $1.65-bln loss from the cancelled project. U.S.-listed TOT shares are down about 0.2% at $48.09 apiece.
In other sector news,
(+) CPNO, (+0.3% TO year highs) Pipeline operator begins solicitation for up to $510 mln of its 7.125% senior notes due 2021.
(-) PEIX, (-3.2%, above day lows but still near year lows) Agrees to issue up to $14 mln in subordinated convertible notes and acquire an additional 3% plant interest, increasing its ownership to 83%. The deal is set to close in June.