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Sector Update: Energy
By: MT Newswires
Energy stocks are ending lower today following yesterday's outsized gains with the NYSE Energy Sector Index currently down about 1.0% while shares of energy companies in the S&P 500 also are off 1.2% as a group.
In company news, Cloud Peak Energy Inc. ( CLD ) is down nearly 2% in afternoon trade after the coal miner late yesterday said the proposed sale of its 50% stake in Montana mine likely won't be completed "for the foreseeable future."
CLD and Ambre Energy initially announced the deal for the partial stake in the Decker Mine last December, with the Australian exporter Ambre also moving to acquire several related mine assets while assuming all of CLD's reclamation liabilities at the facility, including replacing $70.7 million in reclamation and lease bonds as well as granting CLD an option for up to 5 million metric tons of throughput capacity at a proposed export facility as well as additional future payments.
CLD said closing on the sale will depend on Ambre replacing the reclamation and lease bonds, adding discussions between the firms are continuing. It also said the companies have agreed to drop litigation over the Decker mine to allow for more time for future discussions and evaluations.
In other sector news,
(+) KBR, Federal judge in Manhattan affirms $351-mln arbitration award against a subsidiary of the Mexican national oil company Pemex, stating a Mexican nullification of the award "violated basic notions of justice."
(-) LRE, Files universal shelf registration on Form S-3 allowing the oil and gas company to sell up to $400 mln of LRE common and preferred units, bonds and guarantees of debt securities as needed. LRE said it has no plans to offer stock at this time.