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Sector Update: Energy

By: MT Newswires
Posted: 10/4/2013 1:01:00 PM
Referenced Stocks: APC;BHP;WMB

Energy stocks are higher, with the NYSE Energy Sector Index rising 0.6% while shares of energy companies in the S&P 500 are up about 0.7% as a group. Crude oil for November delivery is up 21 cents at $103.53 per barrel while November natural gas is up 1 cent to $3.51 per 1 million BTU.

In company news, Anadarko Petroleum Corp ( APC ) is up nearly 1% at $93.83 a share, climbing as high as $94.04 after late Thursday pulling all of its crews on four drill platforms in the Gulf of Mexico ahead of Tropical Storm Karen.

The closed platforms include APC's natural gas-only Independence Hub, which can produce up to 1 billion cubic feet of natural gas per day.

BHP Billiton ( BHP ) also has shut down operations at two platforms in the storm path while Williams Cos ( WMB ) also has closed its 500 million cubic feet per day Canyon Station shallow-water gas platform. BHP shares are narrowly higher this afternoon, while WMB is down about 0.6%.

According to latest National Hurricane Center forecast at 11 a.m. ET, Karen had weakened slightly with winds around 45 knots, with most models projecting sub-hurricane strength. The storm path also has shifted slightly more to the west, which would keep Karen in the heart of the Gulf gas and oil production until coming ashore in Louisiana.

In other sector news,

(+) TLM, (+2.5%) Shakes off any ill effect of Fitch's Ratings reducing outlook for the oil and gas company to negative from stable while setting a BBB long-term issuer default rating on its senior unsecured notes and unsecured revolvers.

(-) FST, (-5.8%) Reverses early gains that followed the firm's selling oil, gas assets in the Texas Panhandle to Templar Energy LLC for $1 billion. The properties produced about 100 million cubic feet of natural gas per day with 12-month EBITDA of around $180 million.