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Sector Update: Energy

By: MT Newswires
Posted: 4/11/2014 12:51:00 PM
Referenced Stocks: SDRL

Energy stocks were narrowly higher with the NYSE Energy Sector Index rising about 0.1%, while shares of energy companies in the S&P 500 were up less than 0.1% as a group. Crude oil for May delivery was up 79 cents at $104.19 per barrel, while May natural gas was down 3 cents to $4.69 per 1 million BTU.

In company news, shares of Seadrill Ltd. ( SDRL ) declined Friday, flirting with the 52-week low, following a downgrade of the oilfield-services company by analysts at Credit Suisse.

In lowering their investment rating for the stock to Neutral from Outperform, the Credit Suisse analysts said the company misjudged the market in the face of falling day rates, bringing too many new ships online. The research shop also cut its price target for the stock by $10 to $30 a share.

SDRL shares were down 1.7% at $33.35 apiece in recent trade, bouncing back from a session low of $32.84 a share earlier in the session - just a penny off it 52-week low.

In other sector news,

(+) GLOG, (+3.9%) Prices public offering of 4.25 mln shares of its common stock at $23.75 each - a 4.6% discount to Thursday's closing price. Net proceeds will be used to fund a portion of the company's purchase of three LNG carriers from BG Group.

(-) MDR, (-1.7%) Prices $500 mln offering of 8.00% second-lien senior secured notes due 2021 at 100.00% of principal amount. Proceeds, together with other sources, will be used refinance its new first-lien credit facility and other debt.