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Sector Update: Energy
By: MT Newswires
Energy stocks are higher today with the NYSE Energy Sector Index rising over 0.7% and the S&P Energy Index advancing 0.6%. Crude oil for January deliver is up 95 cents at $88.33 per barrel. December natural gas is flat at $3.90 per 1 million BTU.
In company news, BP plc ( BP ) shares are around 1% higher today with the company reportedly ready to announce a broad reorganization of its oil and gas production operations, three sources familiar with the matter are telling Reuters.
The latest changes are expected to undo some of the measures imposed by CEO Bob Dudley in the immediate wake of the April 2010 Gulf of Mexico deepwater well explosion and oil spill. Lamar McKay, now head of BP's U.S. operations will become head of a new exploration and production unit, the sources said. Dudley scrapped the E&P unit soon after his promotion two years ago to combat criticism inside and outside the company it had become too decentralized and encouraged managers to put profit above safety.
"The pendulum had moved too far away from decentralization," one source said.
In other sector news,
(+) BBEP, (+2.4%) Acquiring oil properties in Kern County, Calif., for $40 million in cash and about $53.5 million in stock. BBEP said the deal should be immediately accretive to per-unit distributable cash flow.
(+) PQ, (+2.9%) Raised to Buy Hold at Stifel Nicolaus.
(+) ENB, (+1.4%) Enbridge Pipelines subsidiary reaches deal with shippers on terms for a $1.8 billion expansion of its mainline system between Edmonton and Hardisty, Alberta. The new pipeline is expected to initially boost daily capacity by 570,000 barrels by mid-2015.