Sector Update: Energy
Energy stocks are broadly higher with the NYSE Energy Sector Index advancing nearly 1.0% while shares of energy companies in the S&P 500 are rising nearly 1.2% as a group. Crude oil for December delivery settled 1 cent higher at $94.62 per barrel while December natural gas was down 7 cents to $3.44 per 1 million BTU.
In company news, Western Refining Logistics, LP ( WNRL ) is up 4.1% at $25.33 a share, just 7 cents off its new 52-week high after Credit Suisse began coverage of the pipeline and storage company with an Outperform rating and a price target of $28 a share.
According to the Credit Suisse analysts, WNRL is benefiting from organic growth as well as dropdowns that should help it sustain above-average distribution growth for several years. Assets also are primarily located in the high-growth areas such as the Permian basin, creating opportunities for additional future growth, they said.
In other sector news,
(+) BRY, Linn Energy LLC ( LINE ) increases its buyout offer by $600 million, boosting the exchange ratio of the stock swap to 1.68 LINE shares from its previous offer of 1.25 LINE shares for each BRY share. LINE shares also are higher this afternoon.
(-) SE, Q3 earnings of $0.42 per share, ex items, beats by $0.09. Revenue rise 6.7% to $1.14 bln, trailing the Capital IQ consensus by $110 mln. Completes drop-down of U.S. assets in Spectra Energy Partners MLP, setting up large potential future dividends.