Sector Update: Energy
Energy stocks are narrowly mixed, with the NYSE Energy Sector Index declining 0.1% while shares of energy companies in the S&P 500 are up 0.2% as a group. Crude oil for January delivery is down 20 cents at $93.89 per barrel while December natural gas is down 3 cents at $3.76 per 1 million BTU.
In company news, Jones Energy Inc. ( JONE ) is up 6.7% at $14.80 a share, putting further distance from its recent 52-week low of $13.15 after late Monday announcing a deal to purchase producing and undeveloped oil and gas assets in the Anadarko Basin from an unidentified privately held firm for $195 million.
JONE executives said they expect the deal to be "significantly" accretive to FY14 earnings.
Included in the acquisition are about 26,000 net acres and 92 producing wells in the Cleveland, Tonkawa and Marmaton plays in the Texas Panhandle and western Oklahoma. The properties are estimated to have proved reserves of 14.3 million barrels of oil equivalent and contain around 225 additional drilling locations. Current production on the acquired properties is averaging about 3,400 barrels per day.
In other sector news,
(+) EOG, (+1.2%) Recommends shareholders reject unsolicited "mini-tender" offer by TRC Capital Corp to purchase up to 1 mln EOG shares at $162.75 each - or more than 4% under the stock's closing price on Nov. 14, the day before the company received the offer.
(+) LPI, (+0.1%) Discloses plans to merge with its wholly-owned Laredo Petroleum Inc. unit and buying back all $500 mln of its 7.375% senior notes due 2022 and $550 mln of 9.5% senior notes due 2019 at 101% of their principal amount.