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Energy Sector Update for 06/19/2019: TOO,BBU,BBU-UN.TO,BTU,ARCH,ESTR,FTI


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Top Energy Stocks

XOM -0.30%

CVX +0.26%

COP 0.00%

SLB -0.51%

OXY -0.05%

Energy stocks were narrowly higher in late trade, reversing their mid-day declines. At last look, the NYSE Energy Sector Index was climbing over 0.3% while shares of energy companies in the S&P 500 were up over 0.1% as a group. West Texas Intermediate crude oil for July delivery settled 14 cents lower at $53.76 per barrel in New York while the global benchmark Brent crude August contract declined 10 cents to $62.04 per barrel. July natural gas futures fell 5 cents to $2.28 per 1 million BTU.

Among energy stocks moving on news:

(+) Teekay Offshore Partners ( TOO ) was nearly 3% higher after a minority investor argued the $1.05 per share offer for the remaining stock Brookfield Business Partners ( BBU ) doesn't already own was much too low. In a statement, JDP Capital said "even a conservative valuation of Teekay Offshore would put the value well above $4 per share based on contracted cash flows with oil majors, a strong balance sheet, and a sector in the early stages of a major rebound." Brookfield owns about 73% of Teekay's outstanding stock.

In other sector news:

(+) Estre Ambiental ( ESTR ) shares nearly doubled in price on Wednesday, rising over 97%, after the Brazilian waste management company disclosed plans to sell all of its biogas energy generation business to entities affiliated with Canadian pension fund Alberta Investment Management. Under terms of the proposed transaction, Estre received a BRL30 million upfront payment and also is eligible for another payment to reflect the target companies' enterprise value at closing.

(+) Peabody Energy Corp ( BTU ) rose 5% after announcing a new joint venture with Arch Coal ( ARCH ) that will combine the rival miner's assets in the Powder River Basin and in Colorado and creating "a highly synergistic" partnership intended to strengthen the competitiveness of coal against natural gas and renewables. Peabody will own 66.5% of the joint venture and Arch will own the remaining 33.5%.

(+) TechnipFMC (FTI) was over 1% higher this afternoon, rebounding from a small morning decline. The oilfield-services company said it has won several subsea contracts to assist Anadarko Petroleum (APC) with its Golfinho/Atum liquefied natural gas project in Mozambique.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Energy
Referenced Symbols: TOO , BBU , ESTR , BTU , ARCH



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