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Energy Sector Update for 09/04/2018: EMES,CREG,ORIG,RIG,SWN


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Top Energy Stocks

XOM +0.09%

CVX +0.15%

COP -0.60%

SLB -1.24%

OXY -0.83%

Energy stocks declined today, with the NYSE Energy Sector Index Thursday falling nearly 0.8% while shares of energy companies in the S&P 500 also were down slightly more than 0.3% as a group. West Texas Intermediate crude oil for October delivery settled 7 cents higher at $69.87 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude November contract fell 53 cents to $77.58 per barrel. October natural gas futures dropped 9 cents to $2.82 per 1 million BTU. Among energy-related ETFs, United States Oil dropped over 0.9%, reversing an earlier gain, while United States Natural Gas was dropping over 3.4%. The Philadelphia Oil Service Sector index also was down more than 1.4% today.

Among energy stocks moving on news:

(+) Emerge Energy Services ( EMES ) closed unchanged at $5.20 a share today, yielding all of its nearly 3% rise earlier in the session that followed the company saying it has received a new source review permit for its Superior Silica Sands in-basin frac sand unit in San Antonio, Texas. The new permit allows the company to increase the air emissions associated with processing frac sand and boosting output to around 4 million tons per year. Emerge also began processing and shipping sand from a second line in San Antonio.

In other sector news

(+) China Recycling Energy Corp ( CREG ) raced as much as 27% higher on Tuesday, topping out at $1.55 a share after the Chinese industrial waste-to-energy company said it was acquiring 20% of energy storage module-maker Xinhuan Energy from an individual shareholder in exchange for an undisclosed number of its common shares. The two companies said they will work together to develop and expand the energy storage business in China.

(+) Ocean Rig UDW ( ORIG ) climbed as much as 16% on Tuesday after the marine oilfield services company agreed to a $2.7 billion buyout offer from larger rival Transocean ( RIG ). Under terms of the proposed transaction, Ocean Rig investors will receive 1.6128 of a Transocean share plus $12.75 in cash for each of their shares. The deal values Ocean Rig at $32.28 a share, representing a 20.4% premium over the stock's 10-day volume-weighted average share price. After the acquisition closes, Ocean Rig shareholders will own about 21% of the combined companies.

- Southwestern Energy Company ( SWN ) was more than 2% lower in late Tuesday trading, reversing a nearly 6% rise that followed the oil and natural gas company announcing the sale of its exploration and production assets in the Fayetteville shale formation in Arkansas and Oklahoma along with its midstream gathering assets in the region for $1.87 billion in cash. Southwestern also said that it would assume about $438 million of future contractual liabilities as part of the deal. The transaction, which has already been unanimously approved by the Southwestern board, is expected to close in December.

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: EMES , CREG , ORIG , RIG , SWN



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