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Energy Sector Update for 09/25/2018: TGP,BAS,KEG,WTI,CHK,TGP-PA,TGP-PB


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Energy stocks were mostly higher again today, with the NYSE Energy Sector Index Tuesday rising over 0.9% while shares of energy companies in the S&P 500 also were up slightly more than 0.7% as a group. West Texas Intermediate crude oil for October delivery settled 20 cents higher at $72.28 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude November contract advanced 61 cents to $81.81 per barrel. October natural gas futures rose 4 cents to $3.08 per 1 million BTU. Among energy-related ETFs, United States Oil rose less than 0.1% while United States Natural Gas climbed over 0.5%. The Philadelphia Oil Service Sector index advanced nearly 1.2%.

Among energy stocks moving on news:

(-) Teekay LNG Partners LP ( TGP ) was almost 2% lower in late Tuesday trade, staying within close range of its session low, after the liquified natural gas tanker company late Monday declared cash distributions of $0.5625 and $0.5313 per unit for its Series A (TGP-PA) and Series B (TGP-PB) preferred stock, respectively, unchanged from the company's most recent payout to investors. The upcoming distribution for the three months ending Sept. 30 is payable Oct. 15 to unitholders of record on Sept. 28.

In other sector news

(+) Basic Energy Services ( BAS ) was sharply higher in Tuesday trade, at one point rising over 15%, despite late Monday rejecting an unsolicted buyout proposal from Key Energy Services ( KEG ), telling the rival oilfield-services it was not interested in the $260 million, all-stock acquisition offer. In a letter last Thursday and again on Sunday, Key offered to swap a fixed 0.733 of a share for each Basic share, valuing the target company at about $9.80 a share, or about 15% above its 10-day volume weighted average price. If the deal went through at its current terms, the combined company would be split between Key and Basic shareholders at 51.3% and 48.7%, respectively.

(+) W&T Offshore ( WTI ) rose as much as 9% on Tuesday after the oil and natural gas company said it was selling its non-core royalty interests in the Permian Basin to an unnamed buyer for $56.8 million. The company also said it has successfully drilled the ST 320 A-2 exploratory well from the South Timbalier 311 offshore platform south of Louisiana in the Gulf of Mexico, logging 163 net feet of hydrocarbon and topping pre-drilling estimates. It plans to soon spud its ST 320 A-3 well in the nearby Ewing Bank 910 field.

(+) Chesapeake Energy ( CHK ) was ending moderately lower this afternoon, falling over 1%, after Tuesday launching a $1.25 billion offering of senior notes due 2026. It expects to use net proceeds, together with cash on hand and possibly borrowing from its revolving credit facility, to repay debt owed on its secured term loan due 2021. Any remaining funds would be used for general corporate purposes.

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: TGP , BAS , KEG , WTI , CHK



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