Energy Sector Update for 10/23/2018: RIG,ORIG,HLX,FTI,XOM

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Top Energy Stocks

XOM -1.01%

CVX -0.79%

COP -0.61%

SLB -2.86%

OXY +0.12%

Energy stocks were lower in late Tuesday trading, with the NYSE Energy Sector Index falling almost 1.1% while shares of energy companies in the S&P 500 also were down slightly less than 1.1% as a group. West Texas Intermediate crude oil for November delivery settled $2.93 lower at $66.43 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude December contract fell $3.26 to $76.57 per barrel. November natural gas futures rose 7 cents to $3.21 per 1 million BTU. Among energy-related ETFs, United States Oil was climbing just over 0.1% while United States Natural Gas was dropping more than 2.8%. The Philadelphia Oil Service Sector index was down more than 1.5% today.

Among energy stocks moving on news:

(-) Transocean Ltd. ( RIG ) dropped over 4% Tuesday afternoon, paring a more than 6% decline earlier in today's session that followed the company pricing a $750 million offering of 7.25% senior unsecured notes due 2025 at par. Transocean said it will use the net proceeds to pay a portion of the cash consideration for its proposed merger with Ocean Rig UDW ( ORIG ).

In other sector news

(+) Helix Energy Solutions Group ( HLX ) dropped over 2% this afternoon, turning around a nearly 6% gain earlier Tuesday that followed the oilfield-services company reporting Q3 financial results exceeding Wall Street expectations. Net income rose to $0.18 per share from $0.02 per share during the same quarter last year and exceeded the consensus call by $0.07 per share. Revenues grew to $212.6 million from $163.3 million last year, also beating the $206.5 million Street view.

(-) TechnipFMC ( FTI ) still was more than 1% lower in late Tuesday trading after announcing a contract award from an ExxonMobil ( XOM ) affiliate for engineering of the subsea system for the proposed Liza Phase II project offshore Guyana on the Stabroek Block. Following engineering and subject to requisite government approvals, project sanction and an authorization to proceed with the next phase, TechnipFMC will then manufacture and deliver the subsea equipment. Delivery would include 30 enhanced vertical deep water trees and associated tooling, as well as eight manifolds and associated controls and tie-in equipment.

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: RIG , HLX , FTI , XOM

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