Energy Sector Update for 10/30/2018: HEP,WRD,CHK,BP,RIG

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Energy stocks continued to rise Tuesday afternoon, with the NYSE Energy Sector Index climbing more than 1.6% while shares of energy companies in the S&P 500 were increasing almost 2.0% as a group. West Texas Intermediate crude oil for December delivery settled 86 cents lower at $66.18 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude December contract declined $1.29 to $76.05 per barrel. December natural gas futures fell 1 cent to $3.19 per 1 million BTU, reversing a 7-cent gain earlier today. Among energy-related ETFs, United States Oil fell over 0.6% while United States Natural Gas advanced about 0.5%, reversing its prior retreat. The Philadelphia Oil Service Sector index also was up nearly 1.0% in late trade.

Among energy stocks moving on news:

(-) Holly Energy Partners LP ( HEP ) was back near its session low in late Tuesday trading, dropping more than 1% and giving back a nearly 4% gain earlier in the session that followed the crude oil pipeline and storage company reporting Q3 net income of $0.43 per unit, trailing its $0.66 per unit profit last year but still exceeding the Capital IQ consensus by $0.01 per unit. Revenue rose to $125.8 million from $110.4 million in the year-ago period and matching the $125.79 million analyst mean.

In other sector news

(+) WildHorse Resource Development Corp ( WRD ) rose as much as 5.5% on Tuesday, only to give back roughly half of that early advance that followed the oil and natural gas producer agreeing to a buyout offer consisting mostly of stock from larger rival Chesapeake Energy ( CHK ). The proposed transaction calls on Chesapeake to swap either 5.989 of its shares or a combination of 5.336 shares plus $3 in cash for each WildHorse share depending on how WildHorse shareholders vote. Chesapeake also will assume about $930 million of WildHorse debt, boosting the total value of the deal to $3.98 billion based on its closing price of $3.72 a share on Monday, the company said. Chesapeake shares fell as much as 15% on Tuesday despite today also reporting better-than-expected Q3 financial results.

(+) BP plc ( BP ) rose almost 3% on Tuesday after the energy major reported its largest non-GAAP profit in more than five years, posting an underlying replacement-cost profit of $1.15 per American depository share during the three months ended Sept. 30, more than doubling its $0.57-per-ADS adjusted Q3 net income during the same quarter last year and surpassing the Capital IQ consensus expecting $0.86 per ADS.

(+) Transocean LTD ( RIG ) rose more than 1% on Tuesday, bouncing back from a more than 4% decline soon after the opening bell after the offshore contract driller late Monday reported a surprise Q3 profit. Excluding one-time items, the company earned $0.06 per share during the July-to-September reporting period, down from a $0.16 per share adjusted profit in the year-ago period but still beating the Capital IQ consensus expecting a $0.10 per share non-GAAP net loss.

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: HEP , CHK , BP , RIG

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