Markets

Energy Sector Update for 02/11/2016: CVE,CVE.TO,HERO,BTU

Top Energy Stocks

XOM -1.60%

CVX -2.11%

COP -1.11%

SLB -0.75%

OXY -1.52%

Energy stocks were sharply lower today, with the NYSE Energy Sector Index sinking about 2.5% while shares of energy companies in the S&P 500 also were down about 2.5% as a group. Crude oil for March delivery was down 76 cents at $26.69 per barrel while March natural gas futures were 6 cents lower at $1.99 per 1 million BTU.

In company news, Cenovus Energy Inc. (CVE,CVE.TO) rose Thursday after the Canadian oil and natural gas producer said it was cutting its quarterly dividend by another 57% in an effort to bolster its liquidity during the current slump in commodity prices.

In addition to reducing its dividend to $0.05 per share from $0.1156 per share previously, Cenovus also is paring its capital budget by $200 million to $300 million as well as reducing its operating and administrative spending - including unspecified workforce expenses - by around $200 million.

CVE shares were up more than 2% to $9.96 apiece, earlier climbing to a session high of $10.43 a share. The stock also was rising north of the border today, climbing over 3% to C$13.96 a share at the Toronto Stock Exchange.

In other sector news,

(+) HERO, (+17.9%) Forms special board committee to explore various strategic alternatives. The company said the move was not in response to any third-party proposal it received.

(-) BTU, (-29.2%) Reports adjusted Q4 net loss of $9.27 per share, trailing Street view by $0.74 per share. Revenue falls 22% from last year to $1.31 bln, also lagging the $1.35 bln consensus.

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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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