Energy Sector Update for 02/11/2016: CVE,CVE.TO,HERO,BTU
Top Energy Stocks
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.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.