Energy Sector Update for 02/12/2019: OPTT,NFX,ECA,ECA.TO,NAT,BRS
Top Energy Stocks
Energy stocks were ending mostly higher, with the NYSE Energy Sector Index climbing more than 1.2% while shares of energy companies in the S&P 500 also were up over 1.2% as a group. West Texas Intermediate crude oil for March delivery settled 69 cents higher at $53.10 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude April contract increased 96 cents to $62.47 per barrel. March natural gas futures rose 5 cents to $2.69 per 1 million BTU. Among energy-related ETFs, the United States Oil fund advanced almost 1.4% while the United States Natural Gas fund was posting a 0.6% gain. The Philadelphia Oil Service Sector index also was up about 1.5%.
Among energy stocks moving on news:
(-) Ocean Power Technologies ( OPTT ) was lower in late afternoon trading, dropping about 1%. The alternative-energy producer Tuesday announced a $125,000 contract award from the US Navy to immediately develop a buoy mooring and subsea data sensor system for airplanes, ships and satellites. The contract also includes options that can increase the total value of the work to $225,000 and can be incorporated into the company's PowerBuoy and subsea battery module product lines.
In other sector news:
(+) Nordic American Tanker Ltd ( NAT ) was more than 5% higher on Tuesday after the petroleum shipper said it has negotiated a new, five-year senior secured credit facility valued at $306 million and replacing the company's existing revolving loan package. The new facility will lower Nordic American's interest expense, the company said without providing specifics.
(+) Newfield Exploration Co ( NFX ) rose nearly 1% after shareholders of the oil and natural gas producer and at Encana Corp ( ECA ) voted for the companies' proposed strategic combination at separate meetings Tuesday. Under terms of the transaction slated to close Wednesday, investors will receive 2.6719 Encana common shares for each Newfield share they now own.
(-) Bristow Group ( BRS ) dropped more than 40% to a worst-ever $1.77 a share after reporting a material weakness in its financial controls that could result in the oilfield-services company reclassifying its long-term debt into short-term liabilities and also casting doubt on its ability to continue as a going concern. Bristow and privately held Columbia Helicopters Tuesday also said they have "mutually agreed" to terminate Bristol's $560 million buyout proposal.
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