Energy Sector Update for 03/09/2018: MCF,SNMP,CGG

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Energy stocks were extending gains Friday afternoon, with the NYSE Energy Sector Index posting a nearly 1.3% advance in recent trading while shares of energy companies in the S&P 500 were up more than 1.6% as a group. Crude oil for April delivery was rising $1.69 cents to $61.81 per barrel in New York while the benchmark Brent crude April contract was climbing $1.50 to $65.11 per barrel. April gas futures were 2 cents lower at $2.74 per 1 million BTU. Among energy-related ETFs, United States Oil was up more than 2.2% while United States Natural Gas was down 0.6%. The Philadelphia oil-service sector index also was trading more than 2.2% higher.

In industry news:

Oil prices were rising off their three-week low after US President Donald Trump's surprise announcement Thursday night he plans to meet with his North Korean counterpart later this spring in a bid to resolve their stand-off over the Asian nation's nuclear weapons. Traders also were looking to the Baker Hughes ( BHGE ) weekly rig-count report for more signs of rising US activity that likely has been keeping a lid on commodity prices by counterbalancing production limits by OPEC members and Russia that helped prices recover since the 2014 supply glut and price crash. That report showed the number of oil rigs in operation in both the US and Canada declined last week.

Among energy stocks moving on news:

+ Contango Oil & Gas Co. ( MCF ) was off 1.7% Friday, clawing back from a session low of $3.31 a share soon after the opening bell that followed the company more than halving its Q4 net loss compared with the final three months of 2016 but still missing Wall Street expectations. Net loss during the three months ended Dec. 31, 2017, was $0.23 per share, improving on a $0.69 per share loss during the year-ago period but coming in $0.02 per share wider than the Capital IQ consensus. Revenue fell to $20 million from $21.7 million last year, topping the $19.13 million consensus. The company's natural gas reserves on Dec. 31 grew 25% over year-end 2016 levels to 37.5 billion cubic feet equivalent.

In other sector news

+ Sanchez Midstream Partners ( SNMP ), an oil and gas company, reported a Q4 loss of $0.62 per share, narrower than a loss of $3.34 per share in the same period a year ago. Two analysts polled by Capital IQ expected a loss of $0.29 per share. Total revenue of $18.7 million was up from $15.3 million in the same period a year ago, but missed the Street projection of $21.9 million with two analysts polled.

- CGG ( CGG ) declined Friday, dropping over 8% to a session low of $4.00 a share, after the seismic data and imaging company reported a wider-than-expected Q4 net loss and upstaging revenue exceeding Wall analyst projections. Net loss for the three months ended Dec. 31, 2017, was $6.06 per share compared with a $2.71 per share net loss during the year-ago period and missing the Capital IQ consensus expecting a $3.55 per share net loss. Revenue grew to $400.7 million from $328.3 million during the same quarter last year and topping the $348.9 million Street view. Looking ahead, the company is expecting FY18 revenue in a range of 5% either side of $1.5 billion, or about $1.43 billion to $1.58 billion. The lone analyst following CGG is looking for $1.15 billion in FY18 revenue.

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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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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