Energy Sector Update for 03/16/2017: DO,PBR,PACD,BCEI

Top Energy Stocks

XOM -0.02%

CVX -0.86%

COP +0.09%

SLB -0.60%

OXY -1.59%

Energy stocks were mostly lower Thursady, with the NYSE Energy Sector Index falling about 0.1% while shares of energy companies in the S&P 500 were down 0.5% as a group. Crude oil for April delivery was down 20 cents at $48.56 per barrel while April natural gas futures were 2 cents lower at $2.95 per 1 million BTU.

In company news, Diamond Offshore Drilling ( DO ) rose Thursday following a favorable appeal court ruling in Brazil upholding a lower court decision barring Petrobras ( PBR ) from unilaterally terminating its contract with the company.

Diamond filed suit in August 2016 against the state-owned energy major after Petrobras terminated a drilling contract with Diamond's Ocean Valor drillrig more than two years ahead of its scheduled October 2018 expiration. In September, a court in Rio de Janeiro issued a preliminary injunction suspending the Petrobras action and ordering the contract remain in effect until the end of its term.

Petrobras appealed but a panel of appellate judges yesterday unanimously ruled against that appeal, Diamond said in a regulatory filing last night. Petrobras still has the right to carry its appeal to Brazil's Superior Court of Justice.

DO shares were 0.6% higher this afternoon at $15.47 each, previously topping out today at $16.12 a share. PBR American depository shares were down nearly 2% at $9.19 apiece, staying within 5 cents of their session low.

In other sector news,

(+) PACD, (+11.3%) After turning down a PACD proposal that would leave shareholders with a 33% stake in a reorganized company, creditors propose converting all PACD debt into a 98% equity stake but also providing existing shareholders with warrants that could give them another 20% of the firm.

(-) BCEI, (-5.2%) Adjusted Q4 net loss widens to $0.57 per share from a $0.17 per share loss during the year-ago period. Net revenue declines 17.1% from the same quarter last year to $47.3 mln. Analyst estimates were not available.

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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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