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Energy Sector Update for 03/30/2017: GEVO,BAS,CVE,COP

Top Energy Stocks

XOM +0.95%

CVX -0.21%

COP +8.16%

SLB -0.76%

OXY +1.03%

Energy stocks were rising this afternoon, with the NYSE Energy Sector Index climbing about 0.4% while shares of energy companies in the S&P 500 were up almost 0.5% as a group. Crude oil for April delivery was up 76 cents at $50.27 per barrel while April natural gas futures were 2 cents lower at $3.22 per 1 million BTU.

In company news, Gevo ( GEVO ) stumbled Thursday after the biofuels producer missed the estimate for adjusted Q4 net income and revenue by the lone securities analyst currently following the company, posting a wider-than expected non-GAAP net loss for the final three months of 2016 following a big drop in revenue compared with year-ago levels.

Excluding one-time items, the company recorded a $7.8 million net loss, or $1.14 per share, improving on Gevo's $8.6 million adjusted net loss during the same quarter in the prior-year period but still trailing the $0.96 per share non-GAAP net loss expected by the only analyst polled by Capital IQ. On a reported basis, the company had a $2.3 million net loss during Q4 compared with $8.6 million during the same period in 2015.

Revenue declined 20% from the year-ago period to $5.83 million, also lagging the $7.14 million single-analyst call. Direct comparisons for per-share losses were not readily available following the company's 20-for-1 reverse stock split on Jan. 5.

Looking forward to 2017, Gevo said it expects to grow its isobutanol production to 500,000 gallons, which would represent a 13.6% increase over its 440,000 gallons produced during 2016.

GEVO shares were down nearly 11% at $1.04 each, earlier stopping a penny short of its 92-cent 52-week low.

In other sector news,

(+) BAS, (+2.8%) Seaport Global Securities raises investment rating to Buy from Neutral and sets a $39 price target.

(-) CVE, (-12.0%) Acquires most of ConocoPhillips' ( COP ) Canadian assets, including its 50% stake in their FCCL Partnership and nearly all of COP's conventional Deep Basin assets in Alberta and British Columbia for $17.7 bln in stock and cash. Launches $3 bln bought-deal financing of 187.5 mln shares priced at $16 each.

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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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