Markets
CHK

Energy Sector Update for 04/11/2016: CHK,REXX,OMEX

Top Energy Stocks

XOM +0.50%

CVX -0.48%

COP +1.12%

SLB +0.91%

OXY +1.18%

Energy stocks were moderately higher Monday, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 were up just 0.1% as a group. Crude oil for May delivery was up 59 cents at $40.32 per barrel while May natural gas futures were 7 cents lower at $1.92 per 1 million BTU.

In company news, shares of Chesapeake Energy Corp ( CHK ) were higher Monday after the natural gas company negotiated a new revolving credit facility, with its borrowing base reaffirmed at $4.0 billion.

As part of the the redetermination, Chesapeake agreed to pledge more assets as collateral under the new credit agreement. Lenders also agreed not to exercise their interim redetermination rights before June 2017.

The revised pact also reduces the interest coverage ratio to 0.65 times from 1.1 times through March 2017, when it will increase to 0.70 times through June 2017 and then reverting to 1.2 times in September 2017 and to 1.25 times thereafter.

CHK shares were up over 13% at $4.26 apiece, easing just slightly from a session high of $4.33 a share.

In other sector news,

(+) REXX, (+16.1%) Announces purchase agreement for natural gas liquids from the Appalachian Basin to Europe. All of the liquids will be carried by the Mariner East infrastructure and exported by sea.

(-) OMEX, (-59.7%) Mexican Secretary of Environment & Natural Resources denies environmental license for its Don Diego project.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CHK OMEX

Other Topics

Energy

Latest Markets Videos

    MTNewswires

    Founded in 1999, MT Newswires (formerly known as Midnight Trader) is a leading provider of original source, multi-asset class, real-time, global financial news and information to most of the largest banks, brokerage firms and professional market data, trading & research applications in North America.

    Learn More