Energy Sector Update for 04/26/2017: LLEX,NADL,SDRL,VVV,ASH

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Top Energy Stocks

XOM +0.42%

CVX +0.11%

COP +0.28%

SLB +0.37%

OXY +0.40%

Energy stocks were edging higher Wednesday, with the NYSE Energy Sector Index rising about 0.1% while shares of energy companies in the S&P 500 were up nearly 0.4% as a group. Crude oil for June delivery was up 30 cents at $49.86 per barrel while May natural gas futures were 9 cents higher at $3.26 per 1 million BTU.

In company news, Lilis Energy ( LLEX ) climbed as much as 13.5% higher on Wednesday after the oil and natural gas producer today said it has secured $140 million in new funding, consisting of a $125 million convertible second-lien term loan facility with Verde Partners and additional $15 million through incremental term loans through its existing first-lien credit facility.

The new Verde facility includes an $80 million convertible, second-lien term loan that closed today as well as a $45 million delayed-draw term loan to fund future property acquisitions. Both tranches carry 8.25% annual interest and come due in four years. Verde also gained a board seat with the company as part of the deal, which can expand to another seat based on Verde's ownership stake.

Separately, the company also has redeemed all of its Series B 6% preferred stock, which was converted into 14.3 million shares of its common stock through an agreement with the holders of those preferred shares. Lilis last week also redeemed all of its 6% redeemable preferred stock.

Separately, Lilis today said the New York Stock Exchange has accepted its request to move its stock listing to the Big Board from the Nasdaq Global Market, effective May 9.

In other sector news,

(+) NADL, (+5.0%) Amends revolving credit facility provided by majority owner Seadrill ( SDRL ), doubling its available capacity to $50 mln and extending its maturity by another two months to June 30. Broader restructuring talks are also continuing at both companies.

(-) VVV, (-2.6%) Q2 EPS of $0.35 beats by $0.02 per share. Revenue rises 7.1% to $514 mln, also topping the $501.04 mln consensus. Authorizes $150 mln stock buyback program. Ashland board sets May 5 & 12 distribution dates for VVV stock, with ASH shareholders receiving 2.73 VVV shares for each share they now own.

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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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