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Energy Sector Update for 05/03/2016: KOS,CVX,HES,BTE,BTE.TO,BBG

Top Energy Stocks

XOM -1.2%

CVX -1.9%

MPC -1.8%

PSX -2.9%

VLO -2.4%

Energy stocks were sharply lower today, with the NYSE Energy Sector Index sinking 2.7% while shares of energy companies in the S&P 500 also were down 2.7% as a group. Crude oil for June delivery was down $1.17 at $43.61 per barrel while June natural gas futures were 3 cents higher at $2.08 per 1 million BTU.

In company news, Kosmos Energy Ltd. ( KOS ) was lower Tuesday after the oil and natural gas producer, together with energy major Chevron ( CVX ), announced a deal selling a one-third ownership stake in the offshore Block 42 contract area near Suriname to Hess Corp ( HES ).

Financial terms of the agreemet were not immediately disclosed, but under terms of the farm-out agreement, the three firms will own equal one-third stakes once the transaction closes. Hess will fully fund a 3-D seismic survey throughout the 6,500-square-kilometer exploration block as well as paying a disproportionate share of the drilling costs for the first exploration well in the area.

KOS shares were down over 6% at $5.95 apiece, staying within relatively close range of their $5.83 a share session low. Chevron also was losing ground today, sinking nearly 2% to $101.30 a share in recent trading while HES shares were losing nearly 4% to $56.92 each.

In other sector news,

(-) BTE, (-8.5%) Reports Q1 funds from operations of C$0.22 per share, topping the C$0.20 single-analyst estimate. Sales declined 33% from last year to C$153.6 mln, also beating the $153.9 mln consensus.

(-) BBG, (-9.6%) Sells certain non-core assets in the Uinta Basin for around $30 mln in cash to an unaffiliated third party. Expects transaction to minimally affect production and cash flow this year.

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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