Energy Sector Update for 05/05/2016: JONE,EPE,PSXP

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Top Energy Stocks

XOM +0.28%

CVX +0.95%

COP +0.31%

SLB -0.15%

OXY +2.65%

Energy stocks have slipped from their recent highs, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 were up more than 0.7% as a group. Crude oil for June delivery was up 97 cents at $44.74 per barrel, earlier touching a session high of $46.07 per barrel, while June natural gas futures were 6 cents lower at $2.08 per 1 million BTU.

In company news, Jones Energy ( JONE ) shares were surging Wednesday after the oil and natural gas producer last night raised its 2016 production guidance in addition to plans to resume drilling in the Cleveland play in western Oklahoma and the Texas panhandle.

Jones' stock also is getting a boost from the company reporting a smaller-than-expected Q1 net loss of $0.03 per share, beating the analyst consensus by a penny. Revenue during the January-to-March period dropped 55.5% from year-ago levels to $25.86 million but still managed to top a two-analyst mean expecting $24.19 million.

The company has budgeted about $2.03 million for the new drilling program, also saying its decision was spurred by recent gains in commodity prices as well as cost savings within the company and "compelling" after-tax returns. It expects to have three rigs running by next month.

With more wells coming online, Jones now sees its production this year growing to a range of 6.2 million to 6.8 million equivalent barrels of oil, up from about 600,000 barrels from its prior guidance, and averaging between 16,800 to 18,700 barrels daily.

Jones shares were up neraly 16% at $4.70 apiece, earlier hitting a session high of $5.19 a share.

In other sector news,

(+) EPE, (+23.1%) Q1 EPS of $0.19 per share top analyst consensus by $0.18 per share. Lowers production forecast to a new range of 81,000 to 88,000 equivalent barrels of oil from prior guidance expecting betwee 91,000 to 97,000 barrels.

(-) PSXP, (-5.5%) Prices public offering of 11 mln units at $52.40 per share, a 7% discount. Acquires Standish Pipeline along with the 75% stake in Sweeny Fractionator One/Clemens Caverns it didn't already own for $775 mln.

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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