Markets

Energy Sector Update for 05/14/2015: GEVO,TNK,JONE

Top Energy Stocks

XOM +0.36%

CVX +0.92%

COP +0.29%

SLB -0.50%

OXY +0.63%

Energy stocks were slightly higher, with the NYSE Energy Sector Index rising 0.2% while shares of energy companies in the S&P 500 also were up 0.2% as a group. Crude oil for June delivery was down 86 cents at $59.64 per barrel while June natural gas futures were up 6 cents to $3.00 per 1 million BTU.

In company news, shares of Gevo Inc. ( GEVO ) fell Thursday after the company priced a $17.2 million offering of equity units consisting of one share of common stock and one Series C warrant to pay an additional share.

The biofuels company sold 4.3 million units at $4 apiece, a 10.5% discount to the company's closing share price last night. The warrants have a five-year term and are exercisable at $5.50 per share.

According to the preliminary prospectus filed last night, net proceeds from the offering will fund working capital and general corporate activities, adding it cannot specify with certainty all of the potential uses.

GEVO shares were down almost 14% at $3.86 apiece, or just 2 cents above its session low. The stock has traded within a 52-week range of $1.32 to $16.20 a share, sliding almost 70% over the past 12 months prior to Thursday's retreat.

In other sector news,

(+) TNK, (+2.3%) Q1 net income of $0.34 per share beats Capital IQ consensus by $0.01 per share. Revenue rises 68.1% over year-ago levels to $103.9 mln, topping analyst estimates by around $7.78 mln.

(-) JONE, (-12.2%) Prices $50 mln secondary offering of 5 mln shares previously held by fund affiliated with Metalmark Capital at $10 apiece, a 11.9% discount to Wednesday's closing price.

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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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