Top Energy Stocks
Energy stocks were mostly higher, with the NYSE Energy Sector Index climbing 0.7% while shares of energy companies in the S&P 500 were up about 0.6% as a group. Crude oil for July delivery settled 54 cents higher at $48.62 per barrel while July natural gas futures dropped 5 cents to $2.15 per 1 million BTU.
In company news, Chesapeake Energy Corp ( CHK ) was higher Tuesday afternoon after the natural gas producer said it has struck deals with some of its debtholders, convincing them to swap about $166 million of senior notes for shares of the company's stock.
According to a regulatory filing last night, Chesapeake in recent days has issued or agreed to issue almost 37.1 million shares of its common stock in exchange for $81.5 million of its 2.5% contingent convertible senior notes due 2037, $26.5 million of its 6.5% senior notes due 2017, $7.5 million of its 2.25% contingent convertible senior notes due 2038 and $50.5 million of its floating rate senior notes due 2019.
The new shares equal about 5.2% of Chesapeake's outstanding stock and follows a similar debt-for-equity swap about two weeks ago that at the time increased its outstanding stock by about 4.2%.
CHK shares were up more than 10% at $4.05 apiece, staying within close range of their intra-day high of $4.07 a share.
In other sector news,
(+) XCO, Reduces 2016 capital about 69% compared with prior-year period to around $85 mln, averaging $10 mln per month. Also cut net debt at the end of March by $400 mln, or 28% compared with six months ago, to $1.1 bln.
(-) IOC, Board of Directors vote in favor of Oil Search (OSH.AX) buyout proposal over the objections of former board chairman and CEO Phil Mulacek. Deal also includes back-in arrangement with Total SA ( TOT ).
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