Markets
CHK

Energy Sector Update for 05/24/2016: CHK,XCO,IOC,OSH.AX,TOT

Top Energy Stocks

XOM +0.31%

CVX +0.93%

COP -0.11%

SLB +0.90%

OXY +1.85%

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 ).

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CHK TOT

Other Topics

Energy