Energy Sector Update for 08/06/2018: RCON,KOS,LONE,VEDL

Top Energy Stocks

XOM -0.19%

CVX +0.03%

COP +0.53%

SLB -0.38%

OXY -0.09%

Energy stocks lost some ground this afternoon but were still ending with small gains Monday, with the NYSE Energy Sector Index Thursday rising nearly 0.3% while shares of energy companies in the S&P 500 also were up slightly less than 0.3% as a group. West Texas Intermediate crude oil for September delivery settled 32 cents higher at $68.81 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude October contract advanced 46 cents to $73.67 per barrel. September natural gas futures finished unchanged at $2.86 per 1 million BTU. Among energy-related ETFs, United States Oil was climbing over 0.3% while United States Natural Gas was holding on to nearly 0.4% gain. The Philadelphia Oil Service Sector index was down almost 0.3% today.

In industry news:

Global crude oil prices were rising Thursday after Saudi Arabia this weekend said it has resumed all of its shipments through the strategic Red Sea shipping lane of Bab al-Mandeb that had been halted since July 25 after attacks on two oil tankers by Yemen's Iran-aligned Houthi movement. Saudi Aramco also confirmed shipping had resumed. The decision to resume shipping followed coalition leadership taking "necessary measures to protect the coalition states' ships," Energy Minister Khalid al-Falih said in the ministry statement.

Among energy stocks moving on news:

+ Recon Technology ( RCON ) climbed as much as 6% on Monday after the an oil- and natural gas-field services company paid about $6.5 million in cash and stock to increase its indirect equity stake in Future Gas Station (Beijing) Technology Ltd. to 43% from 8% previously. In addition to a cash payment of RMB10.0, or about $1.5 million, Recon Tech also issued RMB33.3 million, or about $5 million, of its restricted stock for the extra 35% share of the service company providing new technical applications and data operations to gas stations of oil companies. It previously paid RMB4.4 million for the 8% stake in December 2017.

In other sector news,

+ Lonestar Resources ( LONE ) was surging Monday, rising as much as 10%, despite posting mixed Q2 financial results after. The oil and natural gas company recorded an $0.84 per share net loss on $47.9 million in revenue during the three months ended June 30. That compares with a $1.07 per share net loss in the year-ago period on $18.1 million in revenue during the year-ago period. Analyst estimates were not available.

- Vedanta ( VEDL ) was narrowly lower Monday, slipping less than 1%, after the India-based natural resources company reported fiscal Q1 group earnings before interest, taxes, depreciation and amortization of $983 million, up from $778 million in the prior year period. Revenue grew to $3.55 billion from $3.09 billion, and topping the $2.99 billion analyst mean.

- Kosmos Energy ( KOS ) was declining Monday, dropping over 2% in recent trade, after the oil and natural gas producer missed analyst projections with its Q2 financial results and also announced its $1.225 billion purchase of privately held Deep Gulf Energy.

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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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