Energy Sector Update for 08/31/2015: ACI,PSX,PBR
op Energy Stocks
Energy stocks have turned higher this afternoon, with the NYSE Energy Sector Index rising 1.1% while shares of energy companies in the S&P 500 were up nearly 1.1% as a group. Crude oil for October delivery was sharply up again, settling $3.90 higher to $49.20 per barrel while October natural gas futures fell 3 cents to $2.69 per 1 million BTU.
In company news, Arch Coal ( ACI ) rose sharply in late Monday trade after the miner again extended its debt exchange through Sept. 23.
Arch has been offering to exchange up to $2.38 billion of its existing debt for new loans adding another $404 million in liabilities for the company. According to the company, the holders of around $421 million of its debt so far have agreed to tender bonds for the new 6.25% trust certificates due 2020 while another $1.07 billion of existing loans maturing between 2019 to 2021 also have been tendered for exchange for new debt with similar maturities.
The respective debt swaps originally had been slated to expire on August 14 and were previously extended through last Friday, August 28.
ACI shares were up more than 17% this afternoon at $9.63 apiece, earlier reaching $10.35 a share. The stock has slid more than 73% over the past 12 months before Monday's price gain.
In other sector news,
(+) PSX, Warren Buffet and Berkshire Hathaway reportedly buys $4.5 bln stake in oil refiner, acquiring more than 10% of the company with the August 28 purchase, according to Bloomberg.
(+) PBR, Rolls-Royce Holdings said to be cooperating with Brazilian authorities in a corruption probe of the state-majority owned energy firm, according to The (U.K.) Guardian newspaper on Sunday.
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