Energy Sector Update for 09/29/2015: NSLP,BBG,TRCH
Top Energy Stocks
Energy stocks were finishing mostly lower Tuesday, with the NYSE Energy Sector Index dropping 0.1% while shares of energy companies in the S&P 500 were down 0.7% as a group. Crude oil for November delivery settled 80 cents higher at $45.23 per barrel while November natural gas futures fell 8 cents to $2.659 per 1 million BTU.
In company news, New Source Energy Partners LP ( NSLP ) tumbled again to a new, all-time low on Tuesday after analysts at Wunderlich Securities today cut their investment recommendation for the stock to Sell from Hold and slashed their price target for the struggling energy company to zero.
In a new research note, Wunderlich analyst James Dobson cited rising liquidity concerns at the company as well as New Source's ongoing litigation fight with exploration and production partner New Dominion. The move follows New Source yesterday saying it would be unable to pay the quarterly distribution on its Series A 11% convertible preferred stock because of a potential deficiency in its revolving credit facility.
NSLP shares were down over 12% in late trade at 14 cents apiece, matching their worst price ever.
In other sector news,
(+) BBG, Sells non-core assets in Uinta Basin for $27 mln in after-tax proceeds. Completes semi-annual review with bank lenders reaffirming $375 mln revolving credit facility due April 2020. Cuts cap-ex to $315 mln to $325 mln.
(-) TRCH, Announces farm-in deal with Founders Oil and Gas for its Orogrande project in western Texas, receiving $5 mln upfront payment and $45 mln over the next two years for 50% working interest in the project.
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