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CXO

Energy Sector Update for 10/01/2015: CXO,PWE,CHK

Top Energy Stocks

XOM -1.30%

CVX -1.03%

COP -0.08%

SLB -1.10%

OXY -0.97%

Energy stocks were moderately higher, with the NYSE Energy Sector Index rising 0.4% while shares of energy companies in the S&P 500 were up 0.1% as a group. Crude oil for November delivery was up 16 cents at $45.26 per barrel while November natural gas futures were 5 cents lower at $2.47 per 1 million BTU.

In company news, Concho Resources ( CXO ) tumbled Thursday after the oil and natural gas producer last night priced an $712 million upsized public offering of 7.7 million shares at $92.50 apiece, a 5.9% discount to Wednesday's closing price for the stock.

Proceeds, after first paying underwriter discounts and other offering expenses, will be used to repay all of its borrowings under the company's loan facility, which had funded recent acquisitions, as well as funding potential deals in the future.

The company also issued 30-day options for underwriters to buy up to 1.15 million shares, which if fully exercised, could add nearly $107 million to its gross proceeds. The deal was increased in size by 10% over Concho's original plans to sell 7 million shares.

CXO shares were down almost 3% at $95.37 apiece, earlier sinking to a session low of $95.02 a share. Prior to Thursday's decline, the stock already had slid more than 18% over the past 12 months.

In other sector news,

(+) PWE, (+11.0%) Sells non-operated 9.5% working interest in the Weyburn Unit in southeastern Saskatchewan for $205 million in cash. Proceeds will be used to reduce senior debt.

(-) CHK, (-2.7%) Tells holders of its 2.75% contingent convertible senior notes due 2035 they have the option to require Chesapeake to purchase all or a portion of those notes on Nov. 15.

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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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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