Energy Sector Update for 10/20/2015: XCO,XTC.TO,HLX,SXE
Top Energy Stocks
Energy stocks were narrowly mixed, with the NYSE Energy Sector Index falling 0.1% while shares of energy companies in the S&P 500 were up less than 0.1% as a group. Crude oil for December delivery was down 7 cents at $46.21 per barrel while December natural gas futures were 3 cents higher at $2.69 per 1 million BTU.
In company news, Exco Resources (XCO,XTC.TO) shares advanced Tuesday after today announcing a series of transactions expected to boost liquidity and reducing debt at the Canadian oil and natural gas producer by around 18% from current levels.
The company repurchased $577 million of its senior unsecured notes at 51% of their face value, issuing $291 million of senior secured second-lien term loans in addition to securing $300 million of the new 12.5% second-lien term loan due 2020 with an affiliate of Fairfax Financial Holdings (FFH.TO). Exco also revised its existing credit facility, reducing its borrowing base to $375 million in exchange for increased flexibility with its debt covenants.
XCO shares were up more than 15% at $1.27 apiece, earlier climbing to a session high of $1.30 a share.
In other sector news,
(+) HLX, (+34.4%) Q3 EPS of $0.09 beats Capital IQ consensus by $0.02 per share. Revenue declines 46.4% from year-ago levels to $182.5 million, trailing estimates for $194.3 mln.
(-) SXE, (-0.2%) Wunderlich resumes analyst coverage with a Buy rating but cuts its price target by $10 to $9 a share.
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