Markets

Energy Sector Update for 11/15/2017: MCEP,MNGA,SD,BCEI

Top Energy Stocks

XOM -1.25%

CVX -0.44%

COP -1.35%

SLB -1.98%

OXY -1.17%

Energy stocks were hard hit again today, with the NYSE Energy Sector Index dropping over 0.9% while shares of energy companies in the S&P 500 were down almost 1.1% as a group.

In company news, Mid-Con Energy ( MCEP ) tumbled Wednesday, falling almost 15% to a session low of $1.00 a share, after the enhanced oil recovery company late yesterday pocketed a combined $40 million after announcing deals selling some of its oil and natural gas assets in southern Oklahoma as well as a private placement of its Class B convertible preferred stock.

Proceeds from the $25 million property sale will be used to pay down debt owed under the company's revolving credit facility.

Mid-Con late yesterday also priced a $15 million private placement of 11.03 million Class B convertible preferred units at $1.36 apiece, with the stock purchases led by John Goff, the company's largest individual investor.

The partnership expects to use net proceeds from the private placement for general purposes, including potential acquisitions and repaying outstanding debt. The units have an 8.00% annual coupon, payable quarterly, although under certain circumstances, the units can also be paid with additional units at a yearly rate of 10%.

The company last night also reported a Q3 net loss of $0.52 per limited partner unit, expanding on a $0.09 per unit loss during the year-ago period and trailing the single analyst estimate expecting a $0.01 per share profit. Oil and gas sales rose 9.5% year over year to $14 million, roughly in-line with the lone analyst's call.

In other sector news,

(+) MNGA, Expects Q4 revenue will top any yearly total in company history. Lowers Q3 net loss to $0.39 per share from $0.81 per share last year but revenue falls 15% year over year to $879,511 after hurricanes this summer delay sales. Sources $5 mln senior debt commitment; repays $1 mln interim loan.

(-) SD, Drops to a record low after announcing plans to acquire Bonanza Creek Energy ( BCEI ) for $746 mln in cash and stock. Bonanza investors will receive $36 for each of their shares - consisting of $19.20 in cash and $16.80 in SandRidge stock.

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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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