Energy Sector Update for 11/19/2018: LLEX,QEP,REN,XEC,PNRG

Top Energy Stocks

XOM +0.18%

CVX -0.05%

COP +0.17%

SLB +0.15%

OXY -0.25%

Energy stocks continued to pare their morning declines, with the NYSE Energy Sector Index falling just over 0.1% while shares of energy companies in the S&P 500 were down slightly more than 0.3% as a group. West Texas Intermediate crude oil for December delivery settled 30 cents higher at $56.76 per barrel, reversing a morning decline, while the global benchmark Brent crude January contract rose 20 cents to $66.96 per barrel. December natural gas futures continued their wild swings, rising 43 cents Monday to $4.70 per 1 million BTU. Among energy-related ETFs, the United States Oil fund climbed almost 0.3% while the United States Natural Gas fund jumped more than 5.0%. The Philadelphia Oil Service Sector index also was up nearly 0.2% today, also turning around a prior slide.

Among energy stocks moving on news:

(+) Lilis Energy ( LLEX ) raced over 23% at one point on Monday after new regulatory documents showed board chairman and CEO Ronald Ormand late last week acquired 10,000 shares of the oil and natural gas company's common stock, boosting his overall equity stake to around 4.14 million shares. He paid $2.16 a share in the Nov. 16 open-market transaction.

In other sector news

(+) Resolute Energy ( REN ) climbed almost 16% at one point on Monday after the oil and natural gas producer agreed to a $1.6 billion buyout offer from Cimarex Energy Co ( XEC ). The deal values Resolute at $35 per share, representing a 14.8% premium to Friday's closing price, with Resolute investors having the choice of receiving the entire amount in cash or 0.3943 of a share of Cimarex common stock or a combination of $14 per share in cash and 0.2366 of a Cimarex share. The transaction is slated to close during the first three months of 2019, subject to regulatory approvals and other closing conditions.

(+) QEP Resources ( QEP ) has jumped out to a nearly 8% gain this afternoon, overcoming an early morning slump that erased all but 1% of a 6% opening rise, after units of the company agreed to sell a portfolio of natural gas and oil producing properties, undeveloped acreage and associated gas gathering and treating systems in the Haynesville and Cotton Valley region in northwestern Louisiana for $735 million, subject to certain purchase price adjustments. QEP expects the net proceeds from the property sales will be used to further develop its core Permian assets as well as paying down debt and for stock buybacks.

(-) PrimeEnergy Corp ( PNRG ) fell almost 3% on Monday despite the oil and gas company reporting Q3 net income of $1.54 per share, reversing a $0.92 per share net loss during the same quarter last year while revenue rose 70.9% to $29.4 million from $17.2 million during the year-ago period. Analyst estimates were not available for comparison.

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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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