Energy Sector Update for 12/15/2016: SGY,PGH,ORIG
Top Energy Stocks
Energy stocks were ending narrowly higher today, with the NYSE Energy Sector Index rising about 0.1% while shares of energy companies in the S&P 500 were up about 0.2% as a group. Crude oil for January delivery settled 14 cents lower at $51.02 per barrel while January natural gas futures fell 11 cents to finish at $3.43 per 1 million BTU.
In company news, Stone Energy ( SGY ) has reversed a deep slump earlier Thursday, with shares of the oil and natural gas producer trading moderately higher shortly before today's closing bell after it announced plans to file voluntary chapter 11 bankruptcy petitions as part of a pre-packaged reorganization.
In a recent regulatory filing, Stone Energy reported around $1.2 billion in assets and $1.7 billion in liabilities. The company has solicited support from around 80% of its debtholders, who would forgive around $850 million of that debt in exchange for about 96% of the restructured company's new stock. Debtholders also will share in $100 million in cash and $225 million of newly issued 7.5% second-lien notes due 2022.
SGY shares recently were up almost 1% at $6.18 apiece, recovering from a nosedive to $4.45 a share soon after today's opening bell.
In other sector news,
(+) PGH, Sells 4% non-convertible gross overriding royalty interest on its Lindbergh thermal property along with a working interest in selected proprietary seismic data to unidentified buyer for $250 million in cash. The buyer also keeps option to receive royalty in cash or as production-in-kind.
(-) ORIG, Q3 EPS of $0.47 per share misses by $0.23 per share. Revenue falls 23.4% from last year to $335 mln, also trailing the $358.31 mln consensus. Also continuing to explore strategic alternatives, including a potential bankruptcy filing.
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