Energy Sector Update for 12/15/2017: BCEI,SD,BHGE,NBL,NBR,TESO

Top Energy Stocks

XOM +0.12%

CVX +0.16%

COP -0.31%

SLB -0.50%

OXY +0.09%

Energy stocks were ending mostly higher today, with the NYSE Energy Sector Index rising slightly more than 0.4% while shares of energy companies in the S&P 500 were up almost 0.4% as a group. Crude oil for January delivery settled 26 cents higher at $57.30 per barrel while January natural gas futures were extended their prolonged skid, falling another 7 cents to $2.61 per 1 million BTU. The Philadephia Oil-Service Sector Index index ( OSX ) climbed 0.6% gain today.

In industry news:

The ongoing rebound for oil and natural gas extraction since hurricane Nate swept through the Gulf of Mexico and made landfall in Louisiana on Oct. 8 helped fuel a 0.2% rise in industrial production during November, the third straight month of sequential gains. Factory activity and mining also showed additional signs of strength last month, climbing 0.2% and 2.0%, respectively, the Federal Reserve said today. Capacity utilization rose to a 30-month high of 77.1%.

Also, U.S. energy producers had 747 oil drillrigs in use during the seven days ended Dec. 15, down four from the prior week, while natural gas companies brought three more rigs in the field last week, boosting their total to 183, according to a weekly survey conducted by energy-services company Baker Hughes ( BHGE ). Combined, there were 930 drillrigs operating throughout the country, one rig fewer since than last week, and marking the first time in six weeks the number of operating rigs declined.

Among energy stocks moving on news today:

Bonanza Creek ( BCEI ) was ending lower Monday after activist investor Carl Icahn urged Sandridge Energy ( SD ) shareholders to vote down a proposal authorizing the oil and natural gas producer to issue and sell its common stock and using the net proceeds to buy Bonanza Creek. In a proxy statement filed with federal regulators, Icahn argued the proposed transaction - slated to close during the first three months of 2018 pending a favorable shareholder vote, simply was too expensive.

In other sector news:

+Nabors Industries ( NBR ) Friday completed its acquisition of Tesco Corp (TESO), swapping 0.68 of its share for each Tescp share. The all-stock transaction valued Tesco at $4.62 a share, which ceased to trade today.

- Noble Energy (NBL) edged lower today after analysts at JPMorgan (JPM) today cut their investment rating for the oil and natural gas producer to Neutral from Overweight.

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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