Energy Sector Update for 05/17/2019: BCEI,BP,OBE,OBE.TO,RRC

Top Energy Stocks

XOM -0.59%

CVX -0.26%

COP -0.70%

SLB -2.01%

OXY -1.80%

Energy stocks extended their declines this afternoon, with the NYSE Energy Sector Index falling almost 0.9% while shares of energy companies in the S&P 500 also were down over 0.9% as a group. West Texas Intermediate crude oil for June delivery settled 11 cents lower at $62.76 per barrel in New York while the global benchmark Brent crude July contract declined 54 cents to $72.08 per barrel. June natural gas futures slipped 1 cents to $2.63 per 1 million BTU. Among energy-related ETFs, the United States Oil fund was falling more than 0.5% while the United States Natural Gas fund dropped over 0.4%. The Philadelphia Oil Service Sector index was down more than 2.9% in late trade.

Among energy stocks moving on news:

(-) Bonanza Creek Energy (BCEI) was down over 2% this afternoon. The oil and natural gas producer late Thursday said lenders have increased the company's borrowing capacity available through its senior secured credit facility by $25 million to $375 million, although the company said it will keep the combined commitments at $350 million. Through March 31, Bonanza Creek had drawn about $65 million from the facility and was holding about $33 million in cash.

In other sector news:

(+) Obsidian Energy (OBE) rose 4% on Friday after the Canadian oil and natural gas producer said it was selling its 55% working interest in the Peace River Oil Partnership for $97 million in cash and the unidentified purchaser's stock. Under terms of the proposed transaction, Obsidian will receive $85.8 million in cash, with the remaining $11.2 million to be paid in stock at the close, expected around July 31.

(+) BP plc (BP) still was narrowly higher this afternoon, rising less than 1%. The energy major reportedly shut down its refinery in the Netherlands for repairs about five months ahead of schedule. Thursday's shutdown of the 200,000 barrel-per-day facility in Rotterdam was originally scheduled for October and is expected to last four to six weeks, sources told Reuters.

(-) Range Resources Corp (RRC) dropped 6% on Friday. The crude oil and natural gas producer late Thursday promoted its senior vice president for operations to chief operating officer, effective immediately. Dennis Degner replaces Ray Walker, who retired from the company in April 2018.

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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