Energy Sector Update for 06/14/2019: LNG,LGCY,TPL,PBR

Top Energy Stocks

XOM -0.12%

CVX +0.11%

COP -0.38%

SLB -2.24%

OXY -0.87%

Energy stocks slightly pared their mid-day declines this afternoon, with the NYSE Energy Sector Index falling more than 0.6% while shares of energy companies in the S&P 500 were down almost 0.6% as a group. West Texas Intermediate crude oil for July delivery settled 23 cents higher at $52.51 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude August contract was advanced 83 cents to $62.14 per barrel. July natural gas futures rose 6 cents to $2.39 per 1 million BTU.

In industry news:

The number of active US drill rigs fell to a 16-month low this week, with American energy companies removing five natural gas rigs and a single oil rigs from the field and leaving a total 969 rigs in operation during the seven days ended June 14, according to Baker Hughes' (BHGE) weekly tally. That compares with 789 oil rigs and 186 gas rigs in use during the prior week and a total of 1,059 rigs during the second week of June 2018. Canadian operators added 10 oil rigs and pulled six gas rigs this week, with the 4-rig net increase boosting the national total to 107 rigs, also down from 122 rigs during the year-ago period.

Among energy stocks moving on news:

(-) Cheniere Energy (LNG) declined about 1% in late trade. The liquefied natural gas company Friday said through its social media channels it has started production from the second LNG train at its facility in Corpus Christi, Texas. The launch was several months ahead of schedule, with the third large unit slated to come online before the end of 2021.

In other sector news:

(+) Legacy Reserves (LGCY) was ahead about 7% Friday afternoon, giving back most of a 59% morning surge, after the oil and natural gas producer announced a global restructuring support agreement ahead of plans to voluntarily file for Chapter 11 bankruptcy protection. The proposed deal includes a $256.3 million backstopped equity commitment and rights offering along with $500 million in committed exit financing from some of the company's existing lenders. Legacy also is expecting to equitize around $797.2 million of outstanding debt in addition to repaying all of its trade and unsecured creditors.

(+) Texas Pacific Land Trust (TPL) rose 1% on Friday after trustees of the oil and natural gas royalties company again dismissed a shareholders' meeting organized last month by a dissident investor group as "legally invalid," adding they also would not recognize a trustee candidate the opposition faction elected during at the May 22 vote. The two incumbent trustees, David Barry and John Norris, also refuted several accusations the dissident group levied in a statement to other shareholders late Thursday.

(-) Petrobras (PBR) fell fractionally after the Brazilian energy major said it has completed the sale of a 90% stake in Transportadora Associada de Gas to French natural gas distributor Engie and the Canadian fund Caisse de Depot et Placement du Quebec. The company was expecting about $8.70 billion in gross proceeds from the deal.

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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