Energy Sector Update for 07/16/2020: CHAP,FSI,GLOG,GLOP,SGU

Energy stocks extended their declines this afternoon, with the NYSE Energy Sector Index dropping 1.3% while the SPDR Energy Select Sector ETF was down 0.7%.

Front-month West Texas Intermediate crude oil settled 45 cents lower at $40.75 per barrel in New York while the global benchmark Brent crude contract declined 6 cents to $43.73 per barrel. Natural gas futures fell 6 cents to $1.72 per 1 million BTU.

In company news, Chaparral Energy (CHAP) fell 12% after saying the owners of its 8.75% senior notes maturing in 2023 have agreed not to foreclose on those securities through July 29 after the oil and natural gas producer failed to make at least a portion of a scheduled interest payment that came due on Wednesday for the notes. The forbearance agreement also sets a number of deadlines for Chaparral to meet before expiring, including coming up with a plan to unwind its hedge positions and using the proceeds to pay down existing debt by Monday, July 20.

GasLog Ltd (GLOG) fell 2.2%, giving back an earlier advance that followed the liquefied natural gas carrier company Thursday said lenders agreed to refinance its $577 million credit facility maturing in 2021 in addition to a combined $460 million across two loans for its general partner GasLog Partners (GLOP). All three of the new debt transactions are signed and expected to close before the end of the month, the companies said. GasLog Partners units were 1.6% lower this afternoon.

Among gainers, Flexible Solutions International (FSI) climbed over 12% after Thursday saying it generated around $7.6 million in revenue during its Q2 ended June 30, up about 12% over year-ago levels and topping the single-analyst call expecting around $6.5 million in Q2 revenue for the maker of biodegradable polymers used in oil extraction and other purposes. The company will report its full Q2 financial results on August 14.

Star Group (SGU) was 1.8% higher after the home heating oil and propane seller Thursday declared a quarterly distribution of $0.1325 per unit for the three months ended June 30, unchanged from the previous quarter and payable August 4 to investors of record on July 27.

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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