Energy Sector Update for 08/03/2020: ASTE,MPC,CLMT

Energy stocks were narrowly higher this afternoon, with the NYSE Energy Sector Index climbing 0.3% while the SPDR Energy Select Sector ETF also was up 0.8%.

Front-month West Texas Intermediate crude oil was rising 77 cents to $41.04 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude contract was increasing 74 cents to $44.26 per barrel. Henry Hub natural gas futures were 31 cents higher at $2.11 per 1 million BTU.

Among energy-related ETFs, the United States Oil Fund was ahead 1.6% while the United States Natural Gas Fund was racing to an 18.6% gain. The Philadelphia Oil-Service Sector index was 2.6% higher.

In company news, Astec Industries (ASTE) rose 2.7% after the heavy equipment and oilfield-services company Monday announced its acquisition of two full-line concrete batch plant manufacturers. Financial terms were not disclosed but Astec said Concrete Equipment Co and BMH Systems produced a combined $50 million in sales during 2019. It funded the purchases with cash on hand and also said the deals will immediately add to its per-share earnings.

Marathon Petroleum (MPC) was 1.8% higher after Sunday announcing the $21 billion sale of its Speedway retail business to the 7-Eleven convenience store chain. The company Monday also reported a non-GAAP Q2 net loss of $1.33 per share, reversing a $1.73 per share adjusted profit during the same quarter last year but still beating the Capital IQ consensus expecting a $1.76 per share loss, excluding one-time items.

Calumet Specialty Products Partners (CLMT) was little changed this afternoon, overcoming a 9.1% decline earlier Monday, after the hydrocarbons company said bondholders tendered $308.6 million of its 7.625% senior notes due 2022 and $533.6 million of its 11% senior notes due 2025, representing about 88.2% and 97% of those notes, respectively. The company will issue a pro-rated $200 million of new 9.25% senior secured first-lien notes due 2024 for each series of the senior notes. Investors also received $2.50 in cash for each $1,000 of the 2025 senior notes tendered by the July 31 deadline.

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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