Energy Sector Update for 09/09/2019: APD,CPE,CRZO,MUR,CQP

Top Energy Stocks

XOM +0.62%

CVX +1.0%

COP +2.0%

SLB +5.5%

OXY +0.67%

Energy stocks were finishing sharply higher, with the NYSE Energy Sector Index (^NYE) Monday climbing more than 1.3% while shares of energy companies in the S&P 500 (XLE) were up over 1.8% as a group. West Texas Intermediate crude oil for October delivery settled $1.33 higher at $57.85 per barrel in New York.

Among energy stocks moving on news:

(-) Air Products (APD) slid more than 4.5% on Monday after announcing a new joint venture to build and operate coal-to-syngas processing facility in China's Jiangsu province. Air Products will own 80% of the new company with partner firm Debang Xinghua Technology Co-owning the rest of the joint venture, which runs an air separation unit and purification facilities in addition to gasification unit. Air Products also will be the exclusive purchaser of merchant liquid products from the new facility.

In other sector news:

(+) Callon Petroleum (CPE) surged more than 13% higher on Monday after Paulson & Co. said it will vote against the proposed $3.2 billion, all-stock acquisition of the oil and natural gas company by rival Carrizo Oil & Gas (CRZO) and instead urged the Callon board to pursue an alternative sale. "The sharp decline in (Callon's) stock price since the transaction announcement on July 15 demonstrates the market's judgment of the value-eroding nature of the proposed acquisition," Paulson said in a letter to the company's board of directors.

(+) Murphy Oil (MUR) climbed over 5% after KeyBanc Monday started analyst coverage of the exploration and production company with an overweight rating and a $24 price target.

(+) Cheniere Energy Partners (CQP) was hanging on to a 0.6% gain on Monday after unveiling plans for a $1 billion private placement of its senior notes due 2029. The liquefied natural gas regasification company is expecting to use most of the net proceeds to repay all of its outstanding term loans due 2024 and funding construction of another train at its Sabine Pass liquefaction facility in Louisiana.

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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