Energy Sector Update for 09/10/2019: WPX,SYPR,CPE,CRZO,XOM
Top Energy Stocks
Energy stocks gave back almost half of their prior gains, with the NYSE Energy Sector Index this afternoon climbing just over 1.0% while the shares of energy companies in the S&P 500 also were up slightly more than 1.1% as a group. West Texas Intermediate crude oil settled 45 cents lower at $57.40 per barrel, reversing an earlier rise after President Trump fired national security advisor John Bolton. The Brent crude November contract declined 29 cents to $62.40 per barrel while October natural gas futures finished 1 cent lower at $2.58 per 1 million BTU.
Among energy stocks moving on news:
(+) WPX Energy (WPX) still was nearly 1% higher in late Tuesday trading after the oil and natural gas producer launched a $500 million public offering of senior unsecured notes due 2027 and announced plans to redeem up to $450 million of its 6.00% senior notes due 2022 along with its 8.25% senior notes due 2023 through an upcoming cash tender offering. Any remaining net proceeds from the senior notes offering will be used for general corporate purposes, including repaying outstanding debt.
In other sector news:
(+) Sypris Solutions (SYPR) rose more than 3% on Tuesday after the pipeline components company said its Sypris Solutions subsidiary recently received significant orders for its Tube Turns-branded closures for wellhead pressure management projects in Kazakhstan and British Columbia. Work on the projects is slated to begin later this year and continue into 2020, Sypris said. Financial terms and other details of the purchases were not disclosed.
(+) Callon Petroleum (CPE) was 1% higher after the oil and natural gas producer defended its proposed $3.2 billion acquisition of Carrizo Oil & Gas (CRZO) in response to criticism Monday from the Paulson & Co, with the hedge fund saying Callon should abandon the deal and put itself up for sale.
(+) Exxon Mobil (XOM) climbed fractionally on Tuesday after Reuters reported that the company was in talks to sell deepwater assets in the Gulf of Mexico to Repsol. The Spanish energy major reportedly is offering around $1 billion although other terms of the proposed deal were kept confidential, Reuters reported.
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