Top Energy Stocks
Energy stocks were ending narrowly mixed, with the NYSE Energy Sector Index falling nearly 0.2% while shares of energy companies in the S&P 500 were up less than 0.1% as a group, reversing a prior slide. West Texas Intermediate crude oil for October delivery settled $1.65 lower at $55.75 per barrel in New York while the Brent crude November contract declined $1.43 to $60.94 per barrel. October natural gas futures fell 3 cents to $2.55 per 1 million BTU.
In industry news:
US crude oil supplies dropped by 6.9 million barrels during the seven days ended Sept 6 compared with the prior week, the US Energy Information Administration reported Wednesday morning, almost doubling the 3.6 million-barrel draw industry experts polled by S&P Global Platts had been expecting. The American Petroleum Institute, which issues a similar inventory report each week, late Tuesday said crude oil stocks declined by 7.2 million barrels last week, according to reports.
Among energy stocks moving on news:
(-) Blueknight Energy Partners (BKEP) dropped 6% after its 27.7%-shareholder Ergon earlier Wednesday scrapped its non-binding proposal to buy all of Blueknight's common and Series A preferred stock for $1.35 and $5.67 per unit, respectively, after being unable to resolve issues raised by its board conflicts committee.
In other sector news:
(+) Gevo (GEVO) climbed almost 5% on Wednesday after the bio-fuels company announced a joint development agreement with Queensland, Australia-based Leaf Resources to explore converting cellulose sugars and glycerol into hydrocarbon molecules that are used to produce specific fuels and chemicals. Both companies will be responsible for their own costs during the initial phase with funding for future stages to be determined later.
(-) Parker Drilling (PKD) dropped 4% after the contract driller announced plans to delist its common shares from the New York Stock Exchange following a 1-for-100 reverse stock split that will reduce the number of investors owning at least 100 shares to under 300. Shareholders owning fewer than 10,000 pre-split shares will receive $30 for each of those shares, the company said.
(-) Tops Ships (TOPS) tumbled 49% to an all-time low of $4.25 a share on Wednesday after the petroleum tanker company priced a $10 million public offering of 1.58 million common shares at $6.30 apiece, or 24% below Tuesday's closing price. Investors also received a warrant to buy an additional share before Dec. 31 for $8.29 for each share they bought in the original offering.
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