Energy Sector Update for 09/20/2019: TGE,MRO,MDR,CRC
Top Energy Stocks
Energy stocks turned narrowly mixed this afternoon, with the NYSE Energy Sector Index climbing less than 0.1% while shares of energy companies in the S&P 500 were down 0.3% as a group. West Texas Intermediate crude oil for October delivery settled 4 cents lower at $58.09 per barrel, reversing an earlier gain, while the Brent crude November contract advanced 14 cents to $64.54 per barrel. October natural gas futures finished little changed at $2.53 per 1 million BTU.
Among energy stocks moving on news:
(+) Tallgrass Energy Partners (TGE) was fractionally higher heading into Friday's close after the Federal Energy Regulatory Commission late Thursday reportedly voted 2-1 to approve the company's Cheyenne Connector and Cheyenne Hub projects in southern Wyoming. The 70-mile extension will boost capacity for Tallgrass by 600 million cubic feet per day and link natural gas production by Occidental Petroleum (OXY) and DCP Midstream (DCP) in the Denver-Julesburg Basin in northern Colorado to the Rockies Express Pipeline for delivery to the Midwest.
In other sector news:
(+) McDermott International (MDR) rose 26% on Friday, recouping a portion of its 73% decline over the previous two days after the oilfield-services company said it was exploring strategic alternatives for its Lummus Technology unit after recently receiving unsolicited offers to buy the business.
(+) California Resources (CRC) climbed more than 12% after the oil and natural gas producer denied reports that it has met with restructuring advisers and that it is evaluating sale prospects. In a statement to StreetInsider, the company said it was looking at asset sales, royalty monetizations and other means to reduce its debt, adding it regularly meets with investment bankers and advisers.
(+) Marathon Oil (MRO) was fractionally higher after Wells Fargo increased its price target for the exploration and production company by $1 to $21 and also reiterated its outperform investment rating for the company's stock.
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