Energy Sector Update for 10/21/2019: EC,HAL,MDR

Top Energy Stocks

XOM +1.41%

CVX +1.57%

COP +3.09%

SLB +4.16%

OXY +0.89%

Energy stocks were sharply higher this afternoon, with the NYSE Energy Sector Index rising over 1.4% while shares of energy companies in the S&P 500 were up more than 1.7% as a group. West Texas Intermediate crude oil for November delivery was slipping 68 cents to $53.10 per barrel in New York while the global benchmark Brent crude December contract was declining 74 cents to $58.68 per barrel. November natural gas futures were 9 cents lower at $2.23 per 1 million BTU. Among energy-related ETFs, the United States Oil Fund was down about 0.5% while the United States Natural Gas fund was sinking around 3.9%. The Philadelphia Oil Service Sector index was posting a 3.7% advance.

Among energy stocks moving on news:

(-) Ecopetrol SA (EC) declined fractionally after the Columbian energy major Monday said it was acquiring a 30% stake in the Gato do Mato discovery in Brazil's Santos Basin from a Royal Dutch Shell (RDS-A,RDS-B) subsidiary. Under the deal, Shell will retain a 50% stake and continue as operator while French oil and gas giant Total SA will own the remaining 20% stake. Ecopetrol is expecting its share will grow to around 20,000 barrels of crude oil per day by 2025. Financial terms of the transaction were not disclosed.

In other sector news:

(+) Halliburton (HAL) rose 7% after Monday reporting Q3 net income of $0.34 per share, matching Wall Street estimates and the oilfield-services giant also saying it still was confident its international operations will grow in high single-percentage digits this year.

(-) McDermott International (MDR) dropped over 11% this afternoon, reversing a 29% advance soon after Monday's opening bell that followed the oilfield-services company saying it secured access to up to $1.7 billion of additional financing. Under the terms of the agreement, McDermott will have immediate access to $650 million of financing consisting of a $550 million term loan and a $100 million letter of credit, before reduction for related transaction fees and costs.

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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