Energy Sector Update for 10/22/2019: TNP,NOG,CPE,CRZO,CVA

Top Energy Stocks

XOM +0.94%

CVX +1.37%

COP +1.72%

SLB +4.17%

OXY +3.59%

Energy stocks eased slightly from their earlier session highs this afternoon, with the NYSE Energy Sector Index climbing almost 1.6% while the shares of energy companies in the S&P 500 also were up over 1.8% as a group. West Texas Intermediate crude oil for November delivery settled 85 cents higher at $54.16 per barrel while the global benchmark Brent crude December contract advanced 64 cents to $59.60 per barrel. November natural gas futures rose 3 cents to $2.27 per 1 million BTU.

Among energy stocks moving on news:

(-) Tsakos Energy Navigation (TNP) fell 2% on Tuesday. The crude oil and liquefied natural gas tanker company earlier in the session said it has delivered the first of four advanced technology vessels under a long-term contract with an unnamed energy company. The time-charter contract for the new tanker is worth at least $200 million, Tsakos said.

In other sector news:

(+) Northern Oil and Gas (NOG) rose 7% after late Monday disclosing plans to swap up to $70.8 million of newly issued Series A 6.5% perpetual cumulative convertible preferred shares for up to $200 million of the energy company's existing 8.50% senior secured second lien notes due 2023. Under terms of the proposed exchange, investors will receive 10.6 shares of the new preferred stock for each $1,000 of their existing second-lien notes. The noteholders also can buy up to $75 million of additional preferred shares for $100 apiece. Each of the new preferred shares can be converted at any time into 43.63 common Northern shares. The exchange offer expires a minute before midnight ET on Nov. 18, unless extended or terminated early.

(+) Callon Petroleum (CPE) climbed more than 2% after Paulson & Co., owners of 9.5% of the oil and natural gas producer's outstanding stock, repeated its opposition to the company's $3.2 billion all-stock buyout proposal for Carrizo Oil & Gas (CRZO) and said it will vote against the transaction. Among the negative effects Paulson cited was a 42% drop in Callon's share price since the deal was announced, costing investors a combined $614 million.

(-) Covanta (CVA) declined over 10% on Tuesday after a Raymond James downgrade of the waste-to-energy company to market perform from strong buy previously.

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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