Top Energy Stocks
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.