Markets

Engery Sector Update for 01/22/2015: MHR,NADL,SDRL,MWE

Top Energy Stocks

XOM -0.20%

CVX -0.61%

COP +0.16%

SLB -1.05%

OXY -1.53%

Energy stocks were mostly lower, with the NYSE Energy Sector Index falling about 0.3% while shares of energy companies in the S&P 500 were down 0.8% as a group. Crude oil for March delivery was down at $46.70 per barrel while front-month natural gas futures were down 16 cents to $2.81 per 1 million BTU.

In company news, Magnum Hunter Resources Corp ( MHR ) declined to a six-year low following a downgrade of the oil and gas producer Thursday at Stifel Nicolaus, which cut its investment call to Hold from Buy and removed its $4 price target for the stock.

The analyst action follows MHR's last night reporting a 25% increase in its proved reserves to 83.3 million barrels of oil equivalent on Dec. 31, 2014, compared with the end of 2013.

The reserves currently consist of 70% natural gas, up from about 60% at the end of 2013 as the company continues to further develop its leasehold acreage in the Marcellus and Utica shale formations in West Virginia and Ohio. Those properties account for roughly 90% of its reserve volumes, with its holdings in the Williston Basin in North Dakota comprising the rest.

The 10% discounted value of MHR's reserves at the end of 2014 was estimated at around $909.3 million, up 22% over the prior 12 months.

MHR shares recently were down over 11% at $1.64 each, just 4 cents above their worst price since January 2009 at $1.60 a share. The stock fell to a five-year low at $1.82 a share on Wednesday, slumping almost 78% over the past 12 months heading into Thursday's session.

In other sector news,

(+) NADL, (+9.2%) Launches process to amend a NOK 1.5 bln bond maturing in 2018. The company also is seeking to rework its secured credit facilities after Seadrill ( SDRL ) agreed to provide a guarantee.

(-) MWE, (-0.9%) Increases cash distribution by 1.1% over prior quarter to $0.90 per equity unit, payable Feb. 13 to unitholders of record on Feb. 5.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SDRL

Other Topics

Commodities