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Engery Sector Update for 11/12/2014: ALDW,ALJ,OILT,EPD,LTBR

Top Energy Stocks

XOM -0.59%

CVX -0.17%

COP -0.24%

SLB -0.11%

OXY -0.39%

Energy stocks were lower, with the NYSE Energy Sector Index sinking 0.5% while shares of energy companies in the S&P 500 were down about 0.3% as a group. Crude oil for December delivery was down 68 cents at $77.26 per barrel while December natural gas was down 4 cents to $4.20 per 1 million BTU.

In company news, Alon USA Partners LP ( ALDW ) was higher in mid-day trade Wednesday after the refinery company announced a deal to acquire the Krotz Springs refinery from Alon Energy ( ALJ ) for $437.5 million in cash and stock.

The transaction calls on ALDW to pay $100 million in cash and $337 million of its common stock, equaling around 17.56 million equity units, giving ALJ a 21.9% stake in ALDW. ALJ also agreed to reimburse ALDW for scheduled major maintenance activities at the refinery during 2015.

A Nov. 28 closing is expected.

Separately, ALDW disclosed plans for a $450 million offering of senior notes due 2022, with a portion of the net proceeds earmarked for the refinery purchase. Remaining funds will be used to pay off and terminate the company's term loan facility as well as paying down revolving debt.

ALDW shares were ahead almost 2% at $19.00 each, earlier climbing to an intra-day high of $19.49 a share. The stock has traded within a 52-week range of $10.50 to $20.73 a share, rising about 41% over the past 12 months heading into Wednesday's session.

ALJ also is higher, with shares of the refinery company up about 3.6% at $16.84 in mid-day trade.

In other sector news,

(+) OILT, (+7.6%) Agrees to $4 bln buyout offer from Enterprise Products ( EPD ), which will exchange 1.3 of its common equity units for each OILT unit. The deal represents a 5.6% premium over OILT's Sept. 30 stock price, the day before the merger was proposed.

(-) LTBR, (-8.2%) Prices direct offering of 2.88 units at $1.75 apiece, a 25.2% discount to Tuesday's closing price for the stock.

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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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