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Engery Sector Update for 11/17/2014: BHI,HAL,SLB, EXH, PED

Top Energy Stocks

XOM 0.00%

CVX -0.21%

COP -0.06%

SLB +1.07%

OXY -0.69%

Energy stocks were mostly lower, with the NYSE Energy Sector Index sinking more than 0.7% while shares of energy companies in the S&P 500 were down about 0.4% as a group. Crude oil for December delivery was down 44 cents at $75.38 per barrel while December natural gas was up 23 cents to $4.25 per 1 million BTU.

In company news, Baker Hughes ( BHI ) rose Monday after accepting a $34.6 billion buyout offer from its larger rival Halliburton ( HAL ), creating the world's largest oilfield-services company by revenue, overtaking current leader Schlumberger ( SLB ).

Under terms of the deal, BHI shareholders will receive $78.62 in cash and stock for each of their shares, a 31% premium over Friday's closing price. HAL also said it would divest businesses generating up to $7.5 billion per year in revenue if required by anti-trust regulators. It also will pay a $3.5 billion break-up fee if regulatory concerns keep the transaction from closing.

Three BHI directors will join the HAL board, with BHI shareholders owning around 36% of the combined companies, which generated about $51.8 billion in pro forma revenue during 2013.

BHI shares were up more than 10% at $66.11 each in mid-day trade, falling off its $66.65 session high. The stock has traded within a 52-week range of $47.51 to $75.64 a share, climbing about 3% over the past year prior to Monday's advance.

HAL recently was down almost 10% at $49.75 a share, recently sliding to a new session low at $49.51 a share. SLB was ahead about 1.2% at $96.45 a share.

In other sector news,

(+) EXH, (+7.1%) Announces plan to separate its international and fabrication businesses into a new publicly traded company. Following the spin-off, the company will own 37% EXLP stake.

(-) PED, (-4.0%) Schedules Dec. 12 special shareholders meeting to vote on Caspian (CEK-H.V) buyout offer.

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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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