Energy stocks are continuing to add to their earlier gains with the NYSE Energy Sector Index now rising 0.9% while shares of energy companies in the S&P 500 are ahead 0.6% as a group. Crude oil for December delivery fell 48 cents to settle at $98.20 per barrel while November natural gas was down 7 cents to $3.50 per 1 million BTU.
In company news, Valero Energy ( VLO ) is up more than 2% at $40.34 a share, easing slightly shortly before the closing bell after earlier running to an intra-day high of $41.12 after reporting Q3 net income of $0.57 per share, breezing past analyst expectations by $0.16.
Revenues rose 4.1% compared to the same quarter last year to $36.14 bln, also topping the Capital IQ consensus by $5.12 million.
Separately today, VLO shares are raised to Outperform from Sector Perform at Howard Weil, which also increased its price target for the stock by $6 to $43 a share.
In other sector news,
(+) LINE, Narrows Q3 net loss to $0.13 per unit from $2.18 loss in year-ago quarter. Net cash provided by operating activities rises 42% to $379.2 mln. Average daily production rises 6% over prior quarter to 823 mln cubic feet equivalent.
(-) EROC, Reduces quarterly distribution by $0.07 to $0.22 per unit. Also forecasts adjusted Q3 EBITDA of $62.8 mln, up about 12% over the preceding quarter.
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