Sector Update: Energy
Energy stocks are slightly lower this afternoon with the NYSE Energy Sector Index declining 0.2% while shares of energy companies in the S&P 500 are falling about 0.1% as a group. Crude oil for February delivery is down 47 cents at $93.49 per barrel while January natural gas is down 3 cents to $4.27 per 1 million BTU.
In company news, Endeavour International ( END ) rose today after saying its first well in the Rochelle Field of the UK North Sea is now producing between 65 million to 70 million cubic feet of natural gas per day. The company also met its Q4 production target of 12,000 to 13,000 barrels of oil equivalent per day.
The first Rochelle well, W1, came on-line in October 2013 and is now producing between 2,500 to 3,000 barrels of oil equivalent per day of liquids in addition to its natural gas production. Inclement weather is delaying completion of the E2 well past its late December scheduled target, with a final hook-up to the East Rochelle manifold planned as soon as the weather allows.
END has a 44% working interest in the Rochelle field.
Shares recently were up about 3.4% at near $5.50 each, attempting to retest an early run to $5.60 a share during the first 10 minutes of today's session. Through Friday's close, END shares have gained over 19% since hitting a recent nadir of $4.27 each on Nov. 20.
But the stock still has a substantial distance to go before again challenging its 52-week high of $7.47 set in mid-October just before END completed a strategic review begun in February, with the company saying it was in the best interest of shareholders to retain and exploit its existing asset base while also closing its London office and consolidating its technical operations in Aberdeen, Scotland.
In other sector news,
(+) NOV, (+1.1%) Barron's weekend article touts the oilfield services company as a top value stock, writing the upcoming spin-off of its distribution business into a stand-alone company could unlock value, with shares rising as much as 30%.
(-) CPE, (-3.4%) Lone Star Value Management LLC calls for a review of strategic options by the oil and gas firm, also urging CPE board to avoid issuing more stock or debt or buying assets outside the Permian Basin in Texas.
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