Sector Update: Energy
Energy stocks were ending slightly lower Monday with the NYSE Energy Sector Index slipping about 0.1% while shares of energy companies in the S&P 500 were down 0.2% as a group. Crude oil for July delivery settled 24 cents lower at $102.47 per barrel while July natural gas rose 7 cents to $4.61 per 1 million BTU.
In company news, Rice Energy Inc ( RICE ) shares were lower in late trade, reversing earlier gains that followed the company saying it successfully tested its first well in the Utica shale formation of east central Ohio.
RICE shares were down about 1.3% at $31.31 each in recent trade after earlier climbing to an intra-day high of $34.34 a share - up 8.2% - soon after today's starting bell. Through Friday's close, the stock has risen 51% since the company priced an upsized initial public offering of 44 million shares at $21 apiece.
According to the company, the new Bigfoot 9H well stabilized after five days of testing at 41.69 mln cubic feet of natural gas per day. RICE owns a 93% working interest in the well, which is expected to begin initial production in early July.
Also Monday, RICE said it has expanded its revolving credit facility to $365 million.
In other sector news,
(+) GLOG, (+5.5%) Credit Suisse begins coverage of the liquified natural gas carrier company with an Outperform rating and a $30 per share price target, citing its "existing fleet on the water and attractive asset drop-down potential."
(-) LLEX, (-3.2%) Raises $7.5 mln in private placement of its Series A 8% preferred stock with a conversion price of $2.41 per share anytime after its common stock trades above $7.50 a share for 10 days and daily volume of at least 100,000 shares.
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