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CPG

Sector Update: Energy

Energy stocks were again higher Friday with the NYSE Energy Sector Index rising about 0.6% while shares of energy companies in the S&P 500 were up 0.4% as a group. Crude oil for July delivery was up 43 cents at $106.96 per barrel while July natural gas was down 3 cents to $4.73 per 1 million BTU.

In company news, Crescent Point Energy Corp. ( CPG ) was higher Friday, rising to its best share price in 20 months after the oil and gas company boosted its expected daily exit production rate by 3,000 barrels over its prior outlook to 148,000 barrels per day.

The 2% upward move follows CPG completing its $334 million purchase of oil assets in Saskatchewan's Dodsland region from Polar Star Canadian Oil and Gas Inc.. It paid $2 million in cash in addition to issuing 7.6 million CGP shares in exchange for the properties, which include over 2,800 barrels per day of high-quality, high-netback production.

The company also raised its guidance for average daily production this year by 1,500 barrels to 135,500 barrels per day on top of a $25 million increase in its 2014 capital budget to $1.8 billion.

CPG shares were up about 3% at $43.22 each in recent trade, earlier reaching its highest share price since October 2012 at $43.28 a share. The stock

In other sector news,

(+) PVA, (+3.6%) Raised to Buy from Hold at Stifel Nicolaus in a valuation move following the stock's recent price decline. It also cited production volume growth and PVA's $312.5 mln offering of convertible preferred stock earlier this week.

(-) CHK, (-0.5%) Prices $500 mln private placement of 6.5% Senior Notes due July 2022 to repay debt at its Seventy Seven Energy oilfield-services (SSE) unit ahead of its planned spinoff from CHK.

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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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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