Energy stocks were mixed Monday afternoon with the NYSE Energy Sector Index slipping about 0.1% while shares of energy companies in the S&P 500 were up about 0.3% as a group. Crude oil for September delivery was up 22 cents at $97.87 per barrel while September natural gas was little changed at $3.96 per 1 million BTU.
In company news, Martin Midstream ( MMLP ) was higher Monday after today announcing a deal to acquire the 57.8% ownership stake in Cardinal Gas Storage Partners it already doesn't own for around $120 million in cash.
MMLP is expecting the deal will increase its yearly cash distributions to unitholders by at least $0.15 per unit, beginning with a $0.02 per unit increase in its Q4 distribution.
Under terms of the transaction, MMLP also plans to retire around $265 million of net project level financings currently in place at various Cardinal subsidiaries. Also, Martin Resource Management Corp has agreed to buy between $40 million to $45 million in MMLP common equity units.
A Q3 closing is expected.
MMLP is up about 3.5% at $37.57 per unit, just slightly below its intra-day high of $38.65 per unit. The stock has traded within a 52-week range of $35.75 to $48.90 per unit, slipping about 7% over the past 12 months.
In other sector news,
(+) KMI, (+10.6%) Climbs to new 52-week high after announcing $71 mln plan to purchase and combine all of its operating subsidiaries - Kinder Morgan Energy Partners ( KMP ), Kinder Morgan Management ( KMR ) and El Paso Pipeline Partners - into a single company.
(-) DVR, (-24.6%) Reports Q2 net loss of $29.1 million, or $0.31 per diluted share, on $121.7 million in revenue. The Street was looking for a $0.05 per share loss on $127.1 mln in revenue.
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