Markets

Sector Update: Energy

Energy stocks were moderately higher today with the NYSE Energy Sector Index advancing about 0.3% while shares of energy companies in the S&P 500 were up about 0.5% as a group. Crude oil for September delivery was down 3 cents at $97.34 per barrel while September natural gas was down 13 cents to $3.84 per 1 million BTU.

In company news, Rex Energy ( REXX ) was lower Wednesday after the oil and gas company today priced an offering of 1.4 million depository shares, with proceeds slated to pay for the company's purchase of additional properties in the Marcellus and Utica shale formations in Pennsylvania and Ohio.

REXX common stock was down almost 3% in mid-day trade at $13.99 apiece, earlier sinking to a session low of $13.76 a share. The stock has traded within a 52-week range of $12.38 to $25.17 per share, declining about 35.4% over the past 12 months.

Each depository share represented a 1/100th interest in one share of the company's Series A convertible perpetual preferred stock with a liquidation preference of $10,000 per share. After deducting underwriter discounts and other offering expenses, the deal is expected to generate around $135.2 million in net proceeds for the company.

The offering followed REXX late yesterday disclosed a $120 million purchase of around 208,000 gross acres in the Marcellus and Utica shale formations from affiliates of Royal Dutch Shell (RDS-A).

Separately, REXX yesterday reported its fiscal Q2 financial results, with the company posting adjusted net income of $8.5 million, or $0.16 per share, during the three months ended June 30, up from $7.64 million during the year-ago period and beating the Capital IQ consensus by 40.01 per share.

Revenue rose 55.4% year over year to $86.02 million, topping estimates by around $270,000.

In other sector news,

(+) GPOR, (+0.1%) Launches $250 mln private placement of its 7.750% senior notes due 2020. The company expects to use net proceeds to repay debt owed under its revolving credit facility and for general corporate purposes.

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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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