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Sector Update: Energy

Energy stocks added to their afternoon gains, with the NYSE Energy Sector Index rising about 0.3% while shares of energy companies in the S&P 500 were ahead 0.6% as a group. Crude oil for December delivery settled 4 cents lower at $82.71 per barrel while November natural gas fell 10 cents to finish at $3.67 per 1 million BTU.

In company news, Tesoro Logistics LP ( TLLP ) tumbled Monday, one day after the pipeline company announces plans to the natural gas gathering and processing business owned by QEP Resources Inc. ( QEP ) for around $2.5 billion.

The company said the deal includes natural gas assets in the Rockies, Uinta mountains and North Dakota. Under the agreement, TLLP also will take a 58% stake in QEP Midstream Partners LP ( QEPM ) and pay $230 million to refinance the company's debt.

The deal is expected to close before the end of the year and is expected to begin adding to TLLP's shareholder distributions next year.

TLLP shares were down nearly 13% in late trade at $58.54 apiece, recently sinking to a session low of $58.50 a share. The stock has traded within a 52-week range of $47.40 to $75.55 a share, rising almost 20% over the past 12 months heading into today's trading.

QEP was up nearly 5% at $24.33 a share, down from an intra-day of $25.34. QEPM was down about 9.4% at $18.00 a share shortly before the closing bell.

In other sector news,

(+) FST, Begins mailing proxy statements ahead of the upcoming shareholder vote on proposed merger with privately held Sabine Oil and Gas.

(-) REXX, Raises FY14 production outlook after Q3 production exceeds the top end of its guidance, rising 72% year over year to 169.7 million cubic feet equivalent per day of natural gas.

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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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