Markets

Sector Update: Energy Stocks Again Rising; Dynagas LNG Partners Falls on Plans for Equity Offering

Top Energy Stocks

XOM +0.48%

CVX +0.54%

COP +1.23%

SLB +0.87%

OXY +1.65%

Energy stocks were mostly higher Thursday, with the NYSE Energy Sector Index rising 0.8% while shares of energy companies in the S&P 500 also were up 0.8% as a group. Crude oil for July delivery was up $1.65 at $106.05 per barrel while July natural gas was up 2 cents to $4.73 per 1 million BTU.

In company news, Dynagas LNG Partners LP ( DLNG ) fell Thursday after the liquefied natural gas shipper disclosed plans for a public offering of 4.8 million units representing limited partnership interests.

DLNG units were down 5.4% at $23.09 each in recent trade, earlier sliding more than 7% to an intra-day low of $22.66 a share. The stock has a 52-week range of $16.75 to $25.00 a share, rising 43.5% through Wednesday's close since pricing its initial public offering at $17 per unit in November 2013.

The company also expects to issue 30-day options to underwriters in the current offering to purchase up to 720,000 additional units to cover possible overallotments.

DLNG expects to use proceeds from the offering, after first paying underwriter discounts and other offering expenses, to partially fund its purchase of an ownership stake in the ice class LNG carrier Arctic Aurora from Dynagas Holding Ltd.

It plans to fund the balance of the purchase through a new, $340 million senior secured revolving facility, which will also be used to refinance $214.1 million now owed under its existing senior secured revolver.

In other sector news,

(+) SXE, (+12.8%) Acquires a portion of the privately held TexStar Midstream natural gas gathering and processing system in the Eagle Ford shale formation in Texas for $450 mln, expanding its network to four proceesing centers with 3,700 miles of pipeline.

(-) PBF, (-5.0%) Prices secondary offering of 18 mln shares once held by First Reserve Management and the Blackstone Group ( BX ), generating $540 mln in gross proceeds, or $30.00 a share - a 4.4% discount to Wednesday's closing price.

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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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