Markets

Sector Update: Energy Stocks Slipping As Crude Oil Declines Again; Diamondback Energy Falls After Pricing Secondary Offering

Top Energy Stocks

XOM -0.36%

CVX -0.54%

COP -1.05%

SLB +1.48%

OXY -0.35%

Energy stocks were mostly lower Thursday, with the NYSE Energy Sector Index falling about 0.3% while shares of energy companies in the S&P 500 were down about 0.4% as a group. Crude oil for October delivery was down $1.15 at $93.27 per barrel while October natural gas was down 8 cents to $3.93 per 1 million BTU.

In company news, Diamondback Energy ( FANG ) was lower this afternoon after earlier pricing a secondary offering of 2.5 million shares of its common stock at $77.70 each, matching the stock's closing price last night.

The offering generated around $194.25 million in gross proceeds, to be split equally between affiliates of Wexford Capital LP and Gulfport Energy Corp ( GPOR ) after first paying underwriter discounts and other offering expenses.

The selling shareholders also issued 30-day options to the underwriter for the deal to buy up to 375,000 additional shares to cover possible over-allotments.

FANG did not sell any shares in the offering and will not receive any proceeds. The company's shares were down more than 1% at $76.67 apiece after earlier sinking to a session low of $75.25 a share. The stock has traded within a 52-week range of $41.88 to $93.33 a share, rising more than 75% during the past year through Wednesday's close.

GPOR shares were off about 1.2% at $56.92 each in mid-day trade.

In other sector news,

(+) PWE, (+9.3%) Posts Q2 net income of C$143 mln, or C$0.29 per share, reversing a C$53 mln net loss last year and beating analyst estimates by $C0.23 per share. Revenue declines 12.8% year over year to C$650 mln, beating Street view by C$19.4 mln.

(-) USU, (-20.8%) Says it expects to emerge from Chapter 11 bankruptcy protection on Sept. 30 under new name of Centrus Energy Corp and trading under new 'LEU' ticker.

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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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