Sector Update: Energy Stocks Still Adding to Wednesday Gains; Seadrill Rebounds After Scrapping $1 Bln Bond Sale
Top Energy Stocks
Energy stocks continued to add to their earlier gains Wednesday with the NYSE Energy Sector Index rising over 1.8% in late trade while shares of energy companies in the S&P 500 were ahead about 0.7% as a group. Crude oil for August delivery settled $1.11 lower at $102.29 per barrel while August natural gas fell 3 cents to finish at $4.17 per 1 million BTU.
In company news, SeaDrill Limited ( SDRL ) shares rebounded Wednesday after the offshore oilfield-services company canceled a proposed $1 billion public offering of five-year convertible bonds, citing yesterday's 5% drop in its share price after the deal was first announced.
The company while the order book for the offering was covered, Tuesday's price decline resulted in an unattractive conversion price for the issue. It also canceled a proposed exchange offer for existing 3.375% convertible bonds due 2017 and said it will not accept any acceptance forms delivered for the voluntary incentive payment offer.
SDRL shares were up nearly 3% at $38.66 apiece in late trade, earlier climbing to a session high of $38.93 a share. The stock has a 52-week range of $32.40 to $48.09 a share, adding about 2.2% in value over that 12-month span.
In other sector news,
(+) WLT, Prices $320 million follow-on public offering of 9.50% senior secured notes due 2019. It plans to use net proceeds from the recent offering to repay $298.1 million owed under its revolving credit facility.
(-) AXAS, Three new wells in North Dakota are producing combined 2,845 barrels of oil equivalent per day. Two recently completed wells in Texas also are flowing to sales at encouraging rates, with a third Eagle Ford well still being drilled.
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