Energy Sector Update for 07/31/2017: SDRL,NADL,AHGP,OIS

Top Energy Stocks

XOM +0.76%

CVX +1.40%

COP +0.96%

SLB -0.61%

OXY -1.32%

Energy stocks were narrowly higher Monday, with the NYSE Energy Sector Index rising nearly 0.2% while shares of energy companies in the S&P 500 also were up slightly more than 0.2% as a group. Crude oil for September delivery was down 38 cents at $49.33 per barrel while September natural gas futures were 14 cents lower at $2.80 per 1 million BTU.

In company news, North Atlantic Drilling Ltd ( NADL ) was declining this afternoon, dropping over 7% to a session low of $1.57 a share despite securing a new interim funding agreement while the offshore oilfield-services company and majority shareholder Seadrill Ltd ( SDRL ) continue to to negotiate broader restructuring pacts.

The revised funding agreement extends the expiration date of North Atlantic’s $150 million credit facility provided by Seadrill from July 31, until Sept. 12. The companies in January originally had agreed to a $25 million funding arrangement maturing March 31, and have since increased the available funding twice – to $50 million on April 25 and again to the current $150 million on June 27 – while now pushing out the expiration three times.

SDRL shares also were lower, recently declining over 6% in afternoon trading.

In other sector news,

(+) AHGP, (+13.7%) Increases quarterly distribution by 32.7% over its most recent payout to $0.73 per equity unit, payable Aug. 18 to investors of record on Aug. 11. Q2 EPS of $0.71 on $398.6 mln in revenue trails single-analyst estimate expecting $0.82 per unit on $461.3 mln in revenue.

(-) OIS, (-8.3%) Reports adjusted Q2 net loss of $0.27 per share, coming in $0.03 per share wider than the Capital IQ consensus. Revenue falls 2.5% from last year to $171.4 mln, also missing the $176.08 mln consensus.


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