Energy Sector Update for 08/30/2017: SPN,HESM,FRO

Top Energy Stocks

XOM -0.41%

CVX -0.19%

COP +1.31%

SLB -0.23%

OXY +0.05%

Energy stocks were ending narrowly mixed this afternoon, with the NYSE Energy Sector Index slipping slightly less than 0.2% while shares of energy companies in the S&P 500 still were up less than 0.1% as a group. Crude oil for October delivery was settled 48 cents lower at $46.96 per barrel while October natural gas futures fell 4 cents to $2.94 per 1 million BTU.

In company news, China Petroleum & Chemical ( SNP ) rose Wednesday, still rising over 1% today after earlier topping out at $76.55 per American depository share and showing no signs of a downward bias following reports the company is under investigation by U.S. regulators for allegedly paying nearly $100 million in bribes to Nigerian officials as part of efforts to resolve a business dispute.

The alleged payments, Bloomberg reports, were intended to resolve a $4 billion dispute between China Petro’s Addax Petroleum unit in Geneva, Switzerland, and the Nigerian government over drilling and other capital costs as well as tax breaks and the division of royalties between Addax and the Nigerian National Petroleum Corp.

The transactions in question surfaced in January when Addax’s auditor, Deloitte, resigned after it failed to receive “satisfactory explanations” for suspicious and inflated payments made to a Nigerian engineering firm for various construction projects, as well as payments to “legal advisers” in Nigeria, sources told Bloomberg.

In other sector news,

(+) HESM, Morgan Stanley boosts investment rating to Overweight from Equal Weight.

(-) FRO, Reports adjusted Q2 net loss of $0.08 per share, reversing a $0.31 per share profit during the same quarter last year and missing the $0.06 per share loss projected by analysts. Total operating revenue fell to $150.1 mln from $191.8 mln a year ago.

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