Energy Stocks Following Crude Oil Futures Higher

Energy stocks were stretching their modest advance, with the NYSE Energy Sector Index climbing more than 0.4% while shares of energy companies in the S&P 500 were up about 0.4% as a group. Crude oil for November delivery was up 75 cents at $50.73 per barrel while November natural gas futures were a penny lower at $2.96 per 1 million BTU, reversing an earlier rise.

In company news, Carrizo Oil & Gas (CRZO) surged almost 6% on Thursday, with the company’s shares reaching a session high of $17.49 each duing mid-morning trade after the company raised its Q3 production outlook above the mid-point of its previous forecast range.

The company has projected daily production for the three months ended Sept. 30 in a range of 53,467 to 54,733 barrels of oil equivalent, or about 54,100 barrels per day at its mid-point.

But in a related move, Carrizo also trimmed its Q3 sales forecast to a new range of 34,700 to 34,900 barrels of oil equivalent. That compares with its prior guidance expecting between 35,400 to 35,800 barrels per day, explaining that while its operations were not directly affected by Hurricane Harvey, sales volumes temporarily declined because of flooding at third-party refineries, pipelines and other infrastructure facilities following the storm.

In other sector news,

(+) USEG, (+41.3%) APEG Energy II, the sole lender for the company’s senior secured credit facility, agrees to swap $4.5 mln in outstanding debt for over $5.8 million in new equity, with the company issuing more than 7.63 mln shares priced at 77 cents apiece, a 1.3% premium to the volume-weighted average price for the stock over the past 30 days.

(-) MTDR, (-3.1%) Prices $210.8 mln public offering of 8 mln shares at $26.35 each, a 3.5% discount to the stock’s closing price yesterday.

By Kristen Tardella