Energy Sector Update for 12/27/2017: TRP,TRP.TO,SD,BCEI,OGE

December 28, 2017

Top Energy Stocks

XOM -0.20%

CVX -0.45%

COP -1.21%

SLB +0.31%

OXY -0.41%

Energy stocks added to their early declines Wednesday, with the NYSE Energy Sector Index falling just over 0.2% while shares of energy companies in the S&P 500 were down almost 0.4% as a group. Crude oil for February delivery settled 33 cents lower at $59.64 per barrel while February natural gas futures rose 8 cents to $2.73 per 1 million BTU. Among energy-related ETFs, United States Oil lost almost 0.4% in value while United States Natural Gas climbed nearly 3.5% today. The Philadephia oil-service sector index fell 0.1%.

In industry news:

Crude oil prices paused somewhat Wednesday following a run stopping just shy of $60 per barrel. Gains were supported by supply interruptions in the North Sea and Libya, where a pipeline bombing took an estimated 90,000 barrels off-line. Looking ahead, the American Petroleum Institute releases its weekly inventory report at 4:30 p.m. ET while the U.S. Energy Information Administration issues its national supply totals tomorrow at 10:30 a.m. ET. Both reports were delayed 24 hours due to the Christmas holiday.

Among energy stocks moving on news today:

Pipeline operator TransCanada (TRP,TRP.TO) was edging lower after Wednesday saying it has agreed to sell its outstanding retail power contracts to EDF Energy Services LLC. The deals are expected to close during the first three months of 2018, subject to regulatory and other approvals.

In other sector news:

+ SandRidge Energy ( SD ) rose Wednesday after activist investor Carl Icahn again criticized a $746 mln bid by the oil and natural gas producer to acquire Bonanza Creek Energy ( BCEI ). Icahn owns a 13.5% stake in Sandridge through various vehicles and today explained his opposition in a new proxy statement, writing he believes the deal overvalues Bonanza Creek. Icahn also is against issuing stock to pay for a portion of the transaction cost. Sandridge is offering $36 for each Bonanza share, consisting of $19.20 in cash and $16.80 in SandRidge stock.

- OGE Energy ( OGE ) declined after analysts at Edward Jones today cut their investment rating for the oil and gas producer to hold from buy.