Energy Stocks Slip Off Session Highs After Crude Oil Also Gives Back Some of its Prior Advance

Energy stocks continued to add to previous gains, with the NYSE Energy Sector Index rising more than 1.5% while shares of energy companies in the S&P 500 were up more than 1.3% as a group. Crude oil for June delivery settled 98 higher at $50.33 per barrel while June natural gas futures rose 7 cents to $3.26 per 1 million BTU.

In company news, Marine Petroleum Trust (MARPS) rose Friday, rising as much as 6.5% to reach a session high of $3.95 per unit after the company more than doubled its quarterly distribution compared with its most recent payout to investors.

The upcoming $0.095735-per-unit distribution – up 109% from its $0.045774 per unit distribution during the previous quarter – is payable June 28 to investors of record on May 31. The increase reflects rising natural gas prices during the first three months of 2017 compared with the prior quarter, with oil production declining somewhat during the quarter from the final three months of 2016 while natural gas volumes have risen.

The next distribution also is 30.6% higher than the company’s $0.073281 per unit payout during the year-ago period.

In other sector news,

(+) PTXP, Energy Transfer Partners (ETP) begins tender offer for PennTex Midstream Partners stock, offering $20.00 in cash for each PTXP unit. ETP already owns about 32.4% of PennTex and needs to acquire at least 80% of the company’s stock for the deal to proceed.

(-) TGEN, Completes merger with American DG Energy (ADGE) after shareholders at the target company on Thursday voted to approve proposed merger agreement calling on Tecogen to swap 0.092 of its share for each American DG share.

Leave a Comment