Energy Stocks Rise Amid Settlements and Sector News

Strategic Insights -

Energy stocks in the NYSE Energy Sector Index rose 1.1% on Thursday, May 21, 2015, with shares of companies in the S&P 500 up 0.9% as a group. Crude oil prices increased, with July delivery rising to $60.80 per barrel, while natural gas futures gained 10 cents to $3.01 per 1 million BTU. American depository shares of BP plc (BP) surged after the energy major announced settlements with Halliburton (HAL) and Transocean (RIG) related to the 2010 Deepwater Horizon oil spill. As part of the settlement, Transocean agreed to pay $212 million to plaintiffs and Halliburton settled with BP, dismissing competing claims and indemnifying them against future actions. BP ADS rose over 2% to $42.95, while HAL and RIG shares also climbed.

Key Takeaways:

  • The NYSE Energy Sector Index rose 1.1% on Thursday, May 21, 2015, with shares of companies in the S&P 500 up 0.9% as a group.
  • Crude oil prices increased, with July delivery rising $1.82 to $60.80 per barrel.
  • American depository shares of BP plc (BP) surged over 2% to $42.95 after announcing settlements with Halliburton (HAL) and Transocean (RIG).
  • Transocean agreed to pay $212 million to plaintiffs as part of the settlement with BP, and Halliburton settled with BP, dismissing competing claims and indemnifying them against future actions.
  • RIG shares rose 4.2% to $20.08, while HAL shares climbed 1.8% to $45.79.
  • BP ADS has traded within a 52-week range of $34.88 to $53.48 and declined nearly 18% over the past 12 months prior to the settlement announcement.
  • SmarTrend Alert, an automated pattern recognition system, indicated downtrends for BP, HAL, and RIG on 03-28-2012, 05-14-2012, and 04-04-2012, respectively.

Statistics:

  • NYSE Energy Sector Index rose 1.1% on Thursday, May 21, 2015.
  • Shares of companies in the S&P 500 up 0.9% as a group.
  • Crude oil prices increased by $1.82 to $60.80 per barrel for July delivery.
  • Natural gas futures rose 10 cents to $3.01 per 1 million BTU.
  • BP ADS rose over 2% to $42.95.
  • HAL shares climbed 1.8% to $45.79.
  • RIG shares rose 4.2% to $20.08.

Sources:

  • MidnightTrader via COMTEX (Washington, DC, May 21, 2015)
  • Comtex SmarTrend Alert (As of Sunday, 05-17-2015 23:59)
  • Comtex News Network, Inc. (Copyright 2004-2015 Comtex News Network, Inc. All rights reserved)