Energy stocks were continued to pare their losses in afternoon trading, with the NYSE Energy Sector Index falling over 0.3% this afternoon while shares of energy companies in the S&P 500 were down slightly more than 0.1% as a group.
Crude oil for November delivery settled 44 cents lower at $49.98 per barrel despite a somewhat bullish Energy Information Agency report today that found U.S. oil inventories declined 6 million barrels from last week. November natural gas futures fell 2 cents to $2.90 per 1 million BTU, reversing a prior gain.
In company news, Yuma Energy (YUMA) was edging lower late Wednesday after the oil and natural gas producer last night closed on a $9.6 million public offering of 9.6 million shares at $1 apiece.
The company also granted 30-day options to underwriters to purchase up to 1.44 additional shares to cover possible over-allotments. It plans to use net proceeds to expand the horizontal San Andres play in Yoakum County, Texas, using the new funds to acquire additional leasehold properties throughout the Permian Basin as well as drilling a new horizontal oil well and a salt water disposal well.
In other sector news,
(+) LLEX, Acquires over 4,000 continguous or overlapping acres in the Delaware Basin from a private seller for around $45.6 mln in cash, subject to closing adjustments.
(-) MVO, Cuts upcoming fiscal Q2 distribution of net profits to investors by 44.4% from its most recent payout to $0.125 per unit, following a 41.8% quarter-over-quarter decline in net profits as production volumes, oil prices and gross proceeds all fell from Q1 levels.