Oil and Gas Stock Roundup: These Strategy Updates Fueled Some Massive Moves
While earnings season in the energy patch is in the rearview mirror, that doesn't mean it was a quiet week. Several energy companies unveiled updates on their strategic initiatives, which proved to be significant catalysts and fueled big moves in their stock prices. Leading the way, according to data from S&P Global Market Intelligence, were Seadrill Partners (NYSE: SDLP), Calumet Specialty Products Partners (NASDAQ: CLMT), and Denbury Resources (NYSE: DNR).
Units of Calumet Specialty Products Partners skyrocketed 20% this week after the company announced the sale of its refinery in Superior, Wisconsin, to Husky Energy (TSX: HSE). Under the terms of the agreement, Husky Energy agreed to pay $435 million in cash for the facility and various related assets as well as an additional payment for working capital, inventory, and a reimbursement of certain capital spending. Calumet noted that the additional payment would have been $61.5 million if the deal closed at the end of June. The sale does several things for Calumet Specialty Products Partners, including providing it with cash to shore up its balance sheet, freeing up resources so it can focus on growing its core specialties portfolio, and reducing its exposure to commodity price volatility.
Image source: Getty Images.
Source: Fool.com
