Energy Stocks Edging Off Session Lows While Crude Oil Extends 2% Decline

Energy stocks were lower, with the NYSE Energy Sector Index falling more than 1.0% while shares of energy companies in the S&P 500 were down nearly 1.0% as a group. Crude oil for October delivery was down 96 cents at $48.13 per barrel while October natural gas futures were 8 cents lower at $2.90 per 1 million BTU.

In company news, North Atlantic Drilling Ltd. (NADL) declined Friday, dropping more than 8% to a session low of $1.18 a share though majority owner Seadrill Ltd (SDRL) boosted the offshore drilling contractor’s borrowing capacity by another $50 million, increasing the subsidiary’s revolving credit facility to $200 million overall.

With the additional capacity, the interim funding facility has grown significantly in size from its original $25 million on Jan. 31, first doubling to $50 million in late April followed by a three-fold increase to $150 million on June 27.

Seadrill also extended the maturity date for the facility several times, with the loan package currently set to mature on Sept. 12, although that deadline could be again pushed back while Seadrill continues to negotiate a comprehensive restructuring package for both firms.

In other sector news,

(+) BW, (+5.6%) Lone Star Capital Management discloses a 7.4% equity stake, owning almost 3.3 mln shares through several affiliated funds.

(-) ECR, (-12.0%) Goldman Sach downgrade to Sell from Neutral.

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