The S&P Energy Sector (-2.6%) is sharply lower on the first day of trade and is currently underperforming the weakness in the broader market (-2.1%).
Sector News: STO (-2.5%) and Centrica entered into a long term gas sales agreement for the delivery of 5 billion cubic meters per year from 2015 to 2025 to the UK market. STO decided to farm down three and exit five assets on the Norwegian Continental Shelf for the consideration of $1.625 bln to Centrica. GLP (-0.2%) acquired Alliance Energy in a transaction valued at ~$296 mln.
The deal is expected to be accretive in the first full yr of operation. Broker Calls: HOS (-2.4%) was initiated with an Outperform at Wells Fargo. NFX (-1.8%) was upgraded to Neutral from Underperform at BofA/Merrill. FES (-2.1%) was initiated with a Buy at Canaccord Genuity. MHR (-2%) was initiated with a Buy at Caris.






