Not willing to commit more capital to the production of natural gas, EOG Resources Inc (NYSE:EOG) had its share price plunge as the cut their production estimates. Citigroup downgraded them from "Buy" to "Hold" in response.
Most of this is driven by the depressed prices of natural gas, which at least in the short term, aren't going to be moving up.
Natural gas companies with heavy exposure have been transferring capital to the oil sector or liquefied natural gas segment, which generate stronger margins and earnings at this time.
Even with lower production estimates, some question if EOG has the capital to pull it off.
EOG closed Wednesday at $88.64, plummeting $9.10, or 9.31 percent. Citigroup slashed their price target from $110 to $95.
Showing posts with label Butane. Show all posts
Showing posts with label Butane. Show all posts
Thursday, November 4, 2010
Tuesday, June 29, 2010
Sunoco Logistics (NYSE:SXL) Acquires Texon L.P. (NYSE:TXT) Butane Business
A butane blending business of Texon L.P. (NYSE:TXT) is the latest acquisition of Sunoco Logistics (NYSE:SXL), which reportedly bought the unit for $140 million plus inventory.
The acquisition will be funded through a $100 million loan via Sunuco Corp.'s revolving credit facility.
The butane business includes, along with its butane/gas blending technology, several contracts with giant terminal operator who use the technology.
Sunoco and Texon are expected to close the deal on July 1.
The acquisition will be funded through a $100 million loan via Sunuco Corp.'s revolving credit facility.
The butane business includes, along with its butane/gas blending technology, several contracts with giant terminal operator who use the technology.
Sunoco and Texon are expected to close the deal on July 1.
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