Energy stocks were lower in recent trading, with the NYSE Energy Sector Index falling just more than 0.4% this afternoon while shares of energy companies in the S&P 500 were down more than 0.2% as a group.
Crude oil for November delivery was down 46 cents at $49.96 per barrel despite a somewhat bullish inventory report this morning by the Energy Information Agency that found U.S. oil inventories declined 6 million barrels last week. November natural gas futures were 6 cents higher at $2.96 per 1 million BTU.
In company news, MV Oil Trust (MVO) stumbled nearly 9% on Wednesday, falling to a session low of $5.70 per unit, after the petroleum statutory trust last night reduced its upcoming fiscal Q2 distribution of net profits to investors by 44.4% compared to its most recent quarterly payout.
Investors will receive $0.125 per share, or about $1.44 million, overall, payable Oct. 25 to unitholders of record on Oct. 13, down from its $0.225 per unit payment in July.
Under trust regulations, MV Oil pays 80% of its net profit to investors each quarter. That fell to $2.04 million during the three months ended Sept. 30 from $3.51 million during the preceding quarter, a 41.8% decline, as production volumes, per barrel oil prices and gross proceeds all fell quarter-over-quarter.
In other sector news,
(+) LLEX, (+7.0%) This morning acquires more than 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.
(-) DNR, (-3.1%) CEO Christian Kendall Oct 1 sells 22,079 shares at $1.34 apiece, generating nearly $29,600 in gross proceeds and reducing his overall stake in the company to around 1.47 million shares.