Oil prices are pulling back modestly as stock markets sell off. Crude oil futures for November delivery are down 31 cents to $86.49 per barrel.
However, the major equity movers in the energy sector are being driven by corporate news.
Last night, Kinder Morgan said it would buy El Paso Corp to become the largest natural gas pipeline operator in North America. Kinder Morgan shares are up 6%, while El Paso Corp has has jumped 24%.
Anadarko Petroleum gained 5% after it said it would pay $4 billion to BP in a settlement related to last year’s Gulf oil spill. BP shares climbed 1%.
Halliburton said revenue jumped 40% to $6.5 billion, beating expectations for $6.4 billion. Profit margins got hit by higher materials, logistics, and labour costs. Adjusted net earnings of 92 cents per share was in line with expectations.
“Project delays in Iraq and the shutdown in Libya continued to have a negative impact on results in the third quarter,” said CEO Dave Lesar. He also added, “The recent drop in oil prices and related declines in equity markets have been unsettling to investors.”
Halliburton shares are down 6% in midday trading.