Energy stocks continued to be very volatile, with the slightest news or rumor sending some stocks on roller coaster rides. While dozens of energy stocks made big moves this week according to S&P Capital IQ data, the three most interesting movers were Chesapeake Energy (CHKA.Q), Sunoco (SUN -0.46%), and PBF Energy (PBF -0.37%).
Chesapeake Energy's stock has been pummeled all year long thanks to the extreme pressure low oil and gas prices are putting on the company's cash flow. That weakened cash flow is causing investors in its debt to start to panic, which was really the fuel behind this week's plunge in Chesapeake Energy's stock price.
Sunoco's story is quite different, with its stock surging this week. Fueling that rally was a deal it struck with Energy Transfer Partners (ETP), which agreed to drop down the rest of its stake in convenience store operator Sunoco LLC. Sunoco is paying $2.2 billion in cash and will issue 5.7 million units worth $194 million to Energy Transfer Partners for its 68.4% stake in the convenience store company. Energy Transfer Partners will continue to remain the largest shareholder in Sunoco with a 46% stake.
Finally, the news that fueled PBF Energy was its securing much needed funding to close the acquisition of a key refinery. Despite a tightening credit market for energy companies, PBF Energy was able to secure $500 million of long-term debt, giving it the cash it needs to close that deal.
To learn even more about why these stocks moved so sharply this week, check out the following slideshow.
