NEW YORK (TheStreet) -- Shares of Loews Corp. (L) are up 0.62% to $42.36 after the company said that it reached an agreement to sell its wholly-owned subsidiary, HighMount Exploration & Production, LLC.
The transaction is expected to be completed before the end of the year. Terms of the deal were not disclosed.
In the second quarter, Loews recognized an after-tax impairment charge of $167 million in relation to HighMount.
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Loews was caught off guard by a decline in natural gas prices, according to Bloomberg.
EnerVest Ltd., a private-equity firm that invests in oil and gas production, will purchase HighMount. Loews purchased HighMount in 2007 for about $4 billion, Bloomberg said.
TheStreet Ratings team rates LOEWS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate LOEWS CORP (L) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."