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Wednesday's Energy Stocks: Concho Resources drops 8.76% on merger news

Broader benchmarks continued losses into Wednesday, March 28, while energy equities posted another day of mixed results.

The Dow Jones Industrial Average retreated 0.04% to end the day at 23,848.42, and the S&P 500 decreased 0.29% to close at 2,605.00.

In the oil and gas exploration and production sector, Concho Resources Inc. stock fell 8.76% on more than nine times average volume to wrap at $143.25, after it announced plans to acquire its fellow Permian Basin producer RSP Permian in an all-stock merger deal worth about $9.5 billion, creating a combined company that will run the largest drilling program in the shale play.

RSP Permian shares rose 15.62% on more than 13 times average volume to close at $45.00.

Targa Resources Corp. is expanding its natural gas gathering and processing capacity in the Delaware Basin through the build-out of two 250-MMcf/d processing plants and 220 miles of gathering pipelines, an undertaking that would cost around $500 million. Targa shares slid 3.78% to end an active day at $43.74.

Dominion Energy Midstream Partners LP is still not out of the woods, judging from its share price performance, following the Federal Energy Regulatory Commission's tax ruling impacting master limited partnerships. The partnership's shares declined 3.15% in robust trading to close at $15.35.

First Solar Inc. shares slipped 3.06% to end a slow session at $69.32 and SunPower Corp. stock shrunk 2.79% to end a light session at $7.66. SunPower Corp. and SunPower Corp. Systems advised issuers that their one or more outstanding letters of credit and demand guarantees under a reimbursement agreement may remain outstanding at any company's request after the scheduled termination date.

Dynegy Inc.'s share price increased 1.33% on light volume to close at $13.72. Vistra Energy Corp., in play to acquire Dynegy, saw shares grow 1.29% to end an average session at $21.13 after Macquarie Capital (USA) Inc. analysts on March 28 initiated coverage on the company at "outperform," given their "optimistic" view about incremental efficiencies at the Texas integrated power producer.

Dominion Energy Inc. shares shed 2.07% on heavy volume to finish at $67.79. Dominion Energy plans to issue a report by late fall on its climate risks, following pressure from major investors.

In coal, an Alliance Resource Partners LP subsidiary is seeking to expand its underground coal mining operations in Pennsylvania, according to the state's Department of Environmental Protection. Alliance Resource's stock was down 0.85%, closing a thin session at $17.60.

The May natural gas futures contract moved lower in its first day in the lead slot, pressured by the calendar as the lingering cold of an unrelenting winter will give way to the warmer air of spring. Starting in seesaw fashion, the contract spanned $2.690/MMBtu to $2.731/MMBtu and finished 1.6 cents lower at $2.698/MMBtu.

Market prices and index values are current as of the time of publication and are subject to change.