trending Market Intelligence /marketintelligence/en/news-insights/trending/99qo9uTIdxsOtk7I4Ny67A2 content esgSubNav
In This List

Wednesday's Energy Stocks: Tallgrass Energy soars 35.61% on buyout deal

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Wednesday's Energy Stocks: Tallgrass Energy soars 35.61% on buyout deal

Oil and gas shares outpaced broader markets on Wednesday, Aug. 28, getting a boost from higher crude prices. The Dow Jones Industrial Average increased 1.00% to 26,036.10, and the S&P 500 added 0.65% to close the day at 2,887.94.

Brent crude rose 1.63% to close at $60.48 per barrel, and Light Sweet crude climbed 1.77% to settle at $55.90 per barrel.

Tallgrass Energy LP skyrocketed 35.61% on more than 18x average trading volume to settle at $19.46, after receiving an offer from Blackstone Group Inc. to take the midstream company private.

Blackstone's infrastructure arm will buy Tallgrass' outstanding class A shares for $19.50 per share, representing a 35.9% premium over Tallgrass' closing price on Aug. 27.

The deal would be structured as a merger, under which an acquisition vehicle controlled by Blackstone Infrastructure Partners, its partners and affiliates would merge into Tallgrass, with Tallgrass surviving the merger. The Blackstone entities held a 44.2% economic interest in Tallgrass as of Aug. 27.

Other gainers in the MLP sector included DCP Midstream LP, which advanced 3.11% on heavy volume to close at $24.22; Western Midstream Partners LP closed up 3.07% in average trading to $22.80; and Holly Energy Partners LP increased 2.88% in brisk trading to settle at $27.14.

Cheniere Energy Inc. moved 1.08% higher on light volume to end at $58.86. The Federal Energy Regulatory Commission authorized Cheniere to start commercial operations on the second natural gas liquefaction train of its Corpus Christi LNG export terminal in Texas.

Among other oil and gas companies, Cimarex Energy Co. jumped 10.55% in heavy trading to $41.60; Halliburton Co. rose 3.99% on strong volume to $18.00; and National Oilwell Varco Inc. gained 3.85% in light trading to $19.17.

The S&P 500 Energy Sector was up 1.40% to 415.71, and the Alerian MLP Index advanced 2.40% to 228.30.

Meanwhile, electric and diversified utilities ended mixed, with most components closing the day with losses.

PG&E Corp. declined 3.57% on below-average volume to $10.82. A federal bankruptcy court hearing on Aug. 27 left an unclear picture whether the company will be able to meet a legislated deadline to resolve damage claims from wildfires and emerge from bankruptcy reorganization.

Also, Edison International shed 2.11% in light trading to $71.78; and American Electric Power Co. Inc. retreated 1.15% in strong trading to $89.63. Meanwhile, AES Corp. gained 1.71% to $14.86 in slightly below-average trading.

Canadian Solar Inc. picked up 2.57% on light volume to finish at $23.14. The company secured $120 million of nonresource project financing for two solar projects in Brazil with a combined capacity of about 226.7 MW-peak.

The S&P 500 Utilities Sector settled 0.26% lower to 313.80.

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