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Monday's Energy Stocks: Immelt's exit plans send GE shares up; markets dip

The start of the week saw bearish sentiments from investors as major indexes settled on the negative side of the ledger, despite an uptick in oil prices on Monday, June 12. NYMEX Light Sweet Crude rose 0.55% to $46.08 per barrel, while NYMEX Brent Crude climbed 0.29% to $48.29 per barrel.

The Dow Jones Industrial Average shed 0.17% to close at 21,235.67, and the S&P 500 rolled back 0.10% to end the day at 2,429.39. The SNL Energy Index tumbled 0.14% to 288.33.

General Electric Co. closed up 3.58% in more than four times the average trading volume at $28.94, the day its Chairman and CEO Jeff Immelt announced his plans to retire from the company. Immelt, who led GE's transformation into a more focused digital industrial portfolio in the power, aviation, transportation, healthcare, and oil and gas markets, will be succeeded by John Flannery as CEO on Aug. 1 and as chairman on Jan. 1, 2018.

Separately, the company also agreed to sell its water business for $3.4 billion to SUEZ. The deal is required to complete GE's pending merger with Baker Hughes Inc.

NextEra Energy Inc. shares fell 0.58% on brisk volume to finish at $139.42. The Federal Energy Regulatory Commission authorized for service the company's Florida Southeast Connection natural gas transportation project, the third component of the 1.1-Bcf/d Southeast Market Pipelines system that will substantially increase the gas available to Florida power generators.

Analysts have favored the deal between Toshiba Corp. and Southern Co. unit Georgia Power Co. which affirms the Japanese conglomerate's payment guarantee at $3.68 billion for the Alvin W. Vogtle nuclear plant expansion. However, they caution that risks still remain for the completion of construction. Shares of Southern Co. lifted 0.34% in about average trading to end at $50.85.

Emera Inc.'s Nova Scotia Power Inc. offered to ease the burden of financing the C$1.52 billion Maritime Link transmission project on consumer power bills by rebating a portion of the project's approved costs to consumers. Emera shares retreated 0.93% in normal trading to conclude at C$48.18.

The SNL Merchant Generator Index climbed 0.40% to 90.12, while the SNL Electric Company Index dropped 0.56% to 472.61.

Gulfport Energy Corp. and Chesapeake Energy Corp. are leading the charge to drill more Utica Shale wells in Ohio as the number of new wells permitted in May more than tripled year over year. Gulfport Energy added 1.46% on slightly lower volume to settle at $13.92 and Chesapeake Energy rose 1.81% on average trading volume to close at $5.06.

Shares of ONEOK Inc. rose 1.09% on below-average volume to end at $49.99, following the announcement that it intends to redeem all outstanding 6.5% senior notes due 2028 for about $87 million.

The SNL Midstream Energy Index slid 0.11% to 112.39, while the SNL Gas Utility Index advanced 0.07% to close at 582.41.

July natural gas futures put in a whipsaw session Monday, June 12, lacking support for sharp moves either higher or lower. Early gains gave way to modest losses as the front-month contract moved between $3.010/MMBtu and $3.087/MMBtu, before settling 1.5 cents lower on the session at $3.024/MMBtu.

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