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Tuesday's Energy Stocks: Plains All American, Plains GP Holdings soar; utilities underperform

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Six trends shaping the industries and sectors we cover in 2021

Six trends shaping the industries and sectors we cover in 2021

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Essential Energy Insights - January 2021


Tuesday's Energy Stocks: Plains All American, Plains GP Holdings soar; utilities underperform

Investorsare responding positively to PlainsAll American Pipeline LP's dealwith general partner Plains GPHoldings LP.

Pricesfor both partnerships jumpedat the opening bell and ascended through midday trading Tuesday, July 12. Thepartnerships sustained gains until closing, with Plains All American unitssettling 10.63% higher to $29.65 and Plains GP Holdings units settling 11.82%higher to $11.07.

Speakingthe day after Plains announced the $7.2 billion transaction, CEO Greg Armstrongexplained the benefits of simplifying the ownership and governance structure,saying it will align shareholder interests effectively, lower costs of capital,strengthen distribution coverage and bolster the entity's credit profile.

climbed 3.38% in light volume to finish at 32 cents after forbearance agreements withlenders and certain holders of its senior notes. This allows the partnership topostpone payments needed to cure its $143.7 million borrowing base deficiency.

rose 1.67% inactive trading to end at C$55.48. Canada's National Energy Board has reviews of applicationsrelated to Enbridge's proposed Northern Gateway pipeline project, including thecompany's request for an extension of the original license to build it, after afederal court quashed approval of the project.

TheSNL Midstream Energy Index closed up 2.87% to 118.29.

Amongcoal stocks, Alliance Holdings GPLP gained 0.36% in below-average volume to finish at $22.32,Foresight Energy LPclimbed 6.39% in thin trading to close at $1.83 and advanced11.28% in heavy trading to close at $18.85. The SNL Coal Index climbed 2.88% to58.27.

rose0.63% in strong trading to end at $15.86 after Barclays Capital Inc. the shares to "overweight"from "underweight" and lifted the price target to $18.

"Wenow view CAFD [8point3 Energy Partners] as a relative safe haven for investorslooking for exposure to the alternative energy space given expected weak 2017EU.S. utility-scale demand," Barclays analysts wrote. "CAFD's [rightof first offer] pipeline visibility gives us more confidence in the near-termgrowth prospects and fairly predictable nature of CAFD's dividend payout."

Meanwhile,Guggenheim Securities LLC assigned a higher $28 price target on "buy"-ratedPattern Energy Group Inc.Guggenheim suggested that Pattern's recent acquisition of the 324-MW Broadviewwind project for $269 million is immediately accretive to the stock and expectscash available for distribution to increase to about $167 million from $153million with the deal.

Patternshares dipped 0.75% in active trading to close at $23.89.

Amongother merchant generators, DynegyInc. advanced 3.08% in weak trading to close at $18.09, andNextEra Energy Partnersslid 0.35% in below-average volume to finish at $30.96. The SNL Merchant GeneratorIndex rose 0.47% to 97.16.

Augustnatural gas futures were higher Tuesday, July 12, reversing prior-day losseswith the support of demand expectations as summer heat drives cooling demand,increasing power sector reliance on natural gas-fired generation. The contractfinished 3.2 centshigher at $2.734/MMBtu.

jumped6.65% in brisk trading to close at C$24.22 after a strategic review. Thecompany has tapped CIBC World Markets Inc. and J.P. Morgan Securities LLC asfinancial advisers.

"[W]eare seeing more and larger opportunities than ever before. To ensure thecompany is best positioned to capitalize on these opportunities, we determinedthat this is an appropriate time to review the options available for the nextphase of the company's growth," said James Temerty, the company's founder,largest shareholder and chair.

Utilitiesunderperformed during the session, with the Philadelphia Utility Index falling1.39% to 655.76. DominionResources Inc. lost 0.95% in weak trading to end at $77.41,Duke Energy Corp.shed 1.83% in brisk trading to close at $84.44 and declined 1.77% inabove-average volume to finish at $52.84.

TheDow Jones Industrial Average rose 0.66% to 18,347.67, and the S&P 500climbed 0.70% to 2,152.14.

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