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Monday's Energy Stocks: Coal, MLP shares endure sector, broader decline

Power producers took a pummeling on Monday, Jan. 23, posting even bigger losses than the overall energy sector and broader markets. Coal companies and master limited partnerships, meanwhile, bucked the decline, but their gains failed to keep the sector afloat. The SNL Energy Index slid back 0.40% to 282.48.

The Dow Jones Industrial Average lost 0.14% to 19,799.85 and the S&P 500 shrank 0.27% to 2,265.20, after newly inaugurated President Donald Trump told business leaders he wants to cut federal regulations by 75% or more and repeated his plans to slash taxes to encourage more manufacturing in the U.S.

TerraForm Power Inc. rolled down 5.59% in brisk trading to close at $11.49, but on the other hand, TerraForm Global Inc. spiked up 10.00% on more than 15 times the average volume to finish at $4.40.

The holding companies affiliated with bankrupt renewable energy developer SunEdison Inc. are negotiating exclusively with Brookfield Asset Management Inc. over a potential acquisition, according to regulatory filings. Brookfield outlined four potential deals, including offers to buy both companies or to replace SunEdison as their development sponsor.

Other solar names also landed in the red: Sunrun Inc. shed 4.93% to $5.59, First Solar Inc. saw a decline of 3.14% to $33.66 and SunPower Corp. ended 2.00% lower to $6.85, all in below-average trading. The SNL Merchant Generator Index slumped 1.13% to 86.88.

In the midstream sphere, Targa Resources Corp. gave up 3.80% on strong volume to settle at $57.77 after its subsidiary Targa Resources Partners LP agreed to acquire gas gathering and processing assets and crude gathering assets in the Delaware and Midland basins, expanding its position in the Permian Basin.

The assets are controlled by privately owned Outrigger Delaware Operating LLC, Outrigger Southern Delaware Operating LLC and Outrigger Midland Operating LLC. As part of the deal, Targa will pay Outrigger $565 million in cash at closing and then will make two additional payments in 2018 and 2019 that could bring the total sum to $1.5 billion.

EnLink Midstream LLC dropped 2.94% to $18.15 and EnLink Midstream Partners LP retreated 2.96% to $17.72, both in robust trading, following announcements of their strategic growth plan for 2017.

"We expect the momentum of recent volume growth to continue throughout 2017 and beyond. Our current plan is to exit 2017 with an annual adjusted EBITDA run-rate net to [EnLink Midstream Partners] between $925 million and $950 million, with an expectation of continued strengthening throughout 2018 of producer activity related to our core growth basins," EnLink Chairman and CEO Barry Davis said.

The SNL Midstream Energy Index dipped 0.26% to 122.21, while the SNL Master Limited Partnership Index gained 0.19% to 311.60.

Coal shares kicked off the week with gains as the SNL Coal Index raked in 0.46% to 76.12. Topping the charts, Rhino Resource Partners LP rose 5.88% to $4.50, Peabody Energy Corp. climbed 4.71% to $1.78 and Foresight Energy LP picked up 2.34% to $7.42.

February natural gas futures rebounded in the week's opening session Monday, Jan. 23, in bargain hunting at lows, while weather forecasts suggest ample demand that should keep natural gas inventories declining. The contract fell to a $3.145/MMBtu low and moved as high as $3.252/MMBtu in intraday trade, before closing the session 3.9 cents higher at $3.243/MMBtu.

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