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Tuesday's Energy Stocks: Northland Power slides on launch of secondary offering

Broader markets and energy equities closed mixed on Tuesday, March 19, the first of the two-day U.S. Federal Reserve meeting. Analysts are looking for any indication that the Fed is still open to implementing another rate hike this year.

After a mostly positive day, the Dow Jones Industrial Average finished down 0.10% to close at 25,887.38, while the S&P 500 was virtually unchanged at 2,832.57.

In the energy sector, utilities as well as oil and gas companies ended in the red while MLPs tallied gains.

Northland Power Inc. slumped 9.25% in about 9x average trading on the Toronto Stock Exchange to close at C$23.36.

The company launched a secondary offering of 32,120,000 common shares at C$23.35 per share for gross proceeds to selling shareholders of about C$750.0 million. A syndicate of underwriters led by CIBC Capital Markets agreed to purchase on a bought-deal basis those shares, which are held by Northland Power Holdings Inc. and/or other entities controlled by Northland Power Chairman Jim Temerty.

Maxim Power Corp. stock price rose 3.63% in strong trading on the Toronto Stock Exchange to settle at C$2.00, after reporting net income attributable to shareholders of C$8.8 million, or 17 Canadian cents per share, in the 2018 fourth quarter.

San Francisco is exploring the possibility of purchasing local utility Pacific Gas and Electric Co.'s electric distribution lines, Mayor London Breed and City Attorney Dennis Herrera said in a letter to top executives at parent company PG&E Corp. The company's shares closed down 1.85% on below-average volume to $19.07.

Two PPL Corp. subsidiaries sold $700 million of first mortgage bonds to repay short-term debt and for general corporate purposes. The parent company retreated 1.89% on below-average volume to $32.10.

Clearway Energy Inc. is requesting a "blanket authorization" from the Federal Energy Regulatory Commission that would allow for the transfer of interests in generation assets from Clearway Energy Group LLC or GIP III Zephyr Acquisition. Clearway Energy's class A shares traded 1.82% lower on light volume to close at $14.01.

Other movers included Avista Corp., down 1.93% to $40.67; El Paso Electric Co., down 2.06% to $57.51; FirstEnergy Corp., down 2.01% to $40.41; and OGE Energy Corp., down 2.08% to $41.96.

The S&P 500 Utilities Sector saw a 1.18% decrease to 290.73.

Chesapeake Energy Corp. increased sharply on Tuesday morning but tempered its gains to close the day up 0.32% on brisk volume to $3.16. The company received $883.5 million in valid tenders to exchange some of its outstanding senior unsecured notes for new 8.00% senior notes due 2026.

Moody's upgraded Continental Resources Inc.'s rating and changed its outlook from positive to stable, to reflect the company's strengthened operating profile, which is supported by "the growing scale of production and high operating efficiency." Continental Resources declined 1.51% in below-average trading to finish at $41.82.

Roan Resources Inc. shed 2.74% in robust trading to settle at $6.39, after it reported adjusted net income of $140.4 million, or 92 cents per share, for the year ended Dec. 31, 2018, up from $49.0 million, or 49 cents per share, in 2017.

Among other oil and gas companies, Hess Corp. dropped 1.93% to end at $57.99; Marathon Oil Corp. erased 1.55% to close at $17.12; and Anadarko Petroleum Corp. slid 1.40% to finish at $44.46, all in light trading.

The S&P 500 Energy Sector was down 0.29% to 490.15, while the Alerian MLP Index recorded a 0.59% gain to 256.09.

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