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Friday's Energy Stocks: Talen jumps on rumored Riverstone buyout

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August


Friday's Energy Stocks: Talen jumps on rumored Riverstone buyout

Talen EnergyCorp. spiked in midday trading Friday, May 6, and ended 5.99%higher at $12.38 in heavy trading after Bloomberg reported that private equityfirm Riverstone Holdings LLCcould be nearing a dealfor the power producer.

Citing unnamed sources, Bloomberg reported that anotherbidder could emerge, or Talen could choose to continue operating as a publiccompany.

The SNL Merchant Generator Index rose 0.66% as traded 4.44%higher at $15.52 and Dynegy Inc.rose 2.92% to $19.02. CalpineCorp. gained 1.87% to finish the week at $15.28.

Atlantic PowerCorp. fell 7.00% on brisk volume to finish at $2.39 after thecompany lowered its2016 earnings guidance citing its recent decision to refinance interest expenseand debt repayment.

Atlantic Power booked $62.5 million in project adjustedEBITDA for the first quarter of 2016, up from $58.6 million in the firstquarter of 2015 given higher water flows at the Curtis Palmer and Mamquamfacilities.

Utility stocks trended lower as the Dow Jones UtilityAverage shed 0.67% to end at 659.29, though many sector shares saw new highsduring May 2 trading week.

Southern Co.shares closed down 2.23% in heavy trading at $49.49. The company disclosed May5 in a Form 10-Q that the SEC is conductinga formal investigation of MississippiPower Co.'s integrated gasification combined-cycle generationproject in Kemper County. However, Southern said the "ultimate outcome …is not expected to have a material impact on the financial statements ofMississippi Power."

ConsolidatedEdison Inc. dipped 1.88% on strong volume to end the session at$74.16, after Jefferies LLC rated the company at "hold" but increasedthe price target to $77 from $74. "We view [the company] as a fairlyvalued regulated utility that should trade at a premium multiple,"Jefferies analyst Anthony Crowdell said in a note to investors.

The company postedfirst-quarter 2016 EPS of $1.18, versus $1.25 in the first quarter of 2015.Consolidated Edison has increased its capital requirements forecast by $975million to about $5.9 billion and equity needs by $300 million to $500 million.

NextEra EnergyInc. saw a 0.30% drop to $118.49, after a news report said that thecity council of Vero Beach, Fla., is renewingits effort to sell its municipal utility to the NextEra Energy subsidiaryFlorida Power & Light Co.

Among rising power stocks, gained0.54% to $33.58, after FERC approvedAlgonquin Power & UtilitiesCorp.'s acquisition of the company. Algonquin Power & Utilitiesshares earned 0.09% to C$11.24.

The SNL Energy Index closed down 0.57% to 266.63 and the SNLElectric Company Index went down 0.88% to 415.73.

Among coal stocks, shares of surged9.50% to $13.02 after the mineral reserve landowner first-quarter 2016 net incomeof $23.4 million, up from the $17.5 million reported in the year-ago periodattributable to a gain on the sale of its oil and gas royalty assets.

AllianceHoldings GP LP shares lifted 4.78% to $18.41, while shares ofAlliance Resource Partners LPfinished 3.40% higher at $15.49. CNXCoal Resources LP shares gained 2.44% to $8.83 in below-averagetrading.

Moody's has reiterateda grim outlook for the coal industry, suggesting that recovery is unlikely forseveral years. "The North American coal industry has undergone a severelong-term structural shift," Moody's senior credit analyst AnnaZubets-Anderson said in a research note. "Our view is that materialrecovery for U.S. thermal or seaborne metallurgical coal is unlikely over thenext several years."

The SNL Coal Index ended 2.59% higher at 50.57.

In midstream energy space, shares of fell 15.86%to 61 cents after its board suspendeddistributions on its common and class C preferred units.

WilliamsPartners LP saw a 4.38% decline to settle at $27.92, after a lawfirm filed suitagainst the partnership on behalf of investors who it said were not aware ofmerger talks with Energy TransferEquity LP when the partnership was planning a merger withWilliams Cos. Inc.

Energy Transfer Equity shares shed 0.99% to $12.94, whereasshares of Williams Cos. slid 4.23% to $19.70.

The SNL Midstream Energy Index rolled down 0.56% to 105.65.

June natural gas futurestraded on either side of unchanged in the week's closing session Friday, May 6,as participants mull market signals that imply near-term weakness andlonger-range strength. At the close, the contract was higher by 2.5 cents inpre-weekend book squaring, settling at $2.101/MMBtu.

At the broader markets, the Dow Jones Industrial Averagerose 0.45% to 17,740.63, and the S&P 500 earned 0.32% to 2,057.14.

Market prices andindex values are current as of the time of publication and are subject tochange.