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Tuesday's Energy Stocks: Stone Energy sinks 15.55% on merger with Talos Energy


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Tuesday's Energy Stocks: Stone Energy sinks 15.55% on merger with Talos Energy

Broader indexes recorded new highs Tuesday, Nov. 21, while energy equities closed mixed. The Dow Jones Industrial Average reached 23,617.80 before settling 0.69% higher at 23,590.83, and the S&P 500 hit 2,601.19 before closing the session 0.65% up at 2,599.03. The SNL Energy Index closed down 0.23% to 287.16.

Shares of Stone Energy Corp. plummeted 15.55% in brisk trading to conclude the day at $29.97, following the announcement that it will be acquired by Talos Energy LLC. The combined company, Talos Energy Inc., will have an initial equity market capitalization of about $1.9 billion and an enterprise value of about $2.5 billion.

Enable Midstream Partners shed 1.20% on heavy volume to settle at $14.88, after S&P Global Ratings upgraded the partnership's corporate credit and issue-level ratings to BBB- from BB+, with a stable outlook. The upgrade was based on the Enable partnership's continued strong financial performance, particularly on volume and margin growth.

Andeavor Logistics LP saw a decrease of 1.94% in active trading to finish at $43.88. The company sold $1.75 billion of senior notes, comprising $500 million of 3.5% notes due 2022, $750 million of 4.25% notes due 2027 and $500 million of 5.2% notes due 2047.

New Jersey Resources Corp. fell 1.13% in strong trading to end at $43.80, after reporting a net financial loss of $12.5 million, or 14 cents per share, in the fiscal fourth quarter, compared with a loss of $2.1 million, or 2 cents per share, a year earlier. The company signed a $166 million agreement to buy an 84-mile, 18-inch-diameter oil pipeline connecting to the Philadelphia area and plans to convert a 50-mile southern section of the line to natural gas.

Among other large-cap midstream players, Kinder Morgan Inc. lost 1.11% in below-average trading to close at $16.87, Enbridge Inc. added 2.59% in brisk trading to $36.80, and Energy Transfer Partners LP declined 2.27% on strong volume to $16.33.

Among power stocks, NextEra Energy Partners slid 0.97% on light volume to close at $38.71. The partnership completed its acquisition of ownership interests in an approximately 691-MW portfolio of four wind and solar facilities from NextEra Energy Resources LLC subsidiaries for about $812 million.

Great Plains Energy Inc. gained 0.44% in weak trading to finish at $34.14 and Westar Energy Inc. earned 0.40% on thin volume to end at $55.62 after the companies' shareholders approved a revised plan for their merger. The revised agreement unveiled in July involves no transaction debt, no exchange of cash and is a stock-for-stock merger of equals, creating a company with a combined equity value of roughly $15 billion.

In the coal sector, Westmoreland Coal Co. continued its downward trend, plunging 22.98% on more than six times the average volume to close the day at $1.24. Westmoreland's share price has taken a significant hit as the company works to shore up its balance sheet amid credit concerns.

Consol Energy Inc. shares climbed 1.43% in light trading to finish at $16.27. B. Riley FBR Inc. analyst Lucas Pipes initiated coverage on CONSOL Mining Corp. with a "buy" rating and a $32.00 price target. The spinoff of Consol Energy Inc.'s coal assets is expected to debut on the New York Stock Exchange on Nov. 29.

NYMEX December natural gas futures were lower Tuesday, weighed down by a slate of bearish fundamentals heading into the long Thanksgiving-holiday weekend and ahead of options expiration at the close of business Monday, Nov. 27, and the contract's roll off the board Nov. 28. The contract closed the session 3.0 cents lower at $3.017/MMBtu.

S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.

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