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Monday's Energy Stocks: Coal equities rise amid Peabody bankruptcy emergence

Wall Street and the energy sector kicked off the week in negative territory on Monday, April 3. Coal shares weathered the broader selloff, with the SNL Coal Index earning 1.62% to close at 71.59.

The Dow Jones Industrial Average shed 0.06% to end at 20,650.21, the S&P 500 dipped 0.16% to settle at 2,358.84 and the SNL Energy Index edged down 0.04% to close at 291.69.

Alliance Resource Partners LP gained 4.62% in above-average trading to close at $22.65. The partnership's preliminary financial results showed that its net income has more than doubled in the first quarter of 2017 compared to the prior-year period. Its net income for the first quarter was estimated at $105 million, or in a range between $100 million and $110 million, compared to the roughly $47.3 million reported in the first quarter of 2016. The coal producer also announced its intention to offer $500 million in senior unsecured notes in a private placement to eligible buyers.

Meanwhile, Alliance Holdings GP LP received lender commitments to change the credit agreement that governs its credit facility. The amendment would extend the maturity date with respect to the roughly $460.5 million of the revolving credit facility to May 2021. Alliance Holdings advanced 4.37% on brisk volume to finish at $28.63.

Contura Energy Inc. added 2.11% in over-the-counter trading to settle at $67.80. The company posted net income of $34.9 million in the fourth quarter of 2016 despite a net loss from its formation to the end of the year.

The coal producer, which formed as a separate entity with many of the former assets of Alpha Natural Resources Inc. while the company was undergoing Chapter 11 bankruptcy reorganization, reported a $10.9 million net loss from its formation July 26, 2016, to the end of the year.

Peabody Energy Corp. lost 43.68% in over-the-counter-trading to end at 38 cents, following the announcement of its emergence from a year-long Chapter 11 reorganization after shedding more than $5 billion in debt.

"We believe that 'The New BTU' is well positioned to create substantial value for shareholders and other stakeholders over time," said Peabody President and CEO Glenn Kellow. Shares in the new Peabody will start trading on the NYSE on April 4 under the BTU ticker symbol.

On the power side, the SNL Merchant Generator Index dipped 0.56% to 84.37, while the SNL Electric Company Index saw an increase of 0.25% to finish out the session at 450.21.

Following the sale of its U.S. subsidiary to Hull Street Energy LLC for approximately $106 million, Maxim Power Corp. lifted 3.70% on slim volume, finishing at C$2.80. Maxim Power will use a portion of the net proceeds as collateral for letters and to meet its obligations under a FERC settlement agreement, and it will use the remainder for strategic corporate purposes.

Shares of Spark Energy Inc. rose 3.44% in robust trading to close at $33.05. The company is now targeting 2017 adjusted EBITDA of $110.0 million to $120.0 million, more than 20% higher than the midpoint of its initial guidance of $90.0 million to $100.0 million.

In the midstream space, Tallgrass Energy Partners LP moved up 0.17% in about average trading to finish at $53.29, after purchasing an additional 24.99% membership stake in Rockies Express Pipeline LLC from Tallgrass Development for $400 million. The deal boosts Tallgrass Energy Partners' ownership in the 1,698-mile, bidirectional natural gas pipeline to about 50%.

Among other midstream players, Southcross Energy Partners LP increased 4.31% on strong volume to close at $3.63, NGL Energy Partners LP edged up 2.43% on thin volume to finish at $23.15 while Southwestern Energy Co. shed 3.43% in heavy trading to close at $7.89. The SNL Midstream Energy Index dropped 0.10% to close at 122.81.

May natural gas futures were lower in the week's opening session. Early buying to a $3.239/MMBtu high was reversed and the contract fell to a $3.125/MMBtu low before closing 6.2 cents lower at $3.128/MMBtu, as participants consider the natural gas supply at the end of the titular injection season and look to mild weather ahead.

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