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Monday's Energy Stocks: Energy stocks fall harder than broader indexes


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Monday's Energy Stocks: Energy stocks fall harder than broader indexes

The Dow Jones Industrial Average dropped sharply near closing on Monday, Dec. 17, after a rapid selloff in the energy, healthcare and technology sectors.

The Dow Jones index declined 2.11% to close the day at 23,592.98, and the S&P 500 fell 2.08% to 2,545.94. Brent Crude Oil price dropped 2.52% to $58.76 per barrel, helping fuel the selloff in the energy sector.

The oil and gas sector saw one of its lowest days in 2018, with major indexes shrinking on Monday. The S&P 500 Energy Index was down 1.86% to 447.46, touching a 52-week low during the session. The Alerian MLP Index gave away 3.36% to close at 234.93.

Top losers in the industry for the day were Antero Midstream Partners LP, Holly Energy Partners LP and Concho Resources Inc. Antero Midstream lost 6.18% to $25.35 on thin volume. While trading briskly, Holly Energy Partners shares retreated 5.42% to $28.96, and Concho Resources stock slipped 4.56% to close at $109.78.

Enbridge Inc. closed the acquisition of all outstanding common units of Spectra Energy Partners LP, valued at $3.3 billion, bringing Enbridge one step closer to its corporate simplification goal. Although the simplification transaction might work for the betterment of both entities, the general losing trend caught up with Enbridge on Monday. Its stock shaved off 2.38% to $31.19 in heavy trading, and Spectra Energy which saw a 1.20% decline in its share price to $35.40.

Exxon Mobil Corp.'s shares shaved off 2.04% to $74.04 on above-average volume. Several institutional investors have asked the oil major to set and publish emissions reductions targets.

The U.S. Securities and Exchange Commission declared effective Altus Midstream Co.'s registration for resale of 360,531,332 class A common shares and 6,364,281 warrants. Active in the Alpine High play, Altus Midstream outsmarted the broader trend, with its stock price climbing 3.78% to $9.06 on average volume.

The power business was not spared by what the experts are touting as the correction phase that the stock market has entered. The S&P 500 Utilities Index slid 3.27% to 276.93.

PG&E Corp. shares would not have been spared on Monday even if the Street indexes were headed higher. The company came under fire after a report by the California Public Utilities Commission on Dec. 15 that accuses PG&E Corp. subsidiary Pacific Gas and Electric Co. of falsifying tens of thousands of gas safety records in a five-year period shortly after the deadly San Bruno explosion. The state regulators have opened an investigation and penalty case against the utility company. PG&E shares dropped 6.04% to $24.44 on heavy volume.

Also having a rough day was Pattern Energy Group Inc., down 6.57% to $19.48 in heavy trading.

NiSource Inc. shares dragged down 3.09% to $26.64 on roughly average volume after U.S. senators alleged that its subsidiary Columbia Gas of Massachusetts is understaffed to save money. This came up during a probe into the causes of a series of explosions and fires in September in the Boston area.

Dominion Energy Inc. shares lost 3.80% to $74.00, and SCANA Corp. stock lost 4.02% to close at $48.93, both in heavy trading. With South Carolina regulators set to sign off, Wall Street experts are of the opinion that the Dominion/SCANA merger will close by year-end.

Sempra Energy shares were down 3.00% to $114.93 on average volume. The company's executive vice president and general counsel, Martha Wyrsch, has announced retirement, effective March 1, 2019. Also, Sempra has completed the sale of a 980-MWac renewable energy portfolio to Consolidated Edison Inc. for $1.6 billion. Consolidated Edison shares were down 3.82% to $80.63 on active trading.

The down day took a toll on TransCanada Corp. stock, which dipped 2.65% to $38.98. The company signed a deal to sell the 575-MW Coolidge natural gas-fired power facility in Pinal County, Ariz., to a subsidiary of Southwest Generation Operating Co. LLC for approximately $465 million.

Hydro One Ltd. shares ticked down 1.44% to close a brisk session at C$20.57 on the Toronto Stock Exchange, and Avista Corp. stock bumped off 2.29% to $43.97 on light volume. Both companies are preparing to file a petition with Washington state regulators to reconsider their rejected merger application.

One bright spot among utilities, MGE Energy Inc., was up 1.47% to $67.64 on more than triple average trading volume.

U.S. coal producer Alliance Resource Partners LP agreed to acquire oil and gas mineral interests in the Anadarko, Permian, Willison and Appalachian shale basins for $176 million. Alliance Resource shares were 2.60% down to $19.09 in below-average trading.

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