A surge in oil prices disrupted market equilibrium, sending broader indexes down on Monday, Sept. 16. An attack on Saudi Arabia's oil production facilities over the weekend halted production of 5.7 million barrels of oil per day, representing about 5% of the world's oil output. Brent Crude Oil jumped 13.00% to $68.05 per barrel.
The oil and gas sector and the electric and diversified utilities business were on the rise on Monday. Meanwhile, the Dow Jones Industrial Average snapped an eight-session winning streak, shedding 0.52% to close at 27,076.82, and the S&P 500 lost 0.31% close at 2,997.96.
SemGroup Corp. stock soared 60.51% on more than 36x average volume to wrap the day at $16.50 after Energy Transfer LP agreed to acquire it in a cash-and-stock deal worth about $5 billion, including the assumption of debt. Energy Transfer stock retreated 4.21% to $13.43 on more than 4x average volume.
Oil price increases spurred a rise in the share prices of Apache Corp., which rallied 16.89% to 28.45; Helmerich & Payne Inc., which moved up 14.33% to $47.40; and Devon Energy Corp., which leaped 12.17% to $28.12, all in strong trading.
Hess Corp. stock rose 11.18% to $70.29 and Exxon Mobil Corp. shares hiked 1.50% to $73.73, both on active volume, after a consortium led by Exxon Mobil found oil at the Tripletail-1 well in Guyana's offshore Stabroek block, the companies said in a joint press release.
Occidental Petroleum Corp. shares jumped 6.01% to $47.80 on more than twice the average volume. The company has garnered nearly $11.5 billion in valid tenders to exchange notes issued by Anadarko Petroleum Corp. for new Occidental notes as of the expiration date of Sept. 13.
Oil major TOTAL SA and Shanghai-based Envision Group formed a 50/50 joint venture firm, called TEESS, to develop solar projects for industrial and commercial customers in China, according to a Sept. 16 news release from the French company. Total's shares on the NYSE were up 1.52% to $52.64 after an active session.
Baker Hughes a GE company stock climbed 4.80% to $23.81 in heavy trading, while General Electric Co. stock inched up 0.43% to $9.38 in below-average trading after the industrial conglomerate and its affiliates closed the previously announced secondary offering of class A shares of Baker Hughes.
Plains All American Pipeline LP units grew 2.32% to $22.07 on above-average volume after the company completed its public offering of $1 billion of 3.550% senior unsecured notes due Dec. 15, 2029.
Among notable decliners, Valero Energy Corp. stock shrank 3.67% to $82.39; Cabot Oil & Gas Corp. gave away 3.51% to $18.15; and Marathon Petroleum Corp. shares chipped off 1.65% to $52.41, all in brisk trading.
The S&P 500 Energy Index climbed 3.29% to 462.55, and the Alerian MLP Index increased 1.18% to 240.32.
Electric and diversified utilities overall were flat. The S&P 500 Utilities Index increased 0.08% to 317.38.
PG&E Corp. stock lost 1.52% to $11.01. Meanwhile, CenterPoint Energy Inc. stock settled 1.64% up at $30.34; NRG Energy Inc. stock picked up 1.38% to close at $39.03; and AES Corp. shares added 1.33% to $16.00, all in below-average trading.
TransAlta Corp. stock gained 1.63% to C$8.73 in roughly average trading on the Toronto Stock Exchange. The company detailed previously described plans to convert its existing Alberta coal assets to natural gas under an approximately C$2 billion clean energy investment plan.
DTE Energy Co. shares inched up 1.26% to $130.05 on better-than-average volume. The utility holding company has issued a request for proposals for an additional solar and wind portfolio in Michigan and its joint venture Nexus Gas Transmission LLC proposed to settle charges brought by the Federal Trade Commission, alleging that the pipeline operator's planned acquisition of a natural gas pipeline in Ohio would impede competition.
Coal producer Peabody Energy Corp. saw shares grow 2.85% to $18.78 in slow trading. The company announced plans to sell $900 million of senior secured notes due 2026 to repurchase outstanding securities, subject to market and other conditions.
In the renewable energy space, SunPower Corp. made a 4.02% gain on low volume to close at $12.94, and Sunrun Inc. grew 3.13% to $16.46 on about average volume.
Market prices and index values are current as of the time of publication and are subject to change.
