Broader benchmarks suffered losses on Wednesday, Feb. 7. Most energy indexes slipped into the negative territory as well.
The Dow Jones Industrial Average shed 0.08% to finish the midweek session at 24,893.35, and the S&P 500 decreased 0.50% to close the day at 2,681.65. The SNL Energy Index lost 0.49% to end at 271.40.
Shares of NRG Energy Inc. slipped 0.59% to close at $25.36, and NRG Yield Inc. dropped 3.87% to close at $16.40, both in heavy trading volume. Before markets opened, NRG announced a long-anticipated deal to divest its interests in NRG Yield and the NRG renewable platform, consisting of a 6,000-MW project pipeline, to Global Infrastructure Partners. Separately, NRG announced the sale of a 3,555-MW coal- and gas-fired portfolio to Cleco Corporate Holdings LLC. NRG has revised its total asset sales cash proceeds target to approximately $3.2 billion from $4 billion and expects to announce additional asset sales by the end of 2018.
The market reacted differently, however, to TerraForm Power Inc's announcement of a bid to acquire Saeta Yield, S.A., a European renewable power business with a portfolio of 1,028 MW, for €12.20 in cash per share. If TerraForm Power acquires all of the remaining Saeta shares, the total purchase price will be approximately $1.2 billion. TerraForm Power shares surged 8.37% on more than double normal trading volume to finish the day at $11.13.
The SNL Merchant Generator Index shrunk 0.48% to close the day at 100.38.
The midstream sector posted a decline on Wednesday with the SNL Midstream Energy Index losing 0.63% to close at 109.62.
Devon Energy Corp. shares slid 4.22% to finish the session at $36.76 on heavy volume. The company anticipates the adjusted EBITDA of its master limited partnership, EnLink Midstream LLC, to grow by as much as $125 million in 2018. Enlink Midstream units decreased 0.28% to close at $17.65 on below-average volume.
Anadarko Petroleum Corp. stock outperformed the sector, growing 2.07% to finish a brisk day at $58.68. The company announced fourth-quarter 2017 adjusted net income of $106 million, or 18 cents per share, up from a net loss of $272 million, or a loss of 50 cents per share, in the prior-year period. Additionally, Anadarko raised its quarterly cash dividend to 25 cents per share, a 500% increase over the last quarter's dividend of 5 cents.
Xcel Energy Inc. reported fourth-quarter 2017 ongoing earnings of $212 million, or 42 cents per share. The company's shares inched down 0.63% to close an average session at $42.46.
In renewables, Brookfield Renewable Partners LP reported $453.0 million in fourth-quarter 2017 adjusted EBITDA, up from $326.0 million in the same quarter of 2016. The company's shares added 0.50% to finish the day at C$40.31 on high volume.
Exelon Corp. shares retreated 0.88% to end a brisk session at $36.15 after reporting quarterly results. Its fourth-quarter 2017 adjusted operating earnings were $536 million, or 55 cents per share, compared with $410 million, or 44 cents per share, in the prior-year period.
MDU Resources Group Inc. shares rose 2.07% to finish an active session at $25.67 on the release of strong quarterly results. The company's fourth-quarter 2017 earnings from continuing operations were $115.4 million, or 59 cents per share, up from $66.3 million, or 33 cents per share, in the prior-year period.
The SNL Electric Company Index gave away 0.75% to end the day at 448.84.
The coal sector did not fare well either. The SNL Coal Index decreased 1.41% to close at 72.52. Peabody Energy Corp. shares declined 0.57% to wrap up an active session at $40.31. The company reported fourth-quarter 2017 net income attributable to common stockholders of $317.4 million, or $2.37 per share, compared with a loss of $192.7 million, or $10.53 per share in the same period of the prior year.
Although attempting to pull higher early Wednesday, March natural gas futures settled the midweek session on the negative side of the ledger amid a lack of fundamental support. The contract closed the session down 5.7 cents at $2.702/MMBtu.
Market prices and index values are current as of the time of publication and are subject to change.
