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Tuesday's Energy Stocks: Utilities react to new DOE plan, Street ends mixed

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Tuesday's Energy Stocks: Utilities react to new DOE plan, Street ends mixed

Broader U.S. benchmarks closed with mixed results on Tuesday, June 5. Most energy indexes landed in the red as investors did not take well the U.S. Department of Energy draft memo that if adopted would force grid operators to buy power from certain at-risk coal and nuclear power plants.

The Dow Jones Industrial Average shed 0.06% to close at 24,799.98, while the S&P 500 inched up 0.07% to finish at 2,748.80 after an up-and-down day.

The coal sector responded well to the DOE draft proposal. The likes of Warrior Met Coal Inc., Alliance Resource Partners LP, Peabody Energy Corp. and CNX Resources Corp. saw shares jumping during Tuesday's session.

Warrior Met Coal's shares rose 5.45% to $30.00 after an average session; Alliance Resource units advanced 3.28%, reaching $20.45 on active volume; Peabody Energy's share price grew 2.62% to close a strong session at $46.66; and CNX Resources Corp. stock added 2.18% to close a light session at $16.44.

Most electric and diversified utilities declined on the day, and the S&P 500 Utilities Index lost 0.65% to close at 249.25. PNM Resources Inc. stock shed 2.47% to finish the day at $37.55; Xcel Energy Inc. shares gave away 1.86% to wrap the day at $43.32; and Consolidated Edison Inc. units inched down 1.25% to close at $74.01, all on roughly average volume.

IDACORP Inc. stock retreated 1.10% to finish an average session at $88.07. Williams Capital Group lowered its investment opinion on IDACORP to "sell" from "hold" on valuation.

One outlier was SCANA Corp., which gained 4.86% to $36.71 on nearly double average volume on speculation of a developing legislative compromise in South Carolina that would allow for the company's acquisition by Dominion Energy Inc. Dominion shares were up 0.21% to $62.77 on below-average volume.

In the midstream sector, Marathon Oil Corp. shares decreased 2.37% to finish an average session at $20.58; Marathon Petroleum Corp. stock slid 1.95% to settle at $80.33 on slightly below-average volume; and Devon Energy Corp. shares trimmed off 1.92% to close a robust session at $39.32.

Valero Energy Corp. shares lost 0.89% to close at $123.33 on below-average volume. The company closed its public offering of $750 million aggregate principal amount of 4.350% senior notes due 2028.

Drama-infused SandRidge Energy Inc. saw its shares hike 2.70% to close a light session at $14.83. In the latest spat between leading shareholder Carl Icahn and the leadership of SandRidge, Icahn is flexing his muscle to control the SandRidge board of directors with a slate of seven of his nominees. The leadership indicated a willingness to seat two of Icahn's nominees but remains steadfast in its support for the five incumbents running for re-election.

Midstates Petroleum Co. Inc. stock ended slow session growing 1.41% to $12.99. The company closed its $58 million divestiture of Anadarko Basin producing properties for total net proceeds of about $54 million, which the company will use to reduce revolver debt and for general corporate purposes.

Buckeye Partners LP shares spiked 3.36%, reaching $37.84 on above-average volume, and Baker Hughes stock gained 2.88% to wrap a strong session at $33.61.

The S&P 500 Energy Index decreased 0.34% to 554.30, while the Alerian MLP Index gained 0.32% to close at 271.73.

The solar industry continued to take a hit for a second consecutive day after China cut subsidies on solar panel production and halted all solar farm development. First Solar Inc. share price fell 5.67% to $58.24 on nearly five times average volume; SunPower Corp. stock slid 3.79% to close the session at $7.87 on above-average volume; and Canadian Solar Inc. shares declined 3.14% to finish a heavy session at $13.09.

Sunrun Inc. stock outperformed the sector, climbing 4.06% to end a heavy session at $12.82.

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