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Wednesday's Energy Stocks: Halliburton stocks slide 5.95% on expected Q3 hit

Q2: U.S. Solar and Wind Power by the Numbers

Essential Energy Insights - September 17, 2020

Essential Energy Insights September 2020

Rate case activity slips, COVID-19 proceedings remain at the forefront in August


Wednesday's Energy Stocks: Halliburton stocks slide 5.95% on expected Q3 hit

Broader markets closed mixed while electric utilities far outpaced other indices in the energy sector on Wednesday, Sept. 5. The Dow Jones Industrial Average finished 0.09% higher at 25,974.99, while the S&P 500 dropped 0.28% to close at 2,888.60.

Halliburton Co. shares tumbled 5.95% on more than twice the average trading volume to end at $37.13, following President and CEO Jeffrey Miller's statement during the Barclays CEO Energy Power Conference, that he expects the company to take an earnings hit in the third quarter.

Factors including the forewarned downturn in exploration and production activity due to budget constraints and takeaway issues, a decrease in customer urgency, weakness in pricing in several basins, and project delays in the Middle East are likely to depress third-quarter earnings between 8 cents per share and 10 cents per share, Miller said.

Marathon Oil Corp. added 0.71% on thin volume to finish at $21.21. A subsidiary of the company entered an agreement with Lucid Energy Group LLC for natural gas gathering and processing services for Marathon's production in southeast New Mexico.

Shares of Crescent Point Energy Corp. declined 2.86% in above-average trading to close at $5.77, after revealing a strategic plan that involves reducing its workforce by 17% as part of an organizational restructuring. The company also appointed a new chairman and CEO. In the next 12 to 24 months, Crescent Point intends to shrink its operating area, reduce debt and drive free cash flow generation through controlled spending and cost reductions.

Kinder Morgan Canada Ltd. stock price slid 1.98% in active trading to settle at C$16.79, following a decision from its board of directors to give back the net proceeds from the sale of the Trans Mountain oil pipeline system and expansion project to shareholders, with the return of capital to holders of restricted shares estimated at about C$1.2 billion.

Parent company Kinder Morgan Inc. said it will vote its shares in favor of the shareholder distribution plan. Kinder Morgan shares ticked up 0.96% on robust volume to end at $17.79.

Enterprise Products Partners LP edged up 1.04% on light volume, ending at $29.28. The partnership started construction of a new NGL fractionator that would boost the partnership's processing capacity in the Mont Belvieu, Texas, area to 905,000 barrels per day.

The S&P 500 Energy Sector dipped 0.08% to 545.58, while the Alerian MLP Index climbed 0.47% to 282.9838.

NextEra Energy Partners closed up 0.76% on below-average volume to $48.75, after agreeing to acquire a 1,388-MW portfolio of wind and solar projects from NextEra Energy Resources LLC for $1.28 billion. The partnership also will assume $930 million in tax equity financing and $38 million of nonrecourse project debt as of year-end 2018.

Executive Vice President of Finance and CFO John Ketchum said that the partnership could engage in third-party M&A to complement an announced $1.28 billion organic growth transaction.

Dominion Energy Inc. rose 1.71% to $72.45, and SCANA Corp. increased 0.88% to $37.69, after the companies received one of the several regulatory approvals to complete their proposed stock-for-stock merger. The U.S. Nuclear Regulatory Commission has approved the indirect transfer of licenses for the V.C. Summer nuclear facility in South Carolina to Dominion Energy from SCANA subsidiary South Carolina Electric & Gas Co.

Among other electric utilities, CenterPoint Energy Inc. advanced 3.58% to conclude at $28.92, PPL Corp. added 2.27% to end at $30.62 and Duke Energy Corp. rose 2.17% to finish at $83.19, all in brisk trading.

The S&P 500 Utilities Sector settled 1.27% higher to 274.62.

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