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Tuesday's Energy Stocks: Plains All American plunges 19.37% on Q2 earnings

Midstream players led the energy sector selloff Tuesday, Aug. 8, while broader markets also landed in the red territory. The Dow Jones Industrial Average lost 0.15% to close at 22,085.34, and the S&P 500 declined 0.24% to 2,474.92. The SNL Energy Index closed down 0.70% at 289.57.

Plains All American Pipeline LP plunged into a 52-week low of $20.00 and concluded the session down 19.37% at $20.32 in about nine times the average trading volume. The partnership reported $149 million of adjusted net income available to common unit holders, or 21 cents per unit, compared to a loss of $47 million, or 12 cents per unit, a year ago. The S&P Capital IQ consensus normalized EPS estimate for the second quarter of 2017 was 25 cents.

"The brutal reality is that the market in which our supply and logistics segment operates has changed and will likely continue to evolve," Chairman and CEO Greg Armstrong said during an earnings call. Plains GP Holdings LP dove 18.54% in brisk trading to finish at $21.04.

Cheniere Energy Inc. dipped 1.02% on strong volume to settle at $42.60, after it booked net loss attributable to common stockholders of $285 million, or $1.23 per share, compared to a loss of $298 million, or $1.31 per share, in the year-ago quarter.

After an Indian news outlet reported that GAIL (India) Ltd. is looking to renegotiate the terms of its 20-year contract for LNG from Cheniere's Sabine Pass export terminal in Louisiana, Cheniere CEO Jack Fusco said he expects customers to hold up their end of the bargain.

The SNL Midstream Energy Index was down 2.45% to end the session at 109.91.

On the power side, AES Corp. rose 2.52% on about two times the average trading volume to finish at $11.38. AES reported second-quarter adjusted EPS of 25 cents, an increase from adjusted EPS of 17 cents a year ago and higher than the S&P Capital IQ normalized consensus estimate of 21 cents. Company executives said during an earnings call that AES has made significant progress in recent months toward repositioning its portfolio by adding renewables and natural gas globally as it exits coal generation.

Pattern Energy Group Inc. shed 3.09% in active trading to conclude the session at $24.02, after posting a 17% year-over-year increase in adjusted EBITDA to $91.9 million, from $78.6 million a year ago. CEO Mike Garland said wind power costs will go down after production tax credits are phased out, but utilities and companies will not fully recuperate from the loss of the credits.

Shares of Sunrun Inc. declined 4.99% on brisk volume to close at $7.05, following the announcement that it deployed 76 MW of solar installations during the second quarter of 2017, representing a 16% increase from the reported deployment of 65 MW in the comparable quarter of 2016. Sunrun is ramping up its energy storage business in a bid to squeeze more value out of its existing customer base and to enter "whole new markets" for grid services offered by its distributed energy assets, CEO Lynn Jurich said.

Dynegy Inc. retreated 3.72% in above-average trading to finish at $8.28, after lifting the tender offer cap amount for its outstanding 6.75% senior notes due 2019 to $1.25 billion from $1.20 billion.

Otter Tail Corp. added 3.58% on higher-than-average volume to close at $41.95, after recording a year-over-year increase in net income from continuing operations to $16.7 million, or 42 cents per share, from $15.6 million, or 41 cents per share, a year ago.

The SNL Merchant Generator Index slid 1.20% to close at 98.51.

Natural Resource Partners LP slumped 5.64% in active trading to finish at $26.75, after Wyatt Hogan, the head of the company's general partner, announced his resignation. Craig Nunez, who has served as CFO and treasurer of NRP's general partner since January 2015, will assume the role of president and COO in Hogan's place.

NRP posted net income attributable to the common unit holders and general partner for the second quarter of 2017 of $42.4 million, with adjusted EBITDA of $62.7 million.

The SNL Coal Index retreated 1.12% to 64.71.

NYMEX September natural gas futures traversed both sides of the ledger Tuesday, Aug. 8, but finished higher as bargain hunters bid up the price against fundamentals still weighing the market down. The contract settled with a 2.1-cent gain at $2.822/MMBtu, after trading between $2.783/MMBtu and $2.832/MMBtu through the session.

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