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Monday's Energy Stocks: Hawaiian Electric falls after NextEra terminates $4.3B deal

Shares of HawaiianElectric Industries Inc. fell 7.33% on brisk volume to finish at$30.10 on Monday, July 18, after NextEraEnergy Inc. terminatedits $4.3 billion deal to acquire the company.

Wells Fargo analyst Neil Kalton in a note to investors thatfailing to close the Hawaiian Electric deal "barely impacts" the earningsoutlook for NextEra. "[W]hat does this mean for [NextEra]?" Kaltonwrote. "In our view, not a heck of a whole lot."

Guggenheim Securities LLC analyst Shahriar Pourreza notedNextEra is forecasting 6% to 8% organic earnings growth, and the HawaiianElectric deal was not material to its growth plans. Nor is the $90 millionbreakup fee NextEra must pay to terminate the deal material to its earnings.

PPL Corp.shares earned 0.46% to $37.32 in light trading after Barclays Capital Inc.lowered its pricetarget, albeit with a more optimistic earnings view. Barclays lowered its pricetarget on the company's shares by $1 to $42 with an "equal weight"rating and initiated an EPS estimate of $2.45 for 2019 and $2.63 for 2020.Barclays' EPS estimates for 2016-2018 are $2.31, $2.44 and $2.42, respectively,compared with its previous estimates of $2.31, $2.41 and $2.40.

Among merchant generators, the top performer was , shares ofwhich gained 1.65% on light volume to close the day at $12.35. Shares ofInnergex Renewable Energy Inc.advanced 1.54% to settle at C$15.18, while Maxim Power Corp. shares saw a 1.38% rise to C$2.94 inweak trading. Shares of NRG YieldInc. increased 1.37% to $16.25.

The SNL Merchant Generator Index went up 0.72% to 98.23.

Natural gas futurescontinued to trade in a sideways pattern but steered lower late in the sessionMonday, July 18, as the front-month August contract settled the week's openingsession down 3.4 cents at $2.722/MMBtu. The gas market continues to seekbalance as analysts expect record-high inventories ahead of winter despite astring of below-average weekly injections and forecasts pointing to much hotterweather through the end of July.

In the midstream energy space, shares of ended 3.47% up at$21.76, after a trio of Barclays Capital Inc. analysts the company's aggressive pursuit ofjoint ventures and asset sale opportunities is repositioning it faster thananticipated and could be setting up dividend growth as soon as 2017.

Williams Cos.Inc. led gains among the midstream energy names and its sharesearned 4.82% in strong trading to $24.57. Shares of advanced4.04% to $17.00 and SunocoLogistics Partners LP shares moved 2.53% up at $28.39. Shares ofTarga Resources Corp.increased 2.32% to $43.17.

The SNL Midstream Energy Index closed up 1.04% to 119.65.

Coal stocks finished lower in general and the SNL Coal Indexsaw a 0.14% decline to 59.80. Shares of Foresight Energy LP lost 5.94% to $1.90 on thin volume,after the partnership extendedthe termination date on a deal with its bondholders to Aug. 2. Foresightdisclosed in a securities filing that it had entered into an amendedtransaction support agreement with holders of its 7.875% senior notes due 2021.The agreement extends the termination date for failure to consummate arestructuring of Foresight's indebtedness.

Cloud PeakEnergy Inc. was down 1.82% at $2.70, while shares of shed 1.28%to $4.63. Alliance ResourcePartners LP shares slid 0.50% to $17.74.

The Dow Jones Industrial Average increased 0.09% to18,533.05, and the S&P 500 gained 0.24% to 2,166.89.

Market prices andindex values are current as of the time of publication and are subject tochange.