Markets closed higher on Monday, Aug. 26, after President Donald Trump said Chinese officials have contacted their U.S. counterparts to return to the table for trade negotiations. Most energy-specific stocks also landed in positive territory, though the midstream sector experienced a slight downturn.
The Dow Jones Industrial Average added 1.05% to close the day at 25,898.83, and the S&P 500 wrapped the session 1.10% up at 2,878.38.
In the oil and gas sector, PDC Energy Inc. stock jumped 17.43% to finish a robust session at $29.65 after the company agreed to merge with its fellow Colorado-based oil and gas driller SRC Energy Inc. in an all-stock deal worth about $1.7 billion, creating the second-largest producer operating in the DJ Basin. SRC Energy shares jumped 12.05% to $4.65 on more than 5x average volume.
The S&P 500 Energy Index was up 0.45% to $412.53. TOTAL SA shared advanced 0.83% to $48.52; Exxon Mobil Corp. shares added 0.53% to $67.85; Royal Dutch Shell PLC's class A shares were up 0.33% to $55.31 and class B shares gained 0.54% to $55.57; Chevron Corp. grew 0.49% to $115.74; and BP PLC stock picked up 0.25% to close at $36.30, all on below-average volumes, and Equinor ASA units were 0.96% up to $16.79 in active trading.
Brazil's National Agency of Petroleum, Natural Gas and Biofuels said that these oil majors, along with Repsol SA and Petróleo Brasileiro SA – Petrobras, have registered to take part in the 16th round of bidding in an auction for exploration rights, which will be held on Oct. 10.
TechnipFMC PLC's shares hiked 3.94% to $24.01 in brisk trading. The oilfield service provider said that its board of directors approved a plan to separate into two publicly traded companies, for now called RemainCo and SpinCo.
After diving back down to negative territory at the beginning of August, natural gas spot prices at the Permian Basin's Waha Hub have rebounded as Kinder Morgan Inc.'s 2 Bcf/d Gulf Coast Express Pipeline LLC began taking gas to test its system ahead of a Sept. 20 opening. Kinder Morgan stock climbed 1.79% to $19.92 on a below-average day.
Among notable movers, Range Resources Corp. stock shed 3.72% to wrap strong trading at $3.62; Holly Energy Partners LP closed an active session down 2.21% at $26.57; and Cabot Oil & Gas Corp. shares settled 1.72% lower at $16.55 in average trading.
The Alerian MLP Index decreased 0.23% to 224.42.
In the electric and diversified utilities business, Exelon Corp. stock gained 1.78%, wrapping a light session at $45.68, and FirstEnergy Corp. shares inched up 0.89% to $45.39 on average volume. The Maryland Public Service Commission has directed the two companies' in-state utilities to solicit and seek approval for energy storage projects in a pilot program.
Sempra Energy stock grew 2.00% to $141.79, and TC Energy Corp. shares gained 0.85% to $48.82, both on below-average volumes. The Mexican government may reportedly be nearing a deal to settle a conflict over natural gas pipeline contracts with four companies, including TC Energy and Sempra Energy's Mexico unit IEnova.
Southern Co. stock advanced 1.14% to $58.34 on low volume. The company plans to redeem $300 million of its series 2017A floating-rate senior notes Sept. 30.
Among other notable movers, PG&E Corp.'s stock advanced 6.88% to $11.80; Pattern Energy Group Inc. shares were up 3.03% to $26.54; and NRG Energy Inc. stock added 1.83% to 35.66, all in below-average trading.
Water utility SJW Group's shares gained 1.69% to $66.23 and Connecticut Water Service Inc.'s stock inched up 0.76% to $70.20 after the Connecticut Public Utilities Regulatory Authority issued a draft decision on Aug. 23, authorizing the acquisition of Connecticut Water Service by SJW Group.
Market prices and index values are current as of the time of publication and are subject to change.
