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Monday's Energy Stocks: Ensco, Rowan make gains on midstream merger news


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Monday's Energy Stocks: Ensco, Rowan make gains on midstream merger news

Mainstream indexes wrapped Monday, Oct. 8, largely unchanged after spending most of the day compiling losses, while the bond market was closed in observance of Columbus Day. Electric and diversified utilities generally saw gains but other energy sectors finished the day down.

The Dow Jones Industrial Average ended the day up 0.15% to finish at 26,486.78, while the S&P 500 decreased 0.04% to 2,884.43.

In the midstream sector, U.K.-based Ensco PLC's stock, traded on New York Stock Exchange, grew 3.66% to finish a brisk session at $8.79. Ensco jointly announced with Houston-based Rowan Cos. PLC that the two offshore drilling service companies have agreed to merge in an all-stock transaction that company executives expect will bring $150 million in cost savings amid an oil market recovery. Rowan's shares were up 4.63% at $19.65 on more than four times average volume.

W&T Offshore Inc. has priced at par its private offering of $625 million in aggregate principal amount of senior second lien notes. The notes will mature on Nov. 1, 2023, and will pay interest at an annual rate of 9.75%. W&T Offshore's shares dropped 7.26% to $8.43 on below-average volume.

Northern Oil and Gas Inc. shares trimmed 1.23% to close at $4.01 on below-average volume. The company closed an agreement with Royal Bank of Canada, as administrative agent, and a syndicate of lenders under a new $750 million first lien revolving credit facility.

Among major players in the industry, Devon Energy Corp. lost 3.15% to wrap a robust session at $38.78, and Marathon Oil Corp. stock gave away 2.26% to finish its below-average session at $22.88.

The S&P 500 Energy Index shed 0.05% to close at 571.09, and the Alerian MLP Index retreated 0.39% to 278.74.

Among electric and diversified utilities, American Electric Power Co. Inc. shares picked up 1.36% to finish the day at $72.85 on above-average volume. The company has notified employees at its 1,530-MW Conesville coal plant in Coshocton County, Ohio, of plans to shut down the facility by May 31, 2020. Meanwhile, the primary coal supplier of the plant, Westmoreland Coal Co., saw a 5.00% jump in stock price, closing at 12.6 cents on average volume.

Entergy Corp.'s stock climbed 1.06% after a below-average average session, closing at $83.64. Its Texas-based electric utility, Entergy Texas Inc., has filed a settlement agreement reached with stakeholders with the Public Utility Commission of Texas to approve $53.2 million nonfuel rate increase.

Gas utilities also generally saw gains. Atmos Energy Corp. was up 2.44% to $96.95 on more than double average volume, and South Jersey Industries Inc. earned 2.26% to $36.13.

In the renewable power production sector, Sunrun Inc. stock slid 3.93% to close at $11.99 on low volume, while TerraForm Power Inc. shares hiked 1.08% to wrap a slow session at $11.25.

The S&P 500 Utilities Index added 0.77% to close at 274.34.

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