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Wednesday's Energy Stocks: Taking aim at unprofitable power stations, Dynegy leads merchants higher

Dynegy Inc.shares rose 7.83% to $17.90 in active trading Wednesday, May 4, after thecompany posted higher first-quarterearnings and announced plans to shut in Illinois.The generator is considering mothballing an additional 500 MW and restructuringits IPH LLC segment.

In a note by CreditSights following Dynegy's earningsconference call, bond analyst Andy DeVries posited the company aims to eitherslash debt at IPH and bring the plants onto its balance sheet, from which thesubsidiary is currently ring-fenced and which currently has $825 million indebt, or jettison the plants to holders of the debt.

Among other power producers, rose 4.21% onabove-average volume to $14.62 ahead of the company's May 5 earnings results.Analysts expect the company to post normalized EPS of 25 cents and adjustedEBITDA of about $755.8 million, according to S&P Capital IQ consensusestimates.

BrookfieldRenewable Energy Partners LP added 1.13% to end at C$37.65.Guggenheim Securities LLC haslaunched coverage of the company with a "neutral" rating.The partnership on May 4 recordeda $117 million year-over-year increase in first-quarter adjusted EBITDA to $455million.

The SNL Merchant Generator Index closed down 0.84% at 93.54as solar equities weighed on the sector. SolarCity Corp. extended losses, falling 10.59% to $23.65and First Solar Inc.ended 2.02% lower at $51.87.

ChesapeakeUtilities Corp. climbed 4.47% on average volume to finish at $62.90on Wednesday, May 4 after reportinglower first-quarter earnings and a 6.1% quarterly dividend hike to 30.5 cents.MDU Resources Group Inc.shares earned 2.95% in average trading to close the day at $20.60, alsoreporting higherfirst-quart results.

Southern Co.advanced 1.70% to settle at $51.36, after it secured Maryland Public Service Commission approval toacquire AGL Resources a deal valued at $11.53 billion.

The SNL Electric Company Index closed up 1.16% to 422.68.The 10-year Treasury yield dipped to 1.79% from 1.81%.

In the gas utility sector, jumped 2.18% to $65.72 onbrisk volume, after the company reportedfiscal second-quarter net economic earnings of $103.5 million, or $2.37 pershare, compared to $97.6 million, or $2.25 per share, during the prior-yearperiod.

The SNL Gas Utility Index went up 1.09% to 511.77.

In midstream energy space, shares of advanced3.87% to $12.20, after it and its general partner a counterclaim against , allegingbreach of obligations under the organizations' merger agreement.

Williams shares retreated 0.77% to $19.24 on weak trading.

ONEOK Inc.jumped 6.65% to $38.17, as first-quarteradjusted EBITDA totaled $441.6 million, compared to $320.4 millionin the year-ago quarter. Higher volumes and increased fee-based earnings atONEOK Partners LPgreatly contributed to the earnings growth at ONEOK, according to the company.ONEOK Partners rose 8.64% to $37.35.

Coal stocks finished lower in general during the Wednesdaysession. Alliance ResourcePartners LP fell 5.49% to $14.62, shares shed2.07% to $8.52, Cloud Peak EnergyInc. saw a 1.87% decline to $2.10, and shares decreased1.76% to $4.46.

The SNL Coal Index rolled down 1.37% to 48.82.

At the broader markets, the Dow Jones Industrial Averageshed 0.56% to 17,651.26, and the S&P 500 slid 0.59% to 2,051.12.

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