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Tuesday's Energy Stocks: Broader indexes decline, midstream drags as well

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Tuesday's Energy Stocks: Broader indexes decline, midstream drags as well

Broader indexes ended Tuesday, May 22, declining after President Donald Trump declared dissatisfaction with the progress of trade talks with China and expressed doubts that a summit with the leader of North Korea will happen. Most energy equities also posted losses.

The Dow Jones Industrial Average closed the session down 0.72% at 24,834.41, while the S&P 500 shed 0.31% to finish at 2,724.44.

As the midstream sector struggled during Tuesday's session, Concho Resources Inc. shares slid 4.20% to wrap below-average trading at $147.44; Range Resources Corp. stock declined 3.92% to finish robust trading at $15.45; and Pioneer Natural Resources Co. units slipped 3.41% to end an average session at $202.68.

The oil and gas equipment and services company, Weatherford International PLC, saw its shares give away 2.79% to close a light trading session at $3.48. Weatherford may have to sell one of its larger businesses to cut debt as its revolver expires in 2019, the company's top executive said at the UBS Global Oil and Gas conference.

Royal Dutch Shell PLC class A shares lost 1.32%, closing at $72.67, and class B shares retreated 1.16% to $75.80, both after below-average sessions. By a majority vote of 95% at the company's annual shareholder meeting, investors rejected a resolution that would have required the company to set more stringent emissions reduction targets.

Among top performers in the sector were NGL Energy Partners LP, EQT Midstream Partners LP and NuStar Energy LP. NGL Energy shares added 2.78% to reach $11.10 after a strong session; EQT Midstream stock grew 2.35% to end a below-average trading day at $56.12; and NuStar Energy units climbed 1.84%, finishing at $23.85 on slighly below-average volume.

The S&P 500 Energy Index decreased 1.28% to 571.99, and the Alerian MLP Index shaved off 0.06% to 269.23.

Among power producers, Covanta Holding Corp. shares lost 1.89% to finish at $15.55 on below-average volume, while Pattern Energy Group Inc. stock spiked 1.19% to wrap a light session at $17.86.

Vistra Energy Corp. saw its shares grow 0.91% after a slow session to close at $23.22. The company has hired Arnold Quinn, an outgoing top-ranking agency director and senior economist at the Federal Energy Regulatory Commission, to help lead the company's regulatory affairs group in Washington, D.C.

In the renewable energy market, Canadian Solar Inc. shares trimmed 3.10%, closing at $17.18; SunPower Corp. units moved down 2.65% to $9.20; and First Solar Inc. shares gave back 1.31%, closing at $69.99, all on below-average volume.

In electric and diversified utilities sector, Hydro One Ltd. shares climbed 1.78% on the Toronto Stock Exchange, finishing a brisk day at C$19.44. The U.S. Committee on Foreign Investment cleared Hydro One's proposed acquisition of Avista Corp., saying there are "no unresolved national security concerns" tied to the $5.3 billion all-cash deal. Avista shares decreased 0.11% to $52.56 on high volume.

SCANA Corp. shares gained 1.88%, closing at $35.29 on average volume; and PPL Corp. units grew 1.45% to $27.31 and AES Corp. stock advanced 1.16% at $12.20, both on below-average volume.

The S&P 500 Utilities Index increased 0.39% to close at 249.44.

June natural gas futures traded sharply higher with weather support, as revised forecasts stoke storage concerns as strong cooling demand could limit weekly additions to natural gas supply. The contract surged past key support levels to close above $2.90/MMBtu for the first time since January. The contract settled at $2.908/MMBtu, up 9.8 cents on the day.

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