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Friday's Energy Stocks: Spark Energy leaps 30.23% on Q4'17 results

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Friday's Energy Stocks: Spark Energy leaps 30.23% on Q4'17 results

U.S. benchmarks posted gains on Friday, March 9, boosted by a strong jobs report, with most energy stocks also finishing the week on a high note.

The Dow Jones Industrial Average grew 1.77% to finish the day at 25,335.74, and the S&P 500 closed 1.74% higher at 2,786.57. The SNL Energy Index added 0.76% to finish at 268.64.

Retail power business Spark Energy Inc. stock surged 30.23% to end the day at $11.20 on nearly seven time average volume after reporting fourth-quarter 2017 adjusted EBITDA of $28.9 million, up from $24.8 million a year ago.

The company's net income almost doubled to $47.5 million in the 2017 fourth quarter, from $24.1 million in the prior-year period, due to higher retail gross margin and the revaluation of a tax receivable agreement as a result of the tax reform.

Black Hills Corp. units were up 0.46% to end the day at $52.04 on low volume. S&P Global Ratings changed the company's outlook to positive based on its plans to fully divest its oil and gas business by mid-2018.

Sempra Energy stock closed 0.65% down at $109.08 on average volume after the company closed the acquisition of Energy Future Holdings Corp., and its 80% ownership interest in Oncor Electric Delivery Co. LLC.

Among top performers in the midstream sector, QEP Resources Inc. gained 4.49% per share to close at $9.30 on below-average volume and SemGroup Corp. stock rose 4.45% to finish the day at $22.30 on slim volume.

Crestwood Equity Partners LP units declined 1.74% to close a heavy session at $28.20 and Cheniere Energy Partners LP shares shrunk 1.67% to end an active day at $30.54.

TerraForm Power Inc. shares slid 2.36% to finish a slow day at $11.57 after the company reported fourth-quarter 2017 adjusted EBITDA of $99.4 million, down from $110.4 million in the same quarter of 2016. Cash available for distribution was negative $4.1 million, compared with cash available for distribution of $7.1 million in the prior-year period.

Calpine Corp.'s shares ceased trading on the New York Stock Exchange at $15.25 after an Energy Capital Partners LLC-led investor group completed its $5.6 billion buyout.

In coal, Westmoreland Coal Co. declined 1.06% to finish the day at 47 cents, after S&P Global Ratings lowered its credit rating to CCC- from CCC, citing a potential default or restructuring within six months after the company disclosed "substantial doubt" to its ability to comply with its covenants during the year ending Sept. 30.

Concurrently, it lowered the rating on Westmoreland Resource Partners LP's debt to CC from CCC, with a recovery rating unchanged at 4, after the master limited partnership announced that it is exploring a restructuring transaction that would transfer collateral to its term-loan lenders. The partnership's units retreated 3.58% to wrap a brisk session at $2.48.

Teck Resources Ltd. cut its sales guidance on steelmaking coal for the first quarter to approximately 6 million tonnes from the previous range of between 6.3 million and 6.5 million tonnes. The coal producer's class A shares decreased 1.72% to finish at C$33.76 and its class B shares slipped 2.08% to close at C$33.83, both on below-average volumes.

April natural gas futures extended losses in the week's closing session, as market participants look beyond cold weather. The contract closed the trading session 2.4 cents lower at $2.732/MMBtu.

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

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.