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Tuesday's Energy Stocks: Stocks slide as yield curve inverts further

Wall Street erased earlier gains on Tuesday, Aug. 27, after the Treasury yield curve, which is said to be a reliable indicator of a coming recession, inverted further.

The Dow Jones Industrial Average slid 0.47% to close at 25,777.90, and the S&P 500 declined 0.32% to settle at 2,869.16.

Oil and gas companies also retreated, while electric and diversified utilities weathered the general downward trend.

Antero Resources Corp. shares shed 10.26% in heavy trading to close at $2.80, following a downgrade from S&P Global Ratings. The rating agency lowered Antero's issuer credit and senior unsecured ratings to BB from BB+, citing the reduction in its Henry Hub natural gas price assumptions through 2021.

Among companies previously downgraded by Ratings, Gulfport Energy Corp. dropped 4.71% in light trading to finish at $2.43, and Range Resources Corp. retreated 6.35% in brisk trading to end at $3.39.

Frontline Ltd. closed down 2.32% on light volume to settle at $8.00, after reporting adjusted net income of $4.2 million, or 2 cents per share, for the second quarter, up from an adjusted net loss of $27.7 million, or a loss of 16 cents per share, a year ago.

Analysts and investors warmly welcomed TechnipFMC PLC's decision to split the company into two distinct businesses. Following the split, SpinCo will trade on the Euronext Paris Exchange and RemainCo will trade on both the NYSE and the Euronext Paris Exchange.

TechnipFMC shares traded 2.96% higher on strong volume to close at $24.72.

Whitecap Resources Inc. declined 3.09% in strong trading on the Toronto Stock Exchange to finish at C$3.45, after lowering its second half capital expenditures program by 17% to C$250 million from C$300 million. The company's full-year 2019 capex is now expected to be C$400 million, or C$50 million lower than its previous guidance of C$450 million.

BP PLC added 0.83% in slightly below-average trading to finish at $36.60, after it agreed to sell its entire business in Alaska to Hilcorp Energy Co. affiliate Hilcorp Alaska LLC for $5.6 billion.

The transaction is a major shift for the Alaskan oil and gas industry that sees two companies controlling 72% of the state's oil production.

Among other oil and gas companies, EQT Corp. was down 4.29% in below-average trading to $9.82; Valero Energy Corp. finished 2.71% lower on about average volume to $71.71; and Phillips 66 declined 1.86% in light trading to settle at $94.52.

The S&P 500 Energy Sector slipped 0.62% to 409.96, and the Alerian MLP Index declined 0.65% to 222.96.

Shares of WEC Energy Group Inc. climbed 1.11% on strong volume to end at $95.31. The company's Wisconsin utilities would see slightly smaller-than-requested returns on equity if state regulators approve settlements the utilities reached with two consumer groups. WEC Energy told the SEC the agreements call for a return on equity of 10% for Wisconsin Electric Power Co., 10.2% for Wisconsin Gas LLC and 10% for Wisconsin Public Service Corp.

TransAlta Corp. moved down 0.35% in light trading on the Toronto Stock Exchange to settle at C$8.49. The company expects to receive the remaining C$58.8 million payment, plus interest, related to early termination of power contracts for the output of two coal-fired units, following successful arbitration with the Alberta Balancing Pool.

Among other electric and diversified utilities, Exelon Corp. rose 1.23% on brisk volume to $46.24, and Duke Energy Corp. gained 0.88% in strong trading to $92.15, while PG&E Corp. shed 4.92% on light volume to $11.22.

The S&P 500 Utilities Sector saw a 0.14% increase to close at 314.62.

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