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Thursday's Energy Stocks: Investors warm up to solar stocks on new Calif. decree

Solar shares outshined other energy equities on Thursday, May 10, a trading day after California energy regulators approved a mandate requiring homebuilders to include solar electric systems on all new single-family residences and low-rise apartment buildings starting in 2020.

Broader markets also settled in the positive territory, with the Dow Jones Industrial Average rising 0.80% to settle at 24,739.53, and the S&P 500 advancing 0.94% to end the day at 2,723.07.

Sunrun Inc. hit a 52-week high of $11.77 before settling 16.99% higher on more than three times average trading volume to $11.50. Sunrun CEO Lynn Jurich said during an earnings call that California's new requirement could catalyze a comeback for the state's struggling residential solar market. The company reported first-quarter 2018 net income available to common stockholders of $28.0 million, or 25 cents per diluted share, compared to $9.9 million, or 9 cents per diluted share, in the first quarter of 2017.

Among other solar stocks, Vivint Solar Inc. jumped 12.50% to close at $4.50 and First Solar Inc. spiked 5.16% to end at $73.01, while Real Goods Solar Inc. tumbled 13.74% to finish at $1.13, all in robust trading.

Shares of SolarEdge Technologies Inc. leaped 16.53% on more than four times average volume to settle at $64.85, a trading day after announcing that it will acquire Israel-based Gamatronic Electronic Industries Ltd., a company that specializes in uninterruptible power supply systems. SolarEdge also booked first-quarter 2018 non-GAAP net income of $42.6 million, or 87 cents per diluted share, up from $16.5 million, or 36 cents per diluted share, in the same quarter in 2017.

Among other power stocks, Pattern Energy Group Inc. rose 3.91% to finish at $18.59; Northland Power Inc. gained 4.26% to conclude at C$24.49; and TransAlta Renewables Inc. was up 2.07% to finish at C$11.84, all on strong volume after posting their first-quarter 2018 earnings results.

Pattern Energy posted adjusted EBITDA of $104.2 million in the first quarter, up from $98.2 million in the prior-year period. Northland Power reported adjusted EBITDA of C$290.4 million, compared to C$198.1 million during the same period a year ago. TransAlta Renewables booked first-quarter comparable EBITDA of C$111 million, unchanged compared to the same quarter a year ago.

The S&P 500 Utilities Sector saw an increase of 1.34% to close at 254.59.

Spark Energy Inc. retreated 9.13% on heavy volume to close at $10.45, after reporting first-quarter 2018 adjusted EBITDA of $15.9 million, compared to $34.4 million in the comparable quarter of 2017.

Enbridge Inc. finished 3.15% higher to $33.12 in above-average trading. The company recorded first-quarter 2018 adjusted earnings of C$1.38 billion, or 82 Canadian cents per share, an increase from C$675 million, or 57 Canadian cents per share, a year ago. Enbridge CEO Al Monaco pitched the company's debt-reduction plan and resolve to reinvent itself as an operator of regulated pipelines at its annual general meeting in Calgary, Alberta, on May 9.

Among master limited partnerships, Energy Transfer Equity LP shed 2.44% in active trading to $16.40; NuStar Energy LP dropped 0.69% on below-average volume to $21.53; and NuStar GP Holdings LLC declined 2.43% on light volume to $12.05. Energy Transfer chief Kelcy Warren said the pipeline giant's unsolicited bids to acquire NuStar Energy LP's general partner, which were rejected, were made in good faith and should not be interpreted as hostile attempts to revamp the company's management.

The Alerian MLP Index climbed 0.53% to 260.83, and the S&P 500 Energy Sector advanced 0.82% to 565.87.

June natural gas futures were higher despite a larger-than-anticipated and better-than-average storage injection reported by the U.S. Energy Information Administration at midmorning Thursday, May 10. The contract surged past key resistance points to post a $2.820/MMBtu better-than-one-week high and settled the session 7.7 cents higher at $2.814/MMBtu.

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