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Sector Update: Energy Stocks Holding Onto Gains As Early Rise for Crude Oil Fades

05/10/2021 11:49

03:45 PM EDT, 05/10/2021 (MT Newswires) -- Energy stocks pared a portion of their prior advance this afternoon, with the NYSE Energy Sector Index climbing 0.1% while the SPDR Energy Select Sector ETF was up 0.6%. The Philadelphia Oil-Service Sector index was sinking 1.8% although the Dow Jones US Utilities Index was ahead 1.3%.

Front-month West Texas Intermediate crude oil was $0.02 higher at $64.92 per barrel, giving back most of its earlier gains after Colonial Pipeline said it hopes to restore full service by the end of the week following a ransomware attack. The Brent crude contract was falling $0.06 to $68.22 per barrel while Henry Hub natural gas futures fell $0.03 to $2.93 per 1 million BTU.

In company news, Bonanza Creek Energy (BCEI) gained 7.2% after the oil and natural gas producer announced plans to merge with Extraction Oil & Gas (XOG), with investors of each company owning roughly half of the combined company, which will have an aggregate enterprise value of approximately $2.6 billion. Extraction shares were 7% higher in late late regular-hours trade.

Duke Energy (DUK) climbed 3.4% after reporting adjusted Q1 net income of $1.26 per share, improving on a $1.14 per share non-GAAP profit during the same quarter last year and beating the Capital IQ consensus by $0.05 per share. Separately, The Wall Street Journal reported activist hedge fund Elliott Management has an undisclosed stake in the utility company.

Pembina Pipeline (PBA) rose almost 1% after RBC Capital Markets increased its price target for Pembina's shares by C$2 to C$42 a share and reiterated its outperform stock rating.

Schlumberger (SLB) was little changed, easing from a 3.1% rise to a 15-month high earlier that followed the oilfield-services company saying it was collaborating with NOV (NOV) to accelerate acceptance of automated drilling among oil and natural producers. NOV shares also were edging 0.7% higher this afternoon.