Top Energy Stocks
Energy stocks were ending near their session lows, with the NYSE Energy Sector Index falling almost 3.4% while shares of energy companies in the S&P 500 were down more than 3.1% as a group. West Texas Intermediate crude oil for January delivery settled $3.77 lower at $53.43 per barrel while the global benchmark Brent crude January contract was declined $4.40 to $62.39 per barrel. December natural gas futures fell 18 cents to $4.52 per 1 million BTU. Among energy-related ETFs, the United States Oil Fund slid 7.1% lower while the United States Natural Gas Fund dropped 0.9%. The Philadelphia Oil Service Sector index also was down nearly 5.5% today.
Among energy stocks moving on news:
(+) Chevron Corp ( CVX ) was down almost 3% in late Tuesday trading following reports the energy major received a 2017 hardship waiver allowing it to fall below federal bio-fuel rules at one of its refineries and blending plants in Utah. According to a source familiar with the company's operations, Reuters said Chevron received the wavier last year from the U.S. Environmental Protection Agency, becoming the largest energy company yet to receive a hardship wavier from the Trump Administration.
In other sector news:
(-) Valvoline ( VVV ) was narrowly lower, giving back a nearly 1% gain earlier Tuesday that followed the company's board authorizing a 40% increase in its quarterly dividend compared with its most recent distribution to investors. The new $0.106 per share dividend is payable Dec. 17 to shareholders of record on Nov. 30.
(-) Resolute Energy ( REN ) was down almost 3% after the company's largest institutional investor, Kimmeridge Energy Management, said a proposed $1.6 billion takeover of the oil and natural gas producer undervalues the company. In an email message to Reuters, Kimmeridge managing partner Ben Dell said while he was "pleased to see that Resolute's management team has finally acted. However, we feel the proposed purchase undervalues Resolute. Cimarex Monday offered to acquire Resolute Energy at $35 per share in cash or stock, representing a 14.8% premium to Friday's closing price.
(-) Torchlight Energy Resources ( TRCH ) dropped almost 10% this afternoon despite the petroleum exploration and production company said it has completed drilling at its A11 No. 2 well in the Orogrande Basin in New Mexico. The well was drilled to a vertical depth of 4,009 feet and electric logs showed excellent hydrocarbon potential in multiple intervals with the presence of both oil and gas, the company said. In particular, one zone appears to be about 190 feet thick starting at 3,800 feet and extending to a depth of approximately 3,990 feet.