Energy stocks were mostly higher this afternoon, with the NYSE Energy Sector Index climbing 1.2% while the SPDR Energy Select Sector ETF was up 1.9%.
Front-month West Texas Intermediate crude oil was rising 59 cents to $40.88 per barrel at the New York Mercantile Exchange while the global benchmark Brent crude contract was advancing 56 cents to $43.46 per barrel. Natural gas futures were 1 cent higher at $1.75 per 1 million BTU.
Among energy-related ETFs, the United States Oil Fund was ahead 1.5% while the United States Natural Gas fund was increasing 0.6%. The Philadelphia Oil Service Sector index also was posting a 3.9% gain.
In company news, Bloom Energy (BE) jumped 36.5% higher after it announced an expanded partnership with SK Group to introduce hydrogen-powered fuel cells and electrolyzers producing renewable hydrogen in South Korea beginning in 2021. Bloom has received over $1 billion in revenue through the existing partnership by selling 120 mega-watts of fuel cells in South Korea.
Denbury Resources (DNR) climbed 4.6% after disclosing in a regulatory filing it decided against making a $3 million interest payment on its 4.625% senior notes due 2023 due Wednesday while it weighs strategic alternatives. The oil and gas company has a 30-day grace period before the non-payment is considered an event of default.
Diamondback Energy (FANG) was 1.4% higher, reversing an earlier decline, after late Tuesday lowering its FY20 production forecast range, now expecting to average between 290,000 to 305,000 barrels of oil equivalent per day compared with its prior outlook projecting between 295,000 to 310,000 per day. Analysts at least two firms trimmed their price targets on the oil and gas company, with TD Securities and Credit Suisse both cutting their respective price targets by $4 to $57 a share.
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