Energy Sector Update for 07/15/2020: NEXT,BE,DNR,FANG

Energy stocks added slightly to their prior Wednesday gains, with the NYSE Energy Sector Index climbing 1.3% in late trade while the SPDR Energy Select Sector ETF was up 2.0%.

Front-month West Texas Intermediate crude oil settled 91 cents higher at $41.20 per barrel in New York while the global benchmark Brent crude contract added 61 cents to $43.51 per barrel. Natural gas futures rose 3 cents to $1.78 per 1 million BTU.

In company news, NextDecade (NEXT) was nearly 17% higher shortly before Wednesday's closing bell and the liquefied natural gas company saying it has revised the design of its Rio Grande LNG project to reduce its carbon dioxide by around 21%. The company also is expecting the design changes will shrink the proposed facility's footprint and shorten its construction time-frame.

Bloom Energy (BE) jumped 37% 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.

Diamondback Energy (FANG) was 1.8% 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.

Denbury Resources (DNR) climbed 1.7% 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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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