Energy Sector Update for 09/22/2022: ELBM,TALO,MEOH,MX.TO,GLP

Energy stocks added moderately to their prior gains this afternoon, with the NYSE Energy Sector Index rising 0.7% and the SPDR Energy Select Sector ETF (XLE) up 0.6%. The Philadelphia Oil-Service Sector index was slipping 0.3% and the Dow Jones US Utilities Index was sinking 0.1%.

West Texas Intermediate crude oil settled $0.55 higher at $83.49 per barrel, paring most of a nearly 4% morning advance, while North Sea Brent crude also was rising $0.59 to $90.42 per barrel.

Henry Hub natural gas futures dropped $0.69 to $7.09 per 1 million BTU after the Energy Information Administration Thursday said US commercial inventories grew by 103 billion cubic feet during the seven days ended Sept. 16 compared with market expectations for a 95-billion-cubic-foot increase last week.

In company news, Electra Battery Materials (ELBM) rose 6.7% after the miner Thursday said it will supply 7,000 tons of battery-grade cobalt to South Korean lithium-ion batteries producer LG Energy Solution beginning next year for use in electric vehicles. Financial terms were not disclosed but the companies said they also would work together to develop other portions of the electric vehicle supply chain, including securing sustainable sources of raw materials.

Global Partners (GLP) rose 0.1% after the gasoline stations company late Wednesday said it acquired the Tidewater Convenience store chain, adding 14 company-owned locations plus another franchise store in southeastern Virginia, expanding Global's retail footprint in the mid-Atlantic region. Financial terms were not disclosed.

To the downside, Methanex (MEOH) was fractionally lower this afternoon, easing from an earlier 4% advance, after overnight saying the Toronto Stock Exchange has signed off on its new stock buyback plan, with the Canadian methanol producer expecting to repurchase and canceling up to 3.5 million of its shares, or 5% of its outstanding stock, over the next 12 months.

Talos Energy (TALO) fell 6.5% after the oil and natural gas producer Thursday announced its $1.1 billion acquisition of privately held EnVen Energy, paying $212.5 million in cash and issuing 43.8 million of its shares. The deal is expected to add around 24,000 barrels of oil equivalent per day in a new production for Talos, representing a 40% increase over current levels, it said.

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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