Energy stocks extended their declines Tuesday afternoon, with the NYSE Energy Sector Index falling 2.5% while the SPDR Energy Select Sector ETF (XLE) was down 3.1%. The Philadelphia Oil-Service Sector index was posting a 2.3% retreat, but the Dow Jones US Utilities Index was rising 0.3%.
West Texas Intermediate crude oil settled $2.68 lower at $74.25 per barrel while North Sea Brent crude also was declining $3.19 to $79.49 per barrel after Saudi Arabia Monday cut prices for oil sold in Asia and Europe amid slumping demand. Henry Hub natural gas futures fell $0.11 to $5.47 per 1 million BTU.
In company news, Energy Transfer (ET) declined 1.7% after the natural-gas pipeline and storage company late Monday priced a $1 billion public offering of its 5.550% senior notes maturing in 2028 at 99.974% of their face value as well as $1.5 billion of its 5.750% senior notes due 2033 at 99.891% of their face value. Net proceeds will be used to repay existing debt, the company said.
Matador Resources (MTDR) was sinking 3.7%, reversing a nearly 2% gain earlier. The oil and natural gas producer said it was increasing its quarterly dividend by 50% to $0.15 per share.
ProPetro Holding (PUMP) was 1.1% lower. The oilfield-services company said an operator in the Permian Basin has signed a three-year contract for use of ProPetro’s electric-powered hydraulic fracturing fleet once it takes delivery of the new e-fleet next summer. ProPetro also said it has ordered two more electric frac fleets with delivery expected before the end of 2023.
NRG Energy (NRG) dropped more than 15% after the electric utility announced its $2.8 billion buyout of Vivint Smart Home (VVNT). Under terms of the proposed deal, NRG will pay $12 in cash for each Vivint share, or 33.5% above Monday’s closing price, and will also assume around $2.4 billion of Vivint debt. Vivint shares rose almost 33% on Tuesday, touching their best share price in 13 months.
