Sector Update: Energy Stocks Fall Late Afternoon

MT Newswires Live12-13

Energy stocks were lower late Thursday afternoon, with the NYSE Energy Sector Index falling 0.9% and the Energy Select Sector SPDR Fund (XLE) down 0.5%.

The Philadelphia Oil Service Sector index dropped 1.8%, while the Dow Jones US Utilities index was fractionally lower.

Front-month West Texas Intermediate crude oil eased 0.1% to $70.19 a barrel while the global benchmark Brent crude contract advanced less than 0.1% to $73.56.

US natural gas stocks fell by 190 billion cubic feet in the week ended Dec. 6, a larger drop than the 172 billion decrease expected in a survey compiled by Bloomberg and following a decrease of 30 billion cubic feet in the previous week.

Henry Hub natural gas futures rose 2.6% to $3.47 per 1 million BTU.

In corporate news, Constellation Energy (CEG) is undervalued amid "changing dynamics" in the power market and has strong growth potential due to factors such as increasing power prices, BofA Securities said. BofA upgraded its rating on the stock to buy from neutral and raised its price objective to $269 from $237. Constellation shares popped 1.6%.

BWX Technologies (BWXT) said Thursday that its subsidiary BWXT Canada signed a memorandum of understanding to support new-build nuclear projects in Canada and globally in collaboration with Westinghouse Electric. BWX Technologies shares rose 0.4%.

Houston American Energy (HUSA) shares jumped 7% after it said Thursday it signed two non-binding letters of intent to buy RPD Technologies and Abundia Global Impact to expand globally and diversify its portfolio.

PHX Minerals (PHX) shares popped 4.2% after the company said its board has launched a strategic review process to explore options for maximizing shareholder value, including a potential merger or sale.

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