Industry update: Energy stocks crash as crude oil prices slide

Energy stocks continued their decline on Friday, with the NYSE Energy Sector index falling 3.6% late in the afternoon while the SPDR Energy Select Sector ETF (XLE) was down 4.0%. The Philadelphia Oil-Service Sector index was down 4.4% while the Dow Jones US Utilities index was up 0.7% this afternoon.

First month West Texas Intermediate crude was down $ 2.91 to $ 76.10 per barrel while the global benchmark Brent crude contract was down $ 2.52 to $ 78.70 per barrel , under pressure from the prospects of large economies to tap strategic crude reserves to curb prices and by the rise of COVID -19 cases in Europe. Henry Hub natural gas futures increased from $ 0.16 to $ 5.07 per million BTUs.

In company news, Standard Lithium (SLI) added more than 14% on Friday, rebounding from a decline of nearly 19% in the previous session following short sellers Blue Orca Capital alleging that the company misleads investors with its advertised battery extraction rates. lithium from its Arkansas mines. In response, Standard Lithium said the report contained several “significant” inaccuracies and misunderstandings and was designed to reduce the company’s stock price in favor of Blue Orca.

Mammoth Energy (TUSK) rose more than 11% after saying its Aquawolf unit was awarded a major utility contract until 2024 and worth up to $ 5 million to provide services civil and structural engineering and design, planning, drafting, mapping, permitting and construction. support for a network of charging stations for electric vehicles.

Marine Petroleum Trust (MARPS) climbed 1.1% after declaring a quarterly cash distribution of $ 0.106743 per share on Friday, a 66% increase from its distribution of $ 0.064312 per share during the prior quarter and reflecting increases in both volume and realized prices of oil and natural gas the Company produced during the quarter.

Among the declines, Valero Energy (VLO) slipped 5.5% after the refiner priced a $ 500 million private placement of 2.800% senior notes due 2031 and an offer concurrent $ 950 million of 3.650% senior notes due 2051. The net proceeds, together with $ 750 million in available cash, will be used to finance the repurchase of certain senior notes issued by the Valero Energy unit Partners of the company.

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Steve R. Hansen