Industry Update: Energy Stocks Rally as Crude Oil Prices Rebound

Energy stocks were up sharply this afternoon, with the NYSE Energy Sector Index up 2.6% and the SPDR Energy Select Sector ETF (XLE) up 2.4%. The Philadelphia Oil-Service Sector Index was up 2.4% and the Dow Jones US Utilities Index was up 1.5%.

West Texas Intermediate crude rose $6.21 to $105.97 a barrel, while North Sea Brent crude rose $5.46 to $107.92 a barrel. Henry Hub natural gas futures rose $0.16 to $7.55 per 1 million BTU.

In company news, Trecora Resources (TREC) jumped nearly 27% after the petrochemical company on Wednesday agreed to a $247 million privatization deal led by affiliates of Balmoral Funds, which will launch a bid. tender to acquire all outstanding shares of Trecora at $9.81 each. , about 30% above Tuesday’s closing price.

Indonesia Energy (INDO) rose 2.9% after it said on Wednesday it had found oil in its Kruh 27 well in Sumatra, the first of two consecutive wells drilled this year on the company’s Kruh block. The new well is expected to begin production by the end of May, the company said.

TransGlobe Energy (TGA) rose 2.6% after the oil and natural gas producer reported net income of $0.66 per share in the first quarter, reversing its net loss of $0.15 per share in the first quarter. during the same quarter last year. Analyst estimates were not available.

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Steve R. Hansen