Industry Update: Energy Stocks Fall Amid Rising Crude Oil Prices

Energy stocks fell sharply this afternoon, with the NYSE Energy Sector Index and the SPDR Energy Select Sector ETF (XLE) both falling 2.5%. The Philadelphia Oil-Service Sector Index was also down 3.0% and the Dow Jones US Utilities Index was down 0.8%.

First-month West Texas Intermediate crude rose $0.89 to $93.99 a barrel, while global benchmark Brent crude also rose $0.53 to $94.97 a barrel. Henry Hub natural gas futures rose $0.20 to $4.14 per 1 million BTU.

In company news, SM Energy (SM) slid 5.3% as the oil and natural gas producer plans to use available cash to buy back all of its $104.8 million from its outstanding 5.0% senior notes due 2024 plus accrued interest.

Scorpio Tankers (STNG) fell 3.6% after reporting a 7.1% increase in fourth-quarter revenue from year-ago levels to $147.9 million, but still lagged Capital IQ’s consensus expects $148.2 million in revenue for the three months ended Dec. 31.

Transocean (RIG) fell 2.4%, returning a nearly 1% gain earlier on Monday, after it said it was awarded new single-well contracts for four of its deepwater drilling rigs in the Gulf of Mexico and the British North Sea at a price between $160,000 and $335,000. per day while another rig was awarded a two-well contract in the Gulf of Mexico at a price of $395,000 per day.

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Felix J. Dixon