Industry Update: Energy stocks plunge after Saudi Arabia cuts oil prices for Asia and Europe

Energy stocks extended their Monday afternoon decline, with the NYSE Energy Sector Index falling 6.6% while the SPDR Energy Select Sector ETF (XLE) was down 8%. The Philadelphia Oil Services Index fell 9.6%, but the Dow Jones US Utilities Index slid 0.3%, erasing much of its midday decline.

West Texas Intermediate crude oil fell $6.68 to $103.09 a barrel, while global benchmark Brent crude also fell $6.62 to $105.77 a barrel after Saudi Arabia lowered its price for Asian and European customers. Henry Hub natural gas futures plunged $1.02 to $7.03 per 1 million BTU.10977

In company news, Piedmont Lithium (PLL) fell nearly 20% after the miner reported a first-quarter net loss of $0.57 per share on Friday, compared with a loss of $0.47 per share. share during the same quarter last year. The company generated no revenue in the three months ended March 31.

Kosmos Energy (KOS) lost 17% after the oil and gas company cut its FY22 production forecast by about 5.8% at midterm, now expecting an average of between 63,000 and 67,000 barrels of oil equivalent per day, down from its previous guidance range of 67,000 to 71,000 barrels per day.

International Seaways (INSW) fell more than 11% after the tanker company announced on Monday that it had adopted a time-limited shareholder rights plan designed to thwart a hostile takeover bid. The so-called “poison pill” provisions would be triggered if an individual or group acquires at least 17.5% of the company’s outstanding shares without prior board approval.

HF Sinclair (DINO) rose 1%, clinging to part of an early 8.7% gain at its highest share price since September 2019, after the refining and marketing company oil company on Monday reported non-GAAP first-quarter net income of $0.99 per share, reversing its adjusted loss of $0.53 per share in the same quarter last year and crushing Capital IQ’s consensus which expects non-GAAP earnings of $0.14 per share. Sales increased 113% year over year to $7.46 billion, also topping Street View’s $4.81 billion.

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Felix J. Dixon