Sector Update: Energy Stocks Leading Market as Crude Oil Rises

Last Updated: Tuesday, January 4, 2022 3:56 PM | MT Newswires

Energy stocks trimmed market-leading gains ahead of Tuesday's close, with the NYSE Energy Sector Index climbing 2.8% and the Energy Select Sector SPDR ETF (XLE) gaining 3.4%. The Philadelphia Oil Service Sector index advanced 4.9% while the Dow Jones US Utilities Index ticked up 0.1%.

Front-month West Texas Intermediate crude oil settled $0.91 higher at $76.99 per barrel and global benchmark Brent gained $1.17 to $80.15; Henry Hub natural gas futures fell $0.10 to $3.72 per million BTU.

In company news, Methanex (MEOH) shares climbed 7.7% after UBS raised its share price target for the methanol producer by $5 to $35, while reiterating a sell rating.

Exelon (EXC) was narrowly higher, giving back most of a nearly 1% mid-morning gain, after RBC Capital Markets raised its price target for the electric utility by $9 to $60 a share and reiterated an outperform rating ahead of the company's planned spinoff of its Constellation Energy retail energy and generation business later this quarter.

Valaris (VAL) gained 3.9% after announcing new bareboat charter contracts from ARO Drilling for four of its marine drillrigs, with three-year extensions to the existing charters with ARO Drilling and the first two newbuild jackups slated for delivery during the second half of 2022.

NexTier Oilfield Solutions (NEX) rallied more than 27% after the company late Monday said it expects revenue of $500 million to $510 million for its just-concluded Q4, topping Wall Street consensus of $494.5 million in a Capital IQ survey. NexTier also expects to deploy an additional upgraded tier 4 dual-fuel frac fleet during Q1, for an average of 32 fleets during the quarter, the company said.

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