Sector Update: Energy Stocks Plunge After Saudi Cuts Oil Prices for Asia, Europe

Last Updated: Monday, May 9, 2022 3:46 PM | MT Newswires

Energy stocks extended their Monday decline this afternoon, with the NYSE Energy Sector Index falling 6.6% while the SPDR Energy Select Sector ETF (XLE) was down 8%. The Philadelphia Oil-Service Sector index was sinking 9.6% but the Dow Jones US Utilities Index was slipping 0.3%, paring much of its midday slide.

West Texas Intermediate crude oil was $6.68 lower at $103.09 per barrel while global benchmark Brent crude also sliding $6.62 to $105.77 per 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 almost 20% after the miner on Friday reported a Q1 net loss of $0.57 per share, compared with a $0.47 per share loss during the same quarter last year. The company generated no revenue during the three months ended March 31.

Kosmos Energy (KOS) shed 17% after the oil and natural gas company cut its FY22 production forecast by roughly 5.8% at its midpoint, now expecting to average between 63,000 to 67,000 barrels of oil equivalent per day compared with its prior guidance range of 67,000 to 71,000 barrels per day.

International Seaways (INSW) declined over 11% after the tanker company Monday said it has adopted a limited-duration shareholders rights plan intended to thwart a hostile takeover bid. The so-called "poison-pill" provisions would be triggered it an individual or a group acquires at least 17.5% of the company's outstanding shares without prior approval of the board.

HF Sinclair (DINO) was rising 1%, hanging on to part of an early 8.7% gain to its highest share price since September 2019, after the petroleum refinery and marketing company reported non-GAAP Q1 net income Monday of $0.99 per share, reversing its $0.53 per share adjusted loss during the same quarter last year and crushing the Capital IQ consensus expecting a non-GAAP profit of $0.14 per share. Sales grew 113% year-over-year to $7.46 billion, also exceeding the $4.81 billion Street view.

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