Sector Update: Energy Stocks Volatile While Crude Oil Prices Soar

Last Updated: Monday, February 28, 2022 1:15 PM | MT Newswires

Energy stocks were broadly mixed this afternoon, with the NYSE Energy Sector Index falling less than 0.1% while the SPDR Energy Select Sector ETF (XLE) was up 1.4%. The Philadelphia Oil-Service Sector index was posting a 1.8% gain but the Dow Jones US Utilities Index was sinking 0.3%.

Front-month West Texas Intermediate crude oil was soaring $4.31 to $95.90 per barrel while global benchmark Brent crude also was advancing $2.96 to $100.89 per barrel. Henry Hub natural gas futures were $0.03 lower at $4.44 per 1 million BTU.

In company news, PDC Energy (PDCE) climbed nearly 11% after the oil and natural gas producer reported improved Q4 net income and revenue, including a 207% year-over-year increase in revenue to $854.6 million that crushed the $652.1 million analyst mean. PDC Energy also more than doubled its base dividend to $0.25 per share and it announced plans to acquire Great Western Petroleum for about $1.3 billion, including around $500 million in assumed debt.

Chevron (CVX) rose 1.5% after Monday confirming its purchase of bio-diesel producer Renewable Energy Group (REGI) for $2.75 billion in cash, with investors receiving $61.50 for each Renewable Energy share, or 88.5% over its Feb. 22 closing price before reports of a potential deal surfaced. The deal also includes around $400 million in cash on hand at Renewable Energy, the companies said. Renewable shares were over 40% higher Monday afternoon.

BP (BP) was falling 5.8% after the energy major said it likely will take a $25 billion hit after dumping its 19.75% stake in Russian energy company Rosneft in response to Russia's invasion of Ukraine last week. Rosneft represents roughly half of BP's global oil and gas reserves and about one third of its overall production, the company said in a weekend statement.

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