Sector Update: Energy Stocks and Crude Oil End on Positive Ground

Energy stocks were up this afternoon, with the NYSE Energy Sector Index up 1.0% and the SPDR Energy Select Sector ETF (XLE) up just 0.1%.

The Philadelphia Oil-Service Sector Index fell about 0.2% and the Dow Jones US Utilities Index fell 0.1%.

West Texas Intermediate crude rose $0.46 to $96.30 a barrel, rebounding from a brief decline following the Energy Information Administration reporting a surprise 3.3 million barrel increase in trading inventories during for the seven days ending July 8. Brent North Sea crude climbed $0.25 to $99.74 a barrel while Henry Hub natural gas futures rose $0.53 to $6.69 per 1 million BTU .

In company news, Tellurian (TELL) gained 7.2% after the energy producer on Wednesday announced plans to buy natural gas assets in the Haynesville shale from privately held EnSight IV Energy. Partners for $125 million. The company said the deal is expected to increase its natural gas production by about 30% this year in addition to boosting its upstream earnings before interest, tax, depreciation and amortization at the asset level by about 25%.

Oil-Dri Of America (ODC) rose 0.3% after announcing on Tuesday evening that it would raise prices for its sports field products from August 1, citing rising costs for diesel, mining and other manufacturing costs, including labor rates.

Entergy (ETR) fell 1.2% on Wednesday after the power utility announced Peter Norgeot would succeed Paul Hinnenkamp as chief operating officer on Aug. 12 following Hinnenkamp’s retirement. Norgeot is currently senior vice president of operations and development and a member of the office of the chief executive of Entergy since 2018, he said.

Marathon Petroleum (MPC) also slipped about 0.7% on Wednesday. The energy producer announced overnight that it had negotiated a new $5 billion revolving credit agreement with a consortium of lenders. The revolver also includes an option to increase the commitment up to $1 billion and can be extended for up to two years after its scheduled expiration in July 2027.

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