Texas markets

Industry update: Energy stocks tumble on Tuesday but significantly outperform broader markets

Energy stocks were down this afternoon, with the NYSE Energy Sector Index dropping 1.7% while the SPDR Energy Select Sector ETF (XLE) was down 2.0%. The Philadelphia Oil-Service Sector Index was down 4.1% and the Dow Jones US Utilities Index slipped 1.2%.

West Texas Intermediate crude oil fell $2.01 to $85.77 a barrel, while North Sea Brent crude also fell $2.29 to $91.71 a barrel. Henry Hub natural gas futures rose $0.03 to $8.27 per 1 million BTU.

In company news, TransGlobe Energy (TGA) fell 2.6% after Horizon Partners urged fellow Transglobe shareholders to vote against the proposed acquisition of Vaalco Energy (EGY) later this month Ci, saying the C$4.10 ($3.12) per share, all-stock offer “significantly undervalues” the oil and natural gas producer. Shares of Vaalco were also down 2.2% this afternoon.

World Fuel Services (INT) lost 3%. The fuel distribution company on Tuesday increased its quarterly dividend by 17% from its most recent payout to $0.14 per share.

Cheniere (LNG) climbed 4.8% after the liquefied natural gas terminal company overnight raised the forecast range for its distributable cash flow this year and adjusted EBITDA for FY22 after the delivery schedule for several LNG cargoes was moved to the end of 2022. The company also said it was receiving consistently higher margins for its liquefied natural gas.

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