Energy stocks surged Tuesday afternoon, with the NYSE Energy Sector Index climbing 5.3% while the SPDR Energy Select Sector ETF was up 5.9% shortly before the closing bell.
Front-month West Texas Intermediate crude oil settled $1.15 higher at $41.96 per barrel in New York while the global benchmark Brent crude contract increased $1.11 to $44.39 per barrel. Natural gas futures rose 3 cents to $1.68 per 1 million BTU.
In company news, Devon Energy (DVN) climbed 10%, marking one of the best gains Tuesday among stocks in the S&P 500, following a Piper Sandler upgrade of the oil and natural gas producer to overweight from neutral and increasing its price target by $5 to $15 a share.
Penn Virginia (PVAC) also raced more than 17% higher after the oil and natural gas company Tuesday said it averaged between 24,100 to 24,600 barrels of oil equivalent per day during its recently concluded Q2 and realized $50.37 per barrel, including hedge settlements. Penn Virginia also said it reduced its accounts payable by approximately $45 million, adding it had about $315 million of borrowing capacity available on its current credit facility through Monday.
Murphy USA (MUSA) rose over 14% after the gas station chain reported Q2 net income of $5.73 per share, soaring past its $1.01 per share profit during the year-ago period and beating the Capital IQ consensus looking for $5.15 per share.
Halliburton (HAL) was ending 6.5% higher after Bank of America Securities raised its investment recommendation for the company’s shares to buy from neutral previously. The upgrade follows the oilfield-services giant Monday reporting better-than-expected Q2 net income and prompting at least four other brokerages to also increase their respective price targets for Halliburton stock.
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