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Energy Sector Update for 07/21/2020: DVN,PVAC,MUSA,HAL

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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