Energy Stocks Rise as Companies Embrace Hydrogen Technology
Key Ideas
- Energy stocks saw increases in various indices, with notable gains in oil service and utilities sectors.
- Ballard Power Systems and Vertiv announced a partnership to implement hydrogen-powered fuel cells for backup power.
- Constellation Energy shares rose as UBS raised its price target and maintained a buy rating.
- NextEra Energy fell after agreeing to sell $2 billion of equity units, while Berkshire Hathaway increased its stake in Occidental Petroleum.
Energy stocks experienced a rise on Tuesday, with the NYSE Energy Sector Index and the Energy Select Sector SPDR Fund showing gains. The Philadelphia Oil Service Sector index also saw a 0.9% increase, while the Dow Jones US Utilities index remained steady after earlier losses. Crude oil prices went up, with West Texas Intermediate at $81.49 a barrel and Brent crude at $85.31 a barrel. Henry Hub natural gas futures surged to $2.91 per 1 million BTU. In corporate updates, Ballard Power Systems' shares surged by 8.2% following their announcement of a partnership with Vertiv to implement hydrogen-powered fuel cells for backup power in data centers and critical infrastructures. Vertiv's stock also rose by 6.8%. Constellation Energy witnessed a 4% increase in its shares as UBS raised its price target to $249 and maintained a buy rating. On the other hand, NextEra Energy's shares fell by 2.9% after agreeing to sell $2 billion of equity units to Wells Fargo Securities and BofA Securities. Berkshire Hathaway raised its stake in Occidental Petroleum, acquiring around 255.3 million shares. Occidental Petroleum shares experienced a 1.8% increase following the series of purchases. The developments reflect a positive sentiment towards hydrogen technology within the energy sector.