Sector Update: Energy Stocks Gain Late Afternoon

Oil companies working in the Kashagan field received favorable interim rulings in two large arbitration cases against Kazakhstan government over environmental fines and tax claims, Bloomberg reported Friday, citing sources with knowledge of the matter.

These rulings do not end the arbitration, but they give the companies, including Eni , Shell , Exxon Mobil , and TotalEnergies , a stronger footing in wider disputes with the government, the media outlet reported.

One arbitration panel decided Kazakhstan should not collect a $5 billion fine related to sulfur storage, while the case is under review, although the panel did not rule out the fine entirely.

The companies reportedly succeeded in preventing the government's tax authority from auditing the oil-profit share in a separate ruling, arguing that only the Energy Ministry has that authority.

Kazakhstan's claims against the consortium have grown to more than $160 billion, the report added.

Kazakhstan's Energy Ministry, the companies and North Caspian Operating, which operates the field, did not immediately respond to requests for a comment from MT Newswires. Minority stakeholders, Inpex and China National Petroleum, did not immediately respond to requests for a comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Energy stocks gained late Friday afternoon with the NYSE Energy Sector Index rising 1.8% and the Energy Select Sector SPDR Fund (XLE) climbing 2%.

The Philadelphia Oil Service Sector index jumped 3.7%, and the Dow Jones US Utilities index added 1.9%.

West Texas Intermediate crude oil rose 1% to $67.04 a barrel while global benchmark Brent advanced 1.3% to $70.36 a barrel. Henry Hub natural gas futures added 2% to $4.39 per 1 million BTU.

In corporate news, California Water Service shares rose 2.7%, a day after the company reported a capital expenditure of $471 million through its service areas in 2024, up $87 million from the previous year.

Energy stocks were higher Friday afternoon, with the NYSE Energy Sector Index rising 1.6% and the Energy Select Sector SPDR Fund (XLE) climbing 1.9%.

The Philadelphia Oil Service Sector index increased 3.5%, and the Dow Jones US Utilities index added 1.8%.

Front-month West Texas Intermediate crude oil was rising 1.1% to $67.07 a barrel while the global benchmark Brent crude contract was advancing 1.2% to $70.30 a barrel. Henry Hub natural gas futures were 1.8% lower at $4.22 per 1 million BTU.

In corporate news, hedge fund Elliott Management has taken a 670 million euro ($727.2 million) short position in French energy major TotalEnergies , The Financial Times reported. TotalEnergies shares were rising 1.3%.

Algonquin Power & Utilities shares fell 4.3% after its Q4 adjusted earnings and revenue came in below analysts' estimates.

CenterPoint Energy shares rose 1.9% after the company said Friday it completed more than half of its planned near-term "critical resiliency" actions and grid improvements since last fall.

By Adria Calatayud

Activist hedge fund Elliott Management took a short position in French oil giant TotalEnergies, according to a regulatory filing, a move that comes shortly after the investor built a stake in Britain's BP.

The short position--or a bet that the stock will fall--amounts to 0.52% of TotalEnergies' capital, according to a regulatory filing published Friday. Elliott took the position on Thursday, the filing showed.

TotalEnergies didn't immediately respond to a request for comment.

The short position is part of Elliott's global hedging program, a person familiar with the matter said.

Elliott recently took a stake in BP with a view to pushing for significant changes. The investor also built a more-than-$2.5 billion stake in Phillips 66, which this week said Elliott had nominated seven directors to its board.

Write to Adria Calatayud at adria.calatayud@wsj.com

(Updates with additional details in the second paragraph and Elliot Management's response at the end.)

Hedge fund Elliott Management has taken a 670 million euro ($727.2 million) short position in French energy major TotalEnergies , The Financial Times reported Friday, citing regulatory filings.

Elliott took the short position on Thursday, which was disclosed in a regulatory filing a day after, according to the report.

Elliot Management declined MT Newswires' request for comment and TotalEnergies did not immediately respond.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Hedge fund Elliott Management has taken a 670 million euro ($727.2 million) short position in French energy major TotalEnergies , The Financial Times reported Friday, citing regulatory filings.

Neither TotalEnergies nor Elliott Management immediately responded to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)