By Steve Gelsi
Energy stocks rose in step with the broad market in early action
Tuesday as investors looked past a sizable net loss reported by oil
major BP and bought into beaten-down shares of some oil and
natural-gas producers.
Shares of Cameron International (CAM) stood out among sector
decliners, however, falling 5.4% to $20.79.
The Amex Oil Index (XOI) rose 0.7% to 927, while the Amex
Natural Gas Index (XNG) added 0.8% to 373. The Philadelphia Oil
Service Index (OSXX) edged down 0.2% to 124.
In energy trading, crude-oil futures held steady around the
$40.12-a-barrel mark.
BP (BP) had a $3.3 billion fourth-quarter loss, a reversal from
$4.4 billion earned in the year-earlier quarter, as it adjusted for
the falling value of unsold inventory in the face of plunging oil
and natural-gas prices. U.S.-listed shares of BP were little
changed.
Also reporting results, Marathon Oil Corp. (MRO) said it lost
$41 million, or 6 cents a share, in the fourth quarter, compared to
$668 million, or 94 cents, earned in the final three months of
2007. The latest results include a non-cash $1.4 billion impairment
of goodwill.
Separately, Marathon said it's cutting its 2009 capital spending
budget by 24% to $5.7 billion. Marathon's shares fell 1.4% to
$26.53.
Also Tuesday, XTO Energy (XTO) said it would monetize some $1.3
billion in gains from commodity hedges to reduce its debt to about
$10.25 billion in 2009.
The Fort Worth, Texas, natural-gas producer also reduced its
2009 capital-spending plan to $3.2 billion from its earlier target
of $3.8 billion.
"Increasing production too rapidly ... is not a prudent use of
our shareholders' resources," the company said.
XTO called the natural-gas markets "currently oversupplied."
XTO's shares added about 1%.
Cameron International's shares fell after the oil and gas
service provider said fourth-quarter net income was $149.1 million,
or 67 cents a share, up from $125.9 million, or 54 cents a share,
earned in the year-ago period.
The latest results include a non-cash, after-tax charge of $16.5
million, or 8 cents a share, associated with the termination of its
U.S. pension plans.
Analysts surveyed by FactSet Research had estimated, on average,
profit of 75 cents a share. The estimates typically exclude
one-time charges.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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