By Steve Gelsi
U.S. energy stocks outpaced the broad market into the green
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.
The Amex Oil Index (XOI) rose 1.2% to 931, while the Amex
Natural Gas Index (XNG) added 1.6% to 376. The Philadelphia Oil
Service Index (OSXX) fell 1.3%.
In energy trading, crude-oil futures rose 22 cents to
$40.30.
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. The oil major said it would keep paying its
dividend at current levels. U.S.-listed shares of BP rose 60 cents
to $42.17.
Also reporting results, Marathon Oil Corp. (MRO) said it lost
$41 million, or 6 cents a share, in the fourth quarter, compared
with $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 traded unchanged at $36.03.
Cameron International's shares fell 6% to $20.73 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.
Anadarko Petroleum (APC) rose 5% to $37.70 after it said
fourth-quarter net income rose to $824 million, or $1.79 a share,
from $264 million, or 56 cents, a year ago.
One-time items, including gains on derivatives and divestitures,
added $750 million, or $1.63 per share, to the bottom line after
tax. Revenue rose to $3.81 billion from $3.06 billion.
Analysts polled by FactSet Research, whose estimates typically
exclude one-time items, predicted earnings of 37 cents a share on
$2.59 billion in revenue. Shares of the Houston-based oil and gas
producer fell 1.8% to close at $36.09 ahead of the report. The
stock is down 40% over the past 12 months
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
Click here to go to Dow Jones NewsPlus, a web front
page of today's most important business and market news, analysis
and commentary. You can use this link on the day this article is
published and the following day.