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Energy Stocks Now Off 3% as a Group as Crude Slides Under $88 a Barrel

By: MT Newswires
Posted: 5/30/2012 1:31:00 PM
Referenced Stocks: ORIG

Top Energy Stocks

XOM -2.25%

CVX -2.46%

COP -2.10%

SLB -4.49%

OXY -3.35%

Energy stocks are broadly lower today with the NYSE Energy Sector Index losing 3.16% in afternoon trade while the S&P Energy Index is down 3.22%. Crude oil for July delivery is now down nearly $3 at $87.81 a barrel.

In company news, Ocean Rig UDW Inc ( ORIG ) is down 3% this afternoon after reporting a $0.35 a share Q1 net loss, including a $0.05 a share charge connected to an out-of-court settlement and related legal costs and reversing a $0.22 a share gain in last year's quarter. Revenues rose 49.1% to $163.0 million. There was no analyst forecasts for Q1.

Looking forward, ORIG said prospects for the ultra deepwater drilling industry are "very positive," adding have have been several large, deepwater and ultra deepwater discoveries recently announced. It expects to increase its 2013 backlog and secure long-term contracts for its three newbuilding drillships reaching the market next year.

Also, Royal Dutch Shell plc (RDS-A,RDS-B) today announced it recently purchased another 785,000 shares of its Class B common stock, reducing the number of outstanding B shares to 2.645 billion shares. The global oil major has about 3.696 billion outstanding A shares. Both classes of stock are down about 2%.