Top Energy Stocks
Energy stocks have turned sharply lower Friday afternoon, with the NYSE Energy Sector Index sinking almost 3.4%, reversing a nearly 1.0% gain, while shares of energy companies in the S&P 500 were down almost 3.3% as a group. Crude oil for March delivery was falling $1.06 to $64.74 per barrel in New York while the benchmark Brent crude April contract also was down $1.53 to $68.12 per barrel. March natural gas futures were up a penny to $2.86 per 1 million BTU. Among energy-related ETFs, United States Oil was down 1.3% while United States Natural Gas was down more than 0.3%. The Philadelphia oil-service sector index was down 3.2%.
In industry news:
Oil prices slid further lower on Friday as traders took profits following prior gains through Thursday's floor session. But oil prices are staying near their best levels since late 2014 as demand also remains high despite near-record domestic oil production and rising commercial inventories last week in the United States trying to offset production cuts by OPEC and Russia keeping about 1.8 million barrels per day out of the global market. "Data showed that producing nations that are participating in the OPEC-led supply curtailment accord saw their total production hold near steady in December, suggesting that compliance has remained strong despite the temptation being presented by the recent surge in prices," Action Economics said Friday in a research note.
Traders will be watching for the weekly Baker Hughes ( BHGE ) rig count, due out at 1 p.m. ET.
Among energy stocks moving on news:
- BWX Technologies ( BWXT ) was fighting broader market downdrafts Friday, with shares of the nuclear energy components company dropping about 1% after its BWXT Nuclear Energy Canada subsidiary received a C$18.6 mln ($15.1 mln), four-year contract to manufacture zircaloy-4 seamless tubes for Romanian nuclear power plant operator Societatea Nationala Nuclearelectrica SA ( SNN ). The tubes will be produced at the company's tubing operation in Arnprior, Ont.
In other sector news
- Exxon Mobil ( XOM ) fell hard on Friday, at one point dropping nearly 6% to a session low of $83.87 a share, after the energy major reported adjusted Q4 net income and revenue missing analyst projections. The company earned $0.88 per share during the final three months of 2017, slipping 2% from year-ago levels, and lagging the Capital IQ consensus by $1.03 per share. Revenue rose 17.9% over the same quarter last year to $66.5 billion, also trailing the $74.4 billion analyst mean.
- Phillips 66 ( PSX ) has been trending lower throughout Friday trading despite today reporting Q4 net income of $1.07 per share, breezing past the Street view by $0.21 per share. Revenue jumped to $3.2 bln from just $163 mln last year and also topping the $3.06 bln analyst forecast.
- Chevron (CVX) declined almost 4% on Friday, reaching a session low of $120.58 a share, after the energy major today reported Q4 revenue that grew less compared with year-ago levels than Wall Street was expecting. Total revenue during the three months ended Dec. 31 rose 19.4% over the same quarter last year to $37.62 bln, lagging the $38.43 bln analyst mean. Net income also increased to $1.64 per share from 0.22 per share last year and easily beating the $1.24 per share Capital IQ consensus.