By Steve Gelsi
ExxonMobil and Chevron outpaced gains in the Dow Jones
Industrial Average on Tuesday as the oil giants bolstered the broad
market. A rise in crude oil prices and positive earnings reports
from smaller players encouraged buying.
The Amex Oil Index (XOI) rose 1.7% to 828. Exxon Mobil (XOM)
rose 1.4% to $70.29. Chevron (CVX) advanced 1.7% to $64.04. Both
companies are components of the 30-stock Dow Jones Industrial
Average (DJI), which was last off its highs, up about 30
points.
The Amex Natural Gas Index (XNG) rose 1.3% to 324. The
Philadelphia Oil Service Index (OSXX) rose 0.5% to 113.
Among stocks in the spotlight, Bill Barrett Corp. (BBG) rose
3.5% to $18.75. The natural gas producer said fourth-quarter net
income more than doubled to $6.9 million, or 15 cents a share, from
$2.5 million, or 6 cents a share in the year-ago period. Adjusting
for the fourth-quarter impairment charge and net unrealized
commodity gains, net income totaled 46 cents a share. Improved
fourth-quarter results were driven primarily by higher
discretionary cash flow. Revenue rose to $147 million from $109
million. Analysts expected earnings of 43 cents a share on revenue
of $145.8 million.
Parker Drilling Co. (PKD) jumped 33% to $1.70 a share. The
company swung to a fourth-quarter net loss of $39.5 million, or 35
cents a share, from net income of $34.6 million, or 31 cents a
share in the year-ago period. The latest period included 62 cents a
share for non-routine items, including $100 million for impairment
of goodwill. Excluding one-time costs, earnings were 27 cents a
share in the latest period. Revenue rose to $212.4 million from
$180.8 million.
U.S. Drilling revenue declined 34% on lower utilization and
lower day rates for the Gulf of Mexico barge drilling fleet.
International Drilling revenues rose 24%. Analysts expected
earnings of 15 cents a share.
Sunoco (SUN) rallied 5.6% to $34.25. Soleil analyst Jacques
Rousseau upgraded the refiner to buy from hold based on its 25%
decline in share price so far this year, verses an 18% drop by the
S&P 500.
"Although we continue to believe that rising supply will place
downward pressure on refining margins in the near term, we expect
Sunoco's share price to be one of the better performers in the peer
group due to steady earnings contributions from its Coke and
Logistics segments," Rousseau said in a note to clients.
Whiting Petroleum Corp. (WLL) fell 10% to $20.70 as it announced
plans to scale back drilling rigs in the Bakken region from nine to
four by November. Analysts at Pritchard Capital noted that the
company's fourth-quarter earnings of 19 cents a share soundly beat
the consensus target of six cents a share. The company managed to
grow its production by 38% over the year-ago period, and 10% over
the third quarter.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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