By Steve Gelsi
Lower oil prices and mixed economic data loomed over energy
stocks on Friday, as better than expected earnings from Chevron
Corp. (CVX) failed to provide much of a lift.
A weak read on spending by Americans fell 0.5% in September, in
line with economists' view, while personal income remained
flat.
Crude oil futures weakened on cooler expectations for economic
expansion, with the benchmark contract fell 83 cents to $79.04 a
barrel. The broad equities market also fell, after generous gains
in the previous session.
Chevron shares fell $1.01, or 1.3%, to $76.94 despite reporting
a boost in production by 11% and beating Wall Street's
third-quarter earnings target.
Among the broad energy sector, the NYSE Arca Oil Index fell 1.7%
to 1072. The NYSE Arca Natural Gas Index fell 1.2% to 509. The
Philadelphia Oil Service Index fell 1.8% to 192.
Among stocks in the spotlight, British oil giant BP Plc (BP)
drew an $87 million fine for failing to correct safety problems at
its Texas City refinery, the scene of an explosion in 2005 that
killed 15 people, according to reports on Friday.
The fine marks the steepest ever issued by the Occupational
Safety and Health Administration. BP may appeal the decision,
according to reports. Shares of BP fell 1.4% to $57.49.
Southwestern Energy Co. (SWN) jumped 2.4% to $47. The natural
gas producer said it earned 34 cents a share, in line with analyst
estimates. Production rose 38% to 73.2 billion cubic feet
equivalent.
Chesapeake Energy Corp. (CHK) fell 3.2% to $25.20. The company
said third-quarter daily production rose 1% from the second quarter
to 2.48 billion cubic feet equivalent. The company anticipates
delivering full year production growth of approximately 5-6% in
2009 and 8% to 10% for 2010.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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