energy stockts: Cold snap, earnings ignite gas, oil services stocks

by Jim Jelter (MarketWatch)

Oil and gas stocks moved mostly higher at the open Tuesday, supported by commodities prices as cold weather continues to grip much of the northern United States and a strong earnings report in the oifield services group.

In early action the Amex Natural Gas Index ($XNG :457.74, -1.23, -0.3% ) was up 0.2% at 460 points while the Philadelphia Oil Service Index ($OSX :198.12, +0.25, +0.1% ) was ahead 0.8% at 199.5, both benefiting from a surge in demand for natural gas.

The Amex Oil Index ($XOI :1,162.85, -7.40, -0.6% ) fell off the pace, however. After showing early gains, it slumped to a 0.2% loss at 1,167.6 points, a move similar to the one seen in Monday's session. Crude oil for March delivery was creeping back toward $60 a barrel, last trading 71cents higher at $59.45. See Futures Movers.

BP Plc (BP :63.06, -0.73, -1.1% ) , Europe's second biggest oil company, reported a 22% lower fourth-quarter profit and lowered its production outlook. The company pinned some of the decline on stepped-up safety efforts to prevent a repeat of the rash of pipeline leaks and refinery mishaps plaguing the company over the past couple of years. See full story.

New York-traded shares of BP were down 1.2% at $63.04. Anadarko Petroleum Corp. (APC :42.14, -0.81, -1.9% ) posted a fourth-quarter profit of $1.92 billion, or $4.13 a share, compared with $875 million, or $1.87 a share, a year ago. Anadarko's latest results included a number of one-time items, including a gain of $1.77 billion, or $3.80 a share, from the sale of its Canadian unit.

Based on ongoing operations, Anadarko earned $186 million, or 40 cents a share, in the latest quarter, while revenue rose to $3.12 billion from $1.92 billion a year ago. Analysts polled by Thomson Financial had been looking for a profit of $1.26 a share for the quarter.

Anadarko shares were trading at $42.95, unchanged from the previous close. National Oilwell Varco Inc. (NOV :64.22, +4.19, +7.0% ) also reported earnings, more than doubling its net income on a surge in revenue in its rig technology unit. The strong results triggered a 6% rally in the stock to $63.73 a share - by far the top performer in the oil services group.

The Houston oilfield services company said fourth-quarter earnings jumped to $239.2 million, or $1.35 a share, from $101.6 million, or 58 cents a share, a year earlier. Revenue for the quarter rose 51% to $2.08 billion from $1.38 billion. Analysts surveyed by Thomson Financial expected National Oilwell Varco to post earnings of $1.06 a share on $1.83 billion in revenue.