Energy stocks mixed on inventory data, earnings
Crude for September delivery fell 46 cents at $77.75. Earlier, the benchmark contract climbed as high as $78.70 a barrel into uncharted territory after the latest inventory data showed crude supplies fell for a fourth week in a row.
Motor gasoline supplies climbed 600,000 barrels to 204.7 million. Refinery utilization rose to 93.6% of capacity from 91.7% a week ago.
The Amex Oil Index (XOI : 1,335.76, -26.75, -2.0% ) traded unchanged at 1,362. The Amex Natural Gas Index (XNG : 488.86, -0.47, -0.1% ) rose 1.4%. The Philadelphia Oil Service Index ($OSX : 262.84, -8.46, -3.1% ) dropped 0.4%.
Transocean (RIG :104.80, -2.65, -2.5% ) rose 65 cents to $108.15 after it said net income doubled to $549 million, or $1.84 a share, ahead of the Wall Street consensus estimate of $1.72 a share in a survey of analysts by Thomson Financial. Transocean said it now expects a tax rate of 15% for the rest of 2007, up from its previous view of 14%.
Devon Energy (DVN : 77.16, +2.55, +3.4% ) rallied 5.8% to $78.94 after it said net income rose 5% on a better-than-expected boost in production. BMO Capital Markets said Devon Energy turned in a "great quarter" with earnings of $1.89 a share, ahead of their estimate of $1.46 a share.
Excluding Egyptian assets held for sale, earnings were $1.71 a share. Volumes were 56.2 million barrels of oil equivalent a day, ahead of BMO's estimate of 52.6 million. BMO reiterated its market perform rating on the stock Noble Energy (NBL :62.45, +1.31, +2.1% ) rose 4% to $63.55 after the company said it swung to a gain of $209 million from a loss of $31 million.
by Steve Gelsi
by Steve Gelsi