Oil and gas stocks drifted lower Monday as crude-oil prices dropped below $59 a barrel and energy traders pointed to the end of the winter heating season.
The Amex Oil Index (XOI :1,151.14, -3.92, -0.3% ) was off 0.7%, the Amex Natural Gas Index (XNG : 451.70, -2.59, -0.6% ) slipped 0.8% and the Philadelphia Oil Service Index ($OSX : 202.27, -1.06, -0.5% ) retreated 0.9%. The April crude-oil contract was off $1.11 at $58.94 a barrel on the New York Mercantile Exchange, which was a three-week low. See Futures Movers.
Energy traders pinned the move on skepticism that the Organization of Petroleum Exporting Countries, meeting this week in Vienna, is likely to take steps to stop the recent erosion in prices. Warmer weather across much of the U.S. was also putting a chill on heating oil demand as the market shits its focus to gasoline.
Among the heavyweights in the oil index, shares of Exxon Mobil Corp. (XOM : 70.94, -0.16, -0.2% ) were off 17 cents at $70.95 and ConocoPhillips (COP : 67.09, -0.71, -1.0% ) was down 72 cents at $67.08. Meanwhile, Chevron Corp. (CVX : 68.66, +0.19, +0.3% ) was bucking the trend with a 9-cent gain at $68.56.
Halliburton Co. (HAL : 31.86, -0.16, -0.5% ) announced over the weekend it's moving its corporate headquarters, including Chief Executive Dave Lesar's office, to Dubai to be closer to some of its biggest clients. The company, which has grown to become the U.S. Army's biggest contractor over the past decade, said it plans to keep a corporate office in Houston.
About half of Halliburton's oilfield-service revenue still comes from North America, but the company clearly sees its greatest growth coming from overseas operations, especially the giant national oil companies that control so much of the Middle East's vast oil and gas reserves. See full story.
Halliburton shares were last trading at $31.88, down 14 cents. Energy Partners Ltd. (EPL : 17.88, -0.12, -0.7% ) said it has concluded a review of its strategic alternatives without receiving a definitive acquisition proposal.
The New Orleans-based oil and natural gas exploration company's board has authorized the execution of a self-tender offer to buy back up to 8.7 million common shares for about $200 million, or roughly $23 per share.
This self-tender offer, if fully subscribed, would constitute roughly 22% of the company's outstanding shares. In addition, the board approved the buyback of another $50 million worth of common stock in the one-year period following conclusion of the tender offer. Energy Partners' shares were unchanged from Friday at $18. MarketWatch
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