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MW: Energy stocks mixed ahead of oil, gas supply reports
 
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks traded mixed on Thursday after bruising losses in the previous session, ahead of weekly petroleum and natural gas supply reports.

The NYSE Arca Oil Index (XOI 1,073, -12.47, -1.15%) fell 0.2% to 1,083. The NYSE Arca Natural Gas Index (XNG 556.33, -4.42, -0.79%) rose 0.3% to 562. The Philadelphia Oil Service Index (OSX 207.05, -2.03, -0.97%) dipped about 0.1% to 209.

The U.S. Energy Information Administration was expected to report a 2.8-million-barrel increase in U.S. commercial crude-oil supplies for the week ended Jan.15, according to analysts surveyed by Platts.

Analysts expect net withdrawal of 223 to 227 billion cubic feet natural gas for the week ended Jan. 15, according to a Platts survey of analysts.

Among stocks in the spotlight, shares of Anadarko Petroleum Corp. (APC 65.51, -0.26, -0.40%) rose 0.7% to $66.26. The company said its Tweneboa-2 well off the coast of Ghana offers "tremendous potential" after initial tests. Anadarko holds an 18% working interest in the deepwater Tano Block, which is operated by Tullow Oil with a 49.9% working interest. Co-owners are Kosmos Energy with an 18% share; Sabre Oil & Gas with 4% and the Ghana National Petroleum Corp. with a 10% share.

Bill Barrett Corp. (BBG 33.78, +0.91, +2.77%) rose 1.3% to $33.30. The natural gas producer said it expects 2010 production to grow by 8%-12% to about 100 billion cubic feet equivalent. Proved natural gas reserves rose 18% to 965 billion cubic feet equivalent.

Kinder Morgan Energy Partners L.P. (KMP 64.06, -0.92, -1.42%) said fourth-quarter net income climbed to $343.8 million, or 34 cents a share, from $266 million, or 19 cents a share in the year-ago period. The pipeline giant's revenue fell to $1.9 billion from $2.3 billion. Wall Street analysts expected net income of 48 cents a share on revenue of $2.05 billion. Shares fell 1.2% to $64.21.

Entergy Corp. (ETR 80.87, -0.19, -0.23%) predicted fourth-quarter operating earnings of $1.74 a share, and net income of $1.63 a share. In the year-ago period, Entergy reported operating earnings of 99 cents a share and net income of 89 cents a share. Wall Street analysts expect the New Orleans-based power generator to earn $1.45 a share in the fourth quarter, according to a survey by FactSet Research. Shares rose 1.4% to $82.22.

Entergy stuck to its 2010 operating earnings forecast of $6.40 a share to $7.20 a share. Entergy will report fourth-quarter earnings on Feb. 2.

NRG Energy (NRG 24.56, -0.11, -0.45%) said it will evaluate joint-venture opportunities in wind and other projects in North America with the renewable power subsidiary of Italy's Enel SpA. Separately, the companies closed an agreement for the sale of NRG's wind-development company, Padoma Wind Power LLC to Enel North America. Based in La Jolla, Calif., Padoma is developing potential projects in California that would generate 4.000 megawatts. Terms weren't disclosed.

Citigroup Global Markets analyst Brian Yu on Thursday downgraded Arch Coal (ACI 25.50, -1.40, -5.20%) , Massey Energy (MEE 45.13, -2.83, -5.90%) and Patriot Coal (PCX 18.33, -1.90, -9.39%) to sell from hold.

Citi also cut its rating on Consol Energy (CNX 50.72, -2.09, -3.96%) to hold from buy.

"We remain cautious on thermal coal over the next couple of years and believe that metallurgical coal upside is already priced into shares," Yu wrote in a note to clients. Weak natural gas prices are also pressuring coal prices, he noted.

Shares of Arch Coal fell 4%; Massey Energy dropped 3.6% and Patriot Coal dropped 6%.

Source