MW: Energy stocks recover after four days of losses
NEW YORK (MarketWatch) - Energy stocks on Monday bounced back from four days of losses, shrugging off bearish housing data and weakness in shares of Halliburton.
Sales of U.S. existing homes fell 16.7% in December to a seasonally adjusted annual rate of 5.45 million from 6.54 million in November. That's the largest one-month decline on record, according to the National Association of Realtors.
The NYSE Arca Oil Index (XOI 1,046, +7.89, +0.76%) rose 0.8% to 1,046 after trading to its lowest level since October in the previous session.
The NYSE Arca Natural Gas Index (XNG 548.75, +7.74, +1.43%) rose 1.3% to 548.
The Philadelphia Oil Service Index (OSX 199.01, +1.90, +0.96%) advanced 1.3% to 200.
Halliburton (HAL 30.59, -0.56, -1.80%) fell 3.2% to $30.16 after its fourth-quarter earnings update.
While the company signaled it expects its business to improve in 2010, Halliburton said on its conference call with analysts that its first-quarter profit margins will be hurt by weaker pricing in its overseas business. See Halliburton profit story.
Among stocks in the spotlight, Exxon Mobil Corp. (XOM 65.74, -0.36, -0.55%) moved up at the open only to fall 0.4% to $65.84 after the housing data came out.
The oil major said it signed an agreement with the Iraq Ministry of Oil to redevelop and expand the West Qurna-1 field in southern Iraq. Exxon said it has a 60% stake in the contractor consortium, with Oil Exploration Co. -- owned by the Iraq government -- holding a 25% interest and Royal Dutch Shell (RDS.A 58.05, +0.46, +0.80%) holding 15%. Exxon said it will continue discussions with the government on "other opportunities to assist Iraq in developing the country's resources."
ConocoPhillips (COP 50.76, +0.16, +0.32%) said Statoil USA (STO 23.24, +0.07, +0.29%) bought a 25% working interest in 50 ConocoPhillips leases acquired in the Chukchi Sea off the shore of Alaska. Terms weren't disclosed.
ConocoPhillips bought the leases in a federal auction in 2008. The company will remain operator and retain a majority working interest in the leases. It plans to begin drilling in the Chukchi Sea in 2012.
And ConocoPhillips will buy 50% working interests in 16 Statoil-operated Gulf of Mexico leases and acquire all of Statoil's 25% working interest in five additional leases operated by ConocoPhillips.
