By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) -- Energy stocks slid sharply Friday as the broad market and commodity prices reeled on jitters tied to China and the bailout of Greece.
The Dow Jones Industrial Average (INDU 10,021, -123.57, -1.22%) led the way down, falling 147 points, or 1.4%, to once again drop below the 10,000 level. Index components Exxon Mobil Corp. (XOM 64.63, -0.55, -0.84%) and Chevron Corp. (CVX 70.45, -0.47, -0.66%) dropped 1.3% and 1.1%, respectively.
Investors in the energy sector looked toward weekly petroleum inventory data, delayed by two days because of the blizzard in Washington, D.C.
The NYSE Arca Oil Index (XOI 1,006, -15.65, -1.53%) fell 1.7% to 1,005. The NYSE Arca Natural Gas Index (XNG 518.00, -6.60, -1.26%) dropped 1.8% to 515. The Philadelphia Oil Service Index (OSX 194.03, -3.46, -1.75%) subtracted 2.3% to 193.
China moved to pare back lending, and Germany appears to be backpedaling on a plan to bail out Greece, sending crude futures down $1.93 to $73.35.
Among energy stocks in the spotlight, Ultra Petroleum (UPL 46.54, -0.44, -0.94%) said its fourth-quarter net income increased to $95.4 million, or 62 cents a share, from $65 million, or 42 cents a share, in the year-ago period. Adjusted earnings rose to 51 cents a share, from 43 cents a share. Revenue rose to $213 million from $207 million.
Wall Street analysts expected earnings of 46 cents a share and revenue of $232.7 million, according to a survey by FactSet Research. Looking ahead, Ultra Petroleum said it expects more of its natural-gas production to come from the northeastern U.S., where it operates in the Marcellus Shale.
"We estimate that in 2010 almost half of Ultra's natural gas will receive premium gas prices in the Northeast," the Houston-based firm said. "Over the next few years, as Ultra's production continues to increase in the Northeast, a larger and larger percentage of revenues will be derived from the premium-priced markets."
Shares of Ultra Petroleum, a component of the NYSE Arca Natural Gas Index, fell 1.5% to $46.25.
Among midcap oil-service firms, Precision Drilling Trust (PDS 8.19, -0.19, -2.27%) reported a fourth-quarter loss of $24.9 million, or 9 cents a share, compared to net income of $92.4 million, or 66 cents a share, in the year-ago period. The company's revenue fell 15% to $286 million, but rose 13% from the third quarter. Analysts expected earnings of 4 cents a share and revenue of $291 million, according to a survey by FactSet Research.
Shares of Precision Drilling fell 4% to $8.05.
Finally, Italian oil company Eni (E 45.57, +0.75, +1.67%) swung to a fourth-quarter net profit of 641 million euros ($877 million) from a loss of 874 million euros a year earlier. Net sales from operations in the quarter declined 9.6% to 22.19 billion euros, and adjusted net profit for the quarter, which excludes the changing price of oil inventories, dropped 29% to 1.39 billion euros.
The group said its underlying performance reflected sharply lower refining margins as well as a higher adjusted tax rate.
The adjusted profit was still ahead of the Dow Jones Newswires-compiled consensus of 1.21 billion euros. Oil and natural-gas production in the quarter rose 1.7% to 1.89 million barrels a day, and the company also cut its total dividend payout for the year to 1 euro a share from 1.3 euros a share in 2008.
U.S.-listed shares of Eni rose 1.8% to $45.62.
Energy stocks look to hold gains for the week
The NYSE Arca Oil Index (XOI 1,006, -15.65, -1.53%) looks to finish out its first week of gains since early January. The index closed at 1,022 Thursday, up from its ending point of 998 last Friday.
The NYSE Arca Natural Gas Index (XNG 518.00, -6.60, -1.26%) rose to 525 Thursday, above its ending point of 514 last Friday.
The Philadelphia Oil Service Index (OSX 194.03, -3.46, -1.75%) wrapped up at 197 Thursday, above its close of 190 last Friday.
