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Exxon weighs on sector; Kinder up on deal

8/20/12 4:22 PM ET (MarketWatch)

NEW YORK (MarketWatch) -- Exxon Mobil Corp. and Cabot Oil & Gas weighed on energy stocks Monday as the sector moved into the red, but Kinder Morgan Inc. managed to buck the trend on a $3.3 billion deal to sell pipeline and infrastructure assets in the Rocky Mountains.

At the closing bell, Exxon Mobil (XOM) fell 0.5% as one of the worst-performing companies in the 30-stock Dow Jones Industrial Average (DJIA) , which slipped about 4 points. Shares of Chevron Corp. (CVX) , which is also in the blue-chip benchmark, gave up 0.1%.

Among the major gauges tracking energy-sector equities, the NYSE Arca Oil Index (XOI) ended abot flat, the NYSE Arca Natural Gas Index (XNG) dipped 0.2% and the Philadelphia Oil Service Index (OSX) eased 0.5%.

Shares of Kinder Morgan (KMI) rose 1.9% after Kinder Morgan Energy Partners (KMP) agreed to sell pipeline properties in a deal valued at $3.3 billion, including debt.

The buyer in the transaction is Tallgrass Energy Partners LP, a unit of private-equity firm Kelso & Co.

Kinder Morgan Energy Partners will receive $1.8 billion in cash as part of the deal. Its shares eased 0.5% in midday trading. The general partner of Kinder Morgan Energy Partners is owned by Kinder Morgan Inc.

The sale came after Kinder Morgan Inc. reached an agreement with the Federal Trade Commission to sell the units as part of its purchase of El Paso, a deal that closed in May.

Also Monday, the Energy Select Sector SPDR Fund(XLE) , which includes energy stocks in the S&P 500 index (SPX) , fell 0.3%.

Among them, Cabot Oil & Gas (COG) moved down by 2.1%, and Pioneer Natural Resources (PXD) declined 2.1%, while Anadarko Petroleum Corp. (APC) fell 1.1%. On the up side, First Solar(FSLR) rose 5.6% and Hess Corp. (HES) gained 2.4%.

Also in Monday's spotlight, FMC Technologies Inc. (FTI) said it'll pay $285 million in cash to buy Calgary-based oilfield-services company Pure Energy Services Ltd(PSV) .

FMC Technologies said the 1,300-employee company will help it expand its services business. "By combining the products and services of both companies, we will provide an integrated well site solution which creates client value," FMC said. Shares of FMC dropped 2%.