Anadarko, Nabors up as energy stocks rise
7/18/12 5:14 PM ET (MarketWatch)
NEW YORK (MarketWatch) -- Energy stocks rose on a triple-digit advance from the Dow Jones Industrial Average and higher natural gas prices on Wednesday, with Anadarko Petroleum and Nabors Industries among the gainers.
Exxon Mobil Corp. (XOM) advanced 0.6% and Chevron Corp. (CVX) moved up by about 0.4%.
The companies are components of the Dow Jones Industrial Average
, which rose 103 points by the closing bell.
The Energy Select Sector SPDR Fund(XLE) , which tracks energy stocks contained in the S&P 500 Index
, rose 0.9%.
Among them, Nabors Industries (NBR) rose 2.7% and oil well services firm Helmerich & Payne(HP) moved up by 2.8%.
EOG Resources(EOG) rose 1.5% and Ultra Petroleum(UPL) moved up by 1.8%.
Natural gas producers tapped into a 4% increase in natural gas futures to $2.90 per million British thermal units.
MDA EarthSat forecast more intense heat in the Midwest and East in the next week to week and a half. The hot weather is expected to increase demand for electricity, used to power air-cooling equipment, produced from natural gas-powered generators.
In major benchmarks in the energy sector, the NYSE Arca Oil Index (XOI) rose 0.7%, the NYSE Arca Natural Gas Index (XNG) advanced 0.6% and the Philadelphia Oil Service Index (OSX) moved up by 1.4%.
Among stocks in the spotlight, Anadarko Petroleum Corp. (APC) rose 1.1% after the Houston-based oil and natural gas producer announced a fresh discovery off the coast of the African nation of Ghana in the Atlantic Ocean. The Wawa-1 exploration well hit 43 net feet of oil and 65 feet of gas-condensate, the company said.
Bloomberg News reported Royal Dutch Shell(RDS.A) is in talks to buy Anadarko's natural gas assets off the coast of Mozambique. Anadarko's 36.5% stake in the Rovuma-1 offshore gas field could fetch $8 billion, said the Bloomberg report, which cited unnamed sources.
Shell bowed out of bidding for Cove Energy(COV) , which owns a stake in the same field, after a $1.9 billion offer from Thailand-based oil firm PTT Exploration & Production (PTTEP) .