Energy stocks were losing ground Friday afternoon, with the NYSE Energy Sector Index falling 1.5% and the Energy Select Sector SPDR ETF (XLE) down 1.1%. The Philadelphia Oil Service Sector Index slumped 1.8% while the Dow Jones US Utilities Index rose 0.4%.
Front-month West Texas Intermediate crude oil slipped $0.57 to $84.98 per barrel while global benchmark Brent declined $0.74 to $87.64. Henry Hub natural gas futures were $0.20 higher at $4 per million BTU.
In company news, Callon Petroleum (CPE) fell 3.8% after JPMorgan Friday downgraded the energy producer's stock to underweight from neutral with a $62 share price target.
Schlumberger (SLB) shares were paring earlier losses, recently down 1.6% after the oilfield services giant reported non-GAAP Q4 net income and revenue above Street expectations. Excluding one-time items, it earned $0.41 per share, compared with $0.22 per share a year earlier, while revenue grew 12.7% year-over-year to $6.23 billion. Analysts, on average, had been expecting normalized earnings $0.39 per share on $6.09 billion in revenue.
Targa Resources (TRGP) gained 0.3% after the energy pipelines operator increased its quarterly dividend to $0.35 per common share from $0.10 per share previously.