Energy stocks continued to lose more ground Friday afternoon, with the NYSE Energy Sector Index falling 2.4% and the Energy Select Sector SPDR ETF (XLE) down 2.2%. The Philadelphia Oil Service Sector Index slumped 3.2% while the Dow Jones US Utilities Index was slipping 0.3%, giving back a midday advance.
Front-month West Texas Intermediate crude oil settled $0.41 lower at $85.14 per barrel, easing from recent seven-year highs for a second day. Global benchmark Brent crude was falling $0.90 to $87.84 while Henry Hub natural gas futures rose $0.20 to $4.00 per million BTU.
In company news, Suncor Energy (SU) dropped 4.1% amid reports it is seeking a buyer for its assets in Norway. The Canadian producer has retained Scotiabank to assist with selling Suncor Energy Norge AS, which includes non-operated stakes in three oil and gas fields on the Norwegian continental shelf in the North Sea along with several other exploration assets in the region.
Callon Petroleum (CPE) fell 6.5% after JPMorgan Friday downgraded the energy producer's stock to underweight from neutral with a $62 share price target.
Schlumberger (SLB) shares were slipping 2% after the oilfield services giant reported non-GAAP Q4 net income and revenue exceeding Wall 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 of $0.39 per share on $6.09 billion in revenue.
Targa Resources (TRGP) was near flat after the energy pipelines operator increased its quarterly dividend to $0.35 per common share from $0.10 per share previously.