Oil and Gas Sector Weekly Updates

It was a volatile week for stocks in the oil and gas sector as developments in the European economic situation resulted in a changing outlook for energy demand  in 2012. Energy stocks such as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and ConocoPhillips (NYSE:COP) posted strong earnings growth for the previous quarter as high oil prices and strong refining margins boosted results. Oil services firms also saw their shares rise in sympathy with higher crude oil prices.

Chevron: Price Estimate Revised to $109 as Oil Prices, Refinery Sales Drive Profits:

Chevron (NYSE:CVX) reported a solid Q3  late last week as results were boosted by strong oil prices and refining margins, gains on asset sales and positive foreign exchange effects. Despite liquids production output falling by 5% in Q32011 from the prior year period, Chevron’s upstream earnings rose from $3.6 billion last year to $6.2 billion as its realization on liquids sales remained above $100.

Exxon Mobil Sequential Earnings Decline, But Annual Growth On Track:

Exxon Mobil (NYSE:XOM) reported quarterly results last week which were roughly in-line with expectations as the company’s sequential results dipped slightly from $10.68 billion in the last quarter to $10.33 billion as oil prices declined during the period. In comparison with last year earnings jumped by 40% as higher oil prices overshadowed a decline in oil and natural gas liquids production and stable gas output.

ConocoPhillips Posts Strong Earnings Across Divisions:

Oil major ConocoPhillips (NYSE:COP) posted a strong Q3 by improving earnings across the board despite a 10% decline in volume which was almost double the decline posted by competitors Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX). The large decline was partially because of suspended operations in Bohai Bay and lower output from Libya, Russia and some fields in North America.

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