Sector Snap: Shares of drillers slide with crude

For future reference - http://biz.yahoo.com/ap/081024/drillers_sector_snap.html?.v=1. Expect similar trends with local O&G stocks.

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Sector Snap: Shares of drillers slide with crude
Friday October 24, 4:39 pm ET

Shares of oil drillers slide as crude prices tumble and broader markets fall on economic woes

NEW YORK (AP) -- Shares of oil drilling and exploration companies plunged Friday as the price of crude tumbled and the broader markets slid on concern about the global economy.

Light, sweet crude for December delivery fell $3.69, or 5.4 percent, to $64.15 on the New York Mercantile Exchange. The price has slid in recent weeks from an all-time high of $147.27 reached on July 11.

And natural gas for January delivery fell 13.9 cents, or 2 percent, to $6.747 per 1,000 cubic feet on the Nymex. Prices for the cooking gas had been above $10 per 1,000 cubic feet last summer.
When energy prices are high, oil and natural gas exploration becomes more lucrative. However as prices fall, generally so does the incentive to explore new areas, and with it potential new sources of revenue for the sector.

Shares of Diamond Offshore Drilling 1.15, or 1.6 percent, to $72.58; shares of Noble Corp. fell $1.84, or 6.6 percent, to $25.90; and shares of Ensco International Inc. fell $2.24, or 6.5 percent, to $32.34.

All three posted increases in their third-quarter net income earlier this week.

"Although uncertain commodity prices will lead to volatility in the daily stock prices, the long term outlook on all three companies remains very solid," Pritchard Capital Partners analyst Brian Uhlmer said in a note to clients.

Elsewhere in the sector, shares of Schlumberger Ltd. fell $4.52, or 8.7 percent, to $47.52; shares of Cameron International Corp. fell $1.63, or 7.1 percent, to $21.29; and shares of National Oilwell Varco Inc. lost $1.28, or 4.8 percent, to $25.50.

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Some stock charts for your reference:

Diamond Offshore Drilling (DO) - http://finance.yahoo.com/echarts?s=DO#chart1:symbol=do;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Noble Corp (NE) - http://finance.yahoo.com/echarts?s=NE#chart1:symbol=ne;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Ensco International Inc. (ESV) - http://finance.yahoo.com/echarts?s=ESV#chart1:symbol=esv;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Schlumberger Limited (SLB) - http://finance.yahoo.com/echarts?s=SLB#chart1:symbol=slb;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

Cameron International Corporation (CAM) - http://finance.yahoo.com/echarts?s=CAM#chart1:symbol=cam;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined

National Oilwell Varco, Incorporated (NOV) - http://finance.yahoo.com/echarts?s=NOV#chart1:symbol=nov;range=1y;indicator=volume;charttype=candlestick;crosshair=on;ohlcvalues=0;logscale=on;source=undefined