Energy Sector Updates

Energy stocks are higher this afternoon with the NYSE EnergySector Index climbing over 3.0%, buoyed by broader news on thestate of the economy after the Labor Department reported a surprisenet increase in new job hires during July. The S&P Energy Indexis up about 2.8% with crude oil for September delivery up now upover 5%, climbing $4.51 to $91.63 a barrel in NYMEX trade.

In company news, Union Drilling Inc (UDRL) is ahead 21% today following an upgrade of the oilfield servicesfirm by BMO Capital. The improved view follows UDRL late Wednesdayreporting stellar Q2 financial results, reversing a year-ago $0.15a share net loss with a $0.03 a share profit and crushing theanalyst consensus by $0.09. Revenues also beat as the company rigutilization rate climbed from 54.4% during the same three monthslast year to a 78.1% pace during the period ending June 30.

In other sector news,

(+) KOG, (+6.8%) Reports 288% rise in Q2 sales over 2011 levelsto $85.2 million. Adjusted earnings were $0.10 a share, matchingStreet expectations.

(+) EOG, (+10.5%) Beats by $0.18 a share. Also beats onrevenues.

(-) SWN, (-4.5%) EPS in-line, raises FY12 output forecast to 33million barrels of oil equivalent from 32.3 million barrels. Totaloutput rises 12% in Q2.

(+) LNG, (+0.5%) Repays convertible senior unsecured notes.


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