SECTOR COMMENTARY

Energy stocks finished mixed, tracking the broader equity indices. The oil services were the best-performing subgroup due to strong earnings results from Schlumberger, driven by strong international activity. Elsewhere, Royal Dutch Shell fell after warning that its fourth-quarter figures are expected to be significantly lower than recent levels of profitability because of current oil and gas prices and problems in the downstream environment. The announcement follows a similar warning from Chevron Corp last week.

WTI crude oil futures rose $0.41 or 0.44% to $94.37, while Brent crude also experienced gains driven by demand for heating fuels and rising gasoline prices. Gains however were offset by expectations for increased supply from Libya and Iran. Brent's premium to the U.S. crude oil benchmark tightened to a one-month low earlier in the day as the start-up of a major U.S. pipeline is expected to transport oil to refining markets for refined product exports. "I expect that with potential exports from the U.S. and all the supply that spread will narrow," said Rich Ilczyszyn, chief market strategist and founder of iitrader.com in Chicago." The reason crude prices popped is because they're going to have to meet the demand for heating and diesel."

Natural gas futures closed lower by $0.056 or 1.28% to $4.326 as profit taking set in after a strong run. The weekly rig count summary released by Baker Hughes showed a gain in gas rigs by eight to 365, which was lower by 64 from a year ago.

INTERNATIONAL INTEGRATEDS

Reuters - Petróleo Brasileiro SA, Brazil's state-controlled oil company, on Friday announced a voluntary worker dismissal plan, part of efforts to streamline its cost structure and increase productivity.

Press Release - Royal Dutch Shell plc updates on its expected 2013 results. Fourth quarter 2013 figures, which are expected to be published onJanuary 30, 2014 , are expected to be significantly lower than recent levels of profitability, considering current oil and gas prices and the downstream oil products industry environment.

Reuters - Royal Dutch Shell has scheduled a partial maintenance at its giant Ormen Lange gas plant from May 21 to June 6, reducing power consumption at the plant from 190 megawatts to 120 MW, the Nordic power bourse said.

Deutsche Bank upgraded Statoil to ‘Buy’ From ‘Hold’.

Citigroup upgraded Total to ‘Buy’ from ‘Neutral’.

U.S. E&PS

CLSA initiated coverage on Apache Corp, Continental Resources, EOG Resources, Laredo Petroleum, Oasis Petroleum, Pioneer Natural Resources, Range Resources, Sanchez Energy and Whiting Petroleumwith an ‘Outperform’ rating.

CLSA initiated coverage on Cabot Oil & Gas, Cimarex Energy and EQT Corporation with a ‘Buy’ rating.

Press Release - EXCO Resources, Inc. announced the preliminary results of its previously announced $273 million rights offering and related transactions under exercise commitment agreements with certain shareholders of the Company (the "Investment Agreements").

(Late Thursday) Press Release - Devon Energy Corporation announced that Thomas L. Mitchell will be joining the company as executive vice president and chief financial officer. Mitchell brings to Devon more than 30 years of experience in the oil and gas industry. Most recently, after playing an instrumental role in taking Midstates Petroleum Company public, Mitchell served as vice president, CFO and as a director of Midstates. From 2006 to 2011, he served as senior vice president and chief financial officer of Noble Corporation.

Stifel Nicolaus upgraded Pioneer Natural Resources to ‘Buy’ from ‘Hold’.

CLSA initiated coverage on Ultra Petroleum with a ‘Underperform’ rating.

OIL SERVICES

• SLB reported 4Q’13 EPS of $1.35 versus Thomson Reuters I/B/E/S estimate of $1.32.

Press Release - National Oilwell Varco, Inc. announced the name of an additional member of the Executive Management team for its previously announced plan to spin off to its shareholders its Distribution Business as an independent publicly traded company. On the effective date of the spinoff, Mr. Raymond Chang will become the Vice President, General Counsel and Secretary of the publicly traded distribution company.

Press Release - Schlumberger Limited reported full-year 2013 revenue from continuing operations of $45.27 billion versus $41.73 billion in 2012. Full-year 2013 income from continuing operations attributable to Schlumberger, excluding charges and credits, was $6.33 billion, representing diluted earnings-per-share of $4.75 versus $4.01 in 2012. Fourth-quarter 2013 revenue was $11.91 billion versus $11.61 billion in the third quarter of 2013, and $11.08 billion in the fourth quarter of 2012. Income from continuing operations attributable to Schlumberger, excluding charges and credits, was $1.79 billion-an increase of 4% sequentially and an increase of 28% year-on-year. Diluted earnings-per-share from continuing operations, excluding charges and credits, was $1.35 versus $1.29 in the previous quarter, and $1.04 in the fourth quarter of 2012.

(Late Thursday) Press Release - The Board of Directors of Schlumberger Limited approved a 28% increase of the quarterly dividend. The increased dividend of $0.40 per share of outstanding common stock is payable on April 11, 2014 to stockholders of record at the close of business on February 19, 2014.

DRILLERS

Credit Suisse downgraded Atwood Oceanics to ‘Neutral’ from ‘Buy’.

(Late Thursday) Press Release - Noble Corporation announced that its report of drilling rig status and contract information has been updated as of January 16, 2014.

(Late Thursday) Press Release - Transocean Ltd. issued a comprehensive Fleet Status Report which provides the current status and contract information for the company's entire fleet of offshore drilling rigs. The total value of new contracts since the December 18, 2013 Fleet Update Summary is approximately $48 million.

REFINERS

(Late Thursday) Reuters - Tesoro Corp said its 120,000 barrel-per-day refinery in Anacortes, Washington, was operating normally after the completion of planned, unspecified maintenance at the facility.

MLPS

(Late Thursday) Reuters - Buckeye Partners LP said it was asking shippers to review their current nominations on pipeline segments L316, L203, L415/521, L403 and L010 to revise them with binding nominations.

Wunderlich Securities initiated coverage on DCP Midstream Partners with a ‘Hold’ rating.

Wunderlich Securities initiated coverage on Magellan Midstream Partners with a ‘Buy’ rating.

(Late Thursday) Press Release - The board of directors of the general partner of ONEOK Partners, L.P. increased the partnership's quarterly cash distribution by 0.5 cents to 73 cents per unit from 72.5 cents per unit, effective for the fourth quarter 2013, resulting in an annualized cash distribution of $2.92 per unit. The distribution is payable Feb. 14, 2014, to unitholders of record as of Jan. 31, 2014.

Reuters - U.S. Secretary of State John Kerry offered no timetable on Friday for a U.S. decision on TransCanada Corp's planned Keystone XL oil pipeline, saying he hopes an analysis of public comments on its environmental impact would be done soon.