SECTOR COMMENTARY

The energy sector ended a volatile day of trading mostly lower, shedding earlier heavier losses into close, with last week’s laggard’s refiners and drillers outperforming. E&Ps, which saw strong support last week led by the natural gas leveraged names, trailed the group on an over 6% decline in the underlying commodity. Weak U.S. economic data and uncertainty ahead of the Fed’s two policy meeting starting tomorrow weighed on the group and broader equity markets.

WTI crude oil futures erased earlier highs, settling the day lower by $0.92 or 0.95% at $95.72, in-line with its UK counterpart which continued to build on its morning’s losses. Futures originally ticked higher on expectations of sturdy demand this week due to new pipeline capacity and continued cold weather that would draw down distillates supplies, however, a general retreat in the markets ahead of the Fed meeting this week weighed on prices.

After last week’s impressive rally back above the $5 mark to 3 ½ year highs, natural gas futures reversed trends today and fell $0.335 or 6.46% to $4.847. Investors pocketed profits and sold the soon-to-expire front-month contract in the sharpest decline in over 8 months. Temperatures in the Northeast are expected to moderate in the coming days but cold temperatures in theMidwest have pushed cash natural gas prices in some regional markets to record highs.

U.S. INTEGRATEDS

Reuters - A Nigerian court upheld an order on Monday barring Chevron Crop’s from selling its onshore assets until a legal dispute with local firm Brittania-U is resolved, Brittania-U's lawyers said outside the court.

Reuters - Output from Chevron Corp led Tengizchevroil, Kazakhstan's largest oil producer, rose to a record 27.1 million tonnes last year from 24.2 million in 2012, TCO General Director Tim Miller said

(Sunday) Reuters - One of two crude distillation units was shut on Saturdayby a power failure at Chevron Corp's 269,000 barrel per day Los Angeles-area refinery in El Segundo, California, according to a notice filed with the U.S. National Response Center.

(Sunday) Reuters - Chevron Corp reported equipment failure at its platform in Covington, Louisiana, according to a notice filed with regulators.

Reuters - The signing of a gas production-sharing agreement betweenUkraine and an international consortium led by U.S. major Exxon Mobil Corp has been postponed for the second time in a row, Ukraine's fuel and energy minister said.

Reuters - Exxon Mobil Corp said there was no impact on operations from an equipment failure at its 238,600-barrel-per-day Joliet refinery inChannahon, Illinois, on Sunday.

(Sunday) Reuters - A hydrotreater was restarted at Exxon Mobil Corp's560,500 barrel per day Baytown, Texas refinery on Saturday, according to a notice the refinery filed with the Texas Commission on Environmental Quality.

(Late Friday) Reuters - Exxon Mobil Corp reported that operations at its 344,500 barrel-per-day (bpd) Beaumont, Texas, refinery were brought to normal following a valve malfunction on Friday, according to a notice filed with regulators.

INTERNATIONAL INTEGRATEDS

Reuters - Pirates attacked a tugboat near the Brass River crude oil export terminal in Nigeria, kidnapping the ship's captain and an engineer, two security sources said. The Italian oil company Eni operates the terminal.

Reuters - Brazil's ANP oil regulator said Royal-Dutch Shell needs to negotiate with the Brazilian government on an oil reservoir that exceeds the limits of the concession block it controls with France's Total according to an ANP document seen by Reuters.

Reuters - Royal Dutch Shell Plc reported a planned unit shutdown at its 156,400 barrel-per-day refinery in Martinez, California, according to a filing with Contra Costa Health Services, which was made public.

(Sunday) Reuters - Norwegian energy firm Statoil said it had shut its Statfjord C platform in the North Sea after a 'limited' oil leak.

U.S. E&PS

Guggenheim Securities downgraded ConocoPhillips to ‘Neutral’ from ‘Buy’.

Press Release - Devon Energy Corporation announced that its board of directors has appointed Barbara M. Baumann and John E. Bethancourt to the board effective immediately. The additions of Baumann and Bethancourt expand Devon`s board to 10 members, which now includes eight independent directors. Shareholders of record will have the opportunity to re-elect all directors at the company`s upcoming annual meeting to be held on June 4, 2014.

Press Release - Endeavour International Corporation announced the closing of a $255 million senior secured first lien term loan with an interest rate of 8.25% (Libor + 700 basis points). The first lien note is a strip facility consisting of a $125 million Secured Term Loan and a $130 million LC Procurement Facility with the same interest cost.

Tudor Pickering downgraded Exco Resources to ‘Sell’ from ‘Hold’.

Tudor Pickering downgraded Southwestern Energy to ‘Hold’ from ‘Accumulate’.

DRILLERS

(Late Friday) Reuters - Offshore rig operator North Atlantic Drilling, a unit ofSeadrill, launched an initial public offering of its shares on the New York Stock Exchange, the firm said.

REFINERS

Press Release - Marathon Petroleum Corporation announced its board of directors declared a dividend of $0.42 per share on common stock. The dividend is payable March 10, 2014, to shareholders of record as of the close of business Feb. 19, 2014.

Reuters - Tesoro Corp said there was no impact on product supply commitments due to planned maintenance at its 96,860-barrel-per-dayWilmington refinery in the Los Angeles area.

MLPS

Press Release - Energy Transfer Equity, L.P. announced the completion of its previously announced two-for-one split of the Partnership`s outstanding common units ("Unit Split"). The Unit Split was affected by a distribution of one ETE common unit for each ETE common unit outstanding and held by unitholders of record at the close of business on January 13, 2014. As a result of the Unit Split, the Partnership has approximately 560 million ETE common units outstanding.

Press Release - TransCanada Corporation announced that TransCanada PipeLines Limited authorized the redemption of all of the Company's four million outstanding 5.60 per cent Cumulative Redeemable First Preferred Shares Series Y (Series Y Shares) on March 5, 2014. The Series Y Shares will be redeemed at a price of $50 per share plus $0.2455 representing accrued and unpaid dividends to such redemption date. The total face value of the outstanding Series Y Shares is $200 million and they carry an aggregate of $11.2 million in annualized dividends.

Reuters - Thousands of Manitoba residents were without natural gas to heat their homes and businesses for a third frigid day on Monday, following a weekend explosion along a TransCanada Corp pipeline in the Western Canadian province.