NEW YORK (MarketWatch) � Chevron Corp. ranked as the worst- performing stock in the Dow Jones Industrial Average, after the oil major missed its fourth-quarter earnings target, as the negative sentiment filtered through shares of petroleum producers on Friday.
But Transocean Ltd. RIG �helped lift oil service shares after the company received a favorable legal ruling on liabilities surrounding the disastrous 2010 oil spill in the Gulf of Mexico, and natural gas shares moved up.
Energy stocks in the S&P 500 rose 0.6% on average, including an 11% jump in First Solar Inc. FSLR �and a nearly 6% move up by coal producer Alpha Natural Resources Inc. ANR �
/quotes/zigman/289939/quotes/nls/cvx CVX 96.41, -1.90, -1.93% /quotes/zigman/203975/quotes/nls/xom XOM 77.92, -0.71, -0.90% /quotes/zigman/6015539 XOI 1,072.75, -19.89, -1.82%
Shares of Chevron CVX �fell 2.5%. See: Chevron profit drops.
Among the broad energy-sector gauges, the NYSE Arca Oil Index XX:XOI �fell 0.7%, the NYSE Arca Natural Gas Index XX:XNG �moved up by 0.3%. The Philadelphia Oil Service Index OSX �rose 1.3%.
Transocean gained about 1.8% after a federal judge issued a ruling Thursday that BP PLC BP � must indemnify the company against compensatory damages for the oil spill arising from the Deepwater Horizon disaster.
�We think the ruling undercuts BP�s leverage for potential settlements with Transocean and services provider Halliburton and thus raises the likelihood of such settlements occurring,� Stewart Glickman of S&P Capital IQ said in a note to clients. �Still, [Transocean] remains exposed to fines under the Clean Water Act, which could rise as high as $20 billion collectively for the these three parties if the court makes a finding of gross negligence.�
Shares of Halliburton Co. HAL �rose 2.6%. Also moving up in the oil service arena, National Oilwell Varco NOV �added 1.9% and Oceaneering International OII �advanced by 3.1%.
In more legal woes for Chevron, a prosecutor in Brazil expects to file criminal charges against the company in the wake of an offshore spill last November, according to a Reuters report that cited officials in the South American country.
Chevron may face a request for an indictment of the chief executive of the oil company�s unit in the country, in addition to other employees, the report said.
Chevron said that it hasn�t been notified by Brazilian authorities about the indictments and that it believes the charges are without merit, according to a statement provided by the company to Reuters.
On a conference call with analysts Chevron CEO John Watson said the team covering the oil seepage in Brazil �responded very well� to the incident.
Energy stocks mixed on the weekThe NYSE Arca Oil Index ended at 1,259 on Friday, below its week-ago ending point of 1,274.
The NYSE Arca Natural Gas Index finished the week at 638, above its level of 618 last week.
The Philadelphia Oil Service Index ended Friday at 240, ahead of its finish of 234 seven days ago.
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