SECTOR COMMENTARY

The energy sector finished the day mostly higher led by the oil services while integrateds underperformed the group driven lower by Exxon Mobil and Imperial Oil. Exxon Mobil posted lower-than-expected quarterly profit as it failed to offset declining production but spent heavily to find fresh reserves. Imperial Oil’s Kearl oil sands project in northern Alberta produced less than half its capacity in the fourth quarter as harsh winter weather and equipment reliability problems hampered output. Services were led higher by Cameron International after it reporting earnings that beat analysts’ expectations. E&Ps were weighed down by Murphy Oil, which witnessed the biggest losses after the company missed EPS by 16% compared to consensus estimates.

WTI closed at $98.23 up $0.87 or 0.89% after government data showed solid economic growth in the fourth quarter of last year and as cold weather was expected to boost oil demand. Gross domestic product in the U.S. grew at a 3.2 percent annual rate, the Commerce Department said, a far stronger performance than economists anticipated earlier in the quarter and a bullish sign for energy demand. Brent crude traded slightly higher, boosted by concerns over supply interruptions from Libya and expected declines in OPEC production. However, growing evidence of a fuel demand slowdown in the second-biggest oil consumer, China, capped gains.

Henry Hub futures sank $0.454 or 8.31% to close at $5.011 as the futures market pulled back from Wednesday's 10% rally and was unmoved by data on storage drawdowns. Withdrawal of U.S. natural gas storage fell by 230 billion cubic feet over the week ended Jan. 24, according to a report released by the EIA. The drawdown was in line with analysts' expectations of a 236 bcf drawdown, according to a Reuters poll. MDA Weather Services on Thursday forecast the weather would turn relatively warm over the next five days in the South and East before intense cold returns to the Central and Great Lakes regions over the next six to 10 days.

U.S. INTEGRATEDS

• OXY reported 4Q’13 EPS of $1.72 versus Thomson Reuters I/B/E/S estimate of $1.67.

• XOM reported 4Q’13 EPS of $1.91 versus Thomson Reuters I/B/E/S estimate of $1.92.

(Late Wednesday) Press Release - The Board of Directors of Chevron Corporation today declared a quarterly dividend of one dollar ($1.00) per share, payable March 10, 2014 to holders of common stock as shown on the transfer records of the Corporation at the close of business on February 14, 2014.

Reuters - Exxon Mobil Corp, the world's most valuable publicly traded oil company, said on Thursday its quarterly profit dropped 16 percent as production fell. For the fourth quarter, the company posted net income of $8.35 billion, or $1.91 per share, compared with $9.95 billion, or $2.20 per share, in the year-ago period.

Press Release - Occidental Petroleum Corporation announced core income for the fourth quarter of 2013 of $1.4 billion ($1.72 per diluted share), compared with $1.5 billion ($1.83 per diluted share) for the fourth quarter of 2012. Net income was $1.6 billion ($2.04 per diluted share) for the fourth quarter of 2013, compared with $336 million ($0.42 per diluted share) for the fourth quarter of 2012. The fourth quarter of 2013 includes an after-tax gain of $665 million ($0.83 per diluted share) from the sale of a portion of an investment in the General Partner of Plains All American Pipeline, L.P., and an after-tax charge of $395 million ($0.49 per diluted share) related to the impairment of certain non-producing domestic oil and gas acreage. The fourth quarter of 2012 included an after-tax charge of $1.1 billion ($1.41 per diluted share), almost all of which was related to the impairment of gas assets in the Midcontinent.

INTERNATIONAL INTEGRATEDS

• RDS reported 4Q’13 CCS, EPS ADS of $0.68.

Press Release - Royal Dutch Shell's fourth quarter 2013 earnings, on a current cost of supplies (CCS) basis (see Note 1), were $2.2 billion compared with $7.4 billion in the same quarter a year ago. Full year 2013 CCS earnings were $16.7 billion compared with $27.2 billion in 2012. Fourth quarter 2013 CCS earnings excluding identified items (see page 6) were $2.9 billion compared with $5.6 billion in the fourth quarter of 2012. Full year 2013 CCS earnings excluding identified items were $19.5 billion compared with $25.3 billion in 2012.

Press Release - The Board of Royal Dutch Shell plc today announced an interim dividend in respect of the fourth quarter 2013 of US$0.45 per A ordinary share ("A Share") and B ordinary share ("B Share"), an increase of US$0.02 on the equivalent US dollar dividend for the same quarter last year.

Reuters - Norwegian energy firm Statoil resumed production at the Statfjord C platform in the North Sea late on Wednesday after an oil leak shut activities at the installation on Sunday, the firm said on Thursday.

Reuters - Norwegian energy firm Statoil increased its exposure to Canadian oil sands on Thursday and agreed to end a cooperation with Thai exploration and production company PTTEP, Statoil said in a statement.

CANADIAN INTEGRATEDS

• IMO reported 4Q’13 EPS of C$1.24 versus Thomson Reuters I/B/E/S estimate of C$0.92.

Press Release - Imperial achieved a number of significant milestones in 2013 as we continue to focus on delivering superior, long-term shareholder value. Highest among our priorities is safety. Despite working more than 44 million hours, our second highest on record, we achieved workforce safety performance on par with 2012's best-ever results.

U.S. E&PS

• COP reported 4Q’13 EPS of $1.40 versus Thomson Reuters I/B/E/S estimate of $1.31.

• MUR reported 4Q’13 EPS of $0.96 versus Thomson Reuters I/B/E/S estimate of $1.21.

Press Release - Apache Corporation said today that recent drilling results, approval of three new development leases and expanded natural gas processing facilities in the West Kalabsha area have set the stage for continued growth and investment in Egypt's Western Desert in 2014. Apache operates in Egypt in partnership with Sinopec International Petroleum Exploration and Production Corporation, which owns a one-third minority interest in Apache's Egypt oil and gas business.

Carrizo Oil & Gas was raised to ‘Accumulate’ from ‘Hold’ at KLR Group.

Press Release - ConocoPhillips today reported fourth-quarter 2013 earnings of $2.5 billion, or $2.00 per share, compared with fourth-quarter 2012 earnings of $1.4 billion, or $1.16 per share. Excluding special items, fourth-quarter 2013 adjusted earnings were $1.7 billion, or $1.40 per share, compared with fourth-quarter 2012 adjusted earnings of $1.8 billion, or $1.43 per share. Special items for the current quarter primarily related to discontinued operations as a result of a gain from the sale of the Algeria business, partially offset by asset impairments in Canada and the U.K.

Goldman Sachs cut Denbury Resources to ‘Sell’ from ‘Hold.’

Goldman Sachs started coverage of Energy XXI and W&T Offshore with ‘Neutral’ ratings and started coverage of Kosmos Energy with a ‘Buy’ rating.

Northland Capital Markets initiated coverage of Matador Resources with an ‘Outperform’ rating.

(Late Wednesday) Press Release - Murphy Oil Corporation announced today highlights for the fourth quarter and year of 2013 as follows: The Company's income from continuing operations in the fourth quarter of 2013 was $180.5 million ($0.96 per diluted share) compared to income of $123.9 million ($0.64 per diluted share) in the fourth quarter of 2012.

(Late Wednesday) Press Release - Northern Oil and Gas, Inc. is providing a production and operations update for the quarter ended December 31, 2013. Northern's fourth quarter 2013 production is expected to average approximately 13,900 barrels of oil equivalent (Boe) per day. This represents an increase of 28% compared to the fourth quarter of 2012, and a sequential increase of 6.5% compared to the third quarter of 2013. Total production for 2013 was approximately 4.47 million barrels of oil equivalent, an increase of approximately 19% compared to 2012.

Press Release - QEP Resources Inc. today announced that, after significant review including discussions with shareholders, its Board of Directors has approved a series of strategic initiatives designed to maximize the inherent value of the Company`s midstream business while focusing on its core upstream business.

CANADIAN E&PS

(Late Wednesday) Press Release - Gran Tierra Energy Inc. a company focused on oil and gas exploration and production in South America, today provided a summary of the prospective resource potential of its exploration portfolio in Peru, in addition to a drilling update for its operations in Colombia and Brazil.

OIL SERVICES

• CAM reported 4Q’13 EPS of $1.00 versus Thomson Reuters I/B/E/S estimate of $0.96.

• CLB reported 4Q’13 EPS of $1.43 versus Thomson Reuters I/B/E/S estimate of $1.41.

Press Release - Cameron reported earnings per share for the fourth quarter of 2013 of $1.00, excluding charges. This compares to earnings per share for the fourth quarter of 2012 of $0.95, excluding charges. After-tax charges for the fourth quarter of 2013 were $0.05 per share, primarily related to integration and restructuring costs. After-tax charges for the fourth quarter 2012 were $0.07 per share.

Press Release - In the fourth quarter of 2013, Core Laboratories N.V. was added to the Philadelphia Oil Service Sector Index, better known as the OSX, and posted the most profitable quarter in Company history. The record results were driven primarily by the introduction of new technology and related services, especially by the Company's Production Enhancement operations. This marked the fifth consecutive quarter in which Core has posted all-time quarterly records for earnings per diluted share ("EPS"), net income, and revenue. The Company's fourth quarter 2013 EPS increased 22% year-over-year to $1.43, the largest percentage increase in six quarters, excluding items referenced in the non-GAAP reconciliations. Fourth quarter 2013 net income increased 18% from the year-earlier period to $64,936,000, ex-items, while operating income, ex-items, increased 17% to$88,480,000.

(Late Wednesday) Press Release - ION Geophysical Corporation today announced that it has increased its ownership interest in OceanGeoB.V., a geophysical company specializing in multicomponent ocean bottom seismic acquisition. ION now owns 70% of OceanGeo, up from the 30% the Company acquired in February 2013. Formerly known as GeoRXT, OceanGeo is owned by ION and Georadar Levantamentos Geofisicos S/A.

Press Release - Weatherford International Ltd. today updates its projected fourth quarter 2013 earnings per share (non-GAAP) financial results. Earnings per share for the fourth quarter 2013 are estimated to be in the range of $0.05 - $0.08.

Reuters - Oilfield services company Weatherford International Ltd said it would cut 7,000 jobs and estimated fourth-quarter profit below its previous expectation, hurt partly by disrupted operations in the Middle East.

DRILLERS

• HP reported 4Q’13 EPS of $1.56 versus Thomson Reuters I/B/E/S estimate of $1.46.

Press Release - Helmerich & Payne, Inc. reported net income of $173.2 million ($1.59 per diluted share) from operating revenues of $889.2 million for the first quarter of fiscal 2014, compared to net income of $159.6 million ($1.48 per diluted share) from operating revenues of $844.6 million during the first quarter of fiscal 2013, and net income of $159.8 million ($1.47 per diluted share) from operating revenues of $864.5 million during the fourth quarter of fiscal 2013. Included in net income corresponding to this year's first fiscal quarter and to last year's fourth fiscal quarter were $0.03 per diluted share of after-tax gains related to the sale of used drilling equipment. Included in net income corresponding to last year's first fiscal quarter were $0.03 per diluted share of after-tax gains related to the sale of used drilling equipment and $0.05 per diluted share of after-tax gains related to the sale of investment securities.

Press Release - Noble Corporation today announced its Board of Directors has approved an increase in the Company's quarterly cash dividend, which will result in a total quarterly dividend of $0.375 per share, or $1.50 per share on an annualized basis. This represents a 50 percent increase from the previous quarter. The ex-dividend date for this payment is expected to beFebruary 6, 2014, with a record date of February 10, 2014 and a payment date of February 20, 2014.

REFINERS

Marathon Petroleum was upgraded to ‘Buy’ from ‘Neutral’ at ISI.

MLPS

Press Release - Enterprise Products Partners L.P. today announced its financial results for the three months and year ended December 31, 2013. For the year ended 2013, Enterprise reported record results for each of the following: net income of $2.6 billion; earnings per unit of $2.82 on a fully diluted basis; and gross operating margin of $4.8 billion. Distributable cash flow for 2013 was $3.8 billion.

Press Release - Sunoco Logistics Partners L.P. today announced that Sunoco Partners LLC, its general partner, has declared a cash distribution for the fourth quarter 2013 of $0.6625 per common unit ($2.65 annualized) to be paid on February 14, 2014 to unit holders of record on February 10, 2014. This represents a 5 percent increase over the third quarter 2013 cash distribution of $0.6300 per common unit ($2.52 annualized) and a 22 percent increase over the fourth quarter 2012 cash distribution of $0.5450 per common unit ($2.18 annualized). This is the thirty-fifth successive quarter the Partnership has increased its distribution.

Press Release - SunCoke Energy, Inc. today reported fourth quarter 2013 net income attributable to shareholders of $11.0 million, or $0.16 per diluted share, down from $27.6 million, or $0.39 per diluted share, from fourth quarter 2012. Full year 2013 net income attributable to shareholders of $25.0 million, or $0.36 per diluted share, is down $73.8 million, or $1.04 per share, from prior year.