NEW YORK (MarketWatch) � ConocoPhillips said Thursday first-quarter production will slightly exceed its average target for the year as the energy supplier tapped the well-known Phillips 66 gas station brand as the name for its new refining spin-off.
Meanwhile, energy stocks move lower, falling back from earlier gains, to end the week in the red.
The sector took its cue from the broad equities market, which moved lowerr, as well as fresh data on ample supplies of natural gas.
The U.S. Energy Information Administration said natural gas stockpiles rose by 42 billion cubic feet in the week ended March 30. Inventories now sit about 934 billion cubic feet above the five-year average and 887 billion cubic feet higher than the year-ago level.
Click to Play Stocks Edge LowerU.S. stocks edge lower as rising borrowing costs in Spain and concerns over slowing growth elsewhere in Europe weigh on sentiment, Chris Dieterich reports on Markets Hub. Photo: AP Photo/Seth Wenig.
In the broad sector, energy stocks in the S&P 500 index SPX �dropped 0.7%.
The NYSE Arca Oil Index XX:XOI �declined 0.6% and the NYSE Arca Natural Gas Index XX:XNG �dipped 0.7%, while the Philadelphia Oil Service Index OSX �moved down by 0.4%.
Shares of ConocoPhillips COP �fell 1.1%. The company expects to report first-quarter production of about 1.62 million barrels of oil equivalent a day, slightly ahead of its average daily forecast of 1.55 million to 1.6 million barrels projected for 2012.
However, first-quarter refining margins are expected to be �negatively impacted by significantly weaker crude differentials and secondary product margins,� the company said, citing higher prices for crude oil.
The Houston-based energy company also said it plans to sell about $10 billion in assets in 2012.
Separately, ConocoPhililps said when-issued trading in shares of Phillips 66 will begin on or about April 12 as part of a spinoff of the refining and marketing unit.
After the markets close on April 30, ConocoPhillips shareholders will get one share of Phillips 66 common stock, which will trade on the New York Stock Exchange under the ticker PSX, for every two shares of ConocoPhillips stock held at the close of business April 16, the company said.
After the spinoff, Ryan Lance will become chairman and chief executive of ConocoPhillips and Greg Garland will become chairman and CEO of Phillips 66.
The new Phillips 66 may already have a refinery sale in the works. According to a CNBC report, Delta Air Lines DAL �may be looking to purchase a ConocoPhillips refinery as a way to hold down rising fuel costs.
Among stocks on the move, Cabot Oil & Gas COG �gained 2.2% after the company said Thursday it resumed full production from the Marcellus Shale of Susquehanna County, Pa., after the Lathrop Compressor Station was restarted. The station was damaged by a fire on March 29.
Cabot estimated it�ll lose about 1 billion cubic feet of natural-gas production in 2012 as a result of the accident. The company characterized the lost output as minor.
Also on the move Ultra Petroleum UPL �fell 2.3%, Marathon Oil MRO �dipped 1.3% and Weatherford International WFT �slipped 3%.
On the up side, National Oilwell Varco NOV �rose 0.8% and Tidewater Inc. TDW �moved up by 1.4%.
Energy stocks lose ground for the week/quotes/zigman/6015539 XOI 1,180.48, +8.46, +0.72% /quotes/zigman/6015474 XNG 625.47, +2.30, +0.37%
Despite posting solid gains to kick off the new month, energy stocks quickly cooled off to end the first week of April. On Good Friday tomorrow, the stock market is closed.
The NYSE Arca Oil Index closed Thursday at 1,244, about 1.8% below its ending point last Friday of 1,267,
The NYSE Arca Natural Gas Index ended at 642 on Thursday, 1.2% down from its closing level of 650 last Friday.
The Philadelphia Oil Service Index closed Thursday at 235, three points, or 1.3% below its closing level of 238 last Friday.
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