By Steve Gelsi , MarketWatch
NEW YORK (MarketWatch) - Energy stocks lost ground on Friday but held on to gains for the week, while shares of BP strengthened despite a downgrade of its debt securities.
The NYSE Arca Oil Index (XOI 970.96, +1.56, +0.16%) fell 0.2% to 967. The NYSE Arca Natural Gas Index (XNG 541.69, -0.92, -0.17%) fell 0.6% to 539. The Philadelphia Oil Service Index (OSX 180.08, -0.36, -0.20%) fell back by 0.6% to 179.
In the broad market, the Dow Jones Industrial Average (DJIA 10,445, +10.88, +0.10%) fell 9 points.
Moody's downgraded BP PLC (BP 32.19, +0.48, +1.51%) debt Friday by three notches to A2 from Aa2, affecting about $25 billion of the company's debt securities.
Shares of BP rose 1.4% to $32.15.
The rating agency cited the "worsening impact" expected from the Gulf oil disaster caused by BP's blown-out well. Senior unsecured and BP-backed subsidiary long-term debt was slashed to A2 ratings. Moody's also cut its issuer rating on BP to A3 from Aa3.
Among stocks in the spotlight, Oasis Petroleum Inc. (OAS 14.90, +0.02, +0.16%) fell 0.1% to $14.86. On Thursday, shares closed at $14.88 in their first day of trading for a gain of 6%, or 88 cents, over its offering price of $14 a share. The IPO of 42 million shares raised $588 million as one of the richest U.S. deals this year.
Houston-based Oasis Petroleum holds 292,000 net leasehold acres in the Williston Basin, an area bridging the Canadian border that includes much of the rich Bakken resources in North Dakota.
In its IPO prospectus, Oasis cited a 2008 report by the U.S Geologic Survey that classified the formations as the largest continuous oil accumulation ever assessed in the contiguous United States.
EnCap Investments LP manages funds listed as principal shareholders of Oasis Petroleum.
Devon Energy Corp. (DVN 69.60, +0.11, +0.16%) said it completed the sale of its Panyu field to China National Offshore Oil Corp. for $515 million, or approximately $370 million after tax. During 2009, Devon's production from the Panyu field was approximately 12,000 barrels of oil per day.
El Paso Pipeline Partners LP (EPB 28.60, -1.34, -4.48%) shares fell 4.5% to $28.58. The partnership priced 10 million common units at $28.80 per unit. Proceeds will be used as partial consideration for pending acquisition of an additional 16% general partner interest in Southern Natural Gas Co. from El Paso Corp, (EP 12.63, +0.07, +0.56%) .
Energy stocks rise for the week
Trading at 967 on Friday, the NYSE Arca Oil Index remained above its ending point of 945 seven days ago.
The NYSE Arca Natural Gas Index traded at 540 on Friday, above its close of 529 a week earlier.
The Philadelphia Oil Service Index stood at 179 on Friday, above its ending point of 174 a week ago.
