ConocoPhillips, Hess dip, energy stocks up on Fed

NEW YORK (MarketWatch) � Energy stocks moved up after the Federal Reserve extended its low interest rate pledge by a year to 2014, with natural gas producers posting the most generous gains on Wednesday.

The Dow Jones Industrial Average DJIA �rose 83 points, or 0.7%, setting the stage for an advance by the energy sector. Within the 30-stock composite, energy stocks Exxon Mobil XOM �and Chevron CVX �rose 0.1% and rose 1% respectively.

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The NYSE Arca Oil Index XX:XOI moved up by 0.6%, the NYSE Arca Natural Gas Index XX:XNG �rose 2.8% and the Philadelphia Oil Service Index OSX �rose 1.7%.

Among the upside movers, Ultra Petroleum UPL �rallied 5.3% and WPX Energy WPX �jumped 5.7%.

In a busy earnings day for energy stocks, ConocoPhillips COP �shares fell 0.9% after it said its fourth-quarter profit climbed to $3.39 billion, or $2.56 a share, from $2.04 billion, or $1.39 a share, in the year-ago period. Read more on ConocoPhillips.

Breaking out numerous items including $101 million in costs tied to its Bohai Bay oil spill off the coast of China, ConocoPhillips earned $2.02 a share in the latest quarter, up from $1.32 a share in the year-ago period.

Wall Street analysts expected ConocoPhillips to earn $1.77 a share.

During the quarter, the company sold its interests in the Colonial, Seaway Crude and Seaway Products pipelines for a total of $2.4 billion in proceeds. The company said it�s on track to spin off its refining unit in the second quarter.

Occidental Petroleum Corp. OXY �said its fourth-quarter adjusted profit rose to $2.02 a share from $1.58 a share. Occidental said domestic oil and gas production of 449,000 barrels of oil equivalent a day marked the highest in its history. Read more on Occidental Petroleum.

Total production rose 5% to 748,000 barrels of oil equivalent a day. Sales rose to $6.03 billion, from $5.06 billion.

Wall Street analysts expected Occidental to earn $1.94 a share, according to a survey by FactSet Research.

Shares of Occidental rose 2.5%.

Hess Corp. HES �shares dropped by 5% after it said it swung to a fourth-quarter loss on previously-disclosed costs of $525 million tied to shutting down a refinery in the U.S. Virgin Islands. Read more on Hess.

The New York-based petroleum company reported a loss of $131 million, or 39 cents a share, compared to a year-ago profit of $58 million, or 18 cents a share.

Revenue rose to $8.8 billion from $8.7 billion.

Wall Street analysts expected Hess to earn $1.30 a share on revenue of $8.5 billion, according to a survey by FactSet Research.

Oil and gas production for the fourth quarter fell to 367,000 barrels of oil equivalent a day, from 420,000 barrels. Hess cited production interruptions and asset sales. The company also absorbed $236 million in exploration expenses tied to dry hole costs for two wells in Indonesia.

Revenue falls at big power firms

Exelon Corp. EXC , the Chicago power provider, reported fourth-quarter net income rose 16% on 5.4% lower revenue. Earnings reached $606 million, or 91 cents a share, from $524 million, or 79 cents, in the year-earlier period. Adjusted earnings were 82 cents a share against 96 cents. Revenue fell to $4.25 billion from $4.49 billion. A survey of analysts by FactSet Research produced consensus estimates of 88 cents a share of profit on $4.79 billion of revenue.

Shares of Exelon Corp. rose 2%. Read more on Exelon.

Southern Co. SO �reported fourth-quarter net income rose 71% on 2% lower revenue. Profit was $261 million, or 30 cents a share, compared with $153 million, or 18 cents, in the year-earlier quarter. Revenue slipped to $3.7 billion from $3.77 billion. A survey of analysts by FactSet Research produced consensus estimates of 30 cents a share on revenue of $3.72 billion. Read more on Southern.

Shares of Southern Co. moved up by 0.5%.