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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: mph who wrote (21274)	5/4/1998 12:59:00 AM
From: pz	Read Replies (1) \| Respond to of 95453

By Daniel Bases NEW YORK, May 3 (Reuters) - Insiders at some energy exploration and production companies are buying up shares, giving a positive sign to a lagging sector in the richly valued stock market. Recently, executives at companies such as Union Texas Petroleum Holdings Inc. , Apache Corp. , and Pioneer Natural Resources have added to their positions. Insider buying in the exploration and production sector of the energy business is backed up by a recent uptick in Standard & Poor's corresponding 12-month relative-performance index. The sector was beaten down along with oil prices as they plunged to a 9-1/2 year low of $12.80 a barrel in March. "The insiders themselves are not going to be moving the industry all that much, so you're seeing through the relative strength index that other investors are feeling the same way," S&P's sector strategist Sam Stovall said. Even so, he said S&P's view was for the sector to continue underperforming the S&P 500 index because of oil price pressures. "In the near term, crude oil prices should remain weak, as increased production will outweigh climbing worldwide demand," S&P's April Monthly Investment Review said. Still, analysts who track insider activity said the buying and perhaps more importantly, the lack of selling, was a positive signal. "These guys are holding on to what they've got and adding," said Bob Gabele, president of Fort Lauderdale, Florida-based CDA/Investnet, a database and analysis firm that tracks of insider stock activity. "They're not showing the sell pattern we've seen in the oil services sector, and lack of selling is a positive," he added. Four insiders at Houston-based Union Texas Petroleum bought 14,000 shares between February 5 and February 11 in a price range of $19.19 and $19.75. According to a recent CDA report, the total number of shares "might not seem overwhelming in absolute terms, but the number of insiders buying and the number of shares purchased exceeded the annual totals for each of the last 10 years." Union's stock closed Friday at 20-1/2 on the New York Stock Exchange. At Houston-based Apache Corp, Chairman and Chief Executive Raymond Plank, a frequent buyer in the past, bought 10,000 shares between January 30 and February 25 in a price range of $32.88 and $35.50, according to CDA's database of U.S. Securities and Exchange Commission filings. Apache's stock closed up 1 Friday at 36-3/8. Four insiders bought recently at Irving, Texas-based Pioneer Natural Resources, led by Chairman Jon Brumley. He bought 5,000 shares on February 18 at $22.38, according to CDA. Brumley recently announced he would become a nonexecutive chairman of the company, choosing instead to pursue other business opportunities. Pioneer Vice President Mark Withrow bought 3,615 shares on February 17 at $22.13. Director James Houghton bought 500 shares on January 13 at $23.75, while director James Baroffio purchased 1,000 shares at $21.25 on January 27, according to CDA. Pioneer stock closed at 24-1/4 on Friday. "The positives in the E&P sector are the gradual expectation that these stocks tend to do better when expectations rise on the commodity," said Stephen Smith, an analyst with Dain Rauscher. On the commodities side, analysts see a market in which prices have bottomed out. At least one analyst is encouraged by OPEC production cuts. "I was impressed because mutual financial self-interest overcame regional and global politics. We have a perceived floor in the market now, but they have to cut more," said Peter Gignoux, Salomon Smith Barney's London oil strategist. "If we hang around here for a bit, we'll probably start a little rally for one reason or another," Gignoux said.