NEW YORK (MarketWatch) � National Oilwell Varco Inc. led gains among energy stocks Friday, rising as the oil service firm set plans to buy a pipe firm for $670 million on the heels of a better-than-expected profit report.
Oil service shares and petroleum producers turned in the healthiest advance among energy stocks, boosted by a stronger-than-forecast January jobs report. See: U.S. adds 243,000 jobs in January.
National Oilwell Varco NOV �jumped 6.6%, sprinting to the front of the pack among shares of big oil service companies.
Click to Play Europe's Week Ahead: ECB, Bank of England MeetingsThe European Central Bank is likely to keep monetary policy on hold next week, while the Bank of England may decide to expand its asset-purchase program in an effort to revive the British economy.
Among the major sector gauges, the Philadelphia Oil Service Index OSX �rose 1.8%, the NYSE Arca Oil Index XX:XOI �moved up 2.1% and the NYSE Arca Natural Gas Index XX:XNG �advanced by 1.9%.
The Dow Jones Industrial Average jumped 157 points, with energy components Exxon Mobil XOM �and Chevron Corp. CVX �ahead by 1.7% and 1.8% respectively.
Pushing up energy stocks were Hess Corp. HES �and Occidental Petroleum OXY , up about 4% each.
National Oilwell said it�ll pay $670 million in cash to buy NKT Flexibles. A joint venture between NKT Holding and Subsea 7 SA, Denmark-based NKT Flexibles makes flexible pipe for the offshore oil and gas industry.
NKT recently signed a supply-framework contract with Petrobras PBR , Brazil�s state-run oil company. The deal is expected to close in the first half of 2012.
On Thursday, National Oilwell�s adjusted profit of $1.37 a share for the fourth quarter beat the consensus estimate of $1.30 a share.
Among stocks in the spotlight, Sunoco Inc. SUN �rose 0.7%.
The Philadelphia-based company said late Thursday that Chief Financial Officer Brian MacDonald will become its new chief executive and that Lynn Elsenhans will step down as CEO on March 1.
Sunoco also will buy back about a fifth of its common stock over the next 12 to 18 months, among other measures. It also boosted it dividend by 33%.
Sunoco will essentially exit the refining business to focus on midstream pipeline and energy infrastructure, analysts noted on Friday.
On a conference call with analysts late Thursday, Sunoco said it contacted 150 parties about purchasing its Marcus Hook and Philadelphia refineries, with �limited interest� in potential buyers for the latter facility.
�Unfortunately we did not receive a single offer for Marcus Hook as an operating refinery, I think reflecting obviously very difficult refining economics,� CFO MacDonald said on a conference call.
Sunoco set aside $250 million for environmental tied to the shutting down its Marcus Hook refinery and other legacy expenses.
Energy stocks up for the weekThe NYSE Arca Oil Index ended Friday at 1,295, up from its week-ago finish of 1,259.
The NYSE Arca Natural Gas Index closed Friday at 645, ahead of its week-ago ending point of 638.
The Philadelphia Oil Service Index closed Friday at 248, above its close of 240 on Jan. 27.
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