Goldman Sachs Hits Oil Sector (BHI, EP, XOM, KMP, MMP, EPB, MRO, MUR, KGS, SLB)

In a perhaps late research call in the oilpatch, Goldman Sachs has downgraded the exploration & production sector to Neutral from attractive and downgraded the oil services sector to Neutral from Attractive.  Interestingly enough. in all of the downgrades for these sub-sectors there are actually some upgrades in the group.  Below are some of these top calls in the sector from Goldman Sachs:

• Baker Hughes (BHI) Raised To Buy From Neutral
• El Paso (EP) Raised To Buy From Neutral
• Exxon Mobil (XOM) Raised To Buy From Neutral
• Kinder Morgan Energy (KMP) Raised To Buy From Neutral
• Magellan Midstream (MMP) Raised To Buy From Neutral

Here are the downgrades in the sectors:

• El Paso Pipeline (EPB) Cut To Neutral From Buy
• Marathon Oil (MRO) Cut To Neutral From Buy
• Murphy Oil (MUR) Cut To Neutral From Buy
• Quicksilver Gas Services (KGS) Cut To Neutral from Buy
• Schlumberger (SLB) Cut To Neutral From Buy

Jon C. Ogg
October 13, 2008