Those with both limited exposure to the Gulf region and with hedging include Anadarko Petroleum Corp. (NYSE:APC) (APC), Eog Resources Inc. (NYSE:EOG) (EOG), Talisman Energy Inc. (NYSE:TLM) ( TLM), Devon Energy Corp. (NYSE:DVN) (DVN) and Quicksilver Resources Inc. (NYSE:KWK) (KWK).

Meanwhile, oil and gas drillers like Rowan Companies Inc. (NYSE:RDC) (RDC) and Diamond Offshore Drilling Inc. (NYSE:DO) (DO), which have the highest portion of its fleet in the GOM, may be hit but Susquehanna said most firms have mobilized some of their fleet away from the gulf's potential danger zone.

A major storm could squeeze refining capacity of players like Frontier Oil Corp. (NYSE:FTO) (FTO) and Holly Corporation (NYSE:HOC) (HOC) to around 70% from the current 90%, said Susquehanna. With refinery run rates already a major concern during the first half of the year, the limited slack capacity could hit profitability, the firm said.

Away from energy, it said that while the agriculture sector will not be severely impacted by the hurricane, exporters could see higher transportation costs and the lack of loading infrastructure could limit the ability of farmers to switch to alternatives.

Among the stocks Susquehanna singled out were Monsanto Co (NYSE:MON) (MON), Syngenta Ag (NYSE:SYT) ( SYT) and Archer Daniels Midland Company (NYSE:ADM) (ADM).

Winners to the rescue

Susquehanna also said aftermath service providers, and engineering and construction firms, are expected to see more demand and hence increased pricing power and backlog growth.

It added their shares will not be immediately affected, but any potential lag effect could last several quarters. For instance, companies like Oceaneering International Inc. (NYSE:OII) (OII), Oil Sts Intl (OIS), Helix Energy Solutions (HELX), Tidewater Inc. (NYSE:TDW) (TDW), and Global Industries Ltd. (NASDAQ-NMS:GLBL) (GLBL) all saw their share prices surge over 10% after Hurricanes Katrina and Rita.

Building material companies like Mohawk Industries Inc. (NYSE:MHK) (MHK) and Cemex (NYSE:CX) (CX) could also benefit if the hurricane season is severe, as demand from both commercial and governmental rebuilding efforts could increase in an affected region, Susquehanna said.

In August 2005, Katrina -- the costliest hurricane in U.S. history -- damaged or destroyed 30 oil platforms, closed nine refineries and slowed operations at about 10 others. Six months after Katrina, the total shut-in oil production from the Gulf of Mexico was about 24% of the annual production and that for gas production was about 18%.

Rita, which rolled by a month later, was feared to push gasoline prices up to $5 a gallon, but it eventually turned out not to be as severe as anticipated.

Esa Ramasamy, Platt's director of America's oil market reporting team, said the hurricane season tends to be bullish for oil prices and the overall marketplace. But the magnitude of its impact is hard to predict. "You're gambling with nature, and who knows what nature will turn out to be."

    (END) Dow Jones Newswires   06-27-08 1420   Copyright (c) 2008 Dow Jones & Company, Inc.