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Energy Sector Update for 05/16/2016: MRD,RRC,CPE,BBEP


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Top Energy Stocks

XOM +1.03%

CVX +1.63%

COP +2.39%

SLB +2.25%

OXY +1.39%

Energy stocks were ending broadly higher today, with the NYSE Energy Sector Index jumping to a 2.0% gain while shares of energy companies in the S&P 500 were ahead 1.7% as a group.

In company news, Memorial Resource Development Corp. ( MRD ) was rising Monday after the oil and natural gas producer today agreed to a $3.3 billion buyout offer from Range Resources ( RRC ).

Under terms of the all-stock transaction, Memorial investors will receive 0.375 of a Range Resource share for each share they now own, valuing Memorial shares at $15.75 apiece, or about 17% above their closing price on Friday. Range also will assume $1.1 billion of Memorial debt.

Memorial shareholders will own about 31% of the combined firms after the deal closes, expected during he second half of 2016. Memorial investors also received the right to nominate one independent director to the Range board.

MRD shares were up nearly 3% at $13.83 apiece, earlier topping out today at $15.32 a share. RRC shares were down over 10% at $37.68 each in late trade, improving on an intra-day drop to $41.95 a share.

In other sector news,

(+) CPE, Raised to a Focus Stock from Sector Perform at Scotia Howard Weil.

(-) BBEP, Voluntarily files for Chapter 11 bankruptcy protection after securing $75 mln in debtor-in-possession funding facility. Lenders also will provide the company with up to $75 mln more if requested.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing , Energy
Referenced Symbols: RRC , CPE ,


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