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Energy Sector Update for 10/05/2015: SD,WG,TRR,SU

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Top Energy Stocks

XOM +1.50%

CVX +2.62%

COP +3.18%

SLB +2.99%

OXY +3.46%

Energy stocks were broadly higher, with the NYSE Energy Sector Index climbing 2.7% while shares of energy companies in the S&P 500 were up more than 2.5% as a group. Crude oil for November delivery was up $1.08 at $46.63 per barrel while November natural gas futures were 2 cents higher at $2.47 per 1 million BTU.

In company news, SandRidge Energy ( SD ) rallied Monday after the oil and natural gas producer announced its purchase of the Pinon Gathering Company from EIG Global Energy Partners $126 million in cash and five-year notes.

The deal call on SandRidge to pay $48 million in cash as well as issuing $78 million of its 8.75% senior secured notes maturing in 2020.

Pion Gathering owns around 370 miles of gathering lines supporting the natural gas and CO2 production from the company's Pion field in western Texas. SandRidge said because of the deal, it will eliminate around $40 million in yearly minimum volume commitment payments that had been projected to extend through 2021.

SD shares were up almost 15% at 41 cents apiece, or just a penny under their session high.

In other sector news,

(+) WG, (+37.3%) Sells its Professional Services business unit to TRC Co ( TRR ) for $130 mln in cash. The companies said the acquired business generated around $209 mln in revenue during 2014 and is expected to add its earnings by 2017.

(-) SU, (-1.5%) Begins C$4.3 bln unsolicited offer to acquire all 328.7 mln shares of Canadian Oil Sands outstanding stock at C$13.08 apiece, representing a 43% premium over Friday's closing price.

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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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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