Markets

Energy Sector Update for 11/21/2016: CXO,BAS,SXL,ETP

Top Energy Stocks

XOM +1.14%

CVX +0.91%

COP +3.07%

SLB +1.94%

OXY +1.40%

Energy stocks began the new week with big gains, with the NYSE Energy Sector Index climbing more than 2.3% on Monday while shares of energy companies in the S&P 500 were up 2.1% as a group. Crude oil for January delivery settled $2.00 higher at $48.37 per barrel while December natural gas futures rose 11 cents to $2.95 per 1 million BTU.

In company news, Concho Resources ( CXO ) was higher in late Monday trading after the oil and natural gas producer announced a deal to acquire around 24,000 gross acres in the Delaware Basin of western Texas for $430 million in cash and stock.

The acquisition includes around 2,500 barrels of oil equivalent in daily production and expands Concho's overall stake in the region to around 47,000 acres. Under terms of the transaction, Concho will issue 2.18 million shares of its stock in addition to paying $150 million in cash, funding that part of the deal with cash on hand and borrowing from it credit facility as well as potential asset sales. A January 2017 closing is expected.

CXO shares were up almost 5% at $136.53 each, previously climbing to a session high of $137.93 a share.

In other sector news,

(+) BAS, The company's stock will continue to trade on the New York Stock Exchange after the equity exchange accepts its plans to regain compliance with NYSE listing standards.

(-) SXL, Proposes to acquire Energy Transfer ( ETP ) through a $19.9 bln stock swap. Under terms of the offer, ETP shareholder will receive 1.5 SXL shares for each ETP share they now own, valuing them at $39.30 apiece, a 0.2% discount to 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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