Here’s Why Energy Stocks are Powering Higher Now
Simple answer: Two big deals went down in the energy sector (NYSE:XLE) this morning. The first, BHP Billiton (NYSE:BHP) has offered $12.5 million to buy up Petrohawk Energy (NYSE:HK) sending ‘Petro’ stock up 63% this morning. The buyout price represents a 65% increase from yesterday’s closing price. The high premium signals how strong demand is among oil companies for businesses like Petrohawk, which refines resources from shale natural gas and oil reserves. Marathon Oil and Royal Dutch Shell are two companies which have also bought out shale miners in the past year. The second big deal of the day was ConocoPhillips (NYSE:COP) announcement that the company will spin off its refining operation into an independent unit today.
Here’s a look at how energy companies are faring in trading:
Energy Sector ETF (NYSE:XLE) up 1.66%, ConocoPhillips (NYSE:COP) up 1.45%, BHP Billiton (NYSE:BHP) down -1.05%, Exxon-Mobil (NYSE:XOM) up .44%, Chevron Corp. (NYSE:CVX) up .92%, BP (NYSE:BP) up 0.20%, Marathon Oil (NYSE:MRO) up .08%, Royal Dutch Shell (RDS.A) up .69%, Hess Corp. (NYSE:HES) up 2.30%, and Valero Energy Corporation (NYSE:VLO) up 1.57%.