These Energy Companies are Killing The Market Now

Let’s have a quick look at the energy sector (NYSE:XLE) which is breaking out of a recent funk today up 2.62%. Energy exchange traded funds (-ETFs-) are the top performer so far today in the extension of Monday’s bull-run.

Leading energy stocks higher are standouts Exxon-Mobil (NYSE:XOM), with shares trading up 1.94%, Marathon Oil Corp (NYSE:MRO), up 4.67%, Chevron (NYSE:CVX) up 1.4%, ConocoPhillips (NYSE:COP) up 1.84%, BP (NYSE:BP), up 1.25%, and Suncor Energy Inc. (NYSE:SU) up 2.48%.

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Also making headlines on the energies front today is Holly Corp. (NYSE:HOC), up 7.6% in trading after UBS (NYSE:UBS) initiated coverage on the company this morning with a “buy” rating, and price target of $86 per share. From the UBS statement, “HOC’s niche refining footprint in the Rockies, Mid Continent, and SW U.S. looks to be bolstered through the imminent merger with Frontier Oil (NYSE:FTO). We expect this deal to close in July, following shareholder approval on June 28th. Combined the organizations will boast 443 MBbld of refining capacity with access to favourable Mid Continent refining economics. We view Holly as the best stock in our coverage universe to play the light-heavy and WTI-Brent crude differentials.”

In ongoing M&A drama, pipeline company Southern Union (NYSE:SUG) is taking a bold step, purportedly in breach of its prior buyout agreement with Energy Transfer (NYSE:ETE), in releasing private business details to Williams Cos. (NYSE:WMB). Last week Williams made an offer to purchase the company for over $5 billion, topping a lower offer from competitor Energy Transfer. Southern Union seems to be walking a fine line for now, leaning back and forth from each company as its board makes a decision on whom to side with in the coming sale. SUG stock up .33% on the day.

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