Energy stocks end lower; Plains drops nearly 11%
9/10/12 4:56 PM ET (MarketWatch)
NEW YORK (MarketWatch) -- Energy stocks finished mostly lower on Monday, as shares of Plains Exploration & Production Co. skidded almost 11% on plans by the company to buy $6 billion in oil fields.
Plains Exploration (PXP) shares gave up $4.24 to close at $36.09 after the company said it plans to buy Gulf of Mexico oil fields from BP PLC(BP) and Royal Dutch Shell(RDS.A) (RDS.B) in a deal that would be financed through $7 billion in debt. See story on Plains Exploration deal.
Also finishing lower, shares of Transocean Ltd. (RIG) fell 3.5% after the company set plans to sell 38 shallow-water rigs for $1.1 billion to Shelf Drilling International Holdings Ltd.
On the up side, Alpha Natural Resources Inc. (ANR) shares edged up by 0.3%, First Solar Inc. (FSLR) moved up by 1.7% and Noble Energy Inc. (NBL) advanced by 1.8%.
The Energy Select Sector SPDR Fund(XLE) fell 0.4% by the close. The fund includes energy stocks in the S&P 500 Index
Checking the other major benchmarks in the energy sector, the NYSE Arca Oil Index (XOI) dipped 0.7%, the NYSE Arca Natural Gas Index (XNG) shed 0.4% and the Philadelphia Oil Service Index(OSX) lost 0.5%.
Also on the deal front, Hess Corp. (HES) shares rose 0.4% after the company set plans to sell minority stakes in Azerbaijan oil fields for $1 billion. The buyer is India's ONGC Videsh Ltd.