Energy stocks rallied Tuesday as more Permian-based M&A deals shake up the sector.
ExxonMobil (XOM) was the latest to announce a deal in the lucrative region. The energy major is buying assets from the Bass family in a deal worth up to $6.6 billion. The deal doubles Exxon's Permian Basin resources to six billion barrels of oil equivalent and includes 250,000 acres of leasehold in the Permian basin.
Exxon's deal overshadows another billion-dollar deal announced this week. Noble Energy (NBL) announced Monday its plans to buy Clayton Williams Energy (CWEI) in a $2.7 billion cash-and-stock deal. Noble led the energy sector on Tuesday.
Both deals pushed the energy sector higher, even as crude oil prices largely erased earlier gains.