Stock movements following CXO-RSPP announcement
The reason for the decline in CXO stock could be the 29% premium CXO will be paying for RSPP shares and the hefty Permian price tag (read Part 1). However, as the market took in the news and saw the operational synergies CXO expects to see from the combination, the stock rose 5% the next day.
The stocks year-over-year
On a year-over-year basis, CXO stock has risen 16.4%, while RSPP stock has risen 14%. Both CXO and RSPP have overperformed the broader energy sector benchmark, the Energy Select Sector SPDR ETF (XLE), which has fallen 4% year-over-year. The S&P 500 SPDR ETF (SPY) has risen 11.7% in the same period.
For the latest on the Permian Basin, be sure to read Permian Still Integral to US Crude Oil Production Story.