US SMALL/MIDCAPS-Energy sector gains on Mariner deal

By Rodrigo Campos

NEW YORK, April 15 (BestGrowthStock) – A deal accidentally
announced on Wednesday had the biggest influence on mid- and
small cap stocks on Thursday as Mariner Energy shares soared
following Apache’s confirmation of its takeover of the
independent oil and gas exploration company.

Apache Corp (APA.N: ) tipped off analysts to their upcoming
$2.7 billion deal with Mariner Energy (ME.N: ), sending out an
email on Wednesday evening to schedule a conference call on the
takeover. For details see [ID:nN15239621] and [ID:nSGE63E0G5].

Apache early on Thursday confirmed the acquisition, its
second this week after Monday’s takeover of Devon Energy Corp
for $1.05 billion, and Mariner shares rallied 41.5 percent
before the open to $25.60. During the regular session they hit
a high of $25.71.

“Companies are saying ‘we don’t want to miss a chance to
make acquisitions.’ The only way to hedge their own risk is
buying other companies,” said Adam Hutt, general partner at
Leviticus Partners in New York.

He said with the large oil companies and national interests
controlling a big part of the oil reserves “you’re going to
continue to see consolidation in oil.”

The S&P MidCap energy sector (.4GSPE: ) rose 2 percent and
the SmallCap energy sector (.6GSPE: ) added 1 percent.

On the downside, shares of Santarus Inc (SNTS.O: ) plunged
33.8 percent to $3.55 a day after a U.S. federal court ruled
against the specialty pharmaceutical company in its patent suit
against Par Pharmaceuticals (PRX.N: ). Par shares gained 7
percent to $27.96.

The S&P MidCap 400 index (.MID: ) rose 0.2 percent while the
S&P SmallCap 600 index (.SML: ) advanced 0.3 percent. In
comparison, the benchmark S&P 500 (.SPX: ) gained 0.2 percent.

Growth Stocks

(Editing by Kenneth Barry)

US SMALL/MIDCAPS-Energy sector gains on Mariner deal