NEW YORK (TheStreet) -- Shares of Breitburn Energy Partners (BBEP) were up 12.09% to $7.79 in late morning trading Tuesday as the energy sector rallied thanks in part to Repsol SA's $8.3 billion acquisition of Talisman Energy (TLM) .
Repsol agreed to pay $8 per share for Calgary-based Talisman, a 60% premium to the average stock price during the past month, Talisman said. The Madrid-based company would also assume $4.7 billion in debt.
Breitburn touched a 52-week low of $6.45 shortly after the market opened Tuesday, but the energy sector rally pulled the stock higher after the initial dip.
The rally occurred despite the continued plunge in oil prices. WTI Crude fell 2.7% to $54.39 a barrel on Tuesday, the lowest price in five-and-a-half years, according to USA Today.
More than 3.6 million shares had changed hands as of 11:34 a.m., compared to the average volume of 2,530,910.
Separately, TheStreet Ratings team rates BREITBURN ENERGY PARTNERS LP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate BREITBURN ENERGY PARTNERS LP (BBEP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself."