NEW YORK (TheStreet) -- Shares of Canadian Natural Resources (CNQ) rose 4.92% to $28.65 in afternoon 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.
Canadian Natural Resources touched a 52-week low of $26.53 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.
Separately, TheStreet Ratings team rates CANADIAN NATURAL RESOURCES as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CANADIAN NATURAL RESOURCES (CNQ) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, expanding profit margins, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income."