NEW YORK (TheStreet) -- Shares of Peabody Energy Corp. (BTU) are higher by 6.59% to $7.76 in late afternoon trading on Tuesday, as the energy sector gains due to the acquisition of Talisman Energy (TLM) by the Spanish energy company Repsol SA, for $8.3 billion.
Repsol agreed to pay $8 per Talisman common share, in an all cash transaction set to close in the second quarter of 2015.
Yesterday, the energy sector declined due to the drop in oil prices.
On Tuesday, Brent crude started the day off lower before rebounding in the afternoon. Crude oil for January delivery is up 0.16% to $56 on the NYMEX this afternoon.
Separately, TheStreet Ratings team rates PEABODY ENERGY CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate PEABODY ENERGY CORP (BTU) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."