NEW YORK (TheStreet) -- Shares of Oasis Petroleum (OAS) closed up 16.45% to $14.23 on 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.
The rally occurred despite the continued plunge in oil prices. WTI Crude fell 4.1% to $53.60 a barrel on Tuesday, the lowest price in five-and-a-half years, according to USA Today.
More than 16.4 million shares changed hands Tuesday, compared to the daily average volume of 4,814,260.
Separately, TheStreet Ratings team rates OASIS PETROLEUM INC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate OASIS PETROLEUM INC (OAS) 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, notable return on equity and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself."