The S&P Energy Index (+4.1%) is sharply higher to start the week and is
currently outperforming gains in the broader market (+2.8%).
Sector News: CPX (+33.7%) shares are sharply higher after it announced it would
merge with SPN (-18.4%) in $6.2 bln combination. BAS (+10.7%) reported its well
servicing rig count remained unchanged at 417 as of September 30, 2011. RIG
(+4.1%) shares are higher this morning following reports from Friday that its
Deepwater Horizon rig is not responsible for the sheens discovered recently in
the GoM. BWP (+1.2%) and SWN (+2.4%) announced a 15 yr definitive gas gathering
agreement in the Marcellus Shale.
Broker Calls: TLM (+3.8%), PXD (+4.6%) and CVE (+3%) were downgraded to Equal
Weight from Overweight at Barclays. SGY (+10.6%) was upgraded to Overweight from
Equal Weight at Barclays. PER (+4.4%) was upgraded to Strong Buy from Outperform
at Raymond James.






