SRCI - Why PDC Energy SRC Energy and Hibbett Sports Jumped Today
The stock market moved higher on Monday, aided by friendlier talk on the trade front. Comments from President Trump at the G7 summit in France struck a more positive tone, opening the possibility of talks not just with China, but also with Iran. Major benchmarks were up nicely, but some stocks posted even bigger gains. PDC Energy (NASDAQ: PDCE), SRC Energy (NYSEMKT: SRCI), and Hibbett Sports (NASDAQ: HIBB) were among the top performers. Here's why they did so well.
Shares of PDC Energy and SRC Energy jumped 17% and 12%, respectively, after the two energy companies announced an agreement to combine their operations into a single unit. Under the terms of the all-stock deal, SRC shareholders will receive 0.158 PDC shares for every SRC share they own. Given that SRC is the target company, it's easy to see why its shares are on the rise. The deal puts an enterprise value of about $1.7 billion on SRC.
Image source: PDC Energy.