Exchange traded funds that invest in the energy exploration and production sector jumped Friday along with Petrohawk Energy (NYSE: HK) after the company said it has accepted a $12.1 billion all-cash offer from BHP Billiton (NYSE: BHP).
Petrohawk shares jumped more than 60% as the deal assigned a big premium to the stock.
The top percentage gainers in ETFs on Friday included First Trust ISE Revere Natural Gas (NYSEArca: FCG), SPDR S&P Oil & Gas Exploration & Production (NYSEArca: XOP) and iShares Dow Jones US Oil & Gas Exploration and Production (NYSEArca: IEO). They rallied more than 4%.
“We believe the acquisition makes sound strategic sense for BHP, as the company seeks to increase its exposure to North American shale gas through the acquisition of large, scalable positions,” Morningstar analysts said in a note Friday.
The major U.S. stock ETFs were flat Friday after disappointing consumer sentiment and economic data. In other sector action, Financial Select Sector SPDR Fund (NYSEArca: XLF) was fractionally lower after Citigroup’s (NYSE: C) earnings beat.