Why did archaea energy stock rise 54% on Monday?

Shares of Archaea Energy ( LFG) surged on Monday after the renewable natural gas (RNG) producer struck a deal to be acquired by British oil giant BP ( BP 1.81%). By the close of trading, Archaea Energy's stock price was up 54%.

Who is archaea energy?

Rice created Archaea through a three-way special purpose acquisition company merger with privately held Archaea Energy LLC and Aria Energy LLC. Aria and Archaea are involved in the production of what’s called renewable natural gas (“RNG”).

Will BP buy archaea energy?

By the close of trading, Archaea Energy's stock price was up 54%. Under the terms of the deal, BP will purchase Archaea Energy for roughly $4.1 billion, including its net debt of $800 million. The $26-per-share transaction price represents a premium of about 38% to Archaea's volume-weighted average stock price over the prior 30-day period.

What are the energy sector stocks?

The energy sector is composed of companies focused on the exploration, production, and marketing of oil, gas, and renewable resources around the world. Energy sector stocks include upstream companies that primarily engage in the exploration of oil or gas reserves, such as Devon Energy Corp. Downstream companies include Marathon Petroleum Corp.