CNOOC agreed to buy NXY for $27.50 a share or 61% higher than Friday’s close. NXY reported Q2 earnings of 19 cents, missing analysts’ expectations of 39 cents a share. Last year at this time NXY reported earnings of 46 cents a share and blames the earnings decrease on oil and gas prices. Q2 revenue jumped gained 11.5% to 1,769.3 million from 1654.7 million last year. the buyout is estimated to be finished in the fourth quarter.

Nexen holds a diversified portfolio consisting of both production and exploration units. Their exploration branch primarily functions in the Gulf of Mexico, West Africa and the North Sea.

David Cornes holds a degree in economics from the University of Montana.