straga/iStock via Getty Images
Update 22:25: Add Pioneer Natural comment, add after hours operations.
Pioneer Natural Resources (New York Stock Exchange:PXD) -4% in trading on Friday following a Bloomberg report, is considering the acquisition of shale gas producer Range Resources (New York Stock Exchange:RRC), whose shares are listed +14.4%.
Deliberations are ongoing, but there is no certainty that the companies will reach an agreement, according to Bloomberg.
Pioneer Natural (PXD) said it “does not contemplate a significant business combination or other acquisition transaction,” the company said in a statement late Friday. Range Resources (RRC) fell 5.5% in after-hours trading, while PXD rose 1.3%.
The report sent natural gas-focused stocks higher, including Southwestern Southwestern Energy (SWN) +8.6%Obsidian Energy (OBE) +8.2%Antero Resources (AR) +7.6%EQT Corp. (EQT) +5.5%SilverBow Resources (SBOW) +5.4%Chesapeake Energy (CHK) +4.7%Coterra Energy (CTRA) +3.3%.
Buying Range Resources (RRC) would bring Pioneer Natural (PXD) into the Marcellus basin in southwestern Appalachia, where the key resource is gas, not oil, the report noted.
Pioneer (PXD) CEO Scott Sheffield has a reputation for doing business, with acquisitions of Parsley Energy and DoublePoint Energy since 2020.