Pioneer Natural Resources weighing deal for Range Resources - Bloomberg (update)

Update 10:25pm: Adds Pioneer Natural comment, adds after hours trading.

Pioneer Natural Resources (NYSE:PXD) -4% in Friday's trading following a Bloomberg report it is considering an acquisition of shale gas producer Range Resources (NYSE:RRC), whose shares trade +14.4%.

Deliberations are ongoing but there is no certainty the companies will reach an agreement, according to Bloomberg.

Pioneer Natural (PXD) said it's "not contemplating 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 southwest Appalachia, where the key resource is gas, not oil, the report noted.

Pioneer (PXD) CEO Scott Sheffield has a reputation for dealmaking, with acquisitions of Parsley Energy and DoublePoint Energy since 2020.