Range Resources ( NYSE: RRC ) -10.7% after Pioneer Natural Resources ( NYSE: PXD ) said after Friday's close it was " not contemplating a significant business combination or other acquisition transaction ," in response to a report that Pioneer might make an offer for the shale gas producer.
Range Resources ( RRC ) had surged by 12% Friday following a Bloomberg report that Pioneer Natural ( PXD ) was considering an acquisition; Pioneer currently +2.7% after falling more than 4% on Friday.
Other gas-focused equities that had gained Friday from the Bloomberg report trade lower Monday, including Chesapeake Energy ( CHK ) -4.3% , EQT Corp. ( EQT ) -3.9% , Southwestern Energy ( SWN ) -2.2% and Antero Resources ( AR ) -1.9% .
Tudor Pickering analyst Matthew Portillo upgraded Pioneer Natural ( PXD ) to Buy from Hold with a $243 price target after the takeover report hammered the stock, noting the company had taken its lumps over two years but "should see fairly stable trends as well results improve," given the quality of its remaining inventory.
Portillo also praised Pioneer's ( PXD ) plans to improve capital efficiency through 2023, including removing some lower return horizons from the development plan.
Pioneer ( PXD ) CEO Scott Sheffield has a reputation for dealmaking, with acquisitions of Parsley Energy and DoublePoint Energy since 2020 .
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Pioneer Natural rebounds after denying Range deal, Tudor Pickering upgrade