The rumor mill is a powerful machine when a juicy leak hits a reporter’s desk. Few can resist the urge to run with a tip from anonymous sources but, oh, the consequences a simple headline can trigger, even when based on nothing more than water vapor.
Reese Energy Consulting today is following news originated by Bloomberg that caught fire last Friday when it announced Texas-based Pioneer Natural Resources was in deliberations to acquire Range Resources. To be clear, Pioneer is the Permian’s largest crude oil producer. Range is a pure-play natural gas operator in the Appalachia Basin. The disparities would tend to make one question the rationale behind such a union. Even Pioneer’s CEO refuted any purchase was under consideration before press time. Nevertheless, Wall Street responded as Wall Street does to innuendo and Pioneer’s stock price dropped 5.5% in afterhours trading. Range rose as high as 18%.
Now comes news that Calgary-based Baytex Energy—an Eagle Ford player—will buy Ranger Oil (not to be confused by Range)—a pure-play Eagle Ford producer—for $2.5 billion. This, a pairing that makes sense and comes directly from the horse’s mouth. Learn more about our own range of services right here at www.ReeseEnergyConsulting.com.