Dallas-based Permian Basin pure-play Pioneer Natural Resources Co. agreed late Tuesday to join forces with competitor Parsley Energy Inc. in an all-stock deal valued at $7.6 billion including debt.

The combined company would hold substantial sway in the Permian, with an estimated 930,000 net acres with no federal leases. At the end of June, the combined production base was 558,000 boe/d, including 328,000 b/d of oil. Based on proved reserves at the end of 2019, the transaction would increase Pioneer’s proved reserves by an estimated 65%.

“This transaction creates an unmatched independent energy company by combining two complementary and premier Permian assets, further strengthening Pioneer’s leadership position within the upstream energy sector,” said Pioneer CEO Scott...