Pioneer Natural Resources Co. struck a deal valued at $7.6 billion including debt late Tuesday to join forces with rival Parsley Energy Inc. in the second big Permian Basin tie-up this week.

Permian Pioneer acreage

The combined company would hold substantial sway in the Permian, with an estimated 930,000 net acres and 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 D....