ExxonMobil is reportedly in early talks to acquire compatriot Pioneer Natural Resources, one of the largest onshore oil and gas producers in the US.

Pioneer’s shares rose as much as 8.5% on Monday following a report in The Wall Street Journal that it has held preliminary talks with the US supermajor over a potential business combination, citing sources familiar with the situation.

TD Cowen analyst Jason Gabelman said in a research note that a deal is not imminent but ExxonMobil “has an interest in acquiring undeveloped Permian resource, which [Pioneer] has plenty of”.