Pioneer Natural Resources (NYSE:PXD) stock is climbing 7% in early trading and trending on social media. The shares are advancing after The Wall Street Journal reported that Exxon Mobil (NYSE:XOM) is interested in potentially buying Pioneer.

PXD focuses on producing oil, natural gas, and natural gas liquids from America’s shale deposits. During this year, the company anticipates “oil production of 357 to 372 thousand barrels of oil per day… and total production of 670 to 700 thousand barrels of oil equivalent per day.”

Natural gas prices are down about 55% year-to-date, and America’s shale oil industry appears to be in a precious position.

More About the Report

Exxon and Pioneer have had “preliminary talks” about an acquisition. According to the newspaper, XOM is interested in becoming more involved with the shale deposits in West Texas.

Exxon may decide to acquire a company other than Pioneer, and even if it does elect to pull the trigger on PXD, a deal may not materialize until as late as next year.

Citi Upgraded PXD Stock Last Month

On March 23, Citi raised its rating on Pioneer to “buy” from “neutral.” The firm expects PXD and its peers to benefit meaningfully from greater “capital efficiency” due to “lower service rates,” the bank believes. Meanwhile, according to The Fly, Pioneer should get a lift from “rising well productivity in the second half of the year,” Citi thinks.

However, Citi’s price target of $210 is below the stock’s current price of $222.

The Performance of PXD Stock

In the last week, PXD shares have climbed 3%. However, as of last Friday, they were down 9% this year and have fallen 15% over the previous year. PXD’s 52-week high is $288.46.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.