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Berry Corporation (NASDAQ:BRY) shares jumped Thursday afternoon after a report from Reuters claimed the company is exploring its strategic options, including a potential sale.
Citing people familiar with the matter, Reuters stated the company is considering various options as it undertakes a strategic review with the help of a financial adviser. However, they said no final decision has been made.
A source told the publication that the oil company could garner interest from admirers backed by private equity funds or international energy companies.
Berry shares hit a high of $9.64 on the news. At the time of writing, it is up 7.47% at $9.13 per share. Despite a decline in recent months, Berry shares are up more than 8% in 2022.
In the second quarter, approximately 80% of Berry’s oil production came from California. However, the state is making it increasingly difficult for producers to operate in, as it has vowed to phase out oil extraction by 2045. In addition, it said it would end the issuance of new fracking permits by 2024.
The move has resulted in firms having to reassess their plans in the state.
