Independent oil company Denbury Resources Inc (NYSE:DEN) is exploring its options, including a potential sale, Bloomberg said Wednesday, citing people with knowledge of the matter.
Based in Plano, Texas, Denbury has been working with an advisor to assess strategic options, although the discussions may not result in a transaction, according to Bloomberg.
Denbury shares surged over 12.8% on the back of the news, hitting a high of over $89 per share, adding to its year-to-date gains.
With oil prices surging following Russia’s invasion of Ukraine, it has kicked off dealmaking among independent U.S. producers recently, according to Bloomberg. For example, earlier this month, Devon Energy Corp (NYSE:DVN) announced a $1.8 billion deal to acquire Validus Energy.
Denbury escaped bankruptcy in September 2020, with the agreement eliminating $2.1 billion in bond debt and handing control to creditors.