Penn Virginia Corporation is reportedly considering putting itself on the auction block after posting a larger than expected fourth quarter loss.
Sources close to the company told the Wall Street Journal the Pennsylvania-based company is working with Bank of America to look for potential buyers.
Shares in the company shot up 15 points Friday morning on the news.
The company had a market capitalization of $445 million at the closing bell on Wednesday.
Last June Soros Fund Management, the largest Penn Virginia shareholder, proposed the company find a buyer to maximize shareholder value.
Penn booked a fourth quarter net loss of $423.8 million, or $5.90 per diluted share, compared to net income of $81.1 million, or $0.87 per diluted share, in the previous quarter.
The company also booked a fourth quarter operating loss of $14.6 million, down from $28.5 million in the third quarter, and a $667.8 million impairment tied to its East Texas and Oklahoma assets.
Penn said the drop in operating income was primarily tied to a $40.4 million decrease in product revenues and a $12.7 million increase in depletion, depreciation and amortization expenses.
The company set its 2015 production guidance at between 8.7 million to 9.6 million barrels of oil equivalent per day, a 10 to 20 percent increase over 2014.
“Our fourth quarter product revenues were impacted by lower commodity prices, but our oil and gas hedges, along with lower operating costs, helped to partially offset the lower revenues and enabled us to maintain solid cash margins,” President and CEO H. Baird Whitehead said.