KeyBanc analyst Leo Mariani downgraded Berry Petroleum to Underweight from Sector Weight with a $6.50 price target. The new rules and regulations passed in California yesterday could potentially result in the loss of production volumes for Berry in the near future, Mariani tells investors in a research note. California announced a halt on new permits for high-pressure steam injection wells and is assessing the safety of existing wells using high-pressure steam above the fracture pressure of formations. The analyst believes the new regulations are "highly likely" to impact Berry Petroleum's valuation and cause its cash flow multiple to "derate" until there is more clarity around the financial impact.