Operational Performance - The company drilled 12 wells in California during Q1 2025, with 10 being thermal diatomite sidetracks, expecting increased production in the second half of the year [116]. - As of March 31, 2025, the company held approximately 100,000 net acres in the Uinta Basin, indicating high operational control and potential for additional development [117]. - The company acquired a 21% working interest in four lateral wells in the Uteland Butte reservoir, with initial production rates exceeding expectations [118]. - The 2025 capital program includes drilling a four-well horizontal pad in the Uinta Basin, with all wells expected to be online by Q3 2025 [120]. - Average daily production decreased by 5% to 24.7 mboe/d for the three months ended March 31, 2025, compared to 26.1 mboe/d in the previous quarter [166]. - The company reported total mboe (thousand barrels of oil equivalent) of 2,225 in Q1 2025, a decrease from 2,400 in Q4 2024 and an increase from 2,310 in Q1 2024 [236]. Financial Performance - The company uses Adjusted EBITDA as a primary financial measure to analyze operating performance and plan capital expenditures [123]. - Free Cash Flow is utilized to measure the company's ability to pay dividends, reduce debt, and pursue growth opportunities [124]. - Total revenues increased by $3.6 million, or 2%, to $182.7 million for the three months ended March 31, 2025, compared to $179.1 million in the previous quarter [169]. - Oil, natural gas, and NGL sales decreased by $10 million, or 6%, to approximately $148 million for the three months ended March 31, 2025, primarily due to lower oil volumes [170]. - Net loss for the three months ended March 31, 2025, was $96.7 million, compared to a loss of $1.8 million in the previous quarter [175]. - Adjusted EBITDA decreased by 16% to $68.5 million for the three months ended March 31, 2025, compared to $81.8 million in the previous quarter [175]. - The company reported a net loss of $96.7 million for the three months ended March 31, 2025, compared to a net loss of $40.1 million for the same period in 2024 [198]. - Adjusted Net Income for the three months ended March 31, 2025, was $9,370,000, with a diluted EPS of $0.12, compared to $16,531,000 and $0.21 for December 31, 2024 [228]. Capital Expenditures and Budget - Total capital expenditures for Q1 2025 were approximately $28 million, with 60% allocated to California operations and 40% to Utah [155]. - The 2025 capital expenditure budget is projected to be between $110 million and $120 million, with a focus on increasing horizontal development in Utah [156]. - The company plans to spend approximately $14 million to $20 million on plugging and abandonment activities in 2025, similar to the $15 million spent in 2024 [157]. - Capital expenditures for the three months ended March 31, 2025, were $28,389,000, compared to $17,217,000 for December 31, 2024 [225]. Market Conditions - Average oil prices were relatively flat in Q1 2025 compared to Q4 2024 but declined in Q2 2025, extending a downward trend that began in H2 2024 [131]. - OPEC+ has extended production cuts of 3.65 million barrels per day through the end of 2026, impacting oil prices [132]. - For Q1 2025, the average realized price for Brent crude oil was $69.56 per barrel, representing 93% of the benchmark price, while WTI averaged $71.51 per barrel [139]. - The average realized price for purchased natural gas was $4.70 per mmbtu in Q1 2025, which is 121% of the benchmark price, compared to $4.38 per mmbtu in Q4 2024 [139]. - Utah's average realized oil price for Q1 2025 was $56.20 per barrel, significantly lower than the average Brent price of $74.98 for the same period [143]. Expenses and Losses - Lease operating expenses increased by 3% to $57.3 million for the first quarter of 2025, primarily due to higher well servicing activity [177]. - General and administrative expenses increased by 10% to $20.3 million for the three months ended March 31, 2025, compared to $18.4 million in the previous quarter [175]. - Impairment of oil and gas properties amounted to $157.9 million for the three months ended March 31, 2025, marking a significant increase [175]. - The company recorded a non-cash pre-tax asset impairment charge of $158 million ($113 million after-tax) for one of its non-thermal diatomite proved properties in California for the three months ended March 31, 2025 [184][207]. Liquidity and Debt - As of March 31, 2025, the company had liquidity of $120 million, consisting of $39 million in cash and $49 million in available borrowing capacity [240]. - The 2024 Term Loan has $439 million in borrowings outstanding as of March 31, 2025, with an initial term loan facility of $450 million [244]. - The company prioritizes debt reduction in its capital allocation approach, aligning with covenants in the 2024 Term Loan [241]. - The company expects to fund its 2025 capital program from cash flow from operations based on current commodity prices and drilling success rates [156]. Shareholder Returns - The company declared a cash dividend of $0.03 per share in Q1 2025, with another dividend of the same amount expected in May 2025 [257][258]. - The company did not repurchase any shares during Q1 2025, with a total of 11.9 million shares repurchased for approximately $114 million to date [261]. - The remaining total share repurchase authority as of March 31, 2025, was $190 million [260]. Environmental and Regulatory Compliance - The company has entered into contracts to purchase GHG compliance instruments totaling $22 million [288]. - The fair value of emission allowances required by California's cap-and-trade program was $5 million as of March 31, 2025, with a 10% price change resulting in less than $1 million change in expense [302].

Financial Data and Key Metrics Changes - Berry Corporation reported first quarter oil and gas sales of $148 million, with a realized oil price at 93% of Brent [19] - Adjusted EBITDA for the first quarter was $68 million, and operating cash flow was $46 million [19] - The company generated $7 million in free cash flow after working capital changes [19] - Total debt at the end of the quarter was $439 million, with a leverage ratio improved to 1.37 times [21] - Liquidity increased to $120 million, and the company paid down $11 million of debt during the quarter [21] Business Line Data and Key Metrics Changes - In California, production averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime [9] - The company drilled twice as many wells in Q1 compared to Q4 of the previous year [9] - The thermal diatomite program is expected to generate rates of return exceeding 100% [10][40] Market Data and Key Metrics Changes - Approximately 73% of oil production is hedged at $75 per barrel for the remainder of the year [7] - The average floor price for hedged production was raised by $6 per barrel on 2,300 barrels per day for 2026 and 2027 [19] Company Strategy and Development Direction - Berry Corporation aims to generate sustainable free cash flow, reduce debt, and invest in high-return development projects [12][23] - The company is focused on executing its 2025 development projects and building inventory for 2026 [7][16] - The management emphasizes the importance of navigating the regulatory environment in California as a competitive advantage [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and reaffirmed full-year guidance [6][23] - The company highlighted its strong hedge position as a protective measure for cash flow [7] - Management noted a constructive shift in California's regulatory environment, which could facilitate increased in-state production [15] Other Important Information - Berry Corporation returned $2 million in cash to shareholders during the quarter [8] - The company had zero recordable incidents and zero lost time incidents in its operations during Q1 [14] Q&A Session Summary Question: Scalability of the thermal diatomite program - Management indicated significant running room in the thermal diatomite program, with about 25 categorized as PUDs and additional future locations available [29][30] Question: Initial production potential in Uinta - Management confirmed that the four well pad in Uinta was drilled ahead of schedule, with fracking operations expected to commence in June and initial production anticipated in August [34][43] Question: Success in California production growth - Management attributed success to the quality of their teams and innovative strategies, particularly in sidetrack drilling, which has allowed for growth in a challenging regulatory environment [38][40]

Financial Data and Key Metrics Changes - Berry Corporation reported first quarter oil and gas sales of $148 million, with a realized oil price at 93% of Brent [18] - Adjusted EBITDA for the first quarter was $68 million, and operating cash flow was $46 million [18] - The company generated $7 million in free cash flow after working capital changes [18] - Total debt at the end of the quarter was $439 million, with a leverage ratio improved to 1.37 times [21] - Liquidity increased to $120 million, and the company paid down $11 million of debt during the quarter [21] Business Line Data and Key Metrics Changes - In California, production averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime [8] - The company drilled twice as many wells in Q1 compared to Q4 of the previous year [8] - The thermal diatomite projects are expected to generate rates of return exceeding 100% [9] Market Data and Key Metrics Changes - Approximately 73% of oil production is hedged at $75 per barrel for the remainder of the year [6] - The average floor price for hedged production was raised by $6 per barrel for 2,300 barrels per day in 2026 and 2027 [19] Company Strategy and Development Direction - Berry Corporation aims to generate sustainable free cash flow, reduce debt, and return dividends while investing in high-return development projects [12][23] - The company is focused on executing its 2025 development projects and building inventory for 2026 [6][16] - The management emphasized the importance of navigating the regulatory environment in California as a competitive advantage [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and reaffirmed full-year guidance [5] - The company highlighted a strong hedge position that protects cash flow [6] - Management noted a constructive shift in California's regulatory environment, which could facilitate increased in-state production [15] Other Important Information - Berry Corporation reported zero recordable incidents and zero lost time incidents during the first quarter, reflecting a commitment to safety and environmental standards [14] - The company plans to publish a comprehensive report on its performance metrics and emissions data in the summer [14] Q&A Session Summary Question: Scalability of the thermal diatomite program - Management indicated significant running room in the thermal diatomite program, with about 25 categorized as PUDs and additional future locations for drilling [27][28] Question: Initial production potential in Uinta - Management shared that the four well pad in the Uinta Basin was drilled ahead of schedule, with fracking operations expected to commence in June and initial production anticipated in August [30][32] Question: Navigating the regulatory environment in California - Management attributed their success in growing California production to their experienced teams and innovative strategies, particularly in sidetrack drilling [36][38] Question: Timeline for production data from Uinta - Management clarified that production from the newly drilled wells is expected to begin in late July, with significant production numbers anticipated in August [41]

Berry Petroleum (BRY) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this independent upstream energy company would post earnings of $0.12 per share when it actually produced earnings of $0.21, delivering a surprise of 75%.Over the last four q ...

Company Overview - Berry is a Western U S independent upstream energy company focused on onshore, low geologic risk, low decline, long-lived conventional reserves[9, 10] - The company's enterprise value is $601 million[11] - First quarter of 2025 production averaged 247 thousand barrels of oil equivalent per day (MBoe/d), with 93% being oil[11] - The company's proved PV-10 is $23 billion[11] - Last twelve months (LTM) adjusted EBITDA was $292 million[11] - LTM free cash flow was $115 million, or $148 per share[11] - The company's reinvestment rate is 50%[11] - As of March 31, 2025, the leverage ratio was 137x[11] California Assets - California assets include approximately 20000 net acres and approximately 2500 gross producing wells[26] - California production averaged 210 MBoe/d in 2024[26] - Proved PV-10 for California assets is $21 billion[26] - The annual decline rate for California assets is 11%-14%[26]

Core Insights - Berry Corporation reported strong financial and operational results for Q1 2025, with a slight decrease in production due to planned downtime but a focus on expanding its California drilling program [4][6] - The company reaffirmed its FY25 guidance, citing a favorable hedge position that protects cash flows and liquidity [6][11] - A quarterly cash dividend of $0.03 per share was announced, representing a 5% annual yield [10] Financial and Operational Summary - Production for Q1 2025 was 24.7 MBoe/d, with 93% being oil, down from 26.1 MBoe/d in the previous quarter [6][7] - The company reported a net loss of $97 million, or $1.25 per diluted share, which included a non-cash impairment of $113 million [6][7] - Adjusted Net Income was $9 million, or $0.12 per diluted share, with Adjusted EBITDA of $68 million and Free Cash Flow of $17 million [6][7] - Operating cash flow generated was $46 million, with capital expenditures totaling $28 million [6][7] Capital Structure and Debt Management - As of March 31, 2025, Berry had $439 million outstanding on its term loan and $120 million in liquidity [9] - The company paid down $11 million of total debt during the quarter [10] - The leverage ratio improved to 1.37x quarter-over-quarter [9] Production and Pricing - The average realized price for oil without hedge was $69.48 per barrel, while the average price with hedge was $69.56 per barrel [31] - Oil production from California was 20.4 MBbl/d, while Utah contributed 2.6 MBbl/d, totaling 23.0 MBbl/d for the quarter [37] Guidance and Future Outlook - Berry's full-year 2025 guidance remains unchanged, with average daily production expected between 24,800 and 26,000 boe/d [11] - The company plans to fund its 2025 capital development program primarily through cash flow from operations [9][11]

Core Insights - The oil/energy sector is facing challenges in Q1 2025 due to fluctuating commodity prices, with oil prices declining and natural gas prices increasing, leading to a mixed outlook for the sector [1][2][3] Oil Price Performance - West Texas Intermediate crude's average price fell to $71.84 per barrel, down from $77.56 the previous year, influenced by sluggish global economic growth, rising oil production from non-OPEC+ countries, potential output increases by OPEC+, and weaker demand [2] - Additional downward pressure on oil prices is attributed to growing trade tensions and an increase in oil inventories [2] Natural Gas Price Performance - The Henry Hub spot price for natural gas averaged $4.15 per million British thermal units (MMBtu), nearly doubling from $2.13 MMBtu in the same quarter last year, driven by unusually cold weather and increased heating demand [3] - The rise in liquefied natural gas (LNG) exports has also contributed to tighter supply and elevated prices [3] Sector Earnings Trends - Sector earnings are projected to decline by 13.6% year over year, while revenues have increased by only 0.7%, insufficient to offset the decline in profitability [4] - The decline in earnings is primarily due to weaker oil prices compressing margins across the sector [4] Comparative Sector Performance - The oil/energy sector is underperforming compared to other sectors, such as Technology and Medical, which are experiencing strong earnings growth [5] - Excluding the oil/energy sector, the S&P 500's overall earnings growth improves to 4.4%, highlighting the negative impact of the oil/energy sector on aggregate results [6] Company Earnings Focus - Companies in the oil/energy sector are preparing for their Q1 earnings reports, with a focus on achieving a positive Earnings ESP and a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold) to increase the odds of an earnings beat [7] Company-Specific Insights - **Cheniere Energy, Inc. (LNG)**: Expected earnings of $2.81 per share, a 31.92% increase year-over-year, with a history of beating estimates [11] - **Canadian Natural Resources Limited (CNQ)**: Expected earnings of 73 cents per share, a 43.14% increase year-over-year, with mixed performance in beating estimates [13] - **Cenovus Energy Inc. (CVE)**: Expected earnings of 29 cents per share, a 36.96% decrease year-over-year, with a history of missing estimates [15] - **Berry Corporation (BRY)**: Expected earnings of 10 cents per share, a 28.57% decrease year-over-year, with limited success in beating estimates [17]

We are currently offering a free two-week trial to Distressed Value Investing . Join our community to receive exclusive research about various companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies. Berry Corporation (NASDAQ: BRY ) modified its 2026 and 2027 hedges to give itself more downside protection through converting collars and puts into swaps. This also reduces the upside if oil prices recover, though. ...

Financial Position - As of March 31, 2025, Berry Corporation reported $39 million in cash and cash equivalents, $49 million available for borrowings under its revolving credit facility, and $32 million available for delayed draw borrowings under its term loan facility[6]. Hedging and Investor Relations - The company announced updates to its hedging program and participation in upcoming investor conferences on April 23, 2025[6]. Financial Reporting - The financial information provided is preliminary and subject to the completion of the company's financial closing procedures for the three months ended March 31, 2025[6]. - The press release containing this information is unaudited and is attached as Exhibit 99.1[6]. Forward-Looking Statements - Management's forward-looking statements regarding future expectations are subject to risks and uncertainties that could cause actual results to differ materially[8].

Core Insights - Berry Corporation has strengthened its hedge and liquidity position, raising the average hedged price for 2026 and 2027 by $6 per barrel on 2.3 million barrels per day (MBbls/d) [1][6] - The company is 73% hedged for the remainder of 2025 and 63% hedged for 2026 based on its production guidance [1][6] - As of March 31, 2025, Berry had $120 million in liquidity, which includes $39 million in cash, $49 million available for borrowings, and $32 million for delayed draw borrowings [3] Hedging and Financial Position - Berry's hedging strategy has resulted in a favorable position, with a balance of 2025 oil hedged at an average price of $74.69 per barrel Brent [6] - The company has converted 2.3 MBbls/d of collars and puts into swaps, raising the floor price by $6 per barrel on average [6] - The mark-to-market (MTM) value for crude oil as of April 21, 2025, is $105 million [6] Liquidity and Upcoming Events - As of April 22, 2025, Berry's liquidity position is $119 million, with $14 million in letters of credit and no outstanding borrowings under its credit facility [3] - Berry's executives will participate in several upcoming investor events, including the ONE Houlihan Lokey Global Conference and the Louisiana Energy Conference [7]