• Total Production: Averaged 24,800 barrels of oil equivalent per day for Q3.

• Realized Crude Prices: $72.40 per barrel, down 7% for the quarter.

• Total Commodity Revenue: $154 million for Q3.

• Adjusted EBITDA: $67 million for the third quarter.

• Capital Expenditures: $26 million in Q3, bringing year-to-date to $85 million.

• Operating Cash Flow: $71 million in the third quarter.

• Free Cash Flow: $45 million for Q3, a 55% increase over Q2.

• New Term Loan Credit Facility: $545 million to refinance existing debt.

• Fixed Dividend Rate: $0.12 per share annually, with a $0.03 per share dividend declared for Q3 2024.

• Warning! GuruFocus has detected 5 Warning Signs with BRY.

Release Date: November 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Berry Corp (bry) (NASDAQ:BRY) delivered strong financial and operational results in Q3 2024, maintaining a focus on optimizing operations and managing assets to drive sustainable free cash flow.

• The company successfully refinanced its debt with a new $545 million term loan credit facility, positioning it well for strategic opportunities and long-term shareholder value.

• Production from drilling activities, particularly in the thermal diatomite reservoir, exceeded expectations with returns greater than 100%, highlighting the quality of Berry Corp (bry) (NASDAQ:BRY)'s assets.

• Berry Corp (bry) (NASDAQ:BRY) achieved its methane reduction goal over a year ahead of schedule, resulting in significant cost savings and environmental benefits.

• The company has a strong inventory of permits in California, ensuring stable production through 2026, and is actively pursuing opportunities in the Uinta Basin with promising results from horizontal wells.

Negative Points

• Total production for the quarter averaged 24,800 barrels of oil equivalent per day, a slight decrease from the prior quarter due to timing issues in connecting new wells.

• Realized crude prices were down 7% at $72.40 per barrel for the quarter, impacting total commodity revenue.

• The company's capital expenditure peaked mid-year, with Q3 CapEx at $26 million, reflecting a reduction but still impacting free cash flow.

• Berry Corp (bry) (NASDAQ:BRY) adjusted its dividend policy to a fixed rate of $0.12 per share annually, which is a reduction from previous levels.

• The company faces ongoing regulatory and permitting challenges in California, which could impact future drilling and production activities.

Q & A Highlights

Q: Can you discuss the strategy behind the second farm-out in the Uinta Basin and its impact on your capital budget? A: Fernando Araujo, CEO, explained that the second farm-out with Wasatch Energy Management aims to accelerate appraisal and derisk their acreage. The farm-out involves drilling 12 wells over 24 months, with the first two wells online by year-end. Berry's working interest is about 16%, minimizing capital requirements, and this is included in their capital outlook.