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Berry Corporation Reports Strong First Quarter 2021 Results


Berry Corporation has reported net loss of $21 million or $0.27 per diluted share and Adjusted Net Income(1) of $6 million or $0.07 per diluted share for the first quarter of 2021. The Board of Directors also declared a quarterly dividend of $0.04 per share for the second quarter of 2021.

Quarterly Highlights

  • Generated Adjusted EBITDA of $52 million
  • Reduced non-energy OpEx an additional 11% sequentially
  • Increased sequential oil production 3% and total production 2% to 27,100 boe/d
  • Improving sustainable capital efficiency on development program
  • Generated $16 million of Levered Free Cash Flow
  • Ended the quarter with $99 million in cash

“We had a strong quarter. By managing the things within our control, we realized growth in our production on improving capital efficiency and record low non-energy operating expenses by enhancing our cost structure,” said Trem Smith, Berry board chair and chief executive officer. “Furthermore, our results underscore the strength of and success of our natural gas hedging program. As unprecedented cold weather covered much of the central and southern parts of the U.S. in February, our natural gas hedges allowed us to sustain our steam operations despite natural gas prices in California exceeding $100 per mmbtu for a few days. Our 2020 and first quarter results demonstrate that we are well on track to deliver on the commitments we made at the start of the historic downturn early last year.   

“More recently, on April 23, Governor Newsom directed CalGEM to initiate regulatory action to end the issuance of new permits for hydraulic fracturing by January 2024. This directive does not materially impact bry’s operations and, as defined, does not affect our current or future thermal diatomite production. However, this proposal is not in the best interest of Californians and does not support the state’s 2045 net carbon neutrality goal. Studies, including those sponsored by the Governor, show that Californians will still demand transportation fuels well past 2045. Therefore, this ban just shifts the state’s supply source from local producers, who provide significant economic value to our communities and operate using rigorous environmental and safety standards, to foreign oil producers that do not contribute to our economy nor share our social or environmental standards. This year bry will pay $40 million in greenhouse gas (“GHG”) credits, and the industry as a whole pays more than $1 billion annually to help fund California’s GHG programs. We support the state’s goal of carbon neutrality by 2045, but to achieve this we need to work together and find solutions that are equitable and affordable for everyone,” added Smith.

The Company increased average daily production 2% to 27,100 boe/d for the first quarter of 2021 compared to the fourth quarter of 2020, as a result of its 2021 development program. The Company increased oil production for the quarter by 3% to 23,900 bbl/d over fourth quarter 2020. The Company's California production of 21,900 boe/d for the first quarter of 2021 also increased 3% from the fourth quarter 2020.

KeyFacts Energy Industry Directory: Berry Corporation

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