Berry Corporation today announced first quarter 2024 results. 

Quarterly Highlights & Recent Announcements

• Produced 25,400 boe/d, above the midpoint of 2024 annual guidance of 25,200 boe/d
• Declared first quarter fixed dividends of $0.12 per share
• Acquired all necessary 2024 California Greenhouse Gas allowances at a 7% discount to the projected cost
• Signed agreement to farm into four horizontal wells immediately offsetting our Uinta Basin, UT acreage; wells expected to be on production by June 2024
• Follow-on working interest acquisition of ~100 boe/d in Kern County, CA in process
• Reported zero recordable incidents, zero lost-time incidents, and no reportable spills for the second consecutive quarter
• Issued 2023 Sustainable Business Report; includes setting an 80% reduction goal for methane emissions associated with our existing operations by the end of 2025

“In the first quarter, we delivered solid financial and operational results. The results are in line with projections, and we expect to deliver full-year results consistent with the production, capital and cost guidance we provided in March. Our teams have shown a remarkable ability to deploy their ingenuity and demonstrate resiliency in the face of a dynamic California regulatory environment. We continue to see strong base production, especially from our thermal diatomite reservoirs. By June 2024, we are also expecting first production from four horizontal well farm-in in Utah; an upside potential that could change our development outlook for the basin in future years. I want to emphasize that our 2024 development activity and production plan does not depend on the issuance of new drill permits, and so is not impacted by the ongoing Kern County EIR litigation which essentially has restricted the issuance of new drill permits,” said Fernando Araujo, Berry’s Chief Executive Officer.

He continued, “We are focused on maximizing enterprise value by generating sustainable free cash flow through operational excellence. Operational excellence includes keeping production flat, acquiring accretive, producing bolt-on assets, efficiently allocating capital, managing our cost structure, and prioritizing safety and compliance. We are confident we can continue to rise to the challenge to sustain production and maintain our enterprise value for the long-term.”

“We finished the first quarter with Adjusted EBITDA of $69 million despite slightly lower oil prices and production than the fourth quarter of 2023. We demonstrated resilience through strategic cost management, resulting in a 10% reduction in lease operating expenses. Our proactive approach has also led to significant savings of 7% in greenhouse gas credit purchases compared to projected costs, underscoring our commitment to both fiscal responsibility and environmental stewardship. With capital expenditures anticipated to increase in the second and third quarters of 2024 and an expected uptick in our well services business, we expect our results for the year to be in-line with our previously reported guidance. We will also maintain focus on debt reduction and look to opportunistically refinance our notes, which mature in early 2026,” stated Mike Helm, Berry’s CFO.

First Quarter 2024 Financial and Operating Results

Oil, natural gas and NGL revenues (excluding hedging settlements) for the first quarter of 2024 decreased 3% from the fourth quarter of 2023, driven by lower oil prices and a 1% decrease in oil volumes. The net loss for the first quarter of 2024 included unrealized hedge losses, while the Company recognized savings in lease operating expenses, mostly due to lower fuel gas prices. Adjusted EBITDA and Adjusted Net Income were essentially flat in the first quarter of 2024, compared to the prior quarter. Typical first quarter usage of working capital resulted in decreased cash flows from operations and Adjusted Free Cash Flow compared to the fourth quarter of 2023. Capital expenditures were $17 million in both the first quarter of 2024 and fourth quarter of 2023. At March 31, 2024, the Company had liquidity of $149 million, consisting of $3 million cash and $146 million available for borrowings under its revolving credit facilities.

Compared to the first quarter of the prior year, oil, natural gas and NGL revenues (excluding hedging settlements) were flat as production was higher and natural gas prices were lower in the first quarter of 2024. Adjusted EBITDA for the first quarter of 2024 increased 15% and Adjusted Net Income increased 106% compared to the first quarter of 2023, driven by a 19% decrease in expenses from field operations. Cash flow from operations and Adjusted Free Cash Flow increased in the first quarter of 2024 compared to the first quarter of 2023 due to the higher earnings and improved working capital impacts. Capital expenditures for the first quarter of 2024 were $17 million and decreased 19% compared to the first quarter of 2023. The Company was able to increase year over year production by nearly 5% largely due to the impact of bolt-on acquisitions in late 2023, allowing Berry to meet production targets while reducing drilling, workover and other activities on the legacy Berry assets.

KeyFacts Energy Industry Directory: Berry Corporation