Berry Corporation has reported third quarter 2024 results and quarterly fixed dividends totaling $0.03 per share.

Quarterly Highlights

• Third quarter production averaged 24,800 BOE per day, with production increasing at the end of the quarter as additional wells were brought online
• Annual 2024 production expected to reach the mid-point of guidance of 24,600 to 25,800 BOE per day
• Increased Free Cash Flow 55% quarter over quarter
• Declared third quarter fixed dividends of $0.03 per share

Other Updates

• Entered $545 million term loan credit facility to redeem all the Company’s $400 million notes due 2026 and refinance the current RBL credit facility due August 2025. Valor Upstream Credit Partners, L.P., which is managed by Breakwall Capital LP in partnership with Vitol, is the sole lender on the new term loan credit facility
• Based on the outperformance of the initial four well Uinta farm-in confirming significant value potential, executed another larger farm-in deal and actively marketing an opportunity to accelerate horizontal well development of the Company’s Utah assets

“Berry delivered another good operational quarter with production ramping up as we exited September, and we are on track to reach the mid-point of our full year production guidance. We generated $71 million of cash flow from operations for the quarter and a 55% sequential increase in Free Cash Flow, while decreasing capital expenditures as planned. We have now completed our 2024 drilling plan and have permits in-hand to support activities well into the new year, including drilling new wells and sidetracks and working over existing wells. Based on current permitting processes and our healthy California inventory, we are confident we can maintain consistent production levels for 2025, as we have for the last six years. We are also excited about promising upside opportunities in Utah and California that should yield increasing benefits in 2025 and beyond,” said Fernando Araujo, Berry’s Chief Executive Officer.

“Based on activity across the Uinta basin, much of which is adjacent to our existing acreage, we believe our Utah assets have the potential to be a substantial long-term value driver for our shareholders. We entered a second farm-in agreement covering approximately 5,800 gross acres, which will help accelerate the appraisal of our acreage. Additionally, we are evaluating potential JV partners to accelerate our phase 1 plans to drill up to two multi-well horizontal drilling pads starting in 2025.

“We also have promising upside opportunities in California. Success from new sidetracks drilled in the Thermal Diatomite reservoir are yielding over 100% rates of return, further driving our capital efficiency efforts. By executing on these opportunities to leverage our world class California assets, we are stronger, more resilient, and better positioned to accelerate development in Utah while still honoring our commitment to generate sustainable Free Cash Flow,” Araujo continued.

“Finally, we are excited to partner with Valor, Breakwall and Vitol on a new term loan facility This financing will enable us to redeem all of our notes due in 2026 and refinance our existing credit facility, while also providing us with the ability to deploy capital into high rate of return projects, including the significant opportunity we see in our Uinta position. Importantly, the unique structure provides Berry with great flexibility to repay the loan in advance, pursue strategic opportunities, and return capital to shareholders,” Araujo concluded.

KeyFacts Energy Industry Directory: Berry Corporation