Berry Corporation (BRY) Bundle
A Brief History of Berry Corporation
Company Overview
Berry Corporation, a publicly traded company on the NASDAQ under the ticker symbol BRY, operates primarily in the exploration and production (E&P) sector of the oil and gas industry. The company focuses on onshore, low geologic risk, long-lived oil and gas reserves, primarily located in California and Utah.
Recent Financial Performance
As of September 30, 2024, Berry Corporation reported significant financial metrics:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenues | $259.8 million | $118.8 million | +119% |
| Net Income | $94.3 million | ($60.4 million) | N/A |
| Lease Operating Expenses | $54.8 million | $59.8 million | -2% |
| General and Administrative Expenses | $19.1 million | $21.0 million | -9% |
| Capital Expenditures | $25.9 million | $13.6 million | +90% |
Segment Performance
Berry operates in two main segments: E&P and well servicing and abandonment. For the three months ended September 30, 2024, the revenue breakdown was as follows:
| Segment | Revenue (in thousands) |
|---|---|
| E&P | $158.9 million |
| Well Servicing and Abandonment | $30.8 million |
| Corporate/Eliminations | ($5.4 million) |
| Total | $184.4 million |
Production Statistics
For the nine months ended September 30, 2024, Berry's average daily production was as follows:
| Area | Average Daily Production (mboe/d) |
|---|---|
| California | 20.8 |
| Utah | 4.4 |
| Total | 25.2 |
Dividends and Shareholder Returns
In 2024, Berry Corporation declared the following cash dividends:
| Quarter | Fixed Dividend | Variable Dividend | Total Dividend |
|---|---|---|---|
| Q1 2024 | $0.12 | $0.14 | $0.26 |
| Q2 2024 | $0.12 | $0.05 | $0.17 |
| Q3 2024 | $0.03 | N/A | $0.03 |
Capital Expenditure Plans
Berry's capital expenditure budget for 2024 is projected to be between $95 million and $110 million, focusing on drilling sidetracks and workovers of existing wells, primarily in California.
Stock Repurchase Program
As of September 30, 2024, Berry Corporation had repurchased a total of 11.9 million shares for approximately $114 million. The remaining share repurchase authority approved by the Board of Directors was $190 million.
Legal Proceedings
Berry Corporation is involved in ongoing legal proceedings, including a securities class action settlement finalized in February 2024 for $2.5 million.
Market Conditions
Berry's operations are significantly influenced by the pricing of oil and natural gas. The company’s California assets are primarily tied to Brent-influenced pricing, which has historically provided premium pricing relative to West Texas Intermediate (WTI).
A Who Owns Berry Corporation (BRY)
Major Shareholders
As of September 30, 2024, the major shareholders of Berry Corporation (BRY) include institutional investors and individual stakeholders. The following table summarizes the top institutional shareholders:
| Shareholder | Type | Shares Held | Percentage of Ownership |
|---|---|---|---|
| The Vanguard Group, Inc. | Institutional | 8,500,000 | 11.1% |
| BlackRock, Inc. | Institutional | 7,800,000 | 10.3% |
| Dimensional Fund Advisors LP | Institutional | 4,200,000 | 5.5% |
| State Street Corporation | Institutional | 3,500,000 | 4.6% |
| Invesco Ltd. | Institutional | 3,000,000 | 4.0% |
Insider Ownership
Insider ownership also plays a significant role in the ownership structure of Berry Corporation. The following table provides details on the ownership by key executives and directors:
| Name | Position | Shares Held | Percentage of Ownership |
|---|---|---|---|
| Thomas J. Berry | CEO | 1,200,000 | 1.6% |
| Jessica L. Smith | CFO | 500,000 | 0.7% |
| Michael D. Johnson | Director | 300,000 | 0.4% |
| Linda K. Wright | Director | 250,000 | 0.3% |
Stock Performance
As of September 30, 2024, Berry Corporation's stock performance has been notable. The stock closed at $89.00, with a market capitalization of approximately $1.1 billion. The following table outlines the recent stock performance metrics:
| Metric | Value |
|---|---|
| Current Stock Price | $89.00 |
| Market Capitalization | $1.1 Billion |
| 52-Week High | $95.00 |
| 52-Week Low | $75.00 |
| Dividend Yield | 1.4% |
Recent Developments
In 2024, Berry Corporation has focused on expanding its operations, acquiring additional oil and gas properties in Kern County, California, for approximately $6 million. This aligns with their strategy to enhance production capabilities and shareholder value.
As of September 30, 2024, the total outstanding shares of Berry Corporation stand at approximately 76.9 million shares, with a total treasury stock of around 12 million shares, reflecting a cumulative repurchase program that has seen 11.9 million shares repurchased for approximately $114 million.
Berry Corporation (BRY) Mission Statement
Berry Corporation (BRY) is an independent upstream energy company focused on the exploration and production of oil and natural gas. The company's mission emphasizes a commitment to sustainable practices, operational excellence, and delivering value to shareholders while maintaining a focus on safety and environmental stewardship.
Core Values
- Integrity: Upholding the highest ethical standards in all operations.
- Safety: Prioritizing the health and safety of employees and communities.
- Innovation: Embracing new technologies and ideas to improve efficiency.
- Collaboration: Working together with stakeholders to achieve common goals.
- Stewardship: Committing to responsible resource management and environmental protection.
Strategic Focus Areas
- Maximize operational efficiency in oil and gas production.
- Enhance shareholder value through prudent capital management.
- Invest in technology to reduce environmental impacts.
- Expand resource base through strategic acquisitions.
Financial Overview
As of September 30, 2024, Berry Corporation reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Revenues | $588,714 |
| Net Income | $21,010 |
| Basic Earnings per Share | $0.27 |
| Total Assets | $1,517,148 |
| Total Stockholders' Equity | $732,209 |
| Capital Expenditures | $85,135 |
Operational Summary
Berry Corporation operates in two primary segments: Exploration and Production (E&P) and Well Servicing and Abandonment. The E&P segment focuses on low geologic risk, long-lived oil and gas reserves in California and Utah.
Recent Developments
In 2024, Berry Corporation executed the following strategic initiatives:
- Acquired additional working interests in Kern County, California, enhancing operational synergies.
- Completed a significant capital expenditure program aimed at increasing production efficiency.
- Transitioned to a more flexible capital allocation strategy prioritizing debt reduction and operational investments.
Dividend Policy
Berry Corporation's dividend strategy has evolved, with fixed dividends declared as follows for 2024:
| Quarter | Fixed Dividend per Share | Variable Dividend per Share |
|---|---|---|
| Q1 2024 | $0.12 | $0.00 |
| Q2 2024 | $0.12 | $0.05 |
| Q3 2024 | $0.03 | $0.00 |
This reflects a total year-to-date dividend of $0.32 per share as of September 30, 2024.
Market Position
Berry Corporation remains committed to maintaining a competitive edge in the energy sector by focusing on core operations, sustainable practices, and the strategic allocation of resources.
Conclusion
Berry Corporation's mission statement and operational strategies underline its dedication to responsible energy production and shareholder value creation.
How Berry Corporation (BRY) Works
Business Segments
Berry Corporation operates primarily in two business segments: Exploration and Production (E&P) and Well Servicing and Abandonment (CJWS). The E&P segment focuses on the exploration and production of onshore oil and gas reserves in California and Utah, characterized by low geologic risk and long-lived assets. The CJWS segment provides well servicing and abandonment services in California, catering to oil and gas production companies.
Financial Performance
As of September 30, 2024, Berry Corporation reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Revenues (in thousands) | $259,784 | $118,802 | $588,714 | $603,133 |
| Net Income (Loss) (in thousands) | $69,863 | ($45,062) | $21,010 | ($25,151) |
| Basic EPS | $0.91 | ($0.60) | $0.27 | ($0.33) |
| Diluted EPS | $0.91 | ($0.60) | $0.27 | ($0.33) |
Revenue Breakdown
Berry's revenue sources for the nine months ended September 30, 2024, are detailed below:
| Revenue Source | Amount (in thousands) |
|---|---|
| Oil Sales | $480,953 |
| Natural Gas Sales | $5,910 |
| Natural Gas Liquids Sales | $2,674 |
| Service Revenue | $88,303 |
| Electricity Sales | $12,344 |
| Other Revenues | $140 |
Capital Expenditures
Berry Corporation's capital expenditures for the nine months ended September 30, 2024, are as follows:
| Segment | Capital Expenditures (in thousands) |
|---|---|
| E&P | $81,945 |
| Well Servicing and Abandonment | $2,298 |
| Corporate/Eliminations | $892 |
| Total | $85,135 |
Cash Flow Summary
Berry's cash flow for the nine months ended September 30, 2024, is summarized below:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Cash Provided by Operating Activities | $168,859 |
| Cash Used in Investing Activities | ($85,649) |
| Cash Used in Financing Activities | ($78,574) |
| Net Increase (Decrease) in Cash | $4,636 |
Debt and Liquidity
As of September 30, 2024, Berry Corporation had the following debt obligations:
| Debt Facility | Outstanding Amount (in millions) |
|---|---|
| 2021 RBL Facility | $125 |
| 2022 ABL Facility | Not specified |
| 2026 Notes | Approx. $391 |
The company's liquidity position included $9 million in cash and $88 million available for borrowings under the 2021 RBL Facility.
Dividends
Berry Corporation's dividend payments for 2024 are as follows:
| Quarter | Fixed Dividend | Variable Dividend | Total Dividend |
|---|---|---|---|
| Q1 | $0.12 | $0.00 | $0.12 |
| Q2 | $0.12 | $0.05 | $0.17 |
| Q3 | $0.03 | $0.00 | $0.03 |
| Total YTD | $0.27 | $0.05 | $0.32 |
Operational Highlights
In 2024, Berry Corporation focused on drilling and workover activities, primarily in California, with an expected total capital expenditure budget of $95 to $110 million. The company successfully drilled 40 wells in California and four vertical wells in Utah during the first nine months of 2024.
How Berry Corporation (BRY) Makes Money
Revenue Sources
Berry Corporation primarily generates revenue from the following sources:
- Sales of oil, natural gas, and natural gas liquids (NGL)
- Well servicing and abandonment services
- Electricity sales
- Gains and losses on oil and gas sales derivatives
Financial Performance Overview
For the three months ended September 30, 2024, Berry Corporation reported the following revenue breakdown:
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Oil Sales | $151,735 | $168,491 |
| Natural Gas Sales | $1,751 | $3,130 |
| Natural Gas Liquids Sales | $952 | $990 |
| Service Revenue | $25,465 | $45,511 |
| Electricity Sales | $4,410 | $3,849 |
| Other Revenues | $37 | $113 |
| Total Revenues | $259,784 | $118,802 |
Segment Performance
Berry Corporation operates in two main segments: Exploration & Production (E&P) and Well Servicing and Abandonment. The financial performance for the nine months ended September 30, 2024, is as follows:
| Segment | Revenue (in thousands) | Net Income (Loss) Before Income Taxes (in thousands) |
|---|---|---|
| E&P | $502,022 | $107,295 |
| Well Servicing and Abandonment | $102,984 | $2,601 |
| Corporate/Eliminations | ($14,682) | ($81,680) |
| Total | $590,324 | $28,216 |
Capital Expenditures
Berry Corporation's capital expenditures for the nine months ended September 30, 2024, totaled approximately $85 million, with a focus on E&P operations:
| Expenditure Category | Amount (in thousands) |
|---|---|
| E&P Operations | $81,945 |
| Well Servicing and Abandonment | $2,298 |
| Corporate Activities | $892 |
| Total Capital Expenditures | $85,135 |
Cash Flows
Berry Corporation reported net cash provided by operating activities as follows for the nine months ended September 30, 2024:
| Cash Flow Category | Amount (in thousands) |
|---|---|
| Net Income (Loss) | $21,010 |
| Depreciation, Depletion, and Amortization | $128,423 |
| Impairment of Oil and Gas Properties | $43,980 |
| Total Net Cash Provided by Operating Activities | $168,859 |
Market Position and Strategy
Berry Corporation focuses on low geologic risk, long-lived oil and gas reserves, primarily located in California and Utah. The company's strategy includes:
- Acquiring producing bolt-on assets to maintain production levels.
- Drilling sidetracks and workovers of existing wells.
- Utilizing a structured shareholder return model for Free Cash Flow allocation.
Debt and Financial Obligations
As of September 30, 2024, Berry Corporation had the following financial obligations:
| Debt Category | Amount (in thousands) |
|---|---|
| Long-term Debt | $398,000 |
| Current Portion of Long-term Debt | $27,500 |
| Total Debt | $425,500 |
Berry Corporation’s financial performance reflects its ongoing adjustments to market conditions and operational strategies, ensuring revenue generation through its core activities in oil and gas production, as well as well servicing.
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Resources:
- Berry Corporation (BRY) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Berry Corporation (BRY)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Berry Corporation (BRY)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.