Berry Petroleum ( (BRY) ) has released its Q3 earnings. Here is a breakdown of the information Berry Petroleum presented to its investors.
Berry Corporation, a NASDAQ-listed independent upstream energy company, focuses on onshore oil and gas reserves in the western United States, particularly in California and Utah. In its third quarter of 2024 report, Berry Corporation highlighted a strategic debt refinancing and announced new opportunities in the Uinta Basin. The company declared dividends totaling $0.03 per share and detailed its entry into a $545 million term loan facility, which will aid in redeeming its notes due in 2026 and refinancing its current credit facility.
The company’s production averaged 24,800 BOE per day, with expectations to reach the midpoint of its annual guidance. Berry reported a 55% increase in Free Cash Flow from the previous quarter and generated $71 million in cash flow from operations. The company completed its 2024 drilling plan and secured permits to support ongoing activities into the new year. Berry’s strategic focus includes the development of its Utah assets, where it sees significant long-term value potential.
Financially, Berry’s third-quarter net income amounted to $70 million, recovering from a loss in the previous quarter, and free cash flow increased to $45 million from $29 million. Despite a decrease in revenues due to lower oil prices, the company optimized cash operating costs and reduced its revolver balance by 24%. The new credit facility supports Berry’s strategic plans for further development in Utah and a shift in its shareholder return model to prioritize debt repayment and sustainable Free Cash Flow generation.
Looking ahead, Berry remains committed to maintaining consistent production levels and exploring promising opportunities in both Utah and California. The company is transitioning its shareholder return model to better align with its strategic initiatives and debt covenants, aiming to drive long-term shareholder value and sustainable growth.
