Berry Corporation says production remains on track with prior guidance

The company continues to maintain ample liquidity and generate the free cash flow necessary to further reduce debt and fund shareholder returns as appropriate. Production remains on track with the company’s previously issued annual guidance, and the company has in-hand the necessary permits to complete its planned drilling program for 2024, as well as to support activity into 2025. Based on its inventory of workovers, sidetracks, and new wells, and assuming permits continue to be issued at the rate and in the manner they are currently being issued, the company has line of sight to keep production flat and maintain free cash flow into 2026. “We remain focused on creating value by maintaining balance sheet strength and generating sustainable free cash flow. The second half of the year traditionally has significantly better free cash flow compared to the first half due to lower working capital usage. Our capital expenditures are expected to be well under cash flow from operations in the second half of 2024 and we are on track to meet our annual production goals,” said Mike Helm, Berry’s CFO. He continued, “Supported by our strong operations, we have and will continue to take steps to strengthen our financial position. For example, we reduced our revolver balance by 57% from the end of the first quarter to date. This reflects our continued prioritization of debt reduction, prudently investing in the business and returning capital to our shareholders when appropriate. We are actively looking to further strengthen our balance street, including the extension or refinancing of our RBL facility, and addressing our senior unsecured notes due February 2026.”