Berry Petroleum (BRY) AI Stock Analysis

• Market Cap: $266.19M
• Dividend Yield: 3.5%
• Average Volume (3M): 635.09K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -15.69%
• EPS Growth: -207.52%
• Country: US
• Employees: 1,070
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): -0.08
• Shares Outstanding: 77,607,090
• 10 Day Avg. Volume: 453,855
• 30 Day Avg. Volume: 635,088
• PEG Ratio: -0.34
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 2.95
• Enterprise Value/Market Cap: 2.57
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 3.24
• Enterprise Value/Ebitda: 7.46
• 1Y Price Target: $5.17
• Price Target Upside: 50.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.11
• Revenue Forecast (FY): $652.00M

• Rating: 58 Neutral
• Price Target: $3.50 ▲(2.04% Upside)

The overall stock score is driven by the positive impact of the merger announcement, which is expected to enhance financial metrics and operational efficiency. However, this is offset by weak financial performance, including declining revenue and profitability, and a negative P/E ratio. Technical indicators provide a mixed outlook, with some signs of stability but potential overbought conditions.

Positive Factors

Debt Reduction

Debt reduction enhances financial stability and reduces interest expenses, improving long-term cash flow and financial flexibility.

Operational Cost Savings

Cost savings in operations increase profit margins and competitiveness, allowing the company to reinvest in growth opportunities.

Regulatory Developments

Positive regulatory changes can streamline operations and reduce compliance costs, benefiting long-term project viability.

Negative Factors

Revenue Decline

Declining revenue indicates reduced market demand or operational challenges, which can pressure profitability and growth prospects.

High Capital Expenditures

High capital expenditures can strain cash flow and limit financial flexibility, potentially impacting future investment capacity.

Dependency on Regulatory Outcomes

Dependence on regulatory outcomes introduces uncertainty, which can delay projects and affect strategic planning and resource allocation.

Berry Petroleum Business Overview & Revenue Model

Company Description

Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. It operates in two segments, Development and Production, and Well Servicing and Abandonment. The company's properties are located in the San Joaquin and Ventura basins, California; and Uinta basin, Utah. As of December 31, 2021, it had a total of 3,417 net productive wells. The company was formerly known as Berry Petroleum Corporation and changed its name to Berry Corporation in February 2020. Berry Corporation was founded in 1909 and is headquartered in Dallas, Texas.

How the Company Makes Money

Berry Petroleum generates revenue primarily through the sale of crude oil and natural gas. The company sells its production to various customers, including refiners and marketers, often through long-term contracts and spot market transactions. Key revenue streams include the sale of hydrocarbons, which are influenced by global oil and gas prices. Additionally, Berry may engage in hedging strategies to mitigate price volatility and protect its revenue stream. The company benefits from its operational efficiencies and cost management practices, which help maintain profitability even in fluctuating market conditions. Strategic partnerships, including joint ventures in specific projects and collaborations with service providers, also contribute to its financial performance, enabling Berry Petroleum to enhance its production capabilities and optimize resource extraction.

Berry Petroleum Financial Statement Overview

Summary

Berry Petroleum faces challenges with declining revenue and profitability, as evidenced by negative margins and revenue contraction. The balance sheet remains stable with low leverage, but the negative return on equity indicates inefficiencies. Cash flow generation has weakened, with significant declines in free cash flow. Overall, the company needs to address operational inefficiencies and improve cash flow management to enhance financial performance.

Income Statement

Berry Petroleum's income statement shows a declining trend in revenue and profitability. The TTM data indicates a negative net profit margin of -13.45%, reflecting significant losses. The gross profit margin has decreased to 29.41% from previous years, indicating pressure on cost management. The EBIT and EBITDA margins have also declined, with EBIT margin turning negative, highlighting operational challenges. Revenue growth has been negative, showing a contraction in sales.

Balance Sheet

The balance sheet reflects a relatively stable financial position with a low debt-to-equity ratio of 0.07 in the TTM period, indicating low leverage. However, the return on equity is negative at -13.63%, suggesting inefficiencies in generating returns on shareholders' equity. The equity ratio remains healthy, showing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis reveals a significant decline in free cash flow growth, down by 59.09% in the TTM period, which is concerning. The operating cash flow to net income ratio is close to 1, indicating that operating cash flows are almost covering net losses. The free cash flow to net income ratio is positive but low, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	680.16M	783.84M	863.45M	1.06B	701.35M	406.05M
Gross Profit	211.07M	285.43M	237.34M	431.62M	269.32M	63.92M
EBITDA	91.56M	239.12M	251.38M	395.50M	162.33M	-96.64M
Net Income	-90.85M	19.25M	37.40M	250.17M	-15.54M	-262.89M
Balance Sheet
Total Assets	1.39B	1.52B	1.59B	1.63B	1.46B	1.42B
Cash, Cash Equivalents and Short-Term Investments	13.36M	15.34M	4.83M	46.25M	15.28M	80.56M
Total Debt	403.37M	435.18M	436.06M	397.40M	394.57M	393.48M
Total Liabilities	748.02M	787.05M	836.18M	830.54M	763.83M	705.77M
Stockholders Equity	638.98M	730.64M	757.98M	800.49M	692.65M	714.04M
Cash Flow
Free Cash Flow	52.15M	107.87M	117.59M	208.02M	-10.63M	114.07M
Operating Cash Flow	171.28M	210.22M	198.66M	360.94M	122.49M	196.53M
Investing Cash Flow	-121.04M	-105.56M	-175.27M	-164.55M	-168.79M	-93.62M
Financing Cash Flow	-46.10M	-79.46M	-64.80M	-165.42M	-18.98M	-22.35M

Berry Petroleum Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.43
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRY, the sentiment is Positive. The current price of 3.43 is above the 20-day moving average (MA) of 3.37, below the 50-day MA of 3.44, and above the 200-day MA of 3.10, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.10 is Neutral, neither overbought nor oversold. The STOCH value of 82.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRY.

Berry Petroleum Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNRG	71 Outperform	$310.65M	18.17	12.07%	―	-6.03%	-54.59%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%
SJT	61 Neutral	$279.19M	―	-10.79%	―	-99.78%	-103.13%
BRY	58 Neutral	$266.19M	―	-13.25%	3.50%	-15.69%	-207.52%
WTI	47 Neutral	$275.24M	―	―	2.16%	-6.92%	-126.24%
EP	41 Neutral	$109.45M	―	-31.43%	―	-15.13%	17.34%
TBN	39 Underperform	$550.19M	-10.20	-13.73%	―	―	―

Berry Petroleum Corporate Events

Berry Petroleum Advances Merger with California Resources

On November 10, 2025, the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act expired, allowing Berry Corporation to proceed with its merger to become a wholly-owned subsidiary of California Resources Corporation. The merger’s completion is contingent upon customary conditions, including Berry shareholder approval and authorization by the U.S. Federal Energy Regulatory Commission, with potential impacts on market positioning and stakeholder interests.

Berry Petroleum Merges with California Resources

On September 14, 2025, Berry Corporation entered into a merger agreement with California Resources Corporation and Dornoch Merger Sub, LLC, which will result in Berry becoming a wholly-owned subsidiary of California Resources. The merger, which involves an exchange of shares and cash payments for fractional shares, has been deemed advisable and in the best interests of Berry’s stockholders by its board of directors. The completion of the merger is subject to various conditions, including stockholder approval and regulatory clearances. The agreement includes provisions for the treatment of equity awards and retention agreements for key employees, and outlines potential termination scenarios and associated fees.

Berry Petroleum Announces Merger with California Resources

On September 14, 2025, Berry Corporation announced a merger agreement with California Resources Corporation, creating a stronger entity in the California energy market. The all-stock transaction values Berry at approximately $717 million, with CRC shareholders expected to own 94% of the combined company. The merger is anticipated to enhance financial metrics, achieve significant synergies, and maintain a strong balance sheet, positioning the company for long-term growth and operational efficiency.