Berry Petroleum (BRY) AI Stock Analysis

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Berry Petroleum

(NASDAQ:BRY)

Rating:70Neutral

Price Target:

$3.50

▲(6.71%Upside)

Berry Petroleum's overall score reflects strong operational efficiency and strategic hedging, bolstered by positive earnings call insights. However, challenges in profitability and overbought technical indicators temper the outlook, necessitating careful monitoring of financial performance and market conditions.

Berry Petroleum (BRY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$238.22M

Dividend Yield3.91%

Average Volume (3M)1.04M

Price to Earnings (P/E)9.6

Beta (1Y)0.72

Revenue Growth-31.28%

EPS Growth-1265.13%

CountryUS

Employees1,070

SectorEnergy

Sector Strength68

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)0.12

Shares Outstanding77,596,200

10 Day Avg. Volume1,114,577

30 Day Avg. Volume1,037,330

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)0.78

Price to Sales (P/S)0.00

P/FCF Ratio2.83

Enterprise Value/Market Cap4.11

Enterprise Value/Revenue0.29

Enterprise Value/Gross Profit1.28

Enterprise Value/Ebitda1.43

Forecast

1Y Price Target

$4.00

Price Target Upside21.95% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Berry Petroleum Business Overview & Revenue Model

Company DescriptionBerry 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 MoneyBerry Petroleum makes money through the exploration, production, and sale of crude oil, natural gas, and natural gas liquids. The company's revenue model is primarily driven by the sale of these commodities, with crude oil accounting for the majority of its revenues. Prices for these commodities are influenced by market conditions, which can fluctuate due to various factors such as supply and demand dynamics, geopolitical events, and regulatory changes. Berry Petroleum also engages in hedging activities to mitigate the risks associated with volatile commodity prices. Additionally, the company may engage in strategic partnerships or joint ventures to optimize its operational efficiencies and enhance its revenue-generating capabilities.

Berry Petroleum Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 38.40%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Positive

Berry Corporation reported a strong start to 2025 with significant achievements in financial performance, operational efficiency, and regulatory advancements. Despite minor production setbacks, the company's robust hedging strategy and high-return development projects position it well for future growth.

Q1-2025 Updates

Positive Updates

Strong Start to 2025

Berry Corporation reaffirmed its full-year guidance, strengthened its balance sheet by paying down $11 million of debt, and returned $2 million in cash to shareholders. Liquidity increased to $120 million, and the leverage ratio improved to 1.37 times.

High-Return Development Projects

The company generated $17 million of free cash flow in Q1 due to cost improvements and stable production. Most projects in the thermal diatomite reservoir generate a rate of return in excess of 100%.

Successful Drilling Operations

In California, Berry drilled twice as many wells compared to Q4 2024 and completed a four-well horizontal pad in the Uinta asset ahead of schedule and on budget, reducing fuel costs by 25% and completion costs by $500,000 per well.

Strong Environmental and Safety Record

Zero recordable incidents, zero lost time incidents, and no reportable spills during Q1. Published updated performance metrics and plans to publish a full report with 2024 emissions data.

Regulatory Advances in California

Governor Newsom's directive to engage with the oil and gas industry reflects a constructive shift, potentially allowing for increased in-state production and collaboration.

Robust Hedging Strategy

73% of oil production is hedged at $75 per barrel for 2025. The average floor price was raised by $6 per barrel on 2,300 barrels per day of production for 2026 and 2027.

Negative Updates

Production Slightly Below Prior Quarter

Production for Q1 averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime.

Company Guidance

In the Berry Corporation Q1 2025 earnings call, the company reaffirmed its full-year guidance, emphasizing strong financial metrics and operational achievements. Berry reported $148 million in oil and gas sales, with a realized oil price at 93% of Brent, and generated $17 million in free cash flow. The company strengthened its balance sheet by reducing debt by $11 million, returning $2 million to shareholders, and increasing liquidity to $120 million. Berry's leverage ratio improved to 1.37 times. The firm highlighted its hedging strategy, with 73% of 2025 oil production hedged at $74.69 per barrel. Operationally, Berry drilled twice as many wells in California compared to Q4 2024 and achieved a 9% reduction in hedge energy lease operating expenses (LOE). The company's California thermal diatomite projects boast returns exceeding 100%, while its Uinta Basin wells are on track for production in Q3, with cost efficiencies anticipated to save $500,000 per well. The company remains focused on generating sustainable free cash flow, reducing debt, and evaluating growth opportunities.

Berry Petroleum Financial Statement Overview

Summary

Berry Petroleum shows strong operational efficiency and cash flow management, but faces profitability challenges due to a net loss. The balance sheet is stable, with manageable leverage, yet profitability concerns persist.

Income Statement

Positive

The company's income statement shows a mixed performance. The gross profit margin for TTM is exceptionally high, indicating efficient cost management, but the net profit margin is negative due to a net loss, signaling profitability issues. Revenue has experienced fluctuations, with a decline in the latest TTM period compared to the previous year. EBIT and EBITDA margins are relatively strong, showing operational efficiency despite revenue challenges.

Balance Sheet

Positive

The balance sheet appears stable with a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio suggests a strong capital structure with a substantial portion of assets financed by equity. However, the return on equity is negative in the TTM period due to the net loss, highlighting profitability concerns.

Cash Flow

Positive

Cash flow analysis reveals a positive trend in free cash flow, showing improvement in cash generation capabilities. The operating cash flow to net income ratio is robust, indicating strong cash flow relative to reported earnings. However, the free cash flow to net income ratio is affected by the negative net income, reflecting challenges in translating profits into cash flow.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
751.37M	776.50M	863.45M	1.06B	701.35M	406.05M
	Gross Profit
767.26M	776.50M	237.34M	431.62M	269.32M	63.92M
	EBIT
546.18M	550.68M	306.22M	130.12M	-8.84M	-202.66M
	EBITDA
52.93M	161.05M	251.38M	401.10M	163.58M	-96.64M
	Net Income Common Stockholders
-37.34M	19.25M	37.40M	250.17M	-15.54M	-262.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
39.00M	15.34M	4.83M	46.25M	15.28M	80.56M
	Total Assets
1.40B	1.52B	1.59B	1.63B	1.46B	1.42B
	Total Debt
376.41M	386.67M	436.06M	397.40M	394.57M	393.48M
	Net Debt
337.40M	371.33M	431.23M	351.15M	379.28M	312.92M
	Total Liabilities
772.87M	787.05M	836.18M	830.54M	763.83M	705.77M
	Stockholders Equity
631.47M	730.64M	757.98M	800.49M	692.65M	714.04M
Cash Flow		Free Cash Flow
120.86M	107.87M	117.59M	222.31M	-10.63M	102.73M
	Operating Cash Flow
228.82M	210.22M	198.66M	360.94M	122.49M	196.53M
	Investing Cash Flow
-106.67M	-105.56M	-175.27M	-164.55M	-168.79M	-93.62M
	Financing Cash Flow
-86.35M	-79.46M	-64.80M	-165.42M	-18.98M	-22.35M

Berry Petroleum Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price3.28

Price Trends

50DMA

2.57

Positive

100DMA

3.19

Negative

200DMA

3.95

Negative

Market Momentum

MACD

0.08

Negative

RSI

65.42

Neutral

STOCH

91.91

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRY, the sentiment is Neutral. The current price of 3.28 is above the 20-day moving average (MA) of 2.66, above the 50-day MA of 2.57, and below the 200-day MA of 3.95, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 65.42 is Neutral, neither overbought nor oversold. The STOCH value of 91.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BRY.

Berry Petroleum Peers Comparison

Overall Rating

UnderperformOutperform

Sector (58)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRY	70 Neutral	$238.22M	9.56	-5.66%	3.91%	-31.28%	-1265.13%
NC	68 Neutral	$275.75M	8.01	8.62%	2.73%	14.70%	―
WTI	65 Neutral	$305.64M	―	203.83%	1.93%	-5.05%	-383.38%
Sector *	58 Neutral	$7.53B	3.34	-4.45%	10.13%	0.83%	-49.64%
FET	58 Neutral	$243.56M	―	-32.34%	―	7.31%	-326.94%
REI	57 Neutral	$169.00M	2.52	8.52%	―	-4.51%	-10.09%
TBN	39 Underperform	$246.67M	―	-10.70%	―	―	57.82%

* Energy Sector Average

Performance Comparison

BRY

Berry Petroleum

3.27

-2.65

-44.76%

FET

Forum Energy Tech

20.07

3.14

18.55%

NACCO Industries

39.10

10.14

35.01%

WTI

W&T Offshore

2.23

0.16

7.73%

REI

Ring Energy

0.89

-0.72

-44.72%

TBN

Tamboran Resources Corporation

22.37

-0.13

-0.58%

Berry Petroleum Corporate Events

Business Operations and StrategyFinancial Disclosures

Berry Petroleum Updates Hedging Program and Liquidity

Positive

Apr 23, 2025

On April 23, 2025, Berry Corporation announced updates to its hedging program and liquidity position, highlighting its financial strength amidst market volatility. The company has increased its average hedged price for 2026 and 2027 by $6 per barrel and reported a liquidity position of $120 million as of March 31, 2025. Berry’s oil volumes are significantly hedged for the remainder of 2025 and into 2026, ensuring stable cash flow and continued debt reduction. Additionally, Berry’s executives will participate in upcoming investor conferences, further engaging with stakeholders.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.