Berry Petroleum (BRY) AI Stock Analysis

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Berry Petroleum

(NASDAQ:BRY)

Rating:69Neutral

Price Target:

$3.50

▲(40.00%Upside)

Berry Petroleum's overall score reflects strong operational efficiency and cash flow management but is held back by profitability challenges. Its effective hedging and strategic initiatives are promising, yet the negative P/E ratio and production setbacks present concerns. The attractive dividend yield and improved liquidity offer potential for long-term growth.

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

Market Cap

$197.09M

Dividend Yield14.06%

Average Volume (3M)962.74K

Price to Earnings (P/E)9.6

Beta (1Y)0.76

Revenue Growth-31.28%

EPS Growth-1265.13%

CountryUS

Employees1,070

SectorEnergy

Sector Strength43

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)0.12

Shares Outstanding77,596,200

10 Day Avg. Volume1,135,592

30 Day Avg. Volume962,740

Financial Highlights & Ratios

PEG Ratio-0.11

Price to Book (P/B)0.31

Price to Sales (P/S)0.00

P/FCF Ratio2.15

Enterprise Value/Market Cap3.03

Enterprise Value/Revenue0.16

Enterprise Value/Gross Profit0.77

Enterprise Value/Ebitda0.71

Forecast

1Y Price Target

$4.00

Price Target Upside60.00% 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 primarily through the extraction and sale of crude oil and natural gas. The company's revenue model is driven by its ability to efficiently produce hydrocarbons from its reserves and sell them in the market. Key revenue streams include the sale of crude oil, which constitutes the majority of its revenues, as well as natural gas. The company may also benefit from strategic partnerships with other energy firms and service providers, which can enhance its operational capabilities and market access. Additionally, Berry Petroleum's financial performance is influenced by factors such as oil prices, production levels, and operational efficiencies.

Berry Petroleum Earnings Call Summary

Earnings Call Date:May 08, 2025

(Q1-2025)

% Change Since: 5.49%|

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's financial performance shows a stable position with moderate debt levels and positive cash flows, but faces challenges with declining revenue and profitability. The company maintains a solid balance sheet and operational efficiency.

Income Statement

Positive

Berry Petroleum's income statement reflects a mixed performance. The gross profit margin is strong, indicating effective cost management relative to revenue. However, the net profit margin has decreased significantly from the previous year, showing declining profitability. Revenue growth is negative, which is concerning, but the company has maintained a solid EBIT margin.

Balance Sheet

Positive

The balance sheet shows a stable financial position with a moderate debt-to-equity ratio, which suggests manageable leverage. Return on equity is relatively low, pointing to limited profitability from shareholders' equity. However, the equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Positive

Berry Petroleum's cash flow statement indicates positive operating cash flow, which is a good sign of operational efficiency. Free cash flow has declined, indicating less cash available after capital expenditures. The operating cash flow to net income ratio is robust, but the decrease in free cash flow growth raises some concerns.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
776.50M	863.45M	1.06B	701.35M	406.05M
	Gross Profit
776.50M	237.34M	431.62M	269.32M	63.92M
	EBIT
550.68M	306.22M	130.12M	-8.84M	-202.66M
	EBITDA
161.05M	251.38M	401.10M	163.58M	-96.64M
	Net Income Common Stockholders
19.25M	37.40M	250.17M	-15.54M	-262.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.34M	4.83M	46.25M	15.28M	80.56M
	Total Assets
1.52B	1.59B	1.63B	1.46B	1.42B
	Total Debt
429.63M	436.06M	397.40M	394.57M	393.48M
	Net Debt
414.30M	431.23M	351.15M	379.28M	312.92M
	Total Liabilities
787.05M	836.18M	830.54M	763.83M	705.77M
	Stockholders Equity
730.64M	757.98M	800.49M	692.65M	714.04M
Cash Flow		Free Cash Flow
107.87M	117.59M	222.31M	-10.63M	102.73M
	Operating Cash Flow
210.22M	198.66M	360.94M	122.49M	196.53M
	Investing Cash Flow
-105.56M	-175.27M	-164.55M	-168.79M	-93.62M
	Financing Cash Flow
-79.46M	-64.80M	-165.42M	-18.98M	-22.35M

Berry Petroleum Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.50

Price Trends

50DMA

2.72

Negative

100DMA

3.45

Negative

200DMA

4.18

Negative

Market Momentum

MACD

-0.03

Positive

RSI

44.92

Neutral

STOCH

7.95

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRY, the sentiment is Negative. The current price of 2.5 is below the 20-day moving average (MA) of 2.65, below the 50-day MA of 2.72, and below the 200-day MA of 4.18, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 44.92 is Neutral, neither overbought nor oversold. The STOCH value of 7.95 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRY.

Berry Petroleum Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRY	69 Neutral	$197.09M	9.56	-5.66%	14.06%	-31.28%	-1265.13%
NC	68 Neutral	$271.06M	7.88	8.62%	2.50%	14.70%	―
Sector *	57 Neutral	$7.10B	3.09	-3.48%	5.73%	0.74%	-50.59%
WTI	55 Neutral	$214.10M	―	203.83%	2.76%	-5.05%	-383.38%
FET	53 Neutral	$184.18M	―	-32.34%	―	7.31%	-326.94%
REI	50 Neutral	$163.15M	2.23	8.52%	―	-4.51%	-10.09%
TBN	39 Underperform	$246.67M	―	-10.70%	―	―	57.82%

* Energy Sector Average

Performance Comparison

BRY

Berry Petroleum

2.50

-3.92

-61.06%

FET

Forum Energy Tech

14.69

-3.05

-17.19%

NACCO Industries

36.22

5.44

17.67%

WTI

W&T Offshore

1.50

-0.58

-27.88%

REI

Ring Energy

0.76

-1.04

-57.78%

TBN

Tamboran Resources Corporation

19.71

-2.79

-12.40%

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

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.