Berry Petroleum (BRY) AI Stock Analysis

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Berry Petroleum

(NASDAQ:BRY)

Rating:68Neutral

Price Target:

$3.50

▲(9.03% Upside)

Berry Petroleum's overall score reflects strong operational efficiency and cash flow management, bolstered by positive earnings call highlights such as debt reduction and cost savings. However, challenges in profitability, high capital expenditures, and a high P/E ratio weigh on the score.

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

Market Cap

$249.10M

Dividend Yield3.74%

Average Volume (3M)790.42K

Price to Earnings (P/E)49.8

Beta (1Y)0.64

Revenue Growth-40.96%

EPS GrowthN/A

CountryUS

Employees1,070

SectorEnergy

Sector Strength58

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)0.00

Shares Outstanding77,601,400

10 Day Avg. Volume800,781

30 Day Avg. Volume790,422

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.43

Enterprise Value/Revenue0.79

Enterprise Value/Gross Profit1.46

Enterprise Value/Ebitda4.09

Forecast

1Y Price Target

$3.50

Price Target Upside9.03% Upside

Rating ConsensusHold

Number of Analyst Covering3

Berry Petroleum Business Overview & Revenue Model

Company DescriptionBerry Petroleum Company, LLC (NASDAQ: BRY) is a leading independent oil and natural gas exploration and production company based in the United States. The company primarily operates in the onshore regions of California and Utah, focusing on the acquisition, development, and production of crude oil and natural gas. Berry Petroleum utilizes advanced technologies and operational efficiencies to optimize production from its diverse asset portfolio, which includes both conventional and unconventional resources.

How the Company Makes MoneyBerry Petroleum generates revenue primarily through the sale of crude oil, natural gas, and natural gas liquids (NGLs). The company’s revenue model is largely dependent on the pricing of these commodities, which can fluctuate based on market conditions. Key revenue streams include direct sales of produced hydrocarbons to refiners and marketers, as well as potential hedging activities to mitigate price volatility. Additionally, Berry Petroleum may engage in joint ventures and partnerships with other companies to enhance its operational capabilities and expand its asset base, which can further contribute to its earnings. The company’s focus on efficient production techniques and cost management also plays a vital role in maintaining profitability in a competitive market.

Berry Petroleum Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

Berry Corporation reported strong financial performance with a solid hedge position, significant debt reduction, and operational cost savings. Positive regulatory movements in California could provide additional opportunities, although there is some dependency on the outcomes. Despite higher capital expenditures in Utah, the company's ability to generate free cash flow and maintain a strong safety record are notable positives.

Q2-2025 Updates

Positive Updates

Strong Hedge Position and Free Cash Flow Generation

Berry has 71% of its expected oil production hedged for 2025 at approximately $75 per barrel of Brent, providing visibility and protection for their production outlook. They are on track to generate meaningful free cash flow for the year.

Debt Reduction and Financial Strength

The company paid down $11 million of debt during the quarter, bringing the year-to-date debt reduction to $23 million. They are on track to pay down at least $45 million for the year.

Cost Savings in Utah Operations

Berry achieved meaningful cost savings of approximately $500,000 per well in Utah, supported by fuel cost advantages and the use of dual fuel fleets in drilling and fracking activities.

Positive Regulatory Developments in California

The Kern County Board of Supervisors approved a new oil and gas ordinance and certified a revised environmental impact review, with a court decision expected by year-end which could streamline future development projects.

Operational Safety Record

Berry reported another quarter of zero recordable incidents and zero lost time incidents in their E&P operations, highlighting their commitment to HSE excellence.

Negative Updates

High Capital Expenditures

Capital expenditures were $54 million for the quarter, which was elevated compared to the prior quarter due to accelerated drilling and completion activity in Utah.

Dependency on Regulatory Outcomes

While Berry is optimistic about the regulatory developments in California, the outcome is still pending court approval, which could impact future development projects.

Company Guidance

During the second quarter 2025 earnings call, Berry Corporation reaffirmed its 2025 guidance, highlighting stability amidst macro volatility. The company aims to maintain balance sheet strength, focusing on high-return projects and operational efficiencies. Berry has hedged 71% of its expected oil production at $75 per barrel of Brent for the remainder of the year, with 63% hedged at $70 per barrel for 2026. In California, 16 wells were drilled in Q2, and production is expected to increase in the second half of the year. In Utah, cost savings of approximately $500,000 per well were achieved, with current costs at $680 per lateral foot, 20% lower than previous wells. The company reduced debt by $11 million in Q2 and expects a total reduction of $45 million for the year, while declaring a dividend yield of 4% annually. Berry's strategy continues to focus on generating free cash flow, reducing debt, and capitalizing on a deep inventory of high-return projects.

Berry Petroleum Financial Statement Overview

Summary

Berry Petroleum shows strong operational efficiency and cash flow management, but faces challenges in profitability and revenue growth. The balance sheet is stable with manageable leverage, yet the net loss raises concerns about sustainable profitability.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	765.12M	783.84M	863.45M	1.06B	701.35M	406.05M
Gross Profit	414.52M	444.77M	237.34M	431.62M	269.32M	63.92M
EBITDA	148.30M	239.12M	251.38M	401.10M	163.58M	-96.64M
Net Income	5.03M	19.25M	37.40M	250.17M	-15.54M	-262.89M
Balance Sheet
Total Assets	1.33B	1.52B	1.59B	1.63B	1.46B	1.42B
Cash, Cash Equivalents and Short-Term Investments	0.00	15.34M	4.83M	46.25M	15.28M	80.56M
Total Debt	364.60M	435.18M	436.06M	397.40M	394.57M	393.48M
Total Liabilities	669.18M	787.05M	836.18M	830.54M	763.83M	705.77M
Stockholders Equity	664.94M	730.64M	757.98M	800.49M	692.65M	714.04M
Cash Flow
Free Cash Flow	120.93M	107.87M	117.59M	222.31M	-10.63M	102.73M
Operating Cash Flow	186.57M	210.22M	198.66M	360.94M	122.49M	196.53M
Investing Cash Flow	-98.34M	-105.56M	-175.27M	-164.55M	-168.79M	-93.62M
Financing Cash Flow	-74.94M	-79.46M	-64.80M	-165.42M	-18.98M	-22.35M

Berry Petroleum Technical Analysis

Technical Analysis Sentiment

Positive

Last Price3.21

Price Trends

50DMA

3.02

Positive

100DMA

2.83

Positive

200DMA

3.34

Negative

Market Momentum

MACD

0.09

Negative

RSI

57.24

Neutral

STOCH

65.87

Neutral

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 3.21 is above the 20-day moving average (MA) of 3.02, above the 50-day MA of 3.02, and below the 200-day MA of 3.34, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.24 is Neutral, neither overbought nor oversold. The STOCH value of 65.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRY.

Berry Petroleum Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNRG	68 Neutral	$251.64M	10.26	18.75%	―	22.97%	-19.37%
BRY	68 Neutral	$249.10M	49.84	0.75%	3.74%	-40.96%	―
Sector *	65 Neutral	$15.01B	7.39	3.39%	5.33%	4.10%	-61.80%
SJT	61 Neutral	$269.40M	251.97	-6.27%	0.40%	-99.72%	-101.28%
EP	53 Neutral	$167.48M	―	-30.24%	―	-10.49%	17.74%
WTI	50 Neutral	$261.08M	―	203.83%	2.27%	-11.53%	-342.58%
TBN	39 Underperform	$246.67M	―	-10.70%	―	―	―

* Energy Sector Average

Performance Comparison

BRY

Berry Petroleum

3.21

-1.92

-37.43%

PNRG

Primeenergy

152.60

25.65

20.20%

WTI

W&T Offshore

1.76

-0.22

-11.11%

SJT

San Juan Basin Royalty

5.78

2.53

77.85%

Empire Petroleum

4.96

0.05

1.02%

TBN

Tamboran Resources Corporation

21.73

2.45

12.71%

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.Date of analysis: Aug 23, 2025