Accessibility StatementSkip Navigation Nutritious dairy staple from family-operated natural and organic retailer delivers on taste, texture and protein, with the perfect blend of sweetness at an Always Affordable price LAKEWOOD, Colo., Sept. 10, 2025 /PRNewswire/ -- From breakfast to midnight, nutritious snacking just got an upgrade with Natural GrocersBrand Organic Yogurt. With several flavors and sizes to choose from, these smooth, creamy new additions to the company's house brand are certified organic, ...

Core Viewpoint - Bri-Chem Corp. is urging shareholders to vote for its nominated board members using the YELLOW Proxy in an upcoming contested election against dissident nominees [1][2][6]. Group 1: Company Overview - Bri-Chem Corp. is a leading North American oilfield chemical distribution and blending company, known for its wholesale distribution and blending of oilfield drilling, completion, stimulation, and production chemical fluids [13]. - The company operates 25 strategically located warehouses throughout Canada and the United States [13]. Group 2: Shareholder Meeting Details - The annual and special meeting of shareholders is scheduled for September 16, 2025, where shareholders will vote on board nominations and the ratification of By-Law No. 2 [1][3]. - The meeting will feature a contested election, with both Bri-Chem and the dissident group nominating four individuals for the board [5]. Group 3: Nominees Comparison - Bri-Chem has nominated Don Caron, Eric Sauze, Brian Campbell, and Albert Sharp, who are described as independent and aligned with shareholder interests, collectively owning approximately 15.6% of the company [2][10][11]. - The dissident nominees, led by Barry Hugghins, are criticized for lacking relevant public company experience and having inherent conflicts of interest [6][7][9]. Group 4: Board's Position - The board expresses serious concerns regarding the qualifications of the dissident nominees, emphasizing that they do not serve the best interests of the company [6][7]. - The board is committed to maintaining financial discipline and positioning the company for future growth despite current market challenges [11].

Group 1 - The article promotes a free two-week trial for the investment group Distressed Value Investing, which offers exclusive research on various companies and investment opportunities [1] - The investment group focuses on value opportunities and distressed plays, particularly in the energy sector [2] - The author, Aaron Chow, has over 15 years of analytical experience and previously co-founded a mobile gaming company that was acquired by PENN Entertainment [2] Group 2 - The article emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [3] - It clarifies that the analysts contributing to the platform may not be licensed or certified by any regulatory body [3]

Core Viewpoint - Bri-Chem Corp. reported its Q2 2025 financial results, showing a mixed performance with increased sales but challenges in profitability and working capital [1][4]. Financial Performance - Consolidated sales for Q2 2025 were $20.5 million, a 7% increase from $19.1 million in Q2 2024, driven by higher fluid distribution sales in the USA Rockies region [4][5]. - Adjusted EBITDA for Q2 2025 was $1.0 million, up 48% from $706 thousand in Q2 2024, with operating earnings increasing by 24% to $772 thousand [2][8]. - Net earnings for Q2 2025 were $157 thousand, a significant recovery from a net loss of $488 thousand in Q2 2024 [2][5]. - Adjusted net earnings per diluted share improved to $0.01 from a loss of $0.02 in the same period last year [2][5]. Financial Position - Total assets decreased by 10% to $53.4 million from $59.2 million year-over-year [2]. - Working capital fell by 21% to $11.1 million compared to $14.1 million in the previous year, attributed to a decrease in accounts receivables and inventory [5][8]. - Long-term debt slightly decreased by 3% to $6.4 million [2]. Operational Highlights - Canadian drilling fluids distribution sales reached $1.7 million, up by $611 thousand from the previous year, despite a 5% decrease in active operating land rigs [5][6]. - U.S. drilling fluids distribution sales increased by 7% to $12.3 million, with an average of 556 active land rigs, down 4% from the previous year [6][8]. - Canadian blending and packaging sales decreased to $3.9 million, while U.S. sales increased to $2.5 million, reflecting regional activity variations [7][8]. Outlook - The company anticipates a challenging operating environment due to commodity price volatility and cautious capital spending, with drilling activity expected to remain flat or slightly decline [9][10]. - Canadian drilling fluids demand is expected to remain soft through Q3 2025, with potential recovery in Q4 as customers prepare for 2026 drilling programs [11][12]. - U.S. fluid distribution sales are projected to remain stable, supported by sustained activity in key regions [11][12].

Part I – Financial Information [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Berry Corporation's Q2 and H1 2025 financial statements reflect a decrease in total assets to $1.43 billion, a $63.1 million H1 net loss driven by a $157.9 million impairment, and $74.5 million in operating cash flow [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.428 billion by June 30, 2025, from $1.518 billion at year-end 2024, driven by reduced oil and gas property values, while stockholders' equity declined to $665 million Condensed Consolidated Balance Sheet Highlights (in thousands USD) | Account | June 30, 2025 (Unaudited) (USD) | December 31, 2024 (USD) | | :--- | :--- | :--- | | **Total Current Assets** | $158,048 | $149,643 | | **Total Oil and Natural Gas Properties, net** | $1,110,600 | $1,240,152 | | **Total Assets** | **$1,428,115** | **$1,517,686** | | **Total Current Liabilities** | $190,927 | $187,880 | | **Long-term Debt, net** | $364,602 | $384,633 | | **Total Liabilities** | $763,174 | $787,047 | | **Total Stockholders' Equity** | $664,941 | $730,636 | | **Total Liabilities and Stockholders' Equity** | **$1,428,115** | **$1,517,686** | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Q2 2025 saw a net income of $33.6 million, a turnaround from Q2 2024's $8.8 million loss due to derivative gains, but H1 2025 recorded a $63.1 million net loss, impacted by a $157.9 million impairment charge Statement of Operations Summary (in thousands USD, except per share amounts) | Metric | Q2 2025 (USD) | Q2 2024 (USD) | H1 2025 (USD) | H1 2024 (USD) | | :--- | :--- | :--- | :--- | :--- | | **Total Revenues and Other** | $210,078 | $199,634 | $392,729 | $335,714 | | Oil, Natural Gas & NGL Sales | $125,637 | $168,781 | $273,499 | $335,099 | | Gains (Losses) on Derivatives | $56,423 | $(5,844) | $61,898 | $(77,044) | | Impairment of Oil & Gas Properties | $0 | $43,980 | $157,910 | $43,980 | | **Net Income (Loss)** | **$33,604** | **$(8,769)** | **$(63,076)** | **$(48,853)** | | **Diluted EPS** | **$0.43** | **$(0.11)** | **$(0.81)** | **$(0.64)** | [Condensed Consolidated Statements of Stockholders' Equity](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Stockholders' equity declined from $730.6 million at year-end 2024 to $664.9 million by June 30, 2025, primarily due to net losses and $6.1 million in dividend payments - Stockholders' equity decreased by **$65.7 million** in the first six months of 2025, driven by a cumulative net loss and dividend payments[13](index=13&type=chunk) - Dividends declared on common stock totaled **$0.06 per share** ($0.03 in Q1 and $0.03 in Q2) for the six months ended June 30, 2025, amounting to approximately **$6.1 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for H1 2025 was $74.5 million, down from $98.2 million in H1 2024, with $53.9 million used in investing and $30.6 million in financing, leading to a $10.1 million net cash decrease Cash Flow Summary (in thousands USD) | Activity | Six Months Ended June 30, 2025 (USD) | Six Months Ended June 30, 2024 (USD) | | :--- | :--- | :--- | | **Net Cash Provided by Operating Activities** | **$74,510** | **$98,164** | | **Net Cash Used in Investing Activities** | **$(53,932)** | **$(61,147)** | | **Net Cash Used in Financing Activities** | **$(30,636)** | **$(35,164)** | | Net (Decrease) Increase in Cash | $(10,058) | $1,853 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail the company's $427.5 million term loan, commodity hedging, a $158 million Q1 2025 impairment charge, and segment performance for E&P and well servicing operations - The company operates in two business segments: exploration and production (E&P) in California and Utah, and well servicing and abandonment services in California[18](index=18&type=chunk) - As of June 30, 2025, the company had **$427.5 million** outstanding under its 2024 Term Loan and no borrowings under its 2024 Revolver[25](index=25&type=chunk) - In the first quarter of 2025, the company recorded a non-cash pre-tax asset impairment charge of **$158 million** (**$113 million** after-tax) on a non-thermal diatomite property in California due to changes in reserve estimates and market volatility[101](index=101&type=chunk)[102](index=102&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses operations in California and Utah, commodity price volatility, a $158 million Q1 2025 impairment, capital program focus, and $101 million liquidity as of June 30, 2025 - The company's 2025 capital program focuses on thermal diatomite sidetrack wells in California and the development of its first operated four-well horizontal pad in the Uinta Basin, Utah[130](index=130&type=chunk)[134](index=134&type=chunk) - Market uncertainty, influenced by OPEC+ actions and U.S. executive orders, contributed to oil price declines and a Q1 2025 non-cash pre-tax asset impairment charge of **$158 million** on a California property[147](index=147&type=chunk)[148](index=148&type=chunk)[149](index=149&type=chunk) - As of June 30, 2025, the company had **$101 million** of liquidity, consisting of **$20 million** in cash, **$49 million** in available borrowing capacity, and **$32 million** in available commitments under its Delayed Draw Term Loan[292](index=292&type=chunk) [Production and Prices](index=36&type=section&id=Production%20and%20Prices) Average daily production decreased to **23.9 mboe/d** in Q2 2025 from **25.3 mboe/d** in Q2 2024, with realized oil prices falling to **$61.26/bbl** due to market conditions Average Daily Production (mboe/d) | Period | Q2 2025 (mboe/d) | Q1 2025 (mboe/d) | Q2 2024 (mboe/d) | | :--- | :--- | :--- | :--- | | **Total (mboe/d)** | **23.9** | **24.7** | **25.3** | Weighted-Average Realized Sales Prices (without hedges) | Product | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Oil ($/bbl)** | $61.26 | $69.48 | $78.18 | | **Natural Gas ($/mcf)** | $2.30 | $3.95 | $1.78 | [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q2 2025 revenues rose 5% to $210.1 million due to derivative gains, resulting in a $33.6 million net income, while H1 2025 saw a $63.1 million net loss due to a $158 million impairment charge - **Q2 2025 vs Q2 2024:** Oil, natural gas, and NGL sales decreased by **$43.1 million** (26%) due to lower prices and volumes. This was more than offset by a **$62.3 million** positive swing in gains on oil and gas sales derivatives, leading to a **5% increase** in total revenues[215](index=215&type=chunk)[216](index=216&type=chunk)[219](index=219&type=chunk) - **H1 2025 vs H1 2024:** A **$113.9 million** increase in impairment charges was the primary driver of the wider net loss. Total revenues increased by **$57.0 million** (17%), again due to a significant positive swing in derivative gains of **$138.9 million**[236](index=236&type=chunk)[239](index=239&type=chunk)[242](index=242&type=chunk) - **Q2 2025 vs Q1 2025:** Total revenues increased by **$27.4 million** (15%), mainly due to a **$50.9 million** increase in gains on oil and gas sales derivatives, which masked a **$22.2 million** drop in commodity sales from lower prices and volumes[196](index=196&type=chunk)[197](index=197&type=chunk)[199](index=199&type=chunk) [Non-GAAP Financial Measures](index=50&type=section&id=Non-GAAP%20Financial%20Measures) Adjusted EBITDA for Q2 2025 was $52.9 million and $121.4 million for H1 2025, both down year-over-year, while Free Cash Flow was negative $8.1 million for H1 2025 Adjusted EBITDA Reconciliation (in thousands USD) | Period | Q2 2025 (USD) | Q2 2024 (USD) | H1 2025 (USD) | H1 2024 (USD) | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | $33,604 | $(8,769) | $(63,076) | $(48,853) | | Adjustments | $19,311 | $83,098 | $184,441 | $191,716 | | **Adjusted EBITDA** | **$52,915** | **$74,329** | **$121,365** | **$142,863** | Free Cash Flow Reconciliation (in thousands USD) | Period | H1 2025 (USD) | H1 2024 (USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $74,510 | $98,164 | | Capital expenditures | $(82,638) | $(59,261) | | **Free Cash Flow** | **$(8,128)** | **$38,903** | [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had **$101 million** in liquidity, **$428 million** outstanding on its Term Loan, an active hedging program, and **$190 million** remaining in its share repurchase authority - The company's debt structure includes a 2024 Term Loan with **$428 million** outstanding and a 2024 Revolver with a **$95 million** borrowing base and **$49 million** of available capacity as of June 30, 2025[292](index=292&type=chunk)[297](index=297&type=chunk)[299](index=299&type=chunk) - The company has an active hedging program, with significant volumes of crude oil production and natural gas purchases hedged through 2028 to reduce price volatility[300](index=300&type=chunk)[304](index=304&type=chunk) - The company declared cash dividends of **$0.03 per share** in both March and May 2025. The stock repurchase program has **$190 million** of remaining authority, though no shares were repurchased in the first half of 2025[310](index=310&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=70&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company manages commodity price volatility through hedging, with a net asset of **$69 million** in hedge positions as of June 30, 2025, sensitive to 10% price changes resulting in **$147 million** net asset or **$8 million** net liability - The most significant market risk is from volatile energy prices, which the company mitigates using derivative instruments like swaps, calls, and collars[351](index=351&type=chunk)[352](index=352&type=chunk) - A sensitivity analysis on the company's hedge portfolio shows that a **10% decrease** in oil and gas prices from June 30, 2025 levels would result in a net asset of approximately **$147 million**, while a **10% increase** would result in a net liability of approximately **$8 million**[354](index=354&type=chunk) [Controls and Procedures](index=71&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2025, the CEO and CFO concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q2 2025 - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[358](index=358&type=chunk) - No material changes were made to the company's internal control over financial reporting during the second quarter of 2025[360](index=360&type=chunk) Part II – Other Information [Legal Proceedings](index=72&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings with no material changes, though a new CalGEM notification regarding injection well testing may result in an immaterial civil penalty - There have been no material changes to previously reported legal proceedings[363](index=363&type=chunk) - A new matter arose on April 4, 2025, where CalGEM notified the company about overdue mechanical integrity testing on certain injection wells. The company has since brought the wells into compliance and expects any potential civil penalty to be immaterial[364](index=364&type=chunk) [Risk Factors](index=72&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K have occurred - No material changes to the risk factors disclosed in the Annual Report have occurred[366](index=366&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Purchases of Equity Securities](index=72&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No shares were repurchased during H1 2025, with **$190 million** remaining under the company's board-authorized share repurchase program as of June 30, 2025 - No shares were repurchased during the six months ended June 30, 2025[367](index=367&type=chunk) - The company has **$190 million** of remaining authority under its stock repurchase program as of June 30, 2025[368](index=368&type=chunk) [Other Information](index=73&type=section&id=Item%205.%20Other%20Information) No Rule 10b5-1 trading arrangements were adopted, modified, or terminated, and the Key Employee Agreement for Jeffrey Magids was amended effective August 5, 2025 - The company amended and restated the Key Employee Agreement for Jeffrey Magids, effective August 5, 2025, modifying the initial term, restrictive covenants, and severance provisions[371](index=371&type=chunk) [Exhibits](index=74&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including credit agreement amendments, key employee agreements, and SEC certifications

Financial Data and Key Metrics Changes - Second quarter oil and gas sales were $126 million, with a realized oil price of 92% of Brent [19] - Adjusted EBITDA for the second quarter was $53 million, and operating cash flow was $29 million [20] - Total debt at quarter end was $428 million, with $11 million paid down during the quarter [21] - The company declared a dividend of $0.03 per share, representing a 4% annualized dividend yield [22] Business Line Data and Key Metrics Changes - In California, 16 wells were drilled in the second quarter, an increase from 12 in the first quarter and six in the fourth quarter of the previous year [8] - In Utah, the company successfully fracked 64 stages per well on average, achieving cost savings of approximately $500,000 per well [9] Market Data and Key Metrics Changes - The company has 71% of its expected oil production hedged at approximately $75 per barrel of Brent for the remainder of 2025 [19] - For 2026, 63% of expected oil production is hedged at an average price of $70 per barrel of Brent [20] Company Strategy and Development Direction - The company’s strategy focuses on balance sheet strength, high return development projects, and operational efficiencies [6] - The company has permits in hand to support development projects into 2027, providing a competitive advantage [7] - The company aims to generate sustainable free cash flow, reduce debt, and create long-term value through its high return portfolio [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the regulatory environment in California, highlighting a constructive tone and potential for favorable outcomes in permitting [14][17] - The company is well-positioned to navigate California's complex environment and capitalize on regulatory reforms [17] Other Important Information - The company is finalizing its 2025 sustainability report, which will include enhanced disclosures and demonstrate its commitment to responsible operations [13] - The company is encouraged by the California Energy Commission's response to the governor's directive aimed at stabilizing in-state production [15] Q&A Session Summary Question: What is the probability of a favorable outcome regarding the Kern County EIR? - Management feels very optimistic about the outcome, noting no new objections were filed and confidence in the thorough work done by the county [26][28] Question: Can you provide expectations for the Castle Peak well? - Management highlighted initial estimates of 40 to 50 barrels per foot EUR and expressed excitement about the geology in their acreage, which could lead to significant development potential [30][31] Question: Can you discuss the cost achievements in Uinta? - Management noted a 20% cost reduction compared to other operators and identified areas for further improvement, including better performance from gas engines and increased utilization of produced water [36][40] Question: What are the long-term opportunities within the California portfolio? - Management mentioned significant potential in various projects, including thermal diatomite sidetracks and horizontal wells in the Monarch, indicating high rates of return even at current pricing [41][42]

Company Overview - Berry Corporation has an enterprise value of $642 million[11] - The company's Q2 2025 production averaged 239 thousand barrels of oil equivalent per day (MBoe/d), with 92% being oil[11] - Berry's proved PV-10 is valued at $23 billion[11] - The company's LTM adjusted EBITDA is $270 million, and LTM free cash flow is $61 million ($078/share)[11] - The LTM reinvestment rate is 67%, and the leverage ratio as of June 30, 2025, is 151x[11] California Assets - California assets have proved PV-10 of $21 billion[24] - California production is 210 MBoe/d[24] - Berry's California assets have an annual decline rate of 11%-14%[24] - The internal rate of return (IRR) for California assets is greater than 100%[24] Utah Assets - Utah assets production is 44 MBoe/d[47] - Berry Corporation holds approximately 100000 net acres in the Uinta Basin[47] Financials - The company has $95 million of availability through its credit facility and term loan[63] - Since July 2018 IPO, Berry has generated $15 billion in cash flow from operations[63,79]

[Overview and Highlights](index=1&type=section&id=Overview%20and%20Highlights) This section summarizes management's strategic commentary and key financial and operational achievements for the quarter [Management Commentary](index=1&type=section&id=Management%20Comments) Management emphasized the completion of the full-year drilling program, anticipating sequential production growth and strong free cash flow generation - **Full-year drilling activity is complete**, with production expected to grow sequentially through year-end[4](index=4&type=chunk) - Positive regulatory developments in California could create new drill permitting opportunities by year-end[4](index=4&type=chunk) - All four Uinta wells in Utah are expected online in August, contributing to **production growth in H2 2025**[4](index=4&type=chunk) - The company anticipates **strong free cash flow generation** through the remainder of the year[4](index=4&type=chunk) [Key Highlights](index=1&type=section&id=Key%20Highlights) Berry Corporation achieved **23.9 MBoe/d** production, **$34 million net income**, and **$53 million Adjusted EBITDA** in Q2 2025, while reducing debt and maintaining strong hedge positions Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | Production (MBoe/d) | 23.9 (92% oil) | | Net Income ($ millions) | $34 | | Diluted EPS ($/share) | $0.43 | | Adjusted EBITDA ($ millions) | $53 | | Operating Cash Flow ($ millions) | $29 | | Total Debt Paid Down ($ millions) | ~$11 | - Reaffirmed full-year 2025 guidance and declared a quarterly dividend of **$0.03 per share**[1](index=1&type=chunk)[5](index=5&type=chunk) - Maintains a strong hedge book, with **71% of remaining 2025 oil volumes hedged at $74.59/Bbl** and **63% of 2026 volumes hedged at $69.55/Bbl**[5](index=5&type=chunk) [Financial Performance](index=2&type=section&id=Financial%20Performance) This section details the company's financial results, capital structure, and comprehensive financial statements for the reporting period [Second Quarter 2025 Financial and Operating Summary](index=2&type=section&id=Second%20Quarter%202025%20Financial%20and%20Operating%20Summary) Berry reported **$34 million net income** in Q2 2025, a turnaround from prior losses, with **Adjusted EBITDA of $53 million** and **negative free cash flow of $26 million** due to increased capital expenditures Selected Comparative Financial Results (in millions, except per share) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Production (MBoe/d) | 23.9 | 24.7 | 25.3 | | Net Income (Loss) ($ millions) | $34 | $(97) | $(9) | | Adjusted EBITDA ($ millions) | $53 | $68 | $74 | | Earnings per Diluted Share ($/share) | $0.43 | $(1.25) | $(0.11) | | Cash Flow from Operations ($ millions) | $29 | $46 | $71 | | Capital Expenditures ($ millions) | $54 | $28 | $42 | | Free Cash Flow ($ millions) | $(26) | $17 | $29 | [Capital Structure and Shareholder Returns](index=2&type=section&id=Capital%20Structure%20and%20Shareholder%20Returns) As of June 30, 2025, Berry maintained **$101 million in total liquidity**, reduced debt by **$11 million** in Q2, and approved a **$0.03 per share quarterly dividend** - As of June 30, 2025, **total liquidity was $101 million**, including **$20 million in cash** and **$81 million in available borrowing capacity**[8](index=8&type=chunk) - Paid down approximately **$11 million of debt** during Q2 2025, with a year-to-date total debt reduction of **$23 million**[9](index=9&type=chunk) - The Board of Directors approved a quarterly cash dividend of **$0.03 per share**[9](index=9&type=chunk) [Detailed Financial Statements](index=6&type=section&id=Detailed%20Financial%20Statements) This section presents the consolidated statement of operations, cash flow, balance sheet, and segment results, highlighting **$210.1 million in total revenues** and **$33.6 million net income** for Q2 2025 [Consolidated Statement of Operations](index=6&type=section&id=Consolidated%20Statement%20of%20Operations) Q2 2025 total revenues reached **$210.1 million**, driven by derivative gains, resulting in **$33.6 million net income** or **$0.43 diluted EPS**, a significant improvement from prior losses Consolidated Statement of Operations Highlights (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Oil, natural gas and NGL sales ($ thousands) | $125,637 | $147,862 | $168,781 | | Gains (losses) on oil and gas sales derivatives ($ thousands) | $56,423 | $5,475 | $(5,844) | | **Total revenues and other ($ thousands)** | **$210,078** | **$182,651** | **$199,634** | | Impairment of oil and gas properties ($ thousands) | $0 | $157,910 | $43,980 | | **Net income (loss) ($ thousands)** | **$33,604** | **$(96,680)** | **$(8,769)** | | **Diluted EPS ($/share)** | **$0.43** | **$(1.25)** | **$(0.11)** | [Cash Flow and Balance Sheet Data](index=7&type=section&id=Cash%20Flow%20and%20Balance%20Sheet%20Data) Q2 2025 saw **net cash from operating activities at $28.6 million**, with long-term debt decreasing to **$364.6 million** and total stockholders' equity at **$664.9 million** Cash Flow Data (in thousands) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities ($ thousands) | $28,638 | $45,872 | $70,891 | | Net cash used in investing activities ($ thousands) | $(34,162) | $(19,770) | $(42,486) | | Net cash used in financing activities ($ thousands) | $(13,760) | $(16,876) | $(25,174) | Balance Sheet Data (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Total current assets ($ thousands) | $158,048 | $149,643 | | Long-term debt ($ thousands) | $364,602 | $384,633 | | Total stockholders' equity ($ thousands) | $664,941 | $730,636 | [Segment Results](index=8&type=section&id=Segment%20Results) The E&P segment generated **$130.8 million in revenue** and **$81.0 million in pre-tax income** in Q2 2025, with the majority of capital expenditures directed to this segment Q2 2025 Segment Performance (in thousands) | Segment | Revenues ($ thousands) | Net income (loss) before income taxes ($ thousands) | Capital expenditures ($ thousands) | | :--- | :--- | :--- | :--- | | E&P | $130,831 | $81,001 | $53,350 | | Well Servicing and Abandonment Services | $31,082 | $(296) | $333 | [Operational Performance and Outlook](index=2&type=section&id=Operational%20Performance%20and%20Outlook) This section reviews the company's production, capital expenditures, commodity risk management, and provides full-year guidance [Production and Capital Expenditures](index=12&type=section&id=Production%20and%20Capital%20Expenditures) Q2 2025 total production averaged **23.9 MBoe/d**, with **oil at 22.0 MBbl/d**, while capital expenditures significantly increased to **$54.2 million** due to the Utah drilling program Average Daily Production | Production Type | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Oil (MBbl/d) | 22.0 | 23.0 | 23.4 | | Natural Gas (MMcf/d) | 9.1 | 7.9 | 8.9 | | NGLs (MBbl/d) | 0.4 | 0.4 | 0.4 | | **Total (MBoe/d)** | **23.9** | **24.7** | **25.3** | Capital Expenditures (in thousands) | Period | Amount ($ thousands) | | :--- | :--- | | Q2 2025 | $54,249 | | Q1 2025 | $28,389 | | Q2 2024 | $42,325 | [Commodity Pricing and Risk Management](index=3&type=section&id=Commodity%20Pricing%20and%20Risk%20Management) Berry's Q2 2025 realized oil price was **$67.54/bbl** (with hedges), actively managing price risk by hedging **71% of remaining 2025 oil production** and **80% of natural gas demand** Weighted Average Realized Prices (Q2 2025) | Commodity | Price without Hedge ($/bbl or $/mmbtu) | Effect of Hedges ($/bbl or $/mmbtu) | Price with Hedge ($/bbl or $/mmbtu) | | :--- | :--- | :--- | :--- | | Oil ($/bbl) | $61.26 | $6.28 | $67.54 | | Purchased Natural Gas ($/mmbtu) | $2.80 | $1.89 | $4.69 | - The company has hedged **71% of its estimated oil production** for the remainder of 2025 at an average Brent price of **$74.59/Bbl**[13](index=13&type=chunk) - Approximately **80% of expected natural gas demand** for the rest of 2025 is hedged with an average swap price of **$4.22/MMBtu**[13](index=13&type=chunk) Total Gains (Losses) on Derivatives (in thousands) | Period | Amount ($ thousands) | | :--- | :--- | | Q2 2025 | $53,293 | | Q1 2025 | $11,166 | | Q2 2024 | $(8,486) | [2025 Full Year Guidance](index=2&type=section&id=2025%20Full%20Year%20Guidance) Berry reaffirmed its full-year 2025 guidance, projecting average daily production between **24,800 and 26,000 boe/d** and capital expenditures of **$110 to $120 million** Reaffirmed Full Year 2025 Guidance | Metric | Low | High | | :--- | :--- | :--- | | Average Daily Production (boe/d) | 24,800 | 26,000 | | Non-energy LOE ($/boe) | $13.00 | $15.00 | | Capital Expenditures ($ millions) | $110 | $120 | - Approximately **60% of the 2025 capital program** is directed to California, with the remaining **40% allocated to Utah**[18](index=18&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=13&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) This section provides reconciliations for non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow, Adjusted Net Income, and E&P Operating Costs [Adjusted EBITDA Reconciliation](index=15&type=section&id=Adjusted%20EBITDA%20Reconciliation) Q2 2025 Adjusted EBITDA was **$52.9 million**, reconciled from **$33.6 million net income** by adjusting for non-cash items and derivative gains Adjusted EBITDA Reconciliation (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net income (loss) ($ thousands)** | **$33,604** | **$(96,680)** | **$(8,769)** | | Interest expense ($ thousands) | 15,513 | 15,172 | 10,050 | | Income tax expense (benefit) ($ thousands) | 13,188 | (38,673) | (3,326) | | Depreciation, depletion, and amortization ($ thousands) | 35,294 | 40,392 | 42,843 | | Impairment of oil and gas properties ($ thousands) | — | 157,910 | 43,980 | | (Gains) losses on derivatives ($ thousands) | (53,293) | (11,166) | 8,486 | | Net cash received (paid) for scheduled derivative settlements ($ thousands) | 4,908 | (1,312) | (19,115) | | **Adjusted EBITDA ($ thousands)** | **$52,915** | **$68,450** | **$74,329** | [Free Cash Flow and Leverage Ratio](index=16&type=section&id=Free%20Cash%20Flow%20and%20Leverage%20Ratio) Q2 2025 Free Cash Flow was **negative $25.6 million**, resulting from **$28.6 million operating cash flow** and **$54.2 million capital expenditures**, with a Leverage Ratio of **1.51x** Free Cash Flow Reconciliation (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net cash provided by operating activities ($ thousands) | $28,638 | $45,872 | $70,891 | | Capital expenditures ($ thousands) | (54,249) | (28,389) | (42,325) | | **Free Cash Flow ($ thousands)** | **$(25,611)** | **$17,483** | **$28,566** | Leverage Ratio as of June 30, 2025 | Metric | Value (in thousands) | | :--- | :--- | | Net Debt ($ thousands) | $407,772 | | Trailing twelve month Adjusted EBITDA ($ thousands) | $270,266 | | **Leverage Ratio (x)** | **1.51x** | [Adjusted Net Income (Loss) Reconciliation](index=17&type=section&id=Adjusted%20Net%20Income%20%28Loss%29%20Reconciliation) Q2 2025 Adjusted Net Loss was **$0.4 million** or **$0.00 per diluted share**, primarily due to the removal of a **$48.4 million net non-cash gain on derivatives** Adjusted Net Income (Loss) Reconciliation (in thousands) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Net income (loss) ($ thousands)** | **$33,604** | **$(96,680)** | **$(8,769)** | | (Gains) losses on derivatives ($ thousands) | (53,293) | (11,166) | 8,486 | | Net cash received (paid) for scheduled derivative settlements ($ thousands) | 4,908 | (1,312) | (19,115) | | Impairment of oil and gas properties ($ thousands) | — | 157,910 | 43,980 | | Income tax expense (benefit) of adjustments ($ thousands) | 12,742 | (39,783) | (8,617) | | **Adjusted Net Income (Loss) ($ thousands)** | **$(364)** | **$9,370** | **$14,155** | [E&P Operating Costs (LOE) Analysis](index=18&type=section&id=E%26P%20Operating%20Costs%20%28LOE%29%20Analysis) Q2 2025 unhedged Lease Operating Expenses (LOE) were **$24.43 per Boe**, with total hedged LOE at **$27.97 per Boe** after accounting for gas purchase hedges E&P Operating Costs (per Boe) | Line Item | Q2 2025 ($/Boe) | Q1 2025 ($/Boe) | Q2 2024 ($/Boe) | | :--- | :--- | :--- | :--- | | Energy LOE - unhedged | $10.32 | $11.83 | $9.52 | | Non-energy LOE | $14.11 | $13.91 | $13.91 | | **Lease operating expenses (unhedged)** | **$24.43** | **$25.74** | **$23.43** | | Gas purchase hedges - realized | $3.54 | $0.66 | $4.05 | | **Lease operating expenses - hedged** | **$27.97** | **$26.40** | **$27.48** |

Core Viewpoint - Berry Corporation reported its financial and operational results for Q2 2025, highlighting a net income of $34 million and a production rate of 23.9 MBoe/d, with a quarterly cash dividend of $0.03 per share [1][5][9]. Financial and Operational Summary - Production for Q2 2025 was 23.9 MBoe/d, down from 24.7 MBoe/d in Q1 2025 and 25.3 MBoe/d in Q2 2024 [5][36]. - Oil, natural gas, and NGL revenues totaled $126 million, compared to $148 million in Q1 2025 and $169 million in Q2 2024 [5][36]. - The company reported a net income of $34 million, or $0.43 per diluted share, a significant improvement from a net loss of $97 million in Q1 2025 [5][6]. - Adjusted EBITDA for Q2 2025 was $53 million, down from $68 million in Q1 2025 and $74 million in Q2 2024 [7][24]. - Operating cash flow was $29 million, compared to $46 million in Q1 2025 and $71 million in Q2 2024 [7][24]. Capital Expenditures and Debt Management - Capital expenditures for Q2 2025 were $54 million, up from $28 million in Q1 2025 and $42 million in Q2 2024 [7][36]. - The company paid down approximately $11 million of debt in Q2 2025, bringing the year-to-date total debt reduction to approximately $23 million [6][9]. - Berry aims for a total debt reduction of at least $45 million in 2025 [6]. Production and Growth Outlook - The company expects sequential production growth through the end of the year, with all four horizontal Uinta wells expected to be online in August 2025 [4][6]. - Berry's average well cost is approximately 20% below the average cost of its non-operated wells [4]. - The company has a favorable hedge position, with 71% of oil volumes hedged for the remainder of 2025 at an average price of $74.59/Bbl [6][12]. Guidance and Future Plans - Berry reaffirmed its full-year 2025 guidance, projecting average daily production between 24,800 and 26,000 boe/d [10]. - The company plans to host a conference call on August 7, 2025, to discuss its Q2 results and 2025 outlook [1][13].

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Berry Petroleum due to lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Berry Petroleum is expected to report earnings of $0.01 per share, reflecting a significant year-over-year decrease of 94.4% [3]. - Revenue projections stand at $147 million, which is a decline of 7.5% compared to the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 62.26% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Berry Petroleum matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the potential deviation from consensus estimates, with a strong predictive power for positive readings [9][10]. - Berry Petroleum's current Zacks Rank is 3, making it challenging to predict an earnings beat conclusively [12]. Historical Performance - In the last reported quarter, Berry Petroleum exceeded expectations with earnings of $0.12 per share, a surprise of +20.00% [13]. - Over the past four quarters, the company has beaten consensus EPS estimates two times [14]. Industry Context - Tidewater, another player in the oil and gas sector, is expected to report earnings of $0.28 per share, indicating a year-over-year decline of 70.2% [18]. - Tidewater's revenue is projected at $317.61 million, down 6.4% from the previous year, with a consensus EPS estimate revised 17.6% higher recently [19].