Berry Corporation (NASDAQ:BRY) Q1 2022 Earnings Conference Call May 4, 2022 11:00 AM ET Company Participants Todd Crabtree - Director, Investor Relations Trem Smith - Board Chair, Chief Executive Officer and President Fernando Araujo - Executive Vice President and Chief Operating Officer Cary Baetz - Executive Vice President and Chief Financial Officer Conference Call Participants Leo Mariani - KeyBanc Charles Meade - Johnson Rice Steve Busch - Everglades Resources Nicholas Pope - Seaport Research Joseph Mc ...

| --- | --- | --- | --- | --- | |-----------------------|--------------------------------------------------------|-------|-------|----------------------------------| | FOCUSED | | | | | | A Responsible | | | | | | California | | | | | | Energy Partner | | | | | | | | | | | | May 2022 | Scan with phone camera to browse to IR Reports Page | | | | | INVESTOR PRESENTATION | | | | | | | | | | bry.com ir@bry.com 661-616-3811 | 1 Disclaimer The information in this document includes forward-looking statements withi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______________ to _______________ | --- | --- | --- | |--------------------------------------------------------------|--------------------------------------------------- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______________ to _______________ Commission file number 001-38606 BERRY CORPORATION (bry) (Exact name of registrant as specified in its charter) Delaware (State of incorpora ...

Berry Corporation (NASDAQ:BRY) Q4 2021 Earnings Conference Call February 22, 2022 9:00 AM ET Company Participants Trem Smith - Chairman & CEO Cary Baetz - CFO & EVP Fernando Araujo - COO & EVP Todd Crabtree - IR Conference Call Participants Michael Ferro - Johnson Rice & Company Operator Good day, and thank you for standing by. Welcome to the Berry Corporation's Q4 and Full Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a ques ...

Financial Data and Key Metrics Changes - Berry Corporation reported an average production of 27,400 barrels of oil equivalent per day in Q3, with production in September reaching 27,900 barrels per day, marking the highest for the year [17][18] - Capital expenditures (CapEx) in Q3 were $38 million, slightly lower than Q2, and the full-year capital outlook remains unchanged [22] - Operating expenses averaged $17.18 per barrel of oil equivalent (boe) in Q3, which is 1% lower than Q2 and consistently flat throughout 2021 [23] Business Line Data and Key Metrics Changes - The company focused its drilling activity on steam flood expansion projects in the Midway-Sunset field, with 54 producers and two delineation wells drilled in Q3 [18] - The development program yielded an unhedged rate of return in excess of 80% based on current pricing, with workover activities yielding returns greater than 100% [20][21] Market Data and Key Metrics Changes - The company is positioned to generate considerable levered free cash flow for many years, with projections indicating almost $250 million in levered free cash flow in 2022, representing more than 30% of the current market cap [25][26] Company Strategy and Development Direction - Berry Corporation announced a new shareholder return model aimed at providing significant returns, potentially exceeding 20% annually, through a mix of cash dividends, share repurchases, and debt retirement [11][12] - The company is focused on environmental, social, and governance (ESG) goals, including reducing greenhouse gas emissions by at least 15% by the end of 2021 and exploring carbon capture and storage (CCS) opportunities [37][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term demand for oil, citing limited supply due to underinvestment and delays in major projects [9][10] - The regulatory environment is being managed effectively, with expectations that proposed setback regulations will have minimal impact on operations in Kern County [49][50] Other Important Information - The acquisition of C&J Well Services was highlighted as a strategic move to enhance operational capabilities and align with ESG goals [35][36] - The company has gained additional access to the Kern River midstream natural gas line, which will significantly increase its gas supply capacity [28] Q&A Session Summary Question: Inquiry about the shareholder return model - Management confirmed that the model will be formulaic, using a predictable cost structure and hedged oil prices to determine returns, with a focus on quarterly assessments [41][42] Question: Regulatory updates and impact on operations - Management provided insights on the regulatory landscape, indicating that the proposed setback rules would likely take a year and a half to two years to finalize, with minimal expected impact on Kern County operations [46][49] Question: Details on the Placerita asset sale - The Placerita assets were sold for approximately $20,000 per flowing barrel, with a reduction in asset retirement obligations by about $20 million [53][56] Question: Well servicing business details - The closing price for the C&J Well Services acquisition was $43 million, with plans to transparently report its financial performance separately from Berry's oil and gas operations [65][67]

[Part I – Financial Information](index=3&type=section&id=Part%20I%20%E2%80%93%20Financial%20Information) [Financial Statements (unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) Unaudited statements show a Q3 2021 net income of $9.8 million, a significant turnaround from the prior year's loss, while cash from operations decreased Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2021 | Dec 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$1,429,966** | **$1,419,810** | | Cash and cash equivalents | $38,161 | $80,557 | | Total oil and natural gas properties, net | $1,174,300 | $1,177,307 | | **Total Liabilities** | **$745,070** | **$705,774** | | Long-term debt | $394,285 | $393,480 | | **Total Stockholders' Equity** | **$684,896** | **$714,036** | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share amounts) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Total revenues and other | $143,414 | $89,749 | $336,864 | $462,467 | | Total expenses and other | $126,521 | $102,409 | $337,768 | $633,994 | | Net income (loss) | $9,836 | $(18,864) | $(24,367) | $(199,065) | | Diluted EPS | $0.12 | $(0.24) | $(0.30) | $(2.50) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | 9 Months Ended Sep 30, 2021 | 9 Months Ended Sep 30, 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $82,258 | $144,419 | | Net cash used in investing activities | $(110,536) | $(74,522) | | Net cash used in financing activities | $(14,118) | $(22,277) | | **Net (decrease) increase in cash** | **$(42,396)** | **$47,620** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's new $200 million credit facility, a $52.1 million net derivative liability, and the recent acquisition of C&J Well Services - On August 26, 2021, the company entered into a new 2021 RBL Facility with a **$500 million commitment** and an initial borrowing base of **$200 million**, maturing in 2025[34](index=34&type=chunk)[42](index=42&type=chunk)[43](index=43&type=chunk) - The company utilizes derivatives to hedge a portion of its forecasted oil and gas production and gas purchases, with a fair value representing a **net liability of $52.1 million** as of September 30, 2021[47](index=47&type=chunk)[59](index=59&type=chunk) - For the nine months ended September 30, 2021, the company repurchased **471,022 shares for approximately $2 million**, with approximately **$48 million** remaining available for future repurchases[72](index=72&type=chunk) - Effective October 1, 2021, the company completed the acquisition of C&J Well Services for approximately **$43 million**, with financial results to be included starting in Q4 2021[22](index=22&type=chunk)[25](index=25&type=chunk)[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights improved financial results from higher commodity prices and the strategic acquisition of C&J Well Services - The company is an independent upstream energy company focused on conventional, low geologic risk, long-lived oil reserves primarily in **California, Utah, and Colorado**[94](index=94&type=chunk)[95](index=95&type=chunk) - Effective October 1, 2021, the company acquired C&J Well Services for approximately **$43 million**, creating a strategic growth opportunity in well servicing and abandonment[97](index=97&type=chunk) - Management uses **'Levered Free Cash Flow'** as a primary metric for capital allocation, sustaining production, and funding growth[101](index=101&type=chunk) Average Benchmark Prices | Benchmark | Q3 2021 | Q3 2020 | | :--- | :--- | :--- | | Oil (bbl) – Brent | $73.23 | $43.34 | | Natural gas (mmbtu) – Kern, Delivered | $5.75 | $2.84 | [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Operating results improved significantly due to a 75% rise in commodity sales, driving Q3 2021 net income despite higher costs and derivative losses Q3 2021 vs Q3 2020 Performance (in thousands) | Metric | Q3 2021 | Q3 2020 | % Change | | :--- | :--- | :--- | :--- | | Oil, natural gas and NGL sales | $161,058 | $92,239 | 75% | | Total revenues and other | $143,414 | $89,749 | 60% | | Net income (loss) | $9,836 | $(18,864) | 152% | 9 Months 2021 vs 9 Months 2020 Performance (in thousands) | Metric | 9 Months 2021 | 9 Months 2020 | % Change | | :--- | :--- | :--- | :--- | | Oil, natural gas and NGL sales | $444,098 | $284,852 | 56% | | (Losses) gains on derivatives | $(140,021) | $157,398 | n/a | | Net loss | $(24,367) | $(199,065) | (88)% | - Unhedged lease operating expenses per boe **increased 36%** in Q3 2021 vs Q3 2020, driven by a **109% increase** in the unhedged average fuel purchase price for California steam operations[192](index=192&type=chunk) - For the nine months ended Sep 30, 2020, the company recorded a non-cash pre-tax asset impairment charge of **$289 million** on properties in Utah and California, with no such impairment recorded in the 2021 period[223](index=223&type=chunk) [Liquidity and Capital Resources](index=50&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained total liquidity of $243 million, secured a new $200 million credit facility, and plans to fund capital expenditures with operating cash flow - Total liquidity as of September 30, 2021 was **$243 million**, consisting of **$43 million in cash** and **$200 million** available under the 2021 RBL Facility[246](index=246&type=chunk) - The planned 2021 capital expenditure budget is approximately **$120 to $130 million**, which is expected to be funded by Levered Free Cash Flow[137](index=137&type=chunk) - The company terminated its 2017 RBL Facility and entered into a new 2021 RBL Facility on August 26, 2021, with an initial borrowing base and elected commitment of **$200 million**, maturing in 2025[248](index=248&type=chunk)[258](index=258&type=chunk) - The company has an active commodity hedging program to protect cash flows, with significant volumes hedged for oil production and gas purchases through 2024[259](index=259&type=chunk)[262](index=262&type=chunk) [Non-GAAP Financial Measures](index=46&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures like Adjusted EBITDA and Levered Free Cash Flow to assess performance, showing mixed results compared to the prior year Adjusted EBITDA and Levered Free Cash Flow (in thousands) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $9,836 | $(18,864) | $(24,367) | $(199,065) | | **Adjusted EBITDA** | **$59,324** | **$61,515** | **$151,751** | **$190,748** | | **Levered Free Cash Flow** | **$8,692** | **$47,206** | **$10,693** | **$92,876** | Adjusted Net Income (Loss) (in thousands) | Metric | Q3 2021 | Q3 2020 | 9 Months 2021 | 9 Months 2020 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $9,836 | $(18,864) | $(24,367) | $(199,065) | | **Adjusted Net Income (Loss)** | **$11,536** | **$13,452** | **$10,868** | **$36,236** | [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is commodity price volatility, which it mitigates through an active hedging program using derivative instruments - The company's primary market risk is from volatile oil, natural gas, and NGL prices[314](index=314&type=chunk) - As of September 30, 2021, the fair value of the company's hedge portfolio was a **net liability of $52 million**; a 10% price increase would raise the liability to $190 million, while a 10% decrease would create a net asset of $2 million[316](index=316&type=chunk) [Controls and Procedures](index=59&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of September 30, 2021, with no material changes to internal controls - Management concluded that the company's disclosure controls and procedures were **effective** as of September 30, 2021[318](index=318&type=chunk) - **No material changes** were made to the company's internal control over financial reporting during the third quarter of 2021[319](index=319&type=chunk) [Part II – Other Information](index=60&type=section&id=Part%20II%20%E2%80%93%20Other%20Information) [Legal Proceedings](index=60&type=section&id=Item%201.%20Legal%20Proceedings) The company is defending a securities class action lawsuit alleging false statements and cannot currently estimate a possible loss - The company is a defendant in the 'Torres Lawsuit,' a securities class action filed on November 20, 2020, alleging false and misleading statements related to business operations and permitting processes[322](index=322&type=chunk) - An amended complaint was filed on November 1, 2021, and the company **disputes the claims** and cannot estimate a possible loss or range of loss at this time[323](index=323&type=chunk)[324](index=324&type=chunk) [Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) A key risk involves integrating the newly acquired C&J Well Services, a business line in which the company lacks direct prior experience - The company identifies risks associated with integrating acquired businesses, including potential for insufficient expertise, diversion of management attention, and assumption of liabilities[326](index=326&type=chunk)[328](index=328&type=chunk) - The October 1, 2021 acquisition of C&J Well Services presents specific risks as the company has **no prior experience** directly providing well servicing, completion, and water logistics services[330](index=330&type=chunk) [Issuer Purchases of Equity Securities](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company repurchased 471,022 shares in Q3 2021, with approximately $47.6 million remaining available under its buyback program Issuer Purchases of Equity Securities (Q3 2021) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | July 2021 | — | — | $49,999,000 | | August 2021 | 471,022 | $5.18 | $47,564,000 | | September 2021 | — | — | $47,564,000 | | **Total** | **471,022** | **$5.18** | **$47,564,000** | [Exhibits](index=63&type=section&id=Item%206.%20Exhibits) This section lists filed exhibits, including required CEO/CFO certifications and the new credit agreement - Exhibits filed include CEO and CFO certifications under **Sarbanes-Oxley Sections 302 and 906**[334](index=334&type=chunk) - The new Credit Agreement dated August 26, 2021, is incorporated by reference[334](index=334&type=chunk)

Berry Corporation (NASDAQ:BRY) Q2 2021 Earnings Conference Call August 4, 2021 9:00 AM ET Company Participants Todd Crabtree - Manager, Investor Relations Trem Smith - Chairman and Chief Executive Officer Fernando Araujo - Chief Operating Officer and Executive Vice President Cary Baetz - Chief Financial Officer and Executive Vice President Conference Call Participants Leo Mariani - KeyBanc Charles Meade - Johnson Rice Nicholas Pope - Seaport Research Operator Ladies and gentlemen, thank you for standing by, ...

| --- | --- | --- | --- | --- | |-----------------------|---------------------------------------|-------|-------|----------------------------------| | FOCUSED | | | | | | A Responsible | | | | | | California | | | | | | Energy Partner | | | | | | | | | | | | JULY 2021 | Scan with phone camera to browse to | | | | | INVESTOR PRESENTATION | IR Reports Page | | | | | | | | | bry.com ir@bry.com 661-616-3811 | 1 Disclaimer The information in this presentation includes forward-looking statements within the meanin ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from_______________ to _______________ Commission file number 001-38606 Berry Corporation (bry) (Exact name of registrant as specified in its charter) Delaware (State of incor ...