Core Viewpoint - Bri-Chem Corp. has announced the immediate departure of its CEO, Don Caron, and is initiating a leadership transition process to find a suitable successor [1][2]. Company Overview - Bri-Chem Corp. is a leading North American wholesale distributor of drilling fluids and related products, serving the energy, construction, and industrial sectors. The company was founded in 1985 and is headquartered in Edmonton, Alberta [4]. Leadership Transition - The Board of Directors is overseeing interim management responsibilities during the search for a new CEO, ensuring that there will be no disruption to ongoing operations [2]. - Barry Hugghins, Chairman of the Board, emphasized the company's commitment to operational discipline, customer service, and long-term growth, while focusing on alignment and performance across the organization [3].

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Merger and Acquisition - Berry Corp. entered into a Merger Agreement with California Resources Corporation, with an exchange ratio of 0.0718 shares of CRC for each share of Berry Corp. common stock[22] - The Merger is expected to close in the first quarter of 2026, pending shareholder and regulatory approvals[22] - Berry Corp. incurred approximately $3 million in transaction costs related to the Merger for the three and nine months ended September 30, 2025[23] Debt and Liquidity - As of September 30, 2025, Berry Corp. had approximately $416 million of borrowings outstanding under the 2024 Term Loan[44] - The 2024 Term Loan has an initial principal amount of $450 million, with a maturity date of December 24, 2027[36] - The interest rate for the 2024 Term Loan is either a base rate plus an applicable margin of 6.50% or a term SOFR reference rate plus an applicable margin of 7.50%[39] - Berry Corp. is required to maintain a minimum liquidity of $25 million and a total net leverage ratio not exceeding 2.5 to 1.0 under the 2024 Term Loan[40] - The 2024 Revolver provides a revolving credit facility of up to $500 million, with a borrowing base of $95 million as of September 30, 2025[45] - As of September 30, 2025, the company had no outstanding borrowings, $14 million in letters of credit, and approximately $49 million of available borrowing capacity under the 2024 Revolver[54] - The 2024 Revolver includes financial covenants such as a minimum liquidity requirement of $25 million and a total net leverage ratio not exceeding 2.5 to 1.0[49] - The company must ensure that the Consolidated Cash Balance does not exceed $35 million when borrowing[50] - The 2024 Revolver is secured by a first lien on substantially all assets of the company and its wholly owned material subsidiaries[53] Commodity Hedging - The company is required to maintain commodity hedges covering at least 75% of projected crude oil production from PDP reserves for the first 24 months following December 24, 2024[56] - The weighted-average price for crude oil production hedges in Q4 2025 is $74.69 per barrel, with a hedged volume of 1,610,000 barrels[67] - The company has added collars for 2025 to 2028, with calls ranging from $68.75 to $70.96 per barrel and a floor of $60.00 per barrel[68] - As of September 30, 2025, the total net fair value of commodity derivatives presented in the balance sheet was $44,585,000, compared to $8,520,000 as of December 31, 2024[69] - Realized gains on oil sales derivatives for the three months ended September 30, 2025, were $10,282,000, while realized losses on natural gas purchase derivatives were $6,200,000, resulting in total realized gains of $4,082,000[71] - Unrealized losses on oil sales derivatives for the three months ended September 30, 2025, amounted to $14,948,000, leading to total unrealized losses of $24,797,000 for the same period[71] Financial Performance - For the three months ended September 30, 2025, total revenues were $151.1 million, a decrease of 42.3% compared to $261.7 million for the same period in 2024[112] - Oil sales for the three months ended September 30, 2025, were $124.9 million, down 17.7% from $151.7 million in the prior year[112] - The company reported a net loss of $26.0 million for the three months ended September 30, 2025, compared to a net income of $69.9 million for the same period in 2024[108] - Basic loss per share for the three months ended September 30, 2025, was $(0.34), compared to earnings per share of $0.91 in the same period of 2024[108] - For the nine months ended September 30, 2025, total revenues were $543,871,000, compared to $1,000,000,000 in the same period of 2024, indicating a decrease of approximately 45.6%[132][134] - The company reported a loss before income taxes of $124,057,000 for the nine months ended September 30, 2025[134] - The company experienced a segment loss of $21,088,000 for the nine months ended September 30, 2025, compared to a profit in the same period of 2024[134] Capital Expenditures and Investments - Capital expenditures for the three months ended September 30, 2025, totaled $17,021,000, compared to $25,874,000 in 2024, a reduction of about 34.1%[126][130] - The company executed a farm-in agreement for a 30% working interest in a horizontal well in the Uinta Basin, with expected capital expenditures of approximately $3 million[101] - Capital expenditures for the nine months were $85,135,000, with $81,945,000 allocated to E&P and $2,298,000 to Well Servicing[138] Shareholder Returns - The company declared cash dividends of $0.03 per share in March, May, August, and November 2025, with total dividends expected to be paid in December 2025[82] - As of September 30, 2025, the company had a remaining total share repurchase authority of $190 million, with no shares repurchased during the nine months ended September 30, 2025[84] Legal and Regulatory Matters - The company is currently unable to estimate the probability of outcomes related to pending legal proceedings and the range of reasonably possible losses[80] - The company has limited its exposure to any single counterparty in derivative instruments to minimize credit risk[70] Market Conditions and Expectations - The company expects the adoption of new accounting standards to impact disclosures but not results of operations or cash flows[27][28] - The One Big Beautiful Bill Act is expected to result in increased tax deductions and credits for Berry Corp.[30] - Management expects energy prices to remain unpredictable and potentially volatile, impacting revenues and cash flows[368]

Production and Revenue - Berry Corporation reported production of 23.9 MBoe/d, consistent with the previous quarter but down 3.6% from 24.8 MBoe/d in Q3 2024[4] - Oil, natural gas, and NGL revenues for Q3 2025 were $128 million, a 1.6% increase from $126 million in Q2 2025 but a 16.9% decrease from $154 million in Q3 2024[4] - Total revenues for the three months ended September 30, 2025, were $151,142, a decrease of 42.4% compared to $261,708 for the same period in 2024[24] - The company reported a net loss of $26 million, or $0.34 per diluted share, compared to a net income of $34 million, or $0.43 per diluted share in Q2 2025[4] - Net loss for the three months ended September 30, 2025, was $26,017, compared to a net income of $69,863 for the same period in 2024[24] Financial Performance - Adjusted EBITDA for Q3 2025 was $49 million, down 7.5% from $53 million in Q2 2025 and down 26.9% from $67 million in Q3 2024[4] - Adjusted EBITDA for the three months ended September 30, 2025, was $49,404, down from $67,121 in the same period last year, representing a decline of 26.4%[25] - The leverage ratio as of September 30, 2025, was 1.60x, with net debt of $402,886,000 and trailing twelve-month Adjusted EBITDA of $252,549,000[57] - Adjusted Net Loss Income for Q3 2025 was $(5,867,000), translating to a diluted EPS of $(0.08), compared to $(364,000) and $0.00 in Q2 2025 and $10,839,000 and $0.14 in Q3 2024[59] Cash Flow and Debt Management - Berry generated operating cash flow of $55 million and free cash flow of $38 million during the quarter[5] - The company paid down approximately $11 million of total debt in Q3 2025, contributing to a year-to-date total debt reduction of approximately $34 million[5] - Free Cash Flow for Q3 2025 was $38,390,000, compared to a negative $25,611,000 in Q2 2025 and $44,821,000 in Q3 2024[55] Capital Expenditures and Assets - Capital expenditures for the three months ended September 30, 2025, totaled $17,021, compared to $25,874 for the same period in 2024, reflecting a decrease of 34.1%[27] - Total current assets as of September 30, 2025, were $143,780, a decrease from $149,643 as of December 31, 2024[25] - Long-term debt as of September 30, 2025, was $354,469, down from $384,633 as of December 31, 2024[25] Operational Metrics - The company reported a total of 77,602 weighted-average shares of common stock outstanding for the three months ended September 30, 2025[25] - The company has hedged 18.2 MBbls/d of oil production for the remainder of 2025 at an average price of $74.15/Bbl of Brent[10] - The average price of Brent oil for the three months ended September 30, 2025, was $68.17 per bbl, while Henry Hub natural gas averaged $3.03 per mmbtu[38] Expenses - General and administrative expenses for Q3 2025 were $20,242,000, slightly up from $20,270,000 in Q2 2025 and $19,111,000 in Q3 2024[62] - Lease operating expenses (LOE) for Q3 2025 were $58,137,000, an increase from $53,193,000 in Q2 2025 and $54,900,000 in Q3 2024[66] - Energy LOE - unhedged for Q3 2025 was $26,119,000, compared to $22,476,000 in Q2 2025 and $24,548,000 in Q3 2024[66] Mergers and Agreements - Berry signed an agreement to merge with California Resources Corporation, with a special shareholder meeting scheduled for December 15, 2025, to approve the merger[5] Hedging Activities - The company hedged 3,680,000 mmbtu of natural gas purchases at a weighted-average price of $4.15 per mmbtu for FY 2026[34] - The company reported realized losses on natural gas purchase derivatives of $6,200,000 for Q3 2025[35] - Total realized gains on derivatives for the three months ended September 30, 2025, amounted to $4,082,000, while total unrealized losses were $24,797,000[35]

Core Viewpoint - Berry Corporation reported its financial and operational results for Q3 2025, highlighting a net loss and a pending merger with California Resources Corporation, which has led to the suspension of supplemental slides and conference calls for this quarter [1][3][5]. Financial and Operating Summary - Production for Q3 2025 was 23.9 MBoe/d, consistent with Q2 2025 but down from 24.8 MBoe/d in Q3 2024 [3][34]. - Oil, natural gas, and NGL revenues totaled $128 million, slightly up from $126 million in Q2 2025 but down from $154 million in Q3 2024 [3][22]. - The company reported a net loss of $26 million, or $0.34 per diluted share, compared to a net income of $34 million in Q2 2025 and $70 million in Q3 2024 [3][23]. - Adjusted EBITDA for the quarter was $49 million, down from $53 million in Q2 2025 and $67 million in Q3 2024 [3][22]. - Free cash flow was $38 million, a significant improvement from a negative $26 million in Q2 2025 but down from $45 million in Q3 2024 [3][22]. Capital Structure - As of September 30, 2025, Berry had $416 million outstanding on its term loan facility and no borrowings under its revolving credit facility, with total liquidity of $94 million [4][6]. Debt Reduction and Shareholder Returns - The company paid down approximately $11 million of debt during the quarter, bringing the year-to-date total debt reduction to approximately $34 million [6][5]. - A quarterly cash dividend of $0.03 per share was approved, representing a 4% annual yield [6][5]. Production Statistics - The company produced 21.8 MBbl/d of oil, with California contributing 18.4 MBbl/d and Utah 3.4 MBbl/d [34]. - Total natural gas production was 9.1 MMcf/d, consistent with Q2 2025 [34]. Commodity Pricing - The average realized price for oil without hedge was $62.21 per barrel, while the price with hedge was $67.33 per barrel [27]. - Natural gas was sold at an average price of $2.99 per mcf [27]. Current Hedging Summary - As of October 31, 2025, Berry has hedged 18.2 MBbls/d of oil production at an average price of $74.15 per barrel for the remainder of 2025 [8][30].

Core Insights - California Resources Corporation (CRC) reported solid financial results for Q3 2025, highlighting the strength of its business model and commitment to shareholder value through a disciplined approach [5][7][14] - The company announced a 5% increase in its quarterly dividend, reflecting its commitment to sustainable shareholder returns [7][16][18] - CRC is in the process of merging with Berry Corporation in an all-stock transaction, which is expected to close in Q1 2026, subject to regulatory approvals [9][11][14] Financial Performance - CRC reported a net income of $64 million for Q3 2025, down from $172 million in Q2 2025, with adjusted net income of $123 million [7][8] - Total operating revenues for Q3 2025 were $855 million, a decrease from $978 million in Q2 2025 [8][40] - The company generated $279 million in net cash from operating activities and $188 million in free cash flow during the quarter [7][8] Production and Pricing - Net oil production averaged 107 thousand barrels per day (MBbl/d) in Q3 2025, slightly down from 109 MBbl/d in Q2 2025 [6][8] - Realized oil prices without derivative settlements increased to $66.32 per barrel (Bbl) from $65.07 per Bbl in the previous quarter [6][8] - Natural gas production increased to 118 million cubic feet per day (Mmcf/d) with a realized price of $3.47 per thousand cubic feet (Mcf), up from $2.79 per Mcf in Q2 2025 [6][8] Capital Investments and Liquidity - CRC's total capital investments for Q3 2025 were $91 million, with $43 million allocated to drilling, completions, and workover capital [7][8] - As of September 30, 2025, CRC had $180 million in available cash and cash equivalents, with a total liquidity of $1,154 million [21][19] - The company redeemed all remaining 2026 Senior Notes for $122 million, extending its maturity profile [7][20] Shareholder Returns - The board declared a quarterly cash dividend of $0.405 per share, payable on December 15, 2025, to shareholders of record on December 1, 2025 [17][18] - CRC has returned $454 million to shareholders in the first nine months of 2025, including $352 million in share repurchases and $102 million in dividends [15][18] Sustainability Initiatives - CRC received a "Grade A" certification for its methane emissions performance, demonstrating its commitment to sustainability [22][8] - The company plans to explore decarbonized power solutions in California through a memorandum of understanding with Capital Power [7][22]

Core Insights - Oil prices remained stable while natural gas prices experienced a decline, influenced by various market dynamics and corporate activities in the energy sector [1][2][3] Mergers and Acquisitions - California Resources Corporation (CRC) announced a merger with Berry Corporation (BRY) in an all-stock deal valued at approximately $717 million, which includes Berry's net debt. This merger aims to unlock operational synergies, reduce costs, and enhance cash flow generation [4][5] - Following the merger, CRC shareholders will own about 94% of the combined entity, which will strengthen CRC's asset portfolio by adding high-quality, conventional oil-weighted production assets [5][6] - Chord Energy is set to acquire Williston Basin assets from Exxon Mobil's subsidiary, XTO Energy, for $550 million. This acquisition will enhance Chord's presence in the Williston Basin and is expected to contribute 9,000 barrels of oil equivalent per day to its production [6][7][8] Regulatory Developments - Pembina Pipeline secured approval from the Canada Energy Regulator for a negotiated settlement regarding the Alliance Pipeline, which is crucial for the natural gas transmission system between Canada and the U.S. This approval is expected to ensure smooth operations for the pipeline over the next decade [9][10][11] Environmental Initiatives - Petrobras has approved the construction of Brazil's first Carbon Capture and Storage (CCS) pilot project, aiming to capture and store up to 100,000 tons of CO2 annually. This project is part of Brazil's commitment to carbon neutrality by 2050 and will leverage Petrobras' expertise in offshore technologies [11][12][13] Market Performance - The Energy Select Sector SPDR saw a slight decline of 0.1% last week, with mixed stock performances among major oil and gas companies. Over the past six months, the sector fund has decreased by approximately 4% [14][15]

Core Viewpoint - Monteverde & Associates PC is investigating the proposed sale of Berry Corporation to California Resources Corporation, questioning the fairness of the deal for Berry shareholders [1]. Company Overview - Monteverde & Associates PC is a national class action securities firm based in the Empire State Building, New York City, recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1][2]. - The firm has a successful track record in recovering millions for shareholders through litigation in trial and appellate courts, including the U.S. Supreme Court [2]. Transaction Details - Under the proposed transaction, Berry shareholders will receive 0.0718 shares of California Resources common stock for each share of Berry they own [1].

Group 1: Acquisition Details - California Resources Corp. (CRC) plans to acquire Berry Corp. in an all-stock deal valued at $717 million, with Berry shareholders receiving a 15% premium on their shares [1][2] - The merger has been approved by the boards of both companies and is expected to close in the first quarter of 2026, pending shareholder and regulatory approvals [1] Group 2: Company Performance and Synergies - CRC has undergone a significant turnaround, exiting bankruptcy in 2020 with $5 billion of debt erased and restoring profitability, followed by the acquisition of Aera Energy for $2.1 billion [2] - The combined company is projected to produce approximately 161,000 barrels of oil equivalent per day (boe/d) in Q2, with about 81% being oil [2] - CRC anticipates annual synergies of $80–90 million from the merger, representing about 12% of the deal value, primarily from overlapping corporate functions and operational efficiencies [3] Group 3: Regulatory Environment - Recent legislation in Kern County, including SB 237, allows for the approval of up to 2,000 new drilling permits annually, a significant increase from only 84 permits issued in 2024 [4] - Another bill, SB 614, aims to lift the moratorium on CO2 pipelines, which supports CRC's Carbon Terra Vault joint venture, crucial for scaling its carbon management business [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7][8] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a looming question regarding the energy supply needed to sustain this growth [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a significant strain on global power grids [2] - The company in focus is positioned to capitalize on the rising demand for electricity, which is becoming the most valuable commodity in the digital age [3][8] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, benefiting from tariffs and the onshoring trend driven by U.S. policies [5][6] - It possesses critical nuclear energy infrastructure assets and is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors [7][8] - The company is debt-free and has a substantial cash reserve, amounting to nearly one-third of its market capitalization, which positions it favorably compared to other energy firms burdened by debt [8][10] Market Position - The company also holds a significant equity stake in another AI-related venture, providing investors with indirect exposure to multiple growth opportunities without the associated premium costs [9][10] - It is trading at less than 7 times earnings, making it an attractive investment option in the AI and energy sectors [10][11] - The company is recognized for its ability to deliver real cash flows and maintain critical infrastructure, which is essential for future growth [11][12] Future Outlook - The ongoing influx of talent into the AI sector is expected to drive rapid advancements and innovative ideas, reinforcing the importance of investing in AI [12][13] - The combination of AI infrastructure development, energy needs, and U.S. energy exportation policies creates a unique investment landscape that the company is well-positioned to exploit [14][15]