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]

Core Insights - Berry Corporation published its 2025 Sustainability Report, showcasing its 2024 performance and commitment to long-term stakeholder value [1] - The report emphasizes transparency and continuous improvement in sustainability reporting, aligning with SASB and TCFD recommendations [2][3] Sustainability Objectives - Berry's sustainability objectives focus on operational accountability, energy resilience, and emissions reduction [2] - The company has made significant progress towards its emissions reduction target and has aligned with California's new climate-related disclosures [3] 2025 Sustainability Report Highlights - Berry reduced its Scope 1 methane emissions by nearly 50% compared to a 2022 baseline [7] - The company replaced nearly all pneumatic valves with zero-bleed valves in Utah, aiming for an 80% reduction in methane emissions by 2025 from a 2022 baseline [7] - Implemented solar infrastructure to power select operations, offsetting up to 20% of electrical demand, leading to measurable reductions in GHG emissions intensity [7] - Increased the percentage of recycled water to 47% in 2024, reducing freshwater consumption by 17% from 2023 [7] - Achieved a 59% reduction in employee Total Recordable Incident Rate (TRIR) since 2022 through focused safety management [7] - Maintained rigorous standards of integrity, transparency, and accountability through Corporate Governance and Code of Conduct & Ethics standards [7] Company Overview - Berry Corporation is a publicly traded independent upstream energy company focused on onshore, low geologic risk, long-lived oil and gas reserves [5] - The company operates in two segments: exploration and production (E&P) and well servicing and abandonment services, with E&P assets located in California and Utah [5]

Core Viewpoint - Halper Sadeh LLC is investigating the fairness of the sale of Berry Corporation to California Resources Corporation, specifically whether the exchange ratio of 0.0718 shares of California Resources for each share of Berry is equitable for Berry shareholders [1]. Group 1: Investigation Details - The investigation focuses on potential violations of federal securities laws and breaches of fiduciary duties by Berry and its board, including failure to secure the best possible consideration for shareholders and not adequately disclosing material information necessary for assessing the merger [3]. - Halper Sadeh LLC may seek increased consideration for Berry shareholders, additional disclosures, and other forms of relief related to the proposed transaction [4]. Group 2: Legal Rights and Options - Berry shareholders are encouraged to explore their legal rights and options regarding the transaction, with contact information provided for further inquiries [2][6].

Group 1 - The core focus of Crude Value Insights is on cash flow and companies that generate it, highlighting value and growth prospects in the oil and natural gas sector [1] - Subscribers benefit from a 50+ stock model account, which provides in-depth cash flow analyses of exploration and production (E&P) firms [1] - The service includes live chat discussions about the oil and gas sector, fostering a community for investors [1] Group 2 - A promotional offer is available for a two-week free trial, encouraging new users to engage with the oil and gas investment service [2]

Core Viewpoint - California Resources Corporation (CRC) has announced an all-stock combination with Berry Corporation, indicating a strategic move to enhance its market position and operational capabilities [1][2]. Group 1: Company Overview - The call is led by CRC's President and CEO, Francisco Leon, with participation from Berry's CEO, Fernando Araujo, highlighting the collaborative nature of the announcement [2]. - CRC's executive team is present for the discussion and Q&A, indicating a comprehensive approach to stakeholder engagement [2]. Group 2: Financial Disclosures - Supplemental slides detailing non-GAAP financial measures reconciled to GAAP measures are available on the Investor Relations section of CRC's website, emphasizing transparency in financial reporting [2]. - The discussion includes forward-looking remarks based on current expectations, with a caution that actual results may differ due to various factors, which is a standard practice in corporate communications [3].