Core Points - Bri-Chem Corp. has rescheduled its annual general meeting to September 16, 2025, to allow for additional resolutions and provide shareholders with adequate information regarding alternative director nominees [1][2] - The company has adopted an Advance Notice By-Law to guide the nomination of directors, which establishes deadlines for shareholders to submit nominations and outlines the required information [3][6] Company Actions - The postponement of the meeting aims to include a resolution for the ratification of the Advance Notice By-Law and to inform shareholders about a proxy contest involving alternative nominees proposed by the Hugghins Group [2][5] - The Advance Notice By-Law requires shareholders to provide timely notice for director nominations, with specific deadlines based on the type of meeting [6][7] Company Overview - Bri-Chem is a leading North American oilfield chemical distribution and blending company, known for its strategic acquisitions and organic growth [8]

Group 1 - Berry Corporation (NASDAQ: BRY) is expected to benefit modestly from higher near-term oil prices, although significant hedges will limit these benefits [2] - The company reported relatively low lease operating expenses in Q1 2025, indicating potential operational efficiency [2] Group 2 - The article highlights the expertise of Aaron Chow, who has over 15 years of analytical experience and is recognized as a top-rated analyst on TipRanks [2] - Chow co-founded a mobile gaming company that was acquired by PENN Entertainment, showcasing his background in both gaming and analytical modeling [2]

Core Insights - Berry Corporation (NASDAQ: BRY) reported a significant impairment leading to a substantial decrease in total net income, but this impairment is considered an extraordinary event, suggesting potential for net income growth in the coming years without new impairments [1] Financial Analysis - The impairment reported by Berry Corporation is expected to be a one-time event, which may allow for recovery and growth in net income in future periods [1] - The analysis focuses on cash flow statements and unlevered free cash flow figures, indicating a thorough examination of the company's financial health [1] Investment Perspective - The article emphasizes the importance of understanding various financial metrics such as cost of capital, cost of debt, WACC, share count, and net debt in evaluating the company's future performance [1] - The author expresses a preference for analyzing companies with a long history of financial reporting rather than growth stocks, which may indicate a conservative investment approach [1]

Core Insights - Bri-Chem Corp. reported a decrease in consolidated sales for Q1 2025, totaling $19.9 million, down 7% from $21.3 million in Q1 2024, primarily due to lower US drilling activity [4][6][10] - The company achieved an adjusted EBITDA of $465,000, a significant improvement from a loss of $443,000 in the same period last year, indicating a recovery in operational performance [2][9] - The outlook for the remainder of 2025 remains cautious due to volatility in commodity prices and political uncertainties affecting drilling activities in North America [10][12] Financial Performance - Sales for Q1 2025 were $19.9 million, a decrease of $1.4 million (7%) compared to Q1 2024 [4][6] - Adjusted EBITDA increased by $908,000 year-over-year, reflecting a positive shift in operational efficiency [2][6] - The net loss for Q1 2025 was $412,000, a 73% improvement from a net loss of $1.5 million in Q1 2024 [2][6] Segment Performance - Canadian drilling fluids distribution generated sales of $2.7 million, consistent with the prior year, while US drilling fluids sales decreased by 15% to $10.8 million [5][8] - The Canadian blending and packaging division saw a slight decrease in sales to $4.4 million, while US blending and packaging sales increased to $2.0 million, up from $1.4 million [8] - The average number of active operating land rigs in Canada increased by approximately 3% to 214, while the US rig count decreased by about 5% to 572 [5][7] Financial Position - Total assets decreased by 18% to $54.2 million, and working capital fell by 29% to $10.3 million as of March 31, 2025 [2][6] - Long-term debt slightly decreased by 3% to $6.5 million, while shareholders' equity declined by 13% to $19.0 million [2][6] Market Outlook - The company anticipates continued volatility in commodity prices and a restrained pace of new drilling activity, influenced by political and regulatory uncertainties in both the US and Canada [10][12] - There are emerging signals of potential collaboration on energy independence in Canada, which could lead to accelerated approvals for domestic projects [11][12] - The company remains focused on capital discipline, operational efficiency, and monitoring macroeconomic trends to navigate the transitional period in the industry [12]

Operational Performance - The company drilled 12 wells in California during Q1 2025, with 10 being thermal diatomite sidetracks, expecting increased production in the second half of the year [116]. - As of March 31, 2025, the company held approximately 100,000 net acres in the Uinta Basin, indicating high operational control and potential for additional development [117]. - The company acquired a 21% working interest in four lateral wells in the Uteland Butte reservoir, with initial production rates exceeding expectations [118]. - The 2025 capital program includes drilling a four-well horizontal pad in the Uinta Basin, with all wells expected to be online by Q3 2025 [120]. - Average daily production decreased by 5% to 24.7 mboe/d for the three months ended March 31, 2025, compared to 26.1 mboe/d in the previous quarter [166]. - The company reported total mboe (thousand barrels of oil equivalent) of 2,225 in Q1 2025, a decrease from 2,400 in Q4 2024 and an increase from 2,310 in Q1 2024 [236]. Financial Performance - The company uses Adjusted EBITDA as a primary financial measure to analyze operating performance and plan capital expenditures [123]. - Free Cash Flow is utilized to measure the company's ability to pay dividends, reduce debt, and pursue growth opportunities [124]. - Total revenues increased by $3.6 million, or 2%, to $182.7 million for the three months ended March 31, 2025, compared to $179.1 million in the previous quarter [169]. - Oil, natural gas, and NGL sales decreased by $10 million, or 6%, to approximately $148 million for the three months ended March 31, 2025, primarily due to lower oil volumes [170]. - Net loss for the three months ended March 31, 2025, was $96.7 million, compared to a loss of $1.8 million in the previous quarter [175]. - Adjusted EBITDA decreased by 16% to $68.5 million for the three months ended March 31, 2025, compared to $81.8 million in the previous quarter [175]. - The company reported a net loss of $96.7 million for the three months ended March 31, 2025, compared to a net loss of $40.1 million for the same period in 2024 [198]. - Adjusted Net Income for the three months ended March 31, 2025, was $9,370,000, with a diluted EPS of $0.12, compared to $16,531,000 and $0.21 for December 31, 2024 [228]. Capital Expenditures and Budget - Total capital expenditures for Q1 2025 were approximately $28 million, with 60% allocated to California operations and 40% to Utah [155]. - The 2025 capital expenditure budget is projected to be between $110 million and $120 million, with a focus on increasing horizontal development in Utah [156]. - The company plans to spend approximately $14 million to $20 million on plugging and abandonment activities in 2025, similar to the $15 million spent in 2024 [157]. - Capital expenditures for the three months ended March 31, 2025, were $28,389,000, compared to $17,217,000 for December 31, 2024 [225]. Market Conditions - Average oil prices were relatively flat in Q1 2025 compared to Q4 2024 but declined in Q2 2025, extending a downward trend that began in H2 2024 [131]. - OPEC+ has extended production cuts of 3.65 million barrels per day through the end of 2026, impacting oil prices [132]. - For Q1 2025, the average realized price for Brent crude oil was $69.56 per barrel, representing 93% of the benchmark price, while WTI averaged $71.51 per barrel [139]. - The average realized price for purchased natural gas was $4.70 per mmbtu in Q1 2025, which is 121% of the benchmark price, compared to $4.38 per mmbtu in Q4 2024 [139]. - Utah's average realized oil price for Q1 2025 was $56.20 per barrel, significantly lower than the average Brent price of $74.98 for the same period [143]. Expenses and Losses - Lease operating expenses increased by 3% to $57.3 million for the first quarter of 2025, primarily due to higher well servicing activity [177]. - General and administrative expenses increased by 10% to $20.3 million for the three months ended March 31, 2025, compared to $18.4 million in the previous quarter [175]. - Impairment of oil and gas properties amounted to $157.9 million for the three months ended March 31, 2025, marking a significant increase [175]. - The company recorded a non-cash pre-tax asset impairment charge of $158 million ($113 million after-tax) for one of its non-thermal diatomite proved properties in California for the three months ended March 31, 2025 [184][207]. Liquidity and Debt - As of March 31, 2025, the company had liquidity of $120 million, consisting of $39 million in cash and $49 million in available borrowing capacity [240]. - The 2024 Term Loan has $439 million in borrowings outstanding as of March 31, 2025, with an initial term loan facility of $450 million [244]. - The company prioritizes debt reduction in its capital allocation approach, aligning with covenants in the 2024 Term Loan [241]. - The company expects to fund its 2025 capital program from cash flow from operations based on current commodity prices and drilling success rates [156]. Shareholder Returns - The company declared a cash dividend of $0.03 per share in Q1 2025, with another dividend of the same amount expected in May 2025 [257][258]. - The company did not repurchase any shares during Q1 2025, with a total of 11.9 million shares repurchased for approximately $114 million to date [261]. - The remaining total share repurchase authority as of March 31, 2025, was $190 million [260]. Environmental and Regulatory Compliance - The company has entered into contracts to purchase GHG compliance instruments totaling $22 million [288]. - The fair value of emission allowances required by California's cap-and-trade program was $5 million as of March 31, 2025, with a 10% price change resulting in less than $1 million change in expense [302].

Financial Data and Key Metrics Changes - Berry Corporation reported first quarter oil and gas sales of $148 million, with a realized oil price at 93% of Brent [19] - Adjusted EBITDA for the first quarter was $68 million, and operating cash flow was $46 million [19] - The company generated $7 million in free cash flow after working capital changes [19] - Total debt at the end of the quarter was $439 million, with a leverage ratio improved to 1.37 times [21] - Liquidity increased to $120 million, and the company paid down $11 million of debt during the quarter [21] Business Line Data and Key Metrics Changes - In California, production averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime [9] - The company drilled twice as many wells in Q1 compared to Q4 of the previous year [9] - The thermal diatomite program is expected to generate rates of return exceeding 100% [10][40] Market Data and Key Metrics Changes - Approximately 73% of oil production is hedged at $75 per barrel for the remainder of the year [7] - The average floor price for hedged production was raised by $6 per barrel on 2,300 barrels per day for 2026 and 2027 [19] Company Strategy and Development Direction - Berry Corporation aims to generate sustainable free cash flow, reduce debt, and invest in high-return development projects [12][23] - The company is focused on executing its 2025 development projects and building inventory for 2026 [7][16] - The management emphasizes the importance of navigating the regulatory environment in California as a competitive advantage [15][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and reaffirmed full-year guidance [6][23] - The company highlighted its strong hedge position as a protective measure for cash flow [7] - Management noted a constructive shift in California's regulatory environment, which could facilitate increased in-state production [15] Other Important Information - Berry Corporation returned $2 million in cash to shareholders during the quarter [8] - The company had zero recordable incidents and zero lost time incidents in its operations during Q1 [14] Q&A Session Summary Question: Scalability of the thermal diatomite program - Management indicated significant running room in the thermal diatomite program, with about 25 categorized as PUDs and additional future locations available [29][30] Question: Initial production potential in Uinta - Management confirmed that the four well pad in Uinta was drilled ahead of schedule, with fracking operations expected to commence in June and initial production anticipated in August [34][43] Question: Success in California production growth - Management attributed success to the quality of their teams and innovative strategies, particularly in sidetrack drilling, which has allowed for growth in a challenging regulatory environment [38][40]

Financial Data and Key Metrics Changes - Berry Corporation reported first quarter oil and gas sales of $148 million, with a realized oil price at 93% of Brent [18] - Adjusted EBITDA for the first quarter was $68 million, and operating cash flow was $46 million [18] - The company generated $7 million in free cash flow after working capital changes [18] - Total debt at the end of the quarter was $439 million, with a leverage ratio improved to 1.37 times [21] - Liquidity increased to $120 million, and the company paid down $11 million of debt during the quarter [21] Business Line Data and Key Metrics Changes - In California, production averaged 24,700 barrels per day, slightly below the prior quarter due to planned downtime [8] - The company drilled twice as many wells in Q1 compared to Q4 of the previous year [8] - The thermal diatomite projects are expected to generate rates of return exceeding 100% [9] Market Data and Key Metrics Changes - Approximately 73% of oil production is hedged at $75 per barrel for the remainder of the year [6] - The average floor price for hedged production was raised by $6 per barrel for 2,300 barrels per day in 2026 and 2027 [19] Company Strategy and Development Direction - Berry Corporation aims to generate sustainable free cash flow, reduce debt, and return dividends while investing in high-return development projects [12][23] - The company is focused on executing its 2025 development projects and building inventory for 2026 [6][16] - The management emphasized the importance of navigating the regulatory environment in California as a competitive advantage [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating current market volatility and reaffirmed full-year guidance [5] - The company highlighted a strong hedge position that protects cash flow [6] - Management noted a constructive shift in California's regulatory environment, which could facilitate increased in-state production [15] Other Important Information - Berry Corporation reported zero recordable incidents and zero lost time incidents during the first quarter, reflecting a commitment to safety and environmental standards [14] - The company plans to publish a comprehensive report on its performance metrics and emissions data in the summer [14] Q&A Session Summary Question: Scalability of the thermal diatomite program - Management indicated significant running room in the thermal diatomite program, with about 25 categorized as PUDs and additional future locations for drilling [27][28] Question: Initial production potential in Uinta - Management shared that the four well pad in the Uinta Basin was drilled ahead of schedule, with fracking operations expected to commence in June and initial production anticipated in August [30][32] Question: Navigating the regulatory environment in California - Management attributed their success in growing California production to their experienced teams and innovative strategies, particularly in sidetrack drilling [36][38] Question: Timeline for production data from Uinta - Management clarified that production from the newly drilled wells is expected to begin in late July, with significant production numbers anticipated in August [41]

Berry Petroleum (BRY) came out with quarterly earnings of $0.12 per share, beating the Zacks Consensus Estimate of $0.10 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this independent upstream energy company would post earnings of $0.12 per share when it actually produced earnings of $0.21, delivering a surprise of 75%.Over the last four q ...

Company Overview - Berry is a Western U S independent upstream energy company focused on onshore, low geologic risk, low decline, long-lived conventional reserves[9, 10] - The company's enterprise value is $601 million[11] - First quarter of 2025 production averaged 247 thousand barrels of oil equivalent per day (MBoe/d), with 93% being oil[11] - The company's proved PV-10 is $23 billion[11] - Last twelve months (LTM) adjusted EBITDA was $292 million[11] - LTM free cash flow was $115 million, or $148 per share[11] - The company's reinvestment rate is 50%[11] - As of March 31, 2025, the leverage ratio was 137x[11] California Assets - California assets include approximately 20000 net acres and approximately 2500 gross producing wells[26] - California production averaged 210 MBoe/d in 2024[26] - Proved PV-10 for California assets is $21 billion[26] - The annual decline rate for California assets is 11%-14%[26]

Core Insights - Berry Corporation reported strong financial and operational results for Q1 2025, with a slight decrease in production due to planned downtime but a focus on expanding its California drilling program [4][6] - The company reaffirmed its FY25 guidance, citing a favorable hedge position that protects cash flows and liquidity [6][11] - A quarterly cash dividend of $0.03 per share was announced, representing a 5% annual yield [10] Financial and Operational Summary - Production for Q1 2025 was 24.7 MBoe/d, with 93% being oil, down from 26.1 MBoe/d in the previous quarter [6][7] - The company reported a net loss of $97 million, or $1.25 per diluted share, which included a non-cash impairment of $113 million [6][7] - Adjusted Net Income was $9 million, or $0.12 per diluted share, with Adjusted EBITDA of $68 million and Free Cash Flow of $17 million [6][7] - Operating cash flow generated was $46 million, with capital expenditures totaling $28 million [6][7] Capital Structure and Debt Management - As of March 31, 2025, Berry had $439 million outstanding on its term loan and $120 million in liquidity [9] - The company paid down $11 million of total debt during the quarter [10] - The leverage ratio improved to 1.37x quarter-over-quarter [9] Production and Pricing - The average realized price for oil without hedge was $69.48 per barrel, while the average price with hedge was $69.56 per barrel [31] - Oil production from California was 20.4 MBbl/d, while Utah contributed 2.6 MBbl/d, totaling 23.0 MBbl/d for the quarter [37] Guidance and Future Outlook - Berry's full-year 2025 guidance remains unchanged, with average daily production expected between 24,800 and 26,000 boe/d [11] - The company plans to fund its 2025 capital development program primarily through cash flow from operations [9][11]