Market Trends & Growth - Oil option trading volumes at CME Group are up 35% in 2025, driven by an uncertain oil outlook [1] - WTI Oil Options reached a daily record of 600,000 contracts in April 2025, indicating continued growth [5] Accessibility & Democratization - Oil options are democratizing, attracting energy giants, retail traders, and multistrategy commodity funds [1] - Oil options trading has moved on screen, opening up market access to traders of all types [3] - Retail brokerage platforms including Charles Schwab, Interactive Brokers, and Tasty Trade have broadened their support for oil options [3] Tools & Resources - Proliferation of options analytics and education empowers new firms and deepens engagement for existing users [2] - Platforms like Quickstrike allow users to study oil Greeks, visualize volatility surfaces, and construct strategies [2] - Online education resources and forums help demystify options and build a supportive community [2] Cost Efficiency & Flexibility - Micro WTI crude oil option at one-tenth the notional size offers a more accessible entry point for smaller accounts [4] - WTI weekly options with expirations on each day of the trading week are fast growing as traders hedge weekend risk and market moving events [4]

Market Trends & Funding Strategies - Multinational companies are increasingly borrowing in RMB (remmbb) to seek cheaper funding and hedge against US-China relations [1][2] - Total RMB borrowing by overseas companies (Panda bond issuance) reached a record high of almost 200 billion RMB (remmbb) in 2024 [1] - Panda bond issuance in Q1 2024 exceeded 40 billion RMB (remmbb), marking the second-highest quarter on record [1] Strategic Shift & Regulatory Impact - Global companies are shifting their strategy to raise debt locally for their Chinese subsidiaries [2] - Chinese authorities are now allowing companies to transfer funds raised from Panda bonds outside of mainland China [2] - This "in China for China" strategy helps companies reduce transaction costs and hedge against potential financial restrictions due to US-China tensions [2] Panda Bond Issuers - International organizations and foreign governments, such as Hungary, have also issued panda bonds [3]

Financial Data and Key Metrics Changes - Kimbell Royalty Partners reported record revenues for oil, natural gas, and NGL totaling $90 million for Q1 2025, marking a new record for the company [10] - Consolidated adjusted EBITDA reached $75.5 million, also a new record, reflecting strong operational performance [10] - The company declared a cash distribution of $0.47 per common unit, an increase of 17.5% from Q4 2024, with approximately 70% of this distribution expected to be considered a return of capital [7][11] Business Line Data and Key Metrics Changes - The company achieved a first quarter run rate production of 25,841 BOE per day, including contributions from acquired production [10] - General and administrative expenses for Q1 were $9.6 million, with cash G&A expenses at $2.52 per BOE [10] Market Data and Key Metrics Changes - Kimbell Royalty Partners maintained a market share of approximately 16% of all rigs drilling in the Lower 48 states, with 90 rigs actively drilling on its acreage [6][10] - The company noted strong permitting activity, including the permitting of 17 additional wells in Martin County, Texas, demonstrating the strength of its diversified asset portfolio [6] Company Strategy and Development Direction - The company aims to continue its role as a major consolidator in the U.S. oil and natural gas royalty sector, which is estimated to be over $700 billion in size [15] - Kimbell Royalty Partners plans to maintain a conservative balance sheet with a target net debt to EBITDA ratio of approximately 1.5 times, while continuing to pursue M&A opportunities [26][51] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving its goals for 2025 despite current economic volatility and uncertainty impacting commodity prices [7][14] - The company highlighted that its diversified portfolio and low PDP decline rate position it well to outperform many competitors in the upstream space [27] Other Important Information - The company increased its borrowing base and elected commitments on its credit facility from $550 million to $625 million as of May 1, 2025 [5][12] - Kimbell Royalty Partners redeemed 50% of its Series A cumulative convertible preferred units on May 7, 2025, simplifying its capital structure and reducing its cost of capital [5][13] Q&A Session Summary Question: Interest in M&A activity - Management acknowledged ongoing interest in M&A opportunities, particularly in the natural gas sector, despite challenges in transacting due to high valuations [20][22] Question: Target debt levels and leverage management - The company aims to maintain leverage at approximately 1.5 times EBITDA while continuing to pay down debt and redeem preferred units periodically [26][51] Question: Trends in production volumes - Management reaffirmed guidance for 2025, indicating no current evidence of a slowdown in drilling activity, with strong lease bonus payments expected [44][68] Question: Tax structure and distribution runway - The company has a considerable tax shield, allowing for a significant portion of distributions to be classified as return of capital, with no near-term end to this advantage anticipated [45][46] Question: NGL and natural gas realizations - Management noted stronger than expected realizations for NGL and natural gas, attributing improvements across the entire portfolio [62] Question: Update on net DUCs - The company reported 4.67 net DUCs at the end of Q1, with no significant trends indicating a slowdown in activity [65][67]

Financial Data and Key Metrics Changes - The company reported record revenues for oil, natural gas, and NGL totaling $90 million for Q1 2025, which includes contributions from acquired production [10] - Consolidated adjusted EBITDA reached a new record of $75.5 million for the quarter [10] - The cash distribution for Q1 2025 was declared at $0.47 per common unit, reflecting a 17.5% increase from Q4 2024 [7][11] Business Line Data and Key Metrics Changes - The company achieved a first quarter run rate production of 25,841 BOE per day, including contributions from acquired production [10] - General and administrative expenses for Q1 were reported at $9.6 million, with cash G&A expenses at $2.52 per BOE [10] Market Data and Key Metrics Changes - The company maintained a market share of approximately 16% of all rigs drilling in the Lower 48 states, with 90 rigs actively drilling on its acreage [5][10] - The company noted strong permitting activity, including the recent permitting of 17 additional wells in Martin County, Texas [5] Company Strategy and Development Direction - The company aims to continue its role as a major consolidator in the U.S. oil and natural gas royalty sector, which is estimated to be over $700 billion in size [14] - The company plans to maintain a conservative balance sheet and leverage ratio of approximately 1.5 times EBITDA while pursuing M&A opportunities [24][50] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2025 goals despite broader economic volatility and its impact on commodity prices [7][14] - The company highlighted a strong production profile and ongoing acquisition activity as key factors for future growth [14][29] Other Important Information - The company increased its borrowing base from $550 million to $625 million on May 1, 2025, and redeemed 50% of the Series A cumulative convertible preferred units on May 7, 2025 [4][12] Q&A Session Summary Question: Interest in M&A activity - Management acknowledged ongoing interest in M&A opportunities but noted challenges in transacting on natural gas deals due to competitive pricing [20][21] Question: Debt management and targets - The company aims to maintain a leverage ratio of approximately 1.5 times and plans to continue paying down debt while managing its capital structure [24][50] Question: Natural gas hedging strategy - Management stated that they are comfortable with a 20% hedging level, which they believe protects against price volatility while maintaining flexibility [34][36] Question: Production trends and guidance - Management reaffirmed guidance for 2025, indicating no current evidence of a slowdown in drilling activity [41][43] Question: Tax structure and distribution runway - The company has a considerable tax shield, allowing for a significant portion of distributions to be classified as return of capital, enhancing after-tax returns for unitholders [44][45] Question: Long-term capital structure and preferred units - Management plans to continue paying down debt and redeeming preferred units periodically while maintaining a conservative leverage ratio [50][52]

Financial Data and Key Metrics Changes - The company generated $54 million of operating cash flow before working capital, converting it to $39 million of upstream free cash flow, with a capital expenditure (CapEx) of only 35% reinvested into upstream while keeping volumes mostly flat [24] - Debt was reduced by $21 million quarter over quarter, resulting in a leverage ratio of 0.9 times [24] - Operating costs were lowered, with lease operating expenses (LOE) per barrel of oil equivalent (BOE) at $8.34, a 2% reduction from the previous quarter and an 8% reduction year over year [14] Business Line Data and Key Metrics Changes - Net production slightly declined from 1.46 million barrels of oil to 1.41 million barrels quarter over quarter, but increased by 19% year over year from 1.85 million barrels to 2.2 million barrels of oil equivalent [13] - The company completed 10 wells in Q1 2025, with five wells flowing back and expected to begin production in May, while the other five will come online in the second half of 2025 [12][14] Market Data and Key Metrics Changes - The company noted a 10% compression in many service costs compared to the previous year, despite potential tariff impacts [15] - The average daily net production was 15,620 barrels of oil per day and 24,430 barrels of oil equivalent per day for Q1 2025 [14] Company Strategy and Development Direction - The company announced a strategic acquisition of Silverback Exploration for $142 million, which includes approximately 47,000 net working interest acres and enhances long-term upstream development potential [5][6] - The focus for the year is on acquiring and preserving high-quality inventory rather than converting inventory to production [9] - The company plans to extend proven processes from Texas to New Mexico, enhancing power generation capabilities [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for the industry and the company, emphasizing a disciplined capital allocation philosophy and a robust hedging profile [9] - The company is adjusting its 2025 CapEx guidance down by $105 million or 50%, including a 41% reduction in upstream CapEx [29] - Management believes that the current market conditions present a better time to procure and preserve inventory [30] Other Important Information - The company achieved a total recordable incident rate of zero for Q1 2025, with 93% safe days [11] - The first phase of the New Mexico gathering and compression project was completed on time and on budget, increasing gas delivery capabilities [19] Q&A Session Summary Question: What do you think the motivation for the seller was regarding the Silverback acquisition? - The seller was a large private equity firm that often focuses on larger entities and exits, and the asset may have been too small for them [41] Question: Does the larger contiguous acreage position change the scope of your midstream project? - The acquisition supports the decision to invest in infrastructure, and additional gathering and compression may be needed over time [46][47] Question: What impact could the Silverback assets have on Riley's borrowing base during the redetermination in the fall? - The PDP value is likely half of the purchase price, and while not counting on it, some incremental benefit is expected [55] Question: Can you discuss how you are thinking about hedging downside risk in the current market environment? - Hedging is viewed as a risk management tool, and the company has hedged oil prices for 70% of forecasted PDP volumes at a weighted average downside price [58][59] Question: Are there any significant permitting differences for power projects in New Mexico versus Texas? - The air permits in New Mexico add a little cost, but overall permitting is looking fine [61]

Financial Data and Key Metrics Changes - The company reported a net loss of $72.9 million or a loss of $1.14 per share for Q1 2025, compared to a net loss of $51.4 million or $0.81 per share in Q1 2024 [23] - Revenue for the quarter was $601.5 million, up 0.7% year over year [24] - Adjusted EBITDA excluding restructuring charges was a loss of $24.2 million, compared to a negative $21.5 million in Q1 last year [26] - SG&A totaled $42.9 million, an increase of $11.1 million from the prior year due to restructuring and severance charges [27] Business Line Data and Key Metrics Changes - The company achieved a record 100% utilization rate across its nine operating plants, demonstrating strong asset performance [25] - The anticipated consolidated SG&A run rate is expected to decline from $118 million in 2024 to approximately $93 million by year-end 2025 [8][27] - The company has achieved $30 million in annualized cost savings and expects an additional $15 million from a recently announced ethanol marketing partnership [7] Market Data and Key Metrics Changes - U.S. ethanol exports are expected to surpass last year's record of nearly 2 billion gallons in 2025 [18] - Ethanol margins have strengthened heading into Q2 and Q3, supported by firmer corn oil fundamentals and anticipated increases in renewable volume obligations [18] - Current ethanol inventory levels are at 25 million barrels, with expectations to drop towards 23 million as the driving season begins [81] Company Strategy and Development Direction - The company is focused on returning to sustained profitability through disciplined execution and operational excellence [5][6] - A strategic marketing partnership with EcoEnergy has been established to enhance scale and optimize transportation and marketing economics [19] - The company is pausing its clean sugar technology initiative to maximize ethanol production and improve profitability at the Shenandoah site [15][108] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that performance has not met expectations but is committed to improving operational efficiency and profitability [5] - The company is optimistic about the carbon platform and is actively engaged in monetizing carbon credits [31][33] - Management expects to achieve positive EBITDA for the remainder of the year based on current market conditions and actions taken [34] Other Important Information - The company has executed a $30 million line of credit to enhance liquidity and is actively pursuing non-core asset sales [28][71] - Capital expenditures in Q1 were $16.7 million, with expectations of approximately $20 million for the remainder of 2025 [29] - The company is undergoing a strategic review, considering various paths including a potential sale or asset divestitures [32] Q&A Session Summary Question: Can you elaborate on the hedging framework and its reestablishment? - Management emphasized that hedging is a good practice for managing risk and is based on market opportunities, with a systematic approach supported by analytics [39][41] Question: What is the status of the CEO search? - The process is ongoing, nearing final stages, with a focus on candidates who can bring relevant industry experience [44] Question: Can you provide updates on carbon capture construction timelines? - Construction is on track for early Q4 startup, with no anticipated major delays [48] Question: What are the impacts of potential tariffs on product exports? - Currently, there has been no adverse impact from tariffs, and the company is optimistic about potential trade opportunities [49][52] Question: How is the company addressing the protein market dynamics? - The domestic protein market is expected to be flat, but the company is focusing on higher-margin segments like pet food and aqua feed [62]

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]

Viper Energy Partners (VNOM) Q1 2025 Earnings Call May 06, 2025 11:00 AM ET Company Participants Chip Seale - Director of Investor RelationsKaes Van’t Hof - CEO & DirectorAusten Gilfillian - PresidentDerrick Whitfield - Managing DirectorZach Parham - Executive Director Conference Call Participants Greta Drefke - Equity Research AnalystPaul Diamond - AnalystLeo Mariani - Managing Director, Senior Research AnalystTim Rezvan - Managing Director & Equity Research Analyst Operator and thank you for standing by. ...

Expand Energy (EXE) Q1 2025 Earnings Call April 30, 2025 09:00 AM ET Speaker0 Good day and welcome to the Expand Energy twenty twenty five First Quarter Earnings Teleconference. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please note that this event is being recorded. I would now like to turn the conference over to Chris Ayers, Vice President, Investor Relations and Special Projects. Please go ahead. Speaker1 Thank ...

Core Insights - Berry Corporation has strengthened its hedge and liquidity position, raising the average hedged price for 2026 and 2027 by $6 per barrel on 2.3 million barrels per day (MBbls/d) [1][6] - The company is 73% hedged for the remainder of 2025 and 63% hedged for 2026 based on its production guidance [1][6] - As of March 31, 2025, Berry had $120 million in liquidity, which includes $39 million in cash, $49 million available for borrowings, and $32 million for delayed draw borrowings [3] Hedging and Financial Position - Berry's hedging strategy has resulted in a favorable position, with a balance of 2025 oil hedged at an average price of $74.69 per barrel Brent [6] - The company has converted 2.3 MBbls/d of collars and puts into swaps, raising the floor price by $6 per barrel on average [6] - The mark-to-market (MTM) value for crude oil as of April 21, 2025, is $105 million [6] Liquidity and Upcoming Events - As of April 22, 2025, Berry's liquidity position is $119 million, with $14 million in letters of credit and no outstanding borrowings under its credit facility [3] - Berry's executives will participate in several upcoming investor events, including the ONE Houlihan Lokey Global Conference and the Louisiana Energy Conference [7]