Berry (bry)(US:BRY)2025-05-08 16:02Financial 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]