Berry (bry)(US:BRY)2025-08-07 16:00Financial Data and Key Metrics Changes - Second quarter oil and gas sales were $126 million, with a realized oil price of 92% of Brent [19] - Adjusted EBITDA for the second quarter was $53 million, and operating cash flow was $29 million [20] - Total debt at quarter end was $428 million, with $11 million paid down during the quarter [21] - The company declared a dividend of $0.03 per share, representing a 4% annualized dividend yield [22] Business Line Data and Key Metrics Changes - In California, 16 wells were drilled in the second quarter, an increase from 12 in the first quarter and six in the fourth quarter of the previous year [8] - In Utah, the company successfully fracked 64 stages per well on average, achieving cost savings of approximately $500,000 per well [9] Market Data and Key Metrics Changes - The company has 71% of its expected oil production hedged at approximately $75 per barrel of Brent for the remainder of 2025 [19] - For 2026, 63% of expected oil production is hedged at an average price of $70 per barrel of Brent [20] Company Strategy and Development Direction - The company’s strategy focuses on balance sheet strength, high return development projects, and operational efficiencies [6] - The company has permits in hand to support development projects into 2027, providing a competitive advantage [7] - The company aims to generate sustainable free cash flow, reduce debt, and create long-term value through its high return portfolio [12][23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the regulatory environment in California, highlighting a constructive tone and potential for favorable outcomes in permitting [14][17] - The company is well-positioned to navigate California's complex environment and capitalize on regulatory reforms [17] Other Important Information - The company is finalizing its 2025 sustainability report, which will include enhanced disclosures and demonstrate its commitment to responsible operations [13] - The company is encouraged by the California Energy Commission's response to the governor's directive aimed at stabilizing in-state production [15] Q&A Session Summary Question: What is the probability of a favorable outcome regarding the Kern County EIR? - Management feels very optimistic about the outcome, noting no new objections were filed and confidence in the thorough work done by the county [26][28] Question: Can you provide expectations for the Castle Peak well? - Management highlighted initial estimates of 40 to 50 barrels per foot EUR and expressed excitement about the geology in their acreage, which could lead to significant development potential [30][31] Question: Can you discuss the cost achievements in Uinta? - Management noted a 20% cost reduction compared to other operators and identified areas for further improvement, including better performance from gas engines and increased utilization of produced water [36][40] Question: What are the long-term opportunities within the California portfolio? - Management mentioned significant potential in various projects, including thermal diatomite sidetracks and horizontal wells in the Monarch, indicating high rates of return even at current pricing [41][42]