Berry (bry)(US:BRY)2024-05-01 17:34Financial Data and Key Metrics Changes - In Q1 2024, the company generated adjusted EBITDA of $69 million, which was flat compared to Q4 2023 [3][7] - Adjusted free cash flow for Q1 2024 was $1 million, a decrease from $55 million in Q4 2023, primarily due to seasonal working capital uses [25] - Lease operating expenses decreased by 10% sequentially, primarily due to reduced fuel gas costs [7][24] Business Line Data and Key Metrics Changes - Production for the quarter was flat compared to the 2023 full year average, with base production remaining strong, particularly from thermal diatomite reservoirs [4] - The company drilled and completed nine sidetracks as planned and is currently executing a 20-well sidetrack campaign in the Midway Sunset field [4] Market Data and Key Metrics Changes - Commodity revenues were down by 4% due to a 1% decrease in oil production and lower oil prices [7] - The company is acquiring additional working interest in the Iron Mountain field, which is expected to add approximately 100 barrels of oil per day annualized [4] Company Strategy and Development Direction - The company aims to maximize enterprise value by generating sustainable free cash flow through operational excellence, including maintaining production levels and managing costs [19][44] - The focus for the remainder of the year includes optimizing performance from the base business, improving capital structure, and pursuing growth opportunities in the exploration and production business [44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving solid performance in 2024, emphasizing that current plans do not depend on the reinstatement of the Kern County EIR [5][41] - The company is committed to reducing methane emissions by at least 80% from a 2022 baseline by the end of 2025 [42][43] Other Important Information - The company plans to replace all regulated natural gas pneumatic devices with zero-emission devices in the second half of the year [29] - The Board approved a fixed dividend of $0.12 per share for Q1 2024, with no variable dividend due to nominal adjusted free cash flow [26] Q&A Session Summary Question: Performance of thermal diatomite reservoirs - Management highlighted that the thermal diatomite reservoir has shown a 19% increase in production over the past four to five years due to proper surveillance and workover activity [33][46] Question: Future capital expenditures and partnerships - Management is exploring the possibility of creating joint ventures or finding partners to reduce capital commitments for drilling horizontal wells in the future [35]