Berry Corporation Reports Fourth Quarter and Full Year 2024 Financial and Operational Results, Year-End Reserves and 2025 Outlook

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

DALLAS, March 12, 2025 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) ("Berry” or the "Company”) today announced financial and operating results for the fourth quarter and full year 2024, as well as a quarterly cash dividend of $0.03 per share. Berry has provided a supplemental slide deck on its results, which can be found at www.bry.com. The Company plans to host a conference call and webcast to discuss its fourth quarter and full year 2024 results, as well as its 2025 outlook, at 10:00 a.m. CT, Thursday, March 13, 2025. Details can be found in this release.

Full Year 2024 Highlights

• Delivered results better than the midpoint of guidance on production, operational expenses, G&A and capital expenditures
• Reported net income of $19 million, or $0.25 per diluted share and Adjusted Net Income⁽¹⁾ of $52 million, or $0.68 per diluted share
• Generated operating cash flow of $210 million, Adjusted EBITDA⁽¹⁾ of $292 million and Free Cash Flow⁽¹⁾ of $108 million
• Produced 25.4 MBoe/d (93% oil), in upper end of guidance and even to prior year
• Reduced LOE (net of hedges) by 12% year-over-year; lowered G&A compared to 2023 including 6% reduction in Adjusted G&A⁽¹⁾
• Reduced methane emissions by over 80%, with execution completed ahead of plan
• Finalized year-end proved reserves of 107 MMBoe, up 4% over prior year, with a reserve replacement ratio of 147%⁽¹⁾ and an SEC PV-10 value of $2.3 billion⁽²⁾

Fourth Quarter 2024 Highlights

• Reported a net loss of $2 million, or $(0.02) per diluted share, Adjusted Net Income⁽¹⁾ of $17 million, or $0.21 per diluted share
• Generated operating cash flow of $41 million, Adjusted EBITDA⁽¹⁾ of $82 million and Free Cash Flow⁽¹⁾ of $24 million
• Produced 26.1 MBoe/d (93% oil), a 5% increase over third quarter and 1% increase year-over-year
• Declared a fixed dividend of $0.03 per share, which represents a 3% yield⁽³⁾ on an annual basis

2025 Outlook

• Full year estimated production of 24.8 - 26.0 MBoe/d, with oil production expected to comprise ~93% of total
• Full year capital program of $110 - $120 million, with flexibility to adjust as commodity prices dictate
• Approximately 40% of Berry's 2025 capital will be directed to Utah compared to 25% in 2024

MANAGEMENT COMMENTS

Fernando Araujo, Berry's Chief Executive Officer, said, "Our fourth quarter and year-end results highlight our continued success advancing our long-term strategy of generating sustainable free cash flow with high rate of return projects, while improving capital efficiency and our cost structure. Our thermal diatomite asset continues to deliver value enhancing results and provides a catalyst for future opportunities. In 2024, we successfully drilled 28 sidetracks with exceptional results and a rate of return exceeding 100%. These results have unlocked the potential to drill an additional 115 more sidetracks in this asset over the next few years, including up to 34 planned for 2025. Additionally, we expanded development of our 100,000 net acre position in the Uinta Basin. We executed two farm-ins/acreage exchanges providing critical technical data from 6 horizontal wells with peak rates up to 2,000 Boe/d. We closed the year with a refinancing to strengthen our balance sheet and entered 2025 with a disciplined plan designed to ensure capital for development and create value for shareholders.”

Araujo continued, "It's an exciting time to be at Berry. In addition to operating and developing our existing assets efficiently, we are actively pursuing scale and diversification and evaluating accretive deals both large and small. We have the roadmap and the options to enhance our cash flows and sustain production, while simultaneously expanding our inventory and strengthening our balance sheet. Our team has an established track record of delivering on key objectives through cycles and regulatory challenges, and we have a compelling pipeline of value enhancing opportunities.”

FOURTH QUARTER 2024 FINANCIAL AND OPERATING SUMMARY

Selected Comparative Results

FULL YEAR 2024 FINANCIAL AND OPERATING SUMMARY

Selected Comparative Results

CAPITAL STRUCTURE

As of December 31, 2024, Berry had $450 million outstanding on our 2024 Term Loan (defined below) and no borrowings outstanding under the 2024 Revolver (defined below). As of December 31, 2024, the Company had $110 million of liquidity, consisting of $15 million of cash and cash equivalents, $63 million available for borrowings under the 2024 Revolver and $32 million available for delayed draw borrowings under the 2024 Term Loan. Based on current forward commodity prices, Berry expects to be able to fund its 2025 capital development program from cash flow from operations. As of December 31, 2024, the Company had a leverage ratio⁽¹⁾ of 1.49x.

SHAREHOLDER RETURNS

In October 2024, in connection with the 2024 Term Loan, Berry transitioned to a capital allocation approach that prioritizes debt reduction and aligns with the covenants contained in the 2024 Term Loan while facilitating the Company's operating strategy and enabling investment in development opportunities.

In March 2025, Berry's Board of Directors approved a fixed cash dividend of $0.03 per share, payable to shareholders of record as of March 22, 2025 and is expected to be paid on April 1, 2025. For 2025, the Company expects to continue with its fixed dividend while prioritizing debt reduction.

2025 GUIDANCE

RISK MANAGEMENT

Berry utilizes hedges to manage commodity price risk, protect the balance sheet and ensure cash flow to fund its annual capital program. Based on the midpoint of the Company's guidance and its hedge book as of January 31, 2025, Berry has 75% of its estimated oil production volumes hedged for 2025 at average strike price of $74.24 per barrel of Brent factoring in swaps and the floor price of collars. The Company has gas purchase hedges for approximately 70% of its expected 2025 gas demand, with an average swap price of $4.25 per MMBtu. As part of the debt refinancing, Berry is required to hedge a minimum of 75% of PDP volumes for the first 24 months and 50% of volumes for months 25-36 on a rolling basis. Complete details on the Company's derivative positions can be found in its investor presentation located at https://ir.bry.com/reports-resources.

PROVED RESERVES

Berry's year-end 2024 proved reserves totaled 107 MMBoe, of which 58% were proved developed and 96% were oil. The Company's YE24 reserve report contains 548 PUD locations. Only 5% of Berry's California PUD reserves are in areas where new drill permits are constrained and the Company is not currently pursuing alternative CEQA compliance. Berry's proved reserves and PV-10 estimates as of December 31, 2024 were prepared by DeGolyer and MacNaughton in accordance with applicable rules and guidelines of the SEC. At year-end, The Company's standardized measure of discounted future cash flows of proved reserves was $1.8 billion and PV-10⁽¹⁾⁽²⁾, utilizing SEC pricing, was $2.3 billion. Complete details on Berry's year-end 2024 reserves can be found in its investor presentation located at https://ir.bry.com/reports-resources.

CONFERENCE CALL DETAILS

Berry plans to host a conference call to discuss its fourth quarter and full year 2024 results, as well as its 2025 outlook:

Call Date: Thursday, March 13 , 2025

Call Time: 11:00 a.m. Eastern Time / 10:00 a.m. Central Time / 8:00 a.m. Pacific Time

Join the live listen-only audio webcast at https://edge.media-server.com/mmc/p/jocmjm36 or at https://bry.com/category/events. Accompanying slides will also be available at the time of the call at www.bry.com.

If you would like to ask a question on the live call, please preregister at any time using the following link:

https://register.vevent.com/register/BI79bd222b5a56464a890cc7ab0156d115

Once registered, you will receive the dial-in numbers and a unique PIN number. You may then dial-in or have a call back. When you dial in, you will input your PIN and be placed into the call. If you register and forget your PIN or lose your registration confirmation email, you may simply re-register and receive a new PIN.

A web based audio replay will be available shortly after the broadcast and will be archived at

https://ir.bry.com/reports-resources or visit https://edge.media-server.com/mmc/p/jocmjm36 or

https://bry.com/category/events

ABOUT BERRY CORPORATION (BRY)

Berry is a publicly traded (NASDAQ: BRY) western United States independent upstream energy company with a focus on onshore, low geologic risk, long-lived oil and gas reserves. We operate in two business segments: (i) exploration and production ("E&P”) and (ii) well servicing and abandonment services. Our E&P assets are located in California and Utah, are characterized by high oil content and are predominantly located in rural areas with low population. Our California assets are in the San Joaquin Basin (100% oil), and our Utah assets are in the Uinta Basin (65% oil). We provide our well servicing and abandonment services to third party operators in California and our California E&P operations through C&J Well Services (CJWS). More information can be found at the Company's website at www.bry.com.

FORWARD-LOOKING STATEMENTS

The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

You can typically identify forward-looking statements by words such as aim, anticipate, achievable, believe, budget, continue, could, effort, estimate, expect, forecast, goal, guidance, intend, likely, may, might, objective, outlook, plan, potential, predict, project, seek, should, target, will or would and other similar words that reflect the prospective nature of events or outcomes. All statements other than statements of historical facts included in this report that address plans, activities, events, objectives, goals, strategies or developments that we expect, believe or anticipate will or may occur in the future, such as those regarding our financial position, liquidity, cash flows (including, but not limited to, Free Cash Flow), financial and operating results, capital program and development and production plans, operations and business strategy, potential acquisition and other strategic opportunities, reserves, hedging activities, capital expenditures, return of capital, future repurchases of stock or debt, capital investments, our ESG strategy and the initiation of new projects or business in connection therewith, recovery factors and other guidance, are forward-looking statements. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. For any such forward-looking statement that includes a statement of the assumptions or bases underlying such forward-looking statement, we caution that, while we believe such assumptions or bases to be reasonable and make them in good faith, assumed facts or bases almost always vary from actual results, sometimes materially. Therefore, such forward-looking statements involve significant risks and uncertainties that could materially affect our expected financial position, financial and operating results, liquidity, cash flows (including, but not limited to, Free Cash Flow) and business prospects.

Factors (but not all the factors) that could cause results to differ include among others: (1) the regulatory environment, including availability or timing of, and conditions imposed on, obtaining and/or maintaining permits and approvals, including those necessary for drilling and/or development projects; (2) the impact of current, pending and/or future laws and regulations, and of legislative and regulatory changes and other government activities, including those related to permitting, drilling, completion, well stimulation, operation, maintenance or abandonment of wells or facilities, managing energy, water, land, greenhouse gases or other emissions, protection of health, safety and the environment, or transportation, marketing and sale of our products; (3) volatility of oil, natural gas and NGL prices, including as a result of political instability, armed conflicts or economic sanctions; (4) inflation levels and government efforts to reduce inflation, including related interest rate determinations; (5) overall domestic and global political and economic trends, geopolitical risks and general economic and industry conditions, such as inflation, high interest rates, increased volatility in financial and credit markets, global supply chain disruptions, government interventions into the financial markets and economy and volatility related to recent and upcoming elections in the United States and other major economies; (6) the imposition of tariffs or trade or other economic sanctions, political instability or armed conflict in oil and gas producing regions, including the ongoing conflict in Ukraine, the ongoing conflict in the Middle East, or a prolonged recession, among other factors; (7) supply of and demand for oil, natural gas and NGLs, including due to the actions of foreign producers, importantly including OPEC+ and change in OPEC+'s production levels; (8) the California and global energy future, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues, the transition to a low-emission economy and the expected role of different energy sources; (9) concerns about climate change and air quality issues; (10) price fluctuations and availability of natural gas and electricity and the cost of steam; (11) disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver our oil and natural gas and other processing and transportation considerations; (12) our ability to recruit and/or retain key members of our senior management and key technical employees; (13) competition and consolidation in the oil and gas E&P industry; (14) our ability to replace our reserves through exploration and development activities or acquisitions; (15) our ability to make acquisitions and successfully integrate any acquired businesses; (16) information technology failures or cyberattacks; (17) inability to generate sufficient cash flow from operations or to obtain adequate financing to fund capital expenditures, meet our working capital requirements or fund planned investments; (18) our ability to satisfy our debt obligations and comply with all covenants, agreements and conditions under our 2024 Term Loan and our 2024 Revolver; and (19) the other risks described under the heading "Item 1A. Risk Factors” in the Company's Annual Report on Form 10-K for the year ended December 31, 2024 and subsequent filings with the SEC.

Any forward-looking statement speaks only as of the date on which such statement is made. Except as required by law, we undertake no responsibility to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law. All forward-looking statements, expressed or implied, included in this press release are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at via our website or via the Investor Relations contact below, or from the SEC's website at www.sec.gov.

TABLES FOLLOWING

The financial information and certain other information presented have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column in certain tables. In addition, certain percentages presented here reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers, or may not sum due to rounding.

SUMMARY OF RESULTS