Berry Corporation (BRY) Announces Fourth Quarter And Full Year 2024 Financial And Operational Earnings Results, Year-End Reserves And 2025 Outlook

Berry Corporation (BRY) today announced its financial results for the latest quarter, revealing a mixed performance. The company reported a quarterly revenue of $187.8 million, surpassing expectations by $12.8 million. However, Berry Corporation posted a quarterly loss with an earnings per share (EPS) of -$0.02, missing the EPS estimate of $0.15. Despite the revenue beat, the earnings miss highlights challenges the company faced during the period.

Key Highlights:

• Berry Corporation reported a net income of $19 million for the full year 2024, with an adjusted net income of $52 million.
• The company generated an operating cash flow of $210 million and a free cash flow of $108 million in 2024.
• Berry’s production was 25.4 MBoe/d, with 93% being oil, and they reduced methane emissions by over 80%.
• The company finalized year-end proved reserves of 107 MMBoe, a 4% increase from the previous year.
• For 2025, Berry projects production between 24.8 - 26.0 MBoe/d and plans a capital program of $110 - $120 million.
• CEO Fernando Araujo highlighted the success of drilling 28 sidetracks with a rate of return exceeding 100% and plans for 115 more sidetracks in the coming years.

Summary:

Berry Corporation reported strong financial and operational results for the fourth quarter and full year 2024, with a net income of $19 million and an adjusted net income of $52 million. The company generated an operating cash flow of $210 million and a free cash flow of $108 million. Production levels were maintained at 25.4 MBoe/d, with 93% being oil, and the company successfully reduced methane emissions by over 80%. Berry’s year-end proved reserves increased by 4% to 107 MMBoe, with a reserve replacement ratio of 147%. The company declared a quarterly cash dividend of $0.03 per share and plans to continue this fixed dividend while prioritizing debt reduction in 2025.

Looking ahead, Berry Corporation’s 2025 outlook includes an estimated production range of 24.8 - 26.0 MBoe/d, with a capital program of $110 - $120 million. CEO Fernando Araujo emphasized the company’s strategic focus on generating sustainable free cash flow and improving capital efficiency. He noted the success of drilling 28 sidetracks with exceptional results and a rate of return exceeding 100%, unlocking the potential for 115 more sidetracks in the coming years. Araujo also highlighted the expansion of development in the Uinta Basin and the company’s disciplined plan to ensure capital for development and create value for shareholders.

Berry Corporation (BRY) has been experiencing a turbulent period, with its stock price plummeting by 45.92% over the past year. The decline is starkly evident in the short term as well, with a 20.85% drop in the last month alone. This downward trend is mirrored in the company’s fundamental metrics, which paint a challenging picture. The price-to-earnings ratio stands at a low 3.375, suggesting that the market has low expectations for future earnings growth. This sentiment is perhaps justified, given the company’s negative earnings per share (EPS) two-year compound annual growth rate (CAGR) of -43.06%. Additionally, Berry’s revenue and free cash flow have also contracted over the past two years, with CAGRs of -5.44% and -13.85%, respectively. Despite a modest return on invested capital of 7.17% and a net profit margin of 8.09%, the overall financial health of Berry Corporation seems to be under significant pressure, reflecting the steep declines in its stock price.

Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. It operates in two segments, Development and Production, and Well Servicing and Abandonment. The company’s properties are located in the San Joaquin and Ventura basins, California; and Uinta basin, Utah. As of December 31, 2021, it had a total of 3,417 net productive wells. The company was formerly known as Berry Petroleum Corporation and changed its name to Berry Corporation in February 2020. Berry Corporation was founded in 1909 and is headquartered in Dallas, Texas.