KLX Energy Services Holdings, Inc. press release

Berry Corporation Announces Third Quarter 2025 Financial and Operational Results, Continued Debt Reduction and Quarterly Dividend

2025-11-05

NASDAQ - Nasdaq Stock Market · Oil · Natural Gas · Natural Gas Liquids · United States

DALLAS, Nov. 05, 2025 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“Berry” or the “Company”) today announced its financial and operational results for the third quarter of 2025, as well as a quarterly cash dividend of $0.03 per share. Due to the pending merger (the “Merger”) with California Resources Corporation (“CRC”), Berry will not post supplemental slides or host a conference call to discuss its quarterly results.

Highlights

Produced 23.9 thousand barrels of oil equivalent per day (“MBoe/d”) (91% oil) Brought online operated 4-well horizontal Uinta pad in August; achieved a peak pad IP30 rate of 4,000 Boe/d (93% oil) Reported net loss of $26 million, or $0.34 per diluted share, and Adjusted Net Loss (1) of $6 million, or $0.08 per share Generated operating cash flow of $55 million, Adjusted EBITDA (1) of $49 million and Free Cash Flow (1) of $38 million Paid down approximately $11 million of total debt; year-to-date total debt reduction of approximately $34 million Returned cash to shareholders via quarterly dividend, representing a 4% dividend yield (2) on an annual basis Reported zero recordable incidents and zero lost-time incidents in our E&P operations Announced signing of an agreement to merge with CRC; registration statement relating to the Merger went effective on November 3, 2025; Berry’s special shareholder meeting to approve the Merger will be held on December 15, 2025

(1) Please see “Non-GAAP Financial Measures and Reconciliations” in this release for reconciliations to GAAP and more information on these Non-GAAP measures. (2) Based on BRY share price of $3.37 as of October 31, 2025.

THIRD QUARTER 2025 FINANCIAL AND OPERATING SUMMARY

Selected Comparative Results

| | Three Months Ended | | | | | | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | | | | | | (unaudited) ($ in millions, except per share amounts) | | | | | | | | | | | Production (MBoe/d) | | 23.9 | | | | 23.9 | | | | 24.8 | | Oil, natural gas & NGL revenues (1) | $ | 128 | | | $ | 126 | | | $ | 154 | | Net income (loss) | $ | (26 | ) | | $ | 34 | | | $ | 70 | | Adjusted Net Income (Loss) (2) | $ | (6 | ) | | $ | 0 | | | $ | 11 | | Adjusted EBITDA (2) | $ | 49 | | | $ | 53 | | | $ | 67 | | Earnings per diluted share | $ | (0.34 | ) | | $ | 0.43 | | | $ | 0.91 | | Adjusted earnings per diluted share (2) | $ | (0.08 | ) | | $ | 0.00 | | | $ | 0.14 | | Cash Flow from Operations | $ | 55 | | | $ | 29 | | | $ | 71 | | Capital expenditures | $ | 17 | | | $ | 54 | | | $ | 26 | | Free cash flow (2) | $ | 38 | | | $ | (26 | ) | | $ | 45 |

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(1) Revenues do not include hedge settlements. (2) Please see “Non-GAAP Financial Measures and Reconciliations” in this press release for more information on these Non-GAAP measures and reconciliations to the nearest GAAP measures.

CAPITAL STRUCTURE

As of September 30, 2025, Berry had $416 million outstanding on its term loan facility and no borrowings outstanding under its revolving credit facility. As of September 30, 2025, the Company had $94 million of liquidity consisting of $13 million of cash, $49 million of available borrowing capacity and $32 million of available commitments under the delayed draw portion of the term loan facility.

DEBT REDUCTION AND SHAREHOLDER RETURNS

During the quarter, Berry paid down approximately $11 million of debt bringing total debt reduction to approximately $34 million year-to-date.

On November 4, 2025, the Company’s Board of Directors approved a quarterly cash dividend of $0.03 per share of common stock, payable on December 4, 2025 to shareholders of record as of the close of business on November 18, 2025.

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 Company’s hedge book as of October 31, 2025, Berry has 18.2 MBbls/d of oil production volumes hedged for the remainder of 2025 at an average price of $74.15/Bbl of Brent, and 16.0 MBbls/d of oil production hedged for full year 2026 at $68.94/Bbl of Brent. The Company has gas purchase hedges of 40,000 MMBtu/d for the remainder of 2025 at an average swap price of $4.15/MMBtu.

Complete details on Berry’s derivative positions can be found in its third quarter 2025 Form 10-Q filing.

SUSTAINABILITY UPDATE

The Company published its 2025 Sustainability Report on September 17, 2025. The report highlights Berry’s fiscal year 2024 sustainability achievements, and aligns with the Sustainability Accounting Standards Board (SASB) and the Task Force on Climate-Related Financial Disclosures (TCFD).

2025 GUIDANCE

Due to the pending merger with CRC, Berry has discontinued providing guidance. Accordingly, investors are cautioned not to rely on historical forward-looking statements as those forward-looking statements were the estimates of management only as of the date provided and were subject to the specified risks and uncertainties that accompanied such forward-looking statements.

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 (70% 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 .

NO OFFER OR SOLICITATION

This press release is not intended to and shall not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to appropriate registration or qualification under the securities laws of such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended (the “Securities Act”).

ADDITIONAL INFORMATION AND WHERE TO FIND IT

In connection with the proposed transaction, CRC filed with the Securities and Exchange Commission (the “SEC”) on October 14, 2025, a registration statement on Form S-4 (the “registration statement”) that became effective on November 3, 2025. The registration statement includes a proxy statement of Berry that also constitutes a prospectus of CRC. The definitive proxy statement/prospectus was filed with the SEC on November 4, 2025 and was first sent to the holders of common stock of Berry on or about that date. Berry and/or CRC may also file other documents in connection with the proposed transaction. Investors and stockholders of Berry and CRC are urged to read the definitive proxy statement/prospectus and any other documents filed or to be filed with the SEC in connection with the proposed transaction when they become available, as they contain or will contain important information about Berry, CRC, the proposed transaction and related matters. The registration statement and definitive proxy statement/prospectus are available, and other documents filed by Berry or CRC with the SEC when filed will be available, free of charge at the SEC’s website at https://www.sec.gov . Alternatively, investors and stockholders may obtain free copies of documents that are filed or will be filed with the SEC by Berry, including the definitive proxy statement/prospectus, on Berry’s website at https://ir.bry.com/reports-resources , and may obtain free copies of documents that are filed or will be filed with the SEC by CRC, including the registration statement and the definitive proxy statement/prospectus, on CRC’s website at https://www.crc.com/investor-relations . The information included on, or accessible through, Berry’s or CRC’s website is not incorporated by reference into this press release.

PARTICIPANTS IN THE PROXY SOLICITATION

Berry and its directors and certain of Berry’s executive officers and other employees, and CRC and certain of its directors, executive officers and other employees, may be deemed to be participants in the solicitation of proxies from Berry’s stockholders in connection with the proposed transaction. A description of participants’ direct or indirect interests, by security holdings or otherwise, are included in the definitive proxy statement/prospectus relating to the proposed transaction that was filed with the SEC. Information regarding Berry’s directors and executive officers is contained in the “Proposal No. 1—Election of Directors,” “Corporate Governance,” “Executive Officers,” “Executive Compensation – Compensation Discussion and Analysis,” “Director Compensation,” “Security Ownership of Certain Beneficial Owners and Management,” and “Certain Relationships and Related Party Transactions” sections of Berry’s definitive proxy statement for its 2025 annual meeting of stockholders, filed with the SEC on April 7, 2025; under the heading “Directors, Executive Officers and Corporate Governance” in Part III, Item 10 of Berry’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 13, 2025; in Item 5.07 of Berry’s Current Report on Form 8-K filed with the SEC on May 22, 2025; in Berry’s Current Reports on Form 8-K filed with the SEC on January 22, 2025 and October 25, 2024; in the definitive proxy statement/prospectus, including under the headings “Interest’s of Certain Berry Directors and Executive Officers in the Merger” beginning on pages 15 and 91; and under “Leadership” accessed through the “About” link on Berry’s website at https://bry.com/about/management/ . Information regarding CRC’s directors and executive officers is contained in the “Board of Directors and Corporate Governance,” “Compensation Discussion and Analysis,” “Executive Compensation Tables,” “Director Compensation,” “Stock Ownership Information,” and “Proposals Requiring Your Vote – Proposal 1: Election of Directors” sections of CRC’s definitive proxy statement for CRC’s 2025 Annual Meeting of Stockholders, filed with the SEC on March 19, 2025; under the heading “Directors, Executive Officers and Corporate Governance” in Part III, Item 10 of CRC’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on March 3, 2025; in Item 5.07 of CRC’s Current Report on Form 8-K filed with the SEC on May 6, 2025; in CRC’s Current Reports on Form 8-K filed with the SEC on June 23, 2025 and November 25, 2024; and under “Our Team” accessed through the “Our Business” link on CRC’s website at https://www.crc.com/our-business/our-team . Additional information regarding ownership of Berry’s securities by its directors and executive officers and of CRC’s securities by its directors and executive officers is included in such persons’ SEC filings on Forms 3, 4 or 5, which are available at https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001705873 and https://www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=0001609253 , respectively. These documents and the other SEC filings described in this paragraph may be obtained free of charge as described above under the heading “Additional Information and Where to Find It.”

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release includes forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act 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 press release 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, 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 distributions, 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. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, the Company does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise, unless required by law.

Factors that could cause actual results to differ from management’s expectations include, but are not limited to: risks related to the impact of the Merger, including the following: transaction costs, unknown liabilities; the risk that any announcements relating to the Merger could have adverse effects on the market price of our common stock; the ability to successfully integrate our and CRC’s businesses; the ability to achieve projected synergies or that it may take longer than expected to achieve those synergies; risks related to financial community and rating agency perceptions of us or our business, operations, financial condition and the industry in which we operate; the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement; the risk that our stockholders may not approve the proposed transaction; risks related to disruption of management’s time from ongoing business operations due to the Merger; effects of the announcement or pendency of the Merger on our ability to retain customers and retain and hire key personnel and maintain relationships with our suppliers and customers; the risk that any of the other closing conditions to closing of the Merger may not be satisfied in a timely manner, including the risk that all necessary regulatory approvals may not be obtained or may be obtained subject to conditions that are not anticipated; 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; 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; volatility of oil, natural gas and NGL prices, including as a result of political instability, armed conflicts or economic sanctions; inflation levels and government efforts aimed to reduce inflation, including related interest rate determinations; overall domestic and global political and economic trends, geopolitical risks and general economic and industry conditions; 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; our ability to satisfy our debt obligations and comply with all covenants, agreements and conditions under our debt agreements; any future impairments to the Company’s proved or unproved oil and gas properties or write-downs of productive assets; 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; changes in 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; the competitiveness and rate of adoption of alternative energy sources, including the factors and trends that are expected to shape it, such as concerns about climate change and other air quality issues; the price and availability of natural gas and electricity to generate stream used in our operations; disruptions to, capacity constraints in, or other limitations on pipeline and other transportation systems that deliver our oil and natural gas to customers and other processing and transportation considerations; our ability to recruit and/or retain key members of our senior management and key technical employees; potential liability resulting from pending or future litigation, government investigations or other legal proceedings; competition and consolidation in the E&P industry; our ability to replace our reserves through exploration and development activities or acquisitions; our ability to make acquisitions and successfully integrate any acquired businesses; information technology failures or cyberattacks; and the other risks described under Part I, Item 1A. “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, “Risk Factors” in the definitive proxy statement/prospectus and the Company’s subsequent filings with the SEC.

Investors are urged to consider carefully the disclosure in our filings with the SEC, available from us at via our website or via the Investor Relations contact below, or from the SEC’s website at www.sec.gov.

CONTACT

Contact: Berry Corporation (bry) Christopher Denison: Director - Investor Relations & Sustainability (661) 616-3811 ir@bry.com

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

| | Three Months Ended | | | | | | | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | | | | | | | (unaudited) ($ and shares in thousands, except per share amounts) | | | | | | | | | | | | Consolidated Statement of Operations Data: | | | | | | | | | | | | | Revenues and other: | | | | | | | | | | | | | Oil, natural gas and natural gas liquids sales | $ | 128,489 | | | $ | 125,637 | | | $ | 154,438 | | | Service revenue | | 20,762 | | | | 22,824 | | | | 25,465 | | | Electricity sales | | 5,314 | | | | 4,886 | | | | 4,410 | | | (Losses) gains on oil and gas sales derivatives | | (4,666 | ) | | | 56,423 | | | | 75,434 | | | Marketing and other revenues | | 1,243 | | | | 308 | | | | 1,961 | | | Total revenues and other | | 151,142 | | | | 210,078 | | | | 261,708 | | | | | | | | | | | | | | | | Expenses and other: | | | | | | | | | | | | | Lease operating expenses | | 58,137 | | | | 53,193 | | | | 54,900 | | | Cost of services | | 18,410 | | | | 19,001 | | | | 22,911 | | | Electricity generation expenses | | 838 | | | | 624 | | | | 1,245 | | | Transportation expenses | | 1,337 | | | | 1,225 | | | | 1,332 | | | Marketing expenses | | 1,651 | | | | 345 | | | | 1,825 | | | Acquisition and other transaction costs | | 3,286 | | | | 310 | | | | 971 | | | General and administrative expenses | | 20,242 | | | | 20,270 | | | | 19,111 | | | Depreciation, depletion and amortization | | 38,514 | | | | 35,294 | | | | 42,749 | | | Taxes, other than income taxes | | 14,056 | | | | 12,957 | | | | 10,351 | | | Losses (gains) on natural gas purchase derivatives | | 16,049 | | | | 3,130 | | | | 7,775 | | | Other operating (income) expense | | (2,314 | ) | | | 1,365 | | | | (4,687 | ) | | Total expenses and other | | 170,206 | | | | 147,714 | | | | 158,483 | | | | | | | | | | | | | | | | Other expenses | | | | | | | | | | | | | Interest expense | | (16,430 | ) | | | (15,513 | ) | | | (8,986 | ) | | Other, net | | (2 | ) | | | (59 | ) | | | 56 | | | Total other expenses | | (16,432 | ) | | | (15,572 | ) | | | (8,930 | ) | | (Loss) income before income taxes | | (35,496 | ) | | | 46,792 | | | | 94,295 | | | Income tax expense (benefit) | | (9,479 | ) | | | 13,188 | | | | 24,432 | | | Net (loss) income | $ | (26,017 | ) | | $ | 33,604 | | | $ | 69,863 | | | | | | | | | | | | | | | | Net (loss) income per share: | | | | | | | | | | | | | Basic | $ | (0.34 | ) | | $ | 0.43 | | | $ | 0.91 | | | Diluted | $ | (0.34 | ) | | $ | 0.43 | | | $ | 0.91 | | | | | | | | | | | | | | | | Weighted-average shares of common stock outstanding - basic | | 77,602 | | | | 77,596 | | | | 76,939 | | | Weighted-average shares of common stock outstanding - diluted | | 77,602 | | | | 77,697 | | | | 77,060 | | | | | | | | | | | | | | | | Adjusted Net Income (Loss) (1) | $ | (5,867 | ) | | $ | (364 | ) | | $ | 10,839 | | | Weighted-average shares of common stock outstanding - diluted | | 77,602 | | | | 77,596 | | | | 77,060 | | | Diluted earnings per share on Adjusted Net Income (Loss) (1) | $ | (0.08 | ) | | $ | 0.00 | | | $ | 0.14 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | | | September 30, 2025 | | June 30, 2025 | | September 30, 2024 | | | | | | | | | (unaudited) ($ and shares in thousands, except per share amounts) | | | | | | | | | | | | Adjusted EBITDA (1) | $ | 49,404 | | | $ | 52,915 | | | $ | 67,121 | | | Free Cash Flow (1) | $ | 38,390 | | | $ | (25,611 | ) | | $ | 44,821 | | | Adjusted General and Administrative Expenses (1) | $ | 18,111 | | | $ | 18,313 | | | $ | 16,466 | | | Effective Tax Rate | | 27 | % | | | 28 | % | | | 26 | % | | | | | | | | | | | | | | | Cash Flow Data: | | | | | | | | | | | | | Net cash provided by operating activities | $ | 55,411 | | | $ | 28,638 | | | $ | 70,695 | | | Net cash used in investing activities | $ | (47,199 | ) | | $ | (34,162 | ) | | $ | (24,502 | ) | | Net cash used in financing activities | $ | (14,576 | ) | | $ | (13,760 | ) | | $ | (43,410 | ) |