Patterson-UTI Energy, Inc. press release

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

2025-08-06

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

DALLAS, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“Berry” or the “Company”) today announced its financial and operational results for the second quarter of 2025, as well as a quarterly cash dividend of $0.03 per share. Berry has provided a supplemental slide deck summarizing these results, which can be found at www.bry.com. The Company plans to host a conference call and webcast to discuss its second quarter 2025 results and latest 2025 outlook, at 10:00 a.m. CT, Thursday, August 7, 2025; access details can be found in this release.

Highlights

Reaffirmed FY25 guidance; favorable hedge position protects cash flows and liquidity position Produced 23.9 MBoe/d (92% oil), in-line with plan Paid down approximately $11 million of total debt; year-to-date total debt reduction of approximately $23 million, in-line with target of at least $45 million of total debt reduction in 2025 Returned cash to shareholders via quarterly dividend, representing a 4% dividend yield (1) on an annual basis Year-to-date hedged LOE trending 6% below midpoint of FY25 guidance Reported net income of $34 million, or $0.43 per diluted share Generated operating cash flow of $29 million and Adjusted EBITDA (2) of $53 million Reported zero recordable incidents and zero lost-time incidents in our E&P operations

Other Updates

Oil volumes 71% (3) hedged for remainder of 2025 at $74.59/Bbl and 63% (3) hedged for 2026 at $69.55/Bbl Mark-to-market (crude oil) hedge value of $30 million as of July 31, 2025 Production from all four horizontal Uinta wells expected in August, with first well currently on flowback and second well running final completion

(1) Based on BRY share price of $3.02 as of July 31, 2025. (2) Please see “Non-GAAP Financial Measures and Reconciliations” in this release for reconciliations to GAAP and more information on these Non-GAAP measures. (3) Based on the midpoint of full year 2025 oil production guidance.

MANAGEMENT COMMENTS

Fernando Araujo, Berry’s Chief Executive Officer, said, “Our full year drilling activity is now complete and we are positioned for sequential production growth through the end of the year. On the regulatory front, we are encouraged by positive developments in California which could potentially open up new drill permitting pathways by year-end. Irrespective of the outcome, we have the permits in hand today to execute our multi-year development plans.”

Mr. Araujo continued, “In Utah, we began flowback of our first well and our second well is running final completion today, with the remaining two expected to be online later this month. Our Uinta wells should help drive production growth over the second half of the year. Due to an early startup of frac operations, we pulled forward a portion of full-year capex into the second quarter. Our average well cost is approximately 20% below the average cost of our non-op wells. We will also be testing the Castle Peak through a non-operated well just north of our acreage which we expect to be online in the fourth quarter. Berry is poised for strong free cash flow generation through the remainder of the year.”

SECOND QUARTER 2025 FINANCIAL AND OPERATING SUMMARY

Selected Comparative Results

| | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | | | June 30, 2025 | | March 31, 2025 | | June 30, 2024 | | | | | | | | | (unaudited) (in millions, except per share amounts) | | | | | | | | | | | | Production (MBoe/d) | | 23.9 | | | | 24.7 | | | | 25.3 | | | Oil, natural gas & NGL revenues (1) | $ | 126 | | | $ | 148 | | | $ | 169 | | | Net income (loss) | $ | 34 | | | $ | (97 | ) | | $ | (9 | ) | | Adjusted Net Income (2) | $ | 0 | | | $ | 9 | | | $ | 14 | | | Adjusted EBITDA (2) | $ | 53 | | | $ | 68 | | | $ | 74 | | | Earnings per diluted share | $ | 0.43 | | | $ | (1.25 | ) | | $ | (0.11 | ) | | Adjusted earnings per diluted share (2) | $ | 0.00 | | | $ | 0.12 | | | $ | 0.18 | | | Cash Flow from Operations | $ | 29 | | | $ | 46 | | | $ | 71 | | | Capital expenditures | $ | 54 | | | $ | 28 | | | $ | 42 | | | Free cash flow (2) | $ | (26 | ) | | $ | 17 | | | $ | 29 | | | | | | | | | | | | | | |

(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 June 30, 2025, Berry had $428 million outstanding on its term loan facility and no borrowings outstanding under its revolving credit facility. As of June 30, 2025, the Company had $101 million of liquidity consisting of $20 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. Based on current commodity prices, Berry expects to fund the remainder of its 2025 capital program with cash flow from operations.

DEBT REDUCTION AND SHAREHOLDER RETURNS

During the quarter, the Company paid down approximately $11 million of debt bringing total debt reduction to approximately $23 million year-to-date.

On August 5, 2025, Berry’s Board of Directors approved a quarterly cash dividend of $0.03 per share of common stock, payable on August 28, 2025 to shareholders of record as of the close of business on August 18, 2025.

2025 GUIDANCE (REAFFIRMED)

| | | | | Full Year 2025 Guidance | Low | High | | Average Daily Production (boe/d) (1) | 24,800 | 26,000 | | Non-energy LOE ($/boe) (2) | $13.00 | $15.00 | | Energy LOE (unhedged) ($/boe) (2) | $12.70 | $14.50 | | Natural Gas Purchase Hedge Settlements ($/boe) (3)(4) | $1.00 | $1.60 | | Taxes, Other Than Income Taxes ($/boe) | $5.50 | $6.50 | | Adjusted G&A expenses - E&P Segment & Corp ($/boe) (2) | $6.35 | $6.75 | | Capital Expenditures ($ millions) (5)(6) | $110 | $120 | | | | |

(1) Oil production is expected to be approximately 93% of total. (2) Non-energy LOE, Energy LOE and Adjusted G&A expense are non-GAAP financial measures. The Company does not provide a reconciliation of these forward-looking measures because the Company believes such reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items included in or excluded from the GAAP financial measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. Non-GAAP forward-looking measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. See further discussion in “Non-GAAP Financial Measures and Reconciliations.” (3) Natural gas purchase hedge settlements is the cash (received) or paid from these derivatives on a per boe basis. (4) Based on natural gas hedge positions and basis differentials as of December 31, 2024, and the Henry Hub gas price of $3.00 per mmbtu. (5) Total company capital expenditures, including E&P segment, well servicing & abandonment services segment and corporate. (6) Approximately 60% of Berry’s 2025 capital program is expected to be directed to California with 40% allocated to Utah.

RISK MANAGEMENT

The Company 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 Berry’s 2025 full year oil production guidance and its hedge book as of July 31, 2025, the Company has 71% of its estimated oil production volumes hedged for the remainder of 2025 at an average price of $74.59/Bbl of Brent, and 63% of oil production (assuming the midpoint of 2025 annual guidance) hedged for 2026 at $69.55/Bbl of Brent. Berry has gas purchase hedges for approximately 80% of its expected gas demand for the remainder of 2025, with an average swap price of $4.22/MMBtu.

Complete details on the Company’s derivative positions can be found in its investor presentation located at https://ir.bry.com/events-presentations.

CONFERENCE CALL DETAILS

Berry plans to host a conference call to discuss its second quarter 2025 results:

Call Date: Thursday, August 7, 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/nngi4arf or at https://ir.bry.com/events-presentations. 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-conf.media-server.com/register/BIb2be5f52d4874ace92c29a164ea18802

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/financial-reports/quarterly-results or visit https://edge.media-server.com/mmc/p/nngi4arf.

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 .

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 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 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: 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 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 Securities and Exchange Commission (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 | | | | | | | | | | | | | June 30, 2025 | | March 31, 2025 | | June 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 | $ | 125,637 | | | $ | 147,862 | | | $ | 168,781 | | | Service revenue | | 22,824 | | | | 23,664 | | | | 31,155 | | | Electricity sales | | 4,886 | | | | 4,967 | | | | 3,691 | | | Gains (losses) on oil and gas sales derivatives | | 56,423 | | | | 5,475 | | | | (5,844 | ) | | Marketing and other revenues | | 308 | | | | 683 | | | | 1,851 | | | Total revenues and other | | 210,078 | | | | 182,651 | | | | 199,634 | | | | | | | | | | | | | | | | Expenses and other: | | | | | | | | | | | | | Lease operating expenses | | 53,193 | | | | 57,282 | | | | 53,885 | | | Cost of services | | 19,001 | | | | 20,825 | | | | 25,021 | | | Electricity generation expenses | | 624 | | | | 1,209 | | | | 586 | | | Transportation expenses | | 1,225 | | | | 939 | | | | 1,039 | | | Marketing expenses | | 345 | | | | 292 | | | | 1,885 | | | Acquisition costs | | 310 | | | | — | | | | 1,394 | | | General and administrative expenses | | 20,270 | | | | 20,305 | | | | 18,881 | | | Depreciation, depletion and amortization | | 35,294 | | | | 40,392 | | | | 42,843 | | | Impairment of oil and gas properties | | — | | | | 157,910 | | | | 43,980 | | | Taxes, other than income taxes | | 12,957 | | | | 9,240 | | | | 12,674 | | | Losses (gains) on natural gas purchase derivatives | | 3,130 | | | | (5,691 | ) | | | 2,642 | | | Other operating expense (income) | | 1,365 | | | | 401 | | | | (3,204 | ) | | Total expenses and other | | 147,714 | | | | 303,104 | | | | 201,626 | | | | | | | | | | | | | | | | Other (expenses) income: | | | | | | | | | | | | | Interest expense | | (15,513 | ) | | | (15,172 | ) | | | (10,050 | ) | | Other, net | | (59 | ) | | | 272 | | | | (53 | ) | | Total other expenses | | (15,572 | ) | | | (14,900 | ) | | | (10,103 | ) | | Income (loss) before income taxes | | 46,792 | | | | (135,353 | ) | | | (12,095 | ) | | Income tax expense (benefit) | | 13,188 | | | | (38,673 | ) | | | (3,326 | ) | | Net income (loss) | $ | 33,604 | | | $ | (96,680 | ) | | $ | (8,769 | ) | | | | | | | | | | | | | | | Net income (loss) per share: | | | | | | | | | | | | | Basic | $ | 0.43 | | | $ | (1.25 | ) | | $ | (0.11 | ) | | Diluted | $ | 0.43 | | | $ | (1.25 | ) | | $ | (0.11 | ) | | | | | | | | | | | | | | | Weighted-average shares of common stock outstanding - basic | | 77,596 | | | | 77,196 | | | | 76,939 | | | Weighted-average shares of common stock outstanding - diluted | | 77,697 | | | | 77,196 | | | | 76,939 | | | | | | | | | | | | | | | | Adjusted Net Income (Loss) (1) | $ | (364 | ) | | $ | 9,370 | | | $ | 14,155 | | | Weighted-average shares of common stock outstanding - diluted | | 77,596 | | | | 77,371 | | | | 77,161 | | | Diluted earnings per share on Adjusted Net Income (Loss) (1) | $ | 0.00 | | | $ | 0.12 | | | $ | 0.18 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | | | | | | | | | | | | June 30, 2025 | | March 31, 2025 | | June 30, 2024 | | | | | | | | | (unaudited) ($ and shares in thousands, except per share amounts) | | | | | | | | | | | | Adjusted EBITDA (1) | $ | 52,915 | | | $ | 68,450 | | | $ | 74,329 | | | Free Cash Flow (1) | $ | (25,611 | ) | | $ | 17,483 | | | $ | 28,566 | | | Adjusted General and Administrative Expenses (1) | $ | 18,313 | | | $ | 18,300 | | | $ | 17,038 | | | Effective Tax Rate | | 28 | % | | | 29 | % | | | 28 | % | | | | | | | | | | | | | | | Cash Flow Data: | | | | | | | | | | | | | Net cash provided by operating activities | $ | 28,638 | | | $ | 45,872 | | | $ | 70,891 | | | Net cash used in investing activities | $ | (34,162 | ) | | $ | (19,770 | ) | | $ | (42,486 | ) | | Net cash used in financing activities | $ | (13,760 | ) | | $ | (16,876 | ) | | $ | (25,174 | ) | | | | | | | | | | | | | |