Berry (BRY) Q2 2024 earnings summary

Executive summary

• Q2 2024 average daily production was 25,300 BOE/d, with 93% oil, flat sequentially and in line with guidance.

• Adjusted EBITDA for Q2 2024 was $74 million, up from $69 million in Q1 2024 and 8% higher year-over-year.

• Net loss of $8.8 million in Q2 2024, driven by a $44 million non-cash impairment charge on unproved California oil and gas properties due to new setback regulations.

• Declared total Q2 2024 dividends of $0.17 per share ($0.12 fixed, $0.05 variable), higher than Q2 2023.

• Zero recordable or lost-time incidents for the third consecutive quarter.

Financial highlights

• Total commodity revenue reached $169 million, with realized crude prices at $78.18 per BOE (92% of Brent); oil, natural gas & NGL revenues rose from $166 million in Q1 2024 and $158 million in Q2 2023.

• Lease operating expenses fell 11% sequentially to $23.47 per BOE; adjusted G&A expenses down 10% to $7.41 per BOE.

• Adjusted free cash flow for Q2 2024 was $19 million, up from $1 million in Q1 2024 but down from $34 million in Q2 2023 due to higher CapEx.

• Cash flow from operations was $71 million; capital expenditures rose to $42 million, peaking as expected.

• Liquidity at quarter-end was $169 million, including $7 million cash and $162 million available under revolver.

Outlook and guidance

• On track to meet full-year 2024 production and capital expenditure guidance of $95–$110 million, with production guidance of 24,600–25,800 BOE/d (~93% oil).

• Focused on generating sustainable free cash flow, optimizing costs, and maintaining a strong balance sheet.

• Anticipates continued strong free cash flow and robust economics from Utah horizontal well development.

• Plans to farm out a portion of the 2025–2026 Utah program to manage capital and gain technical insight.

• Plans to opportunistically refinance notes maturing in early 2026.