Berry (BRY) Q2 2025 earnings summary

Executive summary

• Executing the 2025 plan with a focus on balance sheet strength, high-return development, and operational efficiencies, while maintaining onshore, low-decline reserves in California and Utah for consistent cash flow and shareholder returns.

• Reported net income of $34 million for Q2 2025, rebounding from prior losses, but a net loss of $63 million for H1 2025 due to lower prices, volumes, and a $158 million impairment.

• Reduced debt by $23 million year-to-date and declared a $0.03/share quarterly dividend, representing a 4% annualized yield.

• Maintains a conservative leverage profile (~1.5x Net Debt/EBITDA) and strong liquidity position.

• Multi-decade drilling inventory and ongoing expansion in Utah through horizontal development.

Financial highlights

• Q2 2025 oil and gas sales were $126 million, with realized oil price at 92% of Brent; production averaged 23.9 MBoe/d (92% oil).

• Adjusted EBITDA for Q2 2025 was $53 million; LTM Adjusted EBITDA was $270 million.

• Operating cash flow was $29 million in Q2; free cash flow was negative due to higher capex.

• Capital expenditures were $54 million in Q2, elevated by Utah drilling; $83 million for H1 2025, split between California and Utah.

• Paid down $11 million of debt in Q2, totaling $23 million year-to-date; liquidity at quarter-end was $101 million.

Outlook and guidance

• 2025 production guidance: 24,800–26,000 Boe/d, with oil comprising 93%; guidance remains unchanged.

• 2025 capital expenditures expected at $110–$120 million, with 60% allocated to California and 40% to Utah.

• 71% of 2025 oil production hedged at $74.59/bbl; 63% of 2026 at $69.55/bbl.

• Non-energy LOE guidance: $13.00–$15.00/boe; energy LOE (unhedged): $12.70–$14.50/boe.

• Permits secured to support development through 2027, with additional upside if Kern County EIR is reinstated.