Berry (BRY) Q3 2024 earnings summary

Executive summary

• Q3 2024 delivered strong financial and operational results, with average daily production of 24,800 boe/d, 92% oil, and net income of $69.9–$70 million, reversing prior losses and supported by exceptional well performance in California and Utah.

• Free cash flow for Q3 2024 was $44.8–$45 million, up 55% sequentially, driven by lower capital expenditures and operational efficiencies.

• Adjusted EBITDA reached $67–$67.1 million, with margins improving due to cost controls and lower CapEx.

• Achieved an 80% reduction in methane emissions from a 2022 baseline, a year ahead of schedule, saving $2.9 million in 2024 emission charges.

• Entered a $545 million term loan to refinance 2026 notes and the RBL facility, enhancing financial flexibility and supporting future growth.

Financial highlights

• Q3 2024 oil, natural gas, and NGL sales were $154–$154.4 million, with realized crude prices averaging $72.40–$72.41/bbl, representing 92% of Brent.

• Adjusted EBITDA for Q3 2024 was $67–$67.1 million, down from Q2 2024 and year-over-year.

• Free cash flow was $44.8–$45 million, up from $29 million in Q2 2024 and $41.7 million in Q3 2023.

• CapEx for Q3 2024 was $26 million, down from $42 million in Q2 2024, with year-to-date CapEx at $85 million.

• Cash flow from operations was $71 million, flat sequentially.

Outlook and guidance

• 2024 full-year production guidance is 24,600–25,800 boe/d, with oil expected to be 93% of total.

• CapEx expected to remain within $95–$110 million for the year.

• Plans to maintain flat production through at least 2026, leveraging a healthy inventory and ongoing permitting.

• Adjusted G&A expenses for E&P and corporate expected at $6.30–$6.50/boe.

• Well servicing and abandonment segment adjusted EBITDA guidance is $6–$8 million.