Earnings call transcript Q2 2023

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Operator

Good day and thank you for joining us. Welcome to the Berry Corporation Q2 2023 Earnings Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. today's being that advised be conference recorded. is Please

hand over Head to would Investor now speaker conference to like ahead. Crabtree, I your the today, Please go Relations. of Todd

Todd Crabtree

thank you, you second Thank XXXX Earlier release an teleconference. Berry earnings welcome quarter highlighting and everyone, XXXX quarter for us second for Gerald, joining Berry's issued earnings today, and results.

Financial Araujo, and Mike Speaking Officer; Officer. this Executive morning our will Chief be our Chief Fernando Helm,

harbor language we This attention safe meaning Before contain laws. I to that other release the to would release and federal statements forward-looking discussion morning. in your call found was begin, like today's certain this earnings projections securities of within our the issued and

materially These to in and cause are XX-Q, from the risks that include later subject expressed statements be These our including or with other which our these filings risks will in implied filed factors to SEC, outlined statements. uncertainties may those and differ actual results today.

a earnings website, link Our to our has release most investor the bry.com, presentation. recent and

this reflects forward-looking the that and Any information, of release earnings made presentation in contained call analysis date statements made. are the as our including on

law. We or as by update duty them, have required except to plans no

reconciliation and today's tables on measures adjusted refer related earnings and Please for GAAP a to the in in our between call our the release all website mentioned measures.

transcript We will also website. our on the this replay link and post the call of

I to turn now will the over call Fernando.

Fernando Araujo

value joining generate you In our we thank Todd. second for to executed us. strategy meaningful Welcome and and everyone shareholder Thanks, on successfully the returns. maximize quarter,

all strong delivered fronts. financial and Our performance on was we operational and

late another the on Macpherson achieving acquiring of important step track objective producing third pending quarter. We to are about our is Energy Corporation, bolt-ons. excited which accretive of our in This is in close acquisition

to from results will We except respect in with previous current XXXX operations anticipate that our expenditures. be capital line full-year with our guidance, currently

the guidance. We result This of approximately Macpherson expect use to fund initial a than portion million $XX of is reallocation be XXXX of to a the lower capital capital transaction. expenditures

connection in the We with close. transaction will guidance fully update

X% production accomplished delivered with planned. than more barrels X,XXX We than less quarter-over-quarter. day capital higher We this nearly or per volumes

production initial midpoint We our to above our of annual from be current the guidance. or at expect operations

expected of steam production, base to term more our production injection total use the for in is outperforming It which is due implementation of what to plan. than when mean strategy account of Our is XXXX I I XX% This optimized an the California great excellence. is mainly example a fields. operational our

comes QX campaign. production production workover Part to gain sidetrack production recovering from the from successful The our and QX. balance of in of was related deferred

of commitment single-digits stock between dividends shareholder with cash ensuring our ongoing goal is per XXXX to total a producer. quarter, high that current in responsible accordance we the with This this deliver in fixed we will to our price. and return while pay our returns, variable. and shareholder Our safe model, on return a maximize remain share based is In $X.XX line

in flows million with capital XXXX expenditures, improves from the capital price we've transaction This reallocate with that of repurchased quarter. the funded privately announced acquire planned from Energy a $XX XX% acquired cash expected of agreement and Macpherson our million County plus Corporation, the common Kern XXXX. purchase during cash. We into for efficiency and entered capital Additionally, second $XX we stock recently in million operator XXXX an our $XX opportunistically assets to held

without be greater flow the XX% the XXXX cash Berry projections to $XX than delivered barrel the is Based Macpherson. per fully after free company expected pricing, on XX% transaction is adjusted in combined by paid current and Brent for to

are natural with Kern fit a decline our County are The existing high-quality, rural low Macpherson properties portfolio. assets, which producing

opportunities upside wellbores. strategy. by see we transaction return of production, base This capital a attractive for disciplined Berry and is the reflective its development to utilizing our and near-term existing shareholders, enhancement addition In for value-creating production

capture future positioned ideally are consolidation We opportunities. to

now to turn will the I call over Mike.

Mike Helm

Thank you, Fernando.

morning our in are today. filing here later As release But always, XX-Q more in highlights. earnings is information a our few available issued and available this

quarter. production and XX% totaled operational were despite financial $XX first the oil million lower lease primarily to the Our results lower operating due is $XX strong compared quarter. Adjusted to this EBITDA for This expenses. million increase prices higher and

attributable operating to hedges, and lease including decreased fuel QX. costs of which expenses, purchase effect of XX% gas lower maintenance the the Lease costs. from Most lower is

continued reduction ongoing during cost also implement to We initiatives the quarter.

year. at entering our the addition the An Some fruit, power property, the South by example reduce to second annual are about is of our half carbon bear completion footprint to this which our is Belridge reducing beginning of of $XXX,XXX. the of expected which to project cost solar in

down to G&A Adjusted compared throughout improvement rest expenses the we year. were first continued quarter, and see expect slightly the the to of

account into dividend of per capital Second dividend of cash the we of have per resulted a cash adjusted in working of quarterly net Accordingly, was for quarter quarter million, to share. a 'XX. first the of the which addition cumulative adjusted share $XX free declared free half in first flow after in million use $X.XX $X.XX taking $X fixed flow the variable

cash strategic for and is is is the intended as XX% dividends. on XX% dividend, the earmarked of model return well after opportunistic of producing repurchases shareholder variable our growth reminder, stock fixed calculated and remaining bolt-ons. The annual payment free acquisition as based flow, a the for which of As adjusted debt

of an share million with around X.X average second approximately Berry active repurchasing price was million quarter, open the share. in the per in $XX shares for $X.XX buybacks at market

million $XXX for additional authorized authorized stock repurchases. million $XX for future and buybacks debt an have We

continued operational financial positioned maximizing is you, and targets, and well Fernando. summarize, To success, hitting returns. is to for shareholder Back Berry its

Fernando Araujo

second Thanks, to Mike. maximize achieve In have excellence. results operational closing, commitment returns delivered our our shareholder on and quarter

to on meet with operating goals capital are annual and production decreasing We track our less expenses. spend

are shareholder and M&A flow opportunities acquisition are the well our pursuing remains returns value. a be maximize free Berry actively going and to current forward. We align believe are strategy cash market ability we for and to Macpherson in of We the other shareholder that. is consolidator, that with our to confident and favorable conditions evidence that positioned enhance industry

With that, for call turn I operator over to the questions. the will now

Operator

Thank you.

will Instructions]. session. now [Operator We a conduct question-and-answer

line Meade comes Our the Rice. with from of Please Johnson your first Charles question proceed with question.

Charles Meade

for said the prepared Good up your the Berry left morning, and Kern off this coming about But a the elaborate can to Fernando, are for that opportunities your where Mike, in for Macpherson there -- A&D team. deal. rest conditions pick County. deal, bit or more this like This more way? then you like I you what acquisition becoming favorable are prospects of Fernando, good opportunities a looks with want comments on you exactly

Fernando Araujo

particular, conversations now a before. we're synergies active with renewed Yes. question, interest more a the very to opportunities, several synergies believe regulatory And Groups are environment. have especially good the California, M&A future those -- available. Charles. for in than consolidation Very to those in conversation in are current seeing to is be we In with achieve We able California of order operational those parties. industry in willing

County, continue that All all -- maximize to cases, be producing as strategy to in places. consolidates other properties but in that Berry Kern also evaluate Obviously, leading company align shareholder that to returns. Utah company in with want -- we would assets. we properties and that our And

to increase in opportunities production We keep flat or cases. some at to able even production are be looking

areas synergies of can where of to on proven apply focusing assets. areas are be enhance able technologies value and we see We we some those where immediate our can to operational the

opportunities, at looking are very time. currently, different the active we but Charles, So, this is

Charles Meade

Got it.

understand of that for I they've probably just of sorts activities I And these same correctly been am their there, more. environment so regulatory doing and right of the I something push if of correctly, the years. on And family-owned businesses, lines? lines just the projects maybe that a to If understand little some the shut of you forcing strategic direction. -- a Is right or understanding has kind along family-operated, because bit it's are -- down along it's now those re-evaluation

Fernando Araujo

re-evaluating of opportunities the Yes, you're assumption. smaller looking different not size their the lot current of well. correct at are some we're only But or with looking in now environment. businesses at kind players, A the again, companies as of smaller companies that but

Charles Meade

it. Got

then, just a second follow-up there. you. maybe And Thank Okay.

So, but of most all, your of wheelhouse most in my and but Kern production, whereas it's of more more your Macpherson north is, -- this County, west not in of is Bakersfield, this Macpherson understanding Bakersfield. Poso obviously, is is Creek existing most your

different opportunity So waiting -- or perhaps assets, was kind how are these this of area? with better since of in kind up set you're there the

Fernando Araujo

we most Kern -- the case the western eastern have of is County, of on which of side the both also Macpherson, where County, and operations of our Kern are. side opportunities We see

sides. both on folks to talking are we So,

close know, you our as Macpherson, Now field. is fairly Poso to

economies the basin synergies So, of able we we of scale, of to but opportunities we're seeing just realize going are be sides at to in looking some both because everything. actively are and

Charles Meade

Got I'll I'll hop it. someone I'll back hop else in someone queue. else -- let in let the --

Operator

Thank the queue. I you. One as moment prepare

the comes is yours. from line Management. Chatard Tim of from now next Investment question line Our Meros The

Tim Chatard

good Hi, morning.

Just in where you're on company relevant businesses, less efforts split Is on proximity you structure the are? to operate two all or of to into they sure since curious their more your Resources aware if one to similar in other. and E&P -- side you I'm assets, that California management carbon their at and somewhat

Fernando Araujo

difference big CRC and Yes. is Very And question, the size. us between good Tim. really

to Our be it good be citizen minimize in particular to and impact. corporate comes able to goal to when ESG is a environmental

than As far projects, carbon be to of leader. want we as a follower more capture a

the we we to own the our be emissions talking to collecting simply but about size like and have don't a parties third-party, those to to -- don't So we possibility our delivering have project are of able different just CRC. emissions

Tim Chatard

And are partnership. bringing outside via capital it in they seems like

there's don't you've also yes, the -- their just in just I'm I'm words, So, pointing that I at out I the can are handling the change along larger, court separate offer outside guess there's those Kern but like things anything this. been Can own. color capital but all to? question, in think appellate they system they're other But court with looking whether on County that's answered process that you with for or ask any a you lines I question, timetable

Fernando Araujo

underway, and changed, reported the with appeal back process to expected court The Yes. time the few is expected court take hasn't The situation process we -- know. is last you a a issuing the really as in is January Sure, court months. since permitting stay Tim.

have really year. be courts at given. the next it's EIR, we'll the But we're although is we've call a when end the Kern ruling beyond year, been no county County that cards beginning to permits, -- County XX obviously several of got they a a about. that the So, of on We've ready there's not that. the go for We're got happens. talked as But just Kern that reinstate confident ready order movements of expecting to I additional risk for now, what and the will them,

Tim Chatard

time. I see. for your Thanks

Operator

Thank Instructions]. further showing no you. I'm questions. [Operator

I So, Araujo, would at over now like this for the to Fernando time, closing remarks. CEO, conference turn to back

Fernando Araujo

excited everyone We're Well, Berry, on safe in and for thank the about be and attending excited time. going. what's until about results going you QX, we'll next and we're keep with

So thank you.

Operator

Thank for conference today's call. concludes This participating. you

You may now disconnect.

Berry (BRY) 2 Aug 232023 Q2 Earnings call transcript