BRY - Earnings call 3 2023 | Berry Corporation

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Operator

Good day, and thank you for standing by. Welcome to the Berry Corporation Q3 2023 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Todd Crabtree with Investor Relations. Todd, floor is yours.

Todd Crabtree

welcome, and Liz, you, everyone. Thank joining Thank XXXX Berry's Quarter for Webcast. you for Earnings Third us

Earlier an Berry today, issued quarter XXXX results. third earnings release highlighting

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

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

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

to the release on a that release our including Our and recent Any in has made presentation forward-looking our date investor as statements website, contained earnings bry.com, the are earnings of presentation. the information, analysis made. and reflects call link this most

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

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

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

turn will I now to Fernando. the call over

Fernando Araujo

XX,XXX financial producing Todd. everyone, and results for strong Thanks, and million we deliver adjusted and joining you EBITDA operational us. thank day. quarter, generating Welcome, a to In the continued third in barrels $XX

per increase the declared total shareholder cash model, Board We shareholder of and quarter. with flow. $X.XX executed value sustainable meaningful In generate our line share, prior return compared on and our maximize XX% strategy the to a dividends to

XX, delivering assets. cash the acquire closed Corporation, meet accretive bolt-on our on million September deliver to producing of single based current acquisition on $XX On stock return currently to our track digits our Energy goal are our on Macpherson We we in price. high to XXXX strategy

into that by flow. free people said already XX% XXXX. and initiatives these Berry, XX% so this reduce improve expect we flow announced assets implementing several we integrated cost to will have and estimates. we cash that cash started and our When savings have and We Macpherson Based the expected acquisition, identified costs Berry's we free far, in implemented free opportunities assets exceed enhance these flow now to to cash long-term on

considering QX average was average higher spend track the This the to daily are to on transaction. originally than capital XXXX. for portion due XXXX XX% of reallocation in approximately the achievement to production a of a first in that than On is planned an Macpherson capital half we outstanding less of fund

Slide Base on for optimized production have year, shown outperform thermal results our diatomite especially of our XX where investor deck. the which to of the expectations are reservoir, steam our we strategy, the injection in continues

We has in be expect with midrange the XXXX connection production our in increased the to the of Macpherson guidance, of transaction. which closing

of half more Our lower first boe ongoing operating year. million Operating third expenses about adjusted to XX% to a or we than fruit. continue G&A on expenses Similarly, reduced the than the quarter initiatives G&A basis $X XX% by in and bear quarter-over-quarter. lower were the

and on QX cost We in our still into XXXX. lowering are structure focused

block steam well targeting field. a and which to QX, in from require In we Midway-Sunset test promising results reservoirs, in do the produce had a not gas light undeveloped oil an

results the being initial program executing exceeding production are infrastructure. are expectations and testing We and via are existing still sold our

new excited look the Basin the in opportunities remaining of months. San This XXX project across development of There highlights assets our further to I'm about coming in our updates oil-rich Joaquin production. after years providing opportunities and quality are still even forward the this meaningful acreage.

turn over call the now Mike. to will I

Michael Helm

Fernando. Thank you,

in $XX our another of million, available generated cash slight quarter quarter-over-quarter. and and in available this results. each EBITDA are later few is increase We but adjusted information here today, more financial always, XX-Q $XX operational free earnings strong a were totaling delivered flow adjusted As a filing of morning and issued We our highlights. release million

our quarter model, used return variable XX% will the In a XX% accordance dividend, we of shareholder adjusted acquisition. with cash free a third portion the remaining of and Macpherson the use pay to fund flow be to

free be Most to expected reduction. used fourth will of the the flow quarter cash for in be debt generated adjusted

plan the free We generate evaluating optimal the and are actively we XXXX in to cash of use flow beyond.

enhanced efforts additional Macpherson through provide debt we acquisition, conjunction expect including in next on year. improve leverage, announcing cash XXXX from capital the flow of with the With plans those in details our We'll first reduction. currently to our further quarter

operational financial achieve and to return and at cash to model. We're continue positioned well returns continues to while optimize remain shareholder targets. flows looking to maximize strong delivering Fernando. its Back Berry our shareholder ways dynamic you, to

Fernando Araujo

Thanks, Mike.

deliver and quarter returns. demonstrate third ongoing Our to strong maintain ability results operational shareholder excellence our

expense our track production CapEx operating and are expenses. and lower to annual with on We G&A meet goals

We're also opportunity new our field. the in excited about development Midway-Sunset

opportunities enhance flows we outside aggressively free support that shareholder value. and our future will pursuing accretive of producing cash overall California and Additionally, in are growth strategy to

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

Operator

Rice. [Operator Instructions] Meade question coming will from Johnson The first be Charles with

Charles Meade

it's a the new I this mentioned Fernando, question. us there's -- guess of what expectations about you give you better my are? could your there's that sense mentioned X concept aspects of new play, development expectations, your you performing but that One, than Midway-Sunset. question of is

kind is well individual of kind what what the total you about? -- an your sense can this level, at project are And of And for part kind means of what that, idea us inventory maybe resources we give talking or of kind what productivity this of tell as or of opportunity. us the of

Fernando Araujo

question, No, that's very good a Charles.

background the subdivided testing Let field an this the me and of We're end give north our into you currently blocks. block block a little project undeveloped on four in itself. Midway-Sunset different is

which steam. gas recoverable be should oil And and we reservoirs, are targeting deeper reservoirs, without

And talking X different first this testing Now or we're well, first these in reservoirs. We're stacked are intervals. about this reservoirs. different sidetrack, X X

Now that's the X Santos the formation. the deeper of so we've tested far the intervals, that in

better the digits, triple than normal in activities is from which development low California. production production seeing We're in our

So that's encouraging. very

of also the executed outside and gas we this those as in Now from oil the that recompletions block, we from producing well same Antelope we're recompletions have sidetrack, currently and reservoir. shallower X

potential can or note Now this development, obviously, in still X that that then we to for thing mostly we're with develop asset idle nearby future field to and you update got And again, at is sidetracks develop digits mid-double field of in wells about locations so of we've this end we'll this be in could we that, this of sidetrack we'll terms now. very, block the encouraging. And be potential, that as evaluating the November. possibly. It second the utilize well the could terms in we're than But XXX and at on opportunities we looking drilling time. the very But it's depending in results come offset have. for due better well,

information it So is very come, there's very, exciting. but more to

Charles Meade

developed? Yes, new that way. Is the a horizons been sounds guys Are not it Santos historically testing have pay? traditional that field you

Fernando Araujo

but in from No, operators we not have that the producing the operators, offset Santos nearby are the from we Santos ourselves, have produced past. currently

Charles Meade

really Got it. it. Got compelling. That has

angling press looking feel count. that being think acquisition in I -- other is which area? release that guess, Fernando, your you're you're towards those like we X opportunity. guys more your beyond -- were feel I like other are you Utah, Utah? that you Should to I didn't trying about if non-California question, your Second telegraphing operating as Or signal

Fernando Araujo

California. story value We're on In the activity you give we focusing operational aggressively Macpherson bolt-ons, that. full we're similar for me add looking to the efficiencies. are realize scale. M&A pursuing Let outside And can and and California, we of still yes, that on in

flow of to really with assets deliverability maintain thus where focusing assets, maintain production and outside assets our we're But California, flat our years for geology, flat known come. we accretive can on cash

of initially, asset and we're opportunity Piceance, like find right the the we agnostic. basins, If asset Uinta, Basins an Rockies. Powder terms can look we cash in deliver we're the will focusing we maintain with at. that in But flat our where production In that basin returns reality, River. right be Western

Operator

from Nicholas next Pope Seaport with comes The question Research.

Nicholas Pope

on bit in potential CapEx. of acquisitions? you're pull same question down Obviously, on that line any funding you little the with on hoping about Kind I how thinking Charles' a to of was follow curious could thinking, with M&A. Macpherson

You fair coming on facility a here credit got drawn quarter. amount the the out of

thinking through cash So is M&A fund the you through just this curious credit. what in what's about either of it some the you available at how potential or as might look

Michael Helm

is can to using Macpherson, And we that. think to ways bottom can of think paid is we ones, cash RBL. the quickly. A you Yes, off you this like smaller then Nick, -- about get couple When of that's once part of we the the kind really the bolt-on types doing like Mike. the that reason like do paid just flow it off the right falls get quickly, line. And about

we on of just end the your quarter. just the To before are the Macpherson line. And the point, we finished acquisition

there surprising not there the part the quarter. it's RBL is So end to reallocation. see at the But use of capital in story of the

for price looking into to we our to do reducing really similar something year, capital. of do to next fund and bolt-on. the continue have and we Macpherson, the of So purchase the that We'll help started even year maybe would rest a

things those why off quickly. kind pay that's So of

sense leverage. appetite on depends the -- on opportunity equity aren't our have really from including in debt talking As and finance think for regard, financial leverage ways to. and We including a it that, acquisitions, addition really of have make of to that is we're what would basis. we who we our multiple to there's to metrics, to larger raising increase don't yes, it kind all long-term But the in

So it of but metrics, way are would kind the we're financial thinking have about from sense those really the it. to that make

Nicholas Pope

And to then That's back work of kind -- doing Midway-Sunset. it. are in helpful. development that very Got new you this the

any that be this? no clarification, the right is expected all to vertical planned in big about development, Is way as horizontals. fairly cost Is kind to Just like development? lower that of that think

Fernando Araujo

were development. the be be we it's Yes, that's wells with just wellbores, be vertical a existing correct. we If It's because have directional not play. but -- access horizontal reservoir There new vertical sidetrack would will the play. would drill a through a to to it would vertical

Operator

Inc. Resources, Steven [Operator Everglades from with Instructions] Busch The call next comes

Steven Busch

they on that that possibilities, these so Is sidetrack correct? you're that require permits. So don't doing

Fernando Araujo

It's require workover permit but well. a new a Well, they do to existing an not well it's permits, permit. for similar

Steven Busch

in California? still out that's given And being

Fernando Araujo

Yes. California and getting correct. is still -- That's industry still sidetrack is permits. the workover permits

Steven Busch

the permanent outlook how for And wells? in general Perfect. Okay. is new

Fernando Araujo

permits utilize and in specific execute In currently XXXX. hand, for terms XX sidetrack have in expect in hand numbers permits to would we us, about of that

contingent and that, contingent We've Now contingent got we've outside results. XX of and because that a call they're they're work in bucket. technical separate got we further about permits on --

we And permits on over that, we we've what then have many fact, of from XXX in sidetracks, additional And approval for top new already call of CalGEM. in CEQA and well hand permits submitted permits XXX permits workover is which that, wells in of have a have half for the activity especially that message we to for of first over here also up, XXXX. hand. lot XXX The coming

Steven Busch

good to That's know. Okay.

just So quick always mark-to-market correct? down. it's Those not that mean question a up I and on are all hedges. cash. Is the and derivative

Michael Helm

of predominantly up show income Some The that statement in mark-to-market. losses it. the are

You're right.

Steven Busch

Correct.

And... Okay.

Michael Helm

swing in big the a saw price. We

go ahead. Sorry,

Steven Busch

Or is doing covered cetera? production, naked with all derivatives? et we any Are it

Michael Helm

No, it's all covered.

Steven Busch

Right.

just no sure So I want make that to speculating. part. there's

Michael Helm

lot there's of No, Absolutely why reasons no, not. a it's no. And not.

Operator

this at questions further turn to would Officer, back like it Fernando no Araujo. showing Executive I to time. Chief now I'm

Fernando Araujo

again, thank you, time. before Thank don't Thanksgiving, Berry. for Happy everyone, thank If we you all. you your Thanksgiving Well, once time. for thank in talk And to interest your your and for you

Operator

conclude Thank now and conference. your This may disconnect. in today's you for participation you does the program,

Berry (BRY) 1 Nov 232023 Q3 Earnings call transcript