BRY - Earnings call transcript Q1 2024

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Operator

Good day, and thank you for standing by. Welcome to the Berry Corporation Q1 2024 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, Investor Relations. Please go ahead.

Todd Crabtree

welcome, First thank Quarter and us for Gerald, Berry's for XXXX you, everyone, you and joining Thank Earnings Teleconference. issued Berry quarter today, an highlighting release Earlier XXXX results. earnings Xst

Executive Mike Helm, Chief will Oroho, be Speaking our Hunter, this and our Financial morning Chief President; our Officer; Fernando Officer. Danielle

attention our we that earnings your to was begin, harbor safe issued like would the Before morning. release language I this call to found in

differ later federal discussion factors today's in these that outlined today. within from contains which SEC, certain laws. other statements. other filings subject expressed our XX-Q, and are and statements the of with results risks may to uncertainties in materially or projections in including the forward-looking to those filed meaning release securities These actual and be implied statements These The our risks include will cause

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

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

all today's plans refer related or Please except measures measures. required for them, as duty our earnings reconciliation update in the and to law. website a between no in mentioned on the by release call tables to and have our adjusted GAAP We

over will We to call the will Fernando. also transcript call turn of this now replay link on the post and the I our website.

Fernando Araujo

with delivered provided quarter, projections, XX,XXX to results $XX everyone, guidance These Thanks, financial of we barrels line we first Welcome, and operational results Todd. full solid in year with day. the March. results, joining thank are a for producing consistent deliver adjusted expect In the and you and in million EBITDA and generating us.

value by operational free on focused flow generating through sustainable are We maximizing excellence. cash enterprise

bolt-ons, capital, and efficiently Our flat operational our accretive and structure safety includes essentially managing compliance. allocating prioritizing cost keeping producing acquiring production excellence

remained strong, are and results We a completed was XXXX diatomite thermal year especially quarter process production reservoirs. first flat as in the through of Production from lens. drilled campaign our we field. Midway full planned, review average. in to our our drilling quarter our Sunset Base Let's sidetrack that and for the XX-well sidetrack

We made to operating quarter. in highlighted lease progress by also reducing compared a last reduction expenses XX% cost

currently our approximately of our acquiring compliance. additional oil Mountain XXX and are regulatory field of the [ annualized. in reallocating plan. from in commitment Ron we HS&E barrels superior our Moreover, This Underpinning interest to performance process by represents acquisition working per accomplishments capital development is these day ]

quarter a X Our safety spills. and performance second in lost the have recordable row, incidents, we time remains incidents X strong. for And reportable no

Since EIR our there Daniel current in her been remarks. County Hunter, last address litigation, ongoing which has earnings the will in development a our President, call,

reinstatement However, depend do the EIR. XXXX and I that production plan on development the want county not current to activity emphasize our of

of execution does successful the drill plan to fact, our XXXX new wells. not In require permits issuance of

current reallocating county EIR well on accretive will our capital strategy continue the as maintain to bolt-on to Until to through as sidetracks we production proven workovers and potentially is acquisitions. reinstated, execute

our of portfolio, we previewed on horizontal we Uinta the and play is part quarter. Basin making the important are Additionally, an progress last

of in we Utah. be to April, to in put expected on working into that wells adjacent interest second are the existing operations In in our X a horizontal formed quarter production These XX% XXXX. are

acreage. as used to become Given acres evaluate We'll with share we to XX,XXX to in the development believe develop approximately wells, have more the results these call be horizontal We have I will over results potential turn our available. future from opportunities now net wells. to the we will Mike.

Michael Helm

takeaways for financial few quarter. a highlight will I Fernando. you, Thank the

to of issued lower expenses. and $XX later today. the quarter, filed refer flat our of In first earnings operating fourth please our earlier XX-Q quarter to EBITDA The by release offset essentially Quarter-over-quarter, the information, was lower revenue be this in-depth to lease adjusted morning more million XXXX. was For

our result than decrease expected the commodity X% $XX.XX XX% as costs. guidance. field to operating decreased from total needs and We lower spend. of BOE, gas sequentially, revenues we X% Lease than per a below were in at 'XX primarily to a of the X% fuel able was midpoint another success our to credit cost lower efforts oil was XXXX were approximately experienced due expenses cost gas for down a what lower QX our in oil operations Expenses Highlighting production we year savings less prices. greenhouse purchase were that which and remaining

$XX to CapEx annual for CapEx for at flat remained quarter we expect our million of million $XX to year. the guidance million and the be within $XXX

cadence capital next the increased X our in of the quarters, the over peaking show to expect We year. activity middle

Our due cash year each seasonal return flow, our shareholder adjusted in drives first to is historically capital free lowest which quarter of uses. model working

certain and to XXXX, These In million was working capital flow $X include semiannual QX compared seasonal for decrease annual cash items the free adjusted QX employee as million to such $XX uses. and due our primarily in royalties, was This compensation. interest 'XX. payments

first higher to Our year's first due than quarter XXXX higher the quarter expenditures. slightly impacts earnings, capital capital improved significantly results lower prior and working were

focused will that the fully have free pay cash down expect year to previously, our used we and of be As managing mentioned adjusted leverage much we revolver. our on currently and the for flow are debt

current end the balance The is accretive year. we revolver largely of made the the bolt-on to at acquisition related

early to our approved opportunistically refinance first also XXXX. share planned will our week, We in notes Last fixed $X.XX per Board the mature which look quarter dividend.

the variable Danielle there of due free cash quarter nominal quarter quarter. adjusted the will first turn to the XX% President, flow the 'XX, in for generated call now And first I'll case the no be the was to Berry's dividend for As over of Hunter.

Danielle Hunter

Good morning, Thanks, Mike. everyone.

said can remedy ongoing ruling, not of which areas over that there has Instead, essentially issuance EIR on drill years. County X noted, development the few been On March did their Fernando court As the reinstate the permits litigation Current until the Court will county and EIR EIR. County Appeals has in X, restricted a issued found deficient. new the current the the which remain off last the

know we today, what fully process months the to XX take will likely to XX resolved. on expect be Based we

While to meantime, that in neutral do I obtain XXXX to and the are the require plans permits exploring reiterate permits reliant neutral reinstatement not we our EIR. alternatives want of are not on

in of to gears. to allow we have in we ahead XXXX, Looking and same opportunities to do that we XXXX as sustain XX. believe have inventory sufficient should that and Switching workover did planned us sidetrack production,

look oil practices. at deliver reduction carbon organization. updated issued want month, impact, integral manner, Last our best our environmental our shareholders. in A a and methane responsibly share to Minimizing we provides set goal. a of our strategy cost-effective an operational efficiently how to which of a is our operations Producing lowering value the part is gas that with safely, report, intensity and and we have today emissions business our we you is we sustainable highlight that transparent including

aiming eliminate methane to our baseline Specifically, with a XX% least associated existing XXXX of from we emissions of by operations at XXXX. end are the

reduction total XX%. gas emissions baseline planning regulated emission X believe replace Based we're GHG emissions on year. do pneumatic charges XX% this mitigate on approximately estimates, natural To half reduction second the current estimates, this and inflation achievement will weight all allow to of for Scope to that, by from act also achieve should investment current with that targets us reduce devices assets. we Based this the emission X various in methane devices our

our our our communities available the Additional source on to be strategy business approach our our environment. in emissions about which as and information, is integral and managing to including of report, our our is operator to seriously for of approach responsibility take to a and website. best-in-class sustainable varies our is all stewards, sustainability them environmental stakeholders, our We

while work look will operate we providing updates to reducing drive value economical the which to our efficiencies add improve in our to continuously We our operational We emissions. progress. future investing and by forward solutions on in that ways business

Fernando Araujo

Danny. Thanks,

optimizing and We our we for year in are refinancing defined achieve from transactions and that rest due continuing right opportunities while geographic am off production improving another performance. sustaining business, a environmental most safety the conditions maintaining will three, in following: and one, in I year enhancing structure scale the of performance XXXX, standards the to solid the favorable managing that time start our base confident of accretive notes will levels capital high Focus growth under remains the pursue by cost. and cash our to Two, strong at XXXX on by E&P our provide focusing business and diversification.

to is the to over for now foundation strategy value. questions. turn the our will I of maximize long-term This the call operator enterprise

Operator

[Operator first The Rice. Meade Charles Our question Johnson comes floor yours. is from of Instructions]

Charles Meade

dynamic. thermal ask first a question the I wanted to about

outperformed comments prepared your for guys? your You press Or -- this sort called -- the -- the reservoir dynamic is well. performing of and that sidetracks thermal portfolio you kind -- better your it of are at some of performance both Can release normal some parts your thing underperform? is in can expected just where repeated you than in sustained out a this part

Fernando Araujo

Yes.

the the the Let just the the of a diatomite. really started That's drilling me have we year, end the wells wells naturality, or we thanks, that. production. are diatomite question. and drilled we sidetracks And in And we on And some clarify any in of we very for question. thermal that Charles, performance until good put thermal Charles, haven't proud at last

thermal since through X said, diatomite increase years actually QX by been production by, activity, been from is like or increase workover in just just diatomite and steam reservoir production injection a over able years. activity past past the XX% proper XXXX, able management the reservoirs. great strategy reservoir. The proper reservoir, with workover reservoir over I we've So productive And X its our surveillance, our XX%, by very the very, and to to thermal the we've enhancing

update in the drilled some we the few the from call And we'll, sure, from earlier for have weeks, results have the April we'll in on production next those We and just you wells results. on sidetracks. wells for some next put

Charles Meade

difference then mean little follow-up, and the Utah. wondering tag really those think And But capital been price magnitude the is disappearing Barry, because a you for then recognize on about costs. in traditionally it. into in I'm an I bit D&C you the with tag well, cost who if order horizontal a and a in you've well I look at the a as unconventional typical about price of play typical project this guys there's I Got it. Got for future

-- So is X the wells XX% first on helpful. the

bracket you let's say, going derisked X million this like where some or of But the case, to with We kind I'm can XX. where maybe you acres. guys, $XX question X that let's your XX,XXX $X say, DSUs these, success for that million or in of is, something on

in -- CapEx. for might And you You program big 'XX. you at one be step-up look at a in about then looking suddenly, rig talk

So thinking you you acres. that the thinking up of in case how XX,XXX partner? you for your is about Are could bringing in Are existing success Or Just look if contemplated? what a case are already guys of us. what's the that you in success net like working this? interest frame would perhaps that kind -- in thinking

Fernando Araujo

Yes, you that's yourself. said question. very it And good good. a Charles, very

possibility those One the creating to as into options obviously, that California is capital acreage to of wells the finding farm partners or drilling joint we well those because that you that mentioned. wells our not exploring commitment would a venture wells, have are and reduce we're contemplating horizontal horizontal of

to and finding already we've We us. venture in the got and come people the are looking partners, interested at with joint of partners possibility

Charles Meade

seemed direction look, you're you detail. it. looking to I and so Got know I'm like glad the appreciate first the That there.

Fernando Araujo

you, Thank good. Very Charles.

Operator

like time, to no am back At showing Araujo closing this would to Fernando turn I for now further questions. Instructions] remarks. our [Operator it CEO, I

Fernando Araujo

a you questions And have. if you. again. that like everyone give may you is I hesitate call, be any results or have the want once We're for delivering here quarters. happy out, don't we've answer Thank please for you very Thank questions. interest And Berry excited in over once done to your past any the reach we'll questions, to several additional and concerns about to us thank again, which and

Operator

today's your does program. perception This in conference. the you for Thank conclude

You may disconnect. now

Berry (BRY) 1 May 242024 Q1 Earnings call transcript