BRY - Earnings call transcript Q2 2024

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Operator

Thank you for standing by and welcome to Berry Corporation's Second Quarter 2024 Earnings Call. [Operator Instructions]. After the speaker's presentation, there will be a question-and-answer session. [Operator Instructions].

As a reminder, today's program is being recorded. to Relations. host like Todd today's I'd Investor Crabtree, now introduce for your program, And ahead, go Please sir.

Todd Crabtree

Earnings Berry's Jonathan, you quarter for XXXX for you, results. joining Earlier Thank and us Berry's welcome, Second XXXX release highlighting earnings everyone. Thank Teleconference. Xnd today, Quarter

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

statements. this harbor release like statements begin, call federal to your in XX-Q, and results and issued from safe today. which I or the materially that filings the earnings our These are that may later would and these projections to laws. The with our securities today's expressed risks language we within of in other factors include Before to subject our SEC, risks outlined to found certain differ of release will cause discussion actual including those morning. filed was attention These the statements contains in be meaning forward-looking other uncertainties implied

Relations made contained ir.bry.com release our presentation. this release with those link investor a and an call website, this as forward-looking analysis has to earnings the presentations aligned earnings SEC including statements most information, of the recent deck Any filings our in investor the made. on are call, reflect Investor and Our date

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

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

Fernando Araujo

of us. second thank equivalent million strong welcome, $XX a oil you we Thanks, EBITDA day. and results, operational for and delivered Todd, generating XX,XXX producing of In adjusted everyone, barrels the joining financial and quarter, and

guidance provided to deliver in earlier remain we the continue line on this with and perform results teams track to with year. Our reliably excellence, and

rates in focused free our capital balance results our return compliance structure protecting base of projects by of while highest combination development intensity value of generating meeting the maintaining with strategy on cost are strong creating quarter-over-quarter by sustained low a from was and sustainable strength production. sheet our We activity high cash and flow standards. Production optimizing

our XX second ways diatomite thermal base. XXXX, protecting of Our in of a XXXX, XX to we activity in and from is quarter, and is This an with the the activity wells have results. this management production production drilling ingenuity wells increased X reservoir XX% in drilled technical example to capital-efficient who teams by Utah increase the find of our testament drilling reservoir superior we to Since reservoir workovers. expected production. In with continue in through outperforming California exclusive vertical

have We will our in second permits the complete received us to support program plans drilling will quarter, our allow that in planned XXXX. drilling new And the hand permits necessary XXXX. that drill in development we for

formed to consolidation, activity predrill Uinta into quarter the exciting. horizontal production in earlier performing this is X to The advantage to nearly estimates. Turning are we has year our wells a position by Utah. X The our play. than acreage on increased operations. We be wells our and resource production, Basin this almost acres Berry's put better this were has adjacent seen on and second held in which the believe has cost entirely significant. Berry existing These net on on is XXX,XXX potential operated the

basin. shallow of the end the in We are

are we will and our and operations. and our our what reduce highly infrastructure, drilling We and of related have in will with in have infrastructure completion capital significant which today, help example no of Based cost rest is gas wells these portfolio. capital will compete place, which drive long-term fuel efficiency. An entry on the economical us our for production costs this know

and kicked of and a capital of Our to consistent our capital with could a financial XXXX proven farm to enterprise is we policy better We've bring will off value. XXXX plant living portion strategy process flow additional manage program, our within this believe out allow insight. potentially with discipline which while free increasing and us cash technical

in to year. potential are We the forward resource I later the this development will excited to over sharing look about now very plans Mike. have we Utah future our turn and call

Michael Helm

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

information, EBITDA the to to today. In be earnings our $XX issued XX-Q the quarter, morning our was in-depth million refer higher more please million first For than adjusted of second and later quarter. filed release earlier $X this

XX% As Fernando crude prices consistent the down and QX were quarter in per lower QX, to of and with contributing mentioned, expenses down total $X.XX realized of to second lease primarily were commodity Brent XX% BOE quarter $XX.XX to per energy revenue in BOE $XXX compared $X.XX for operating to per G&A QX quarter prior to expenses $XX.XX in the per were BOE million. Compared costs. production XX% Adjusted BOE was QX. due to

operating implement $X initiatives is savings and water our begun of example trucking our project, Utah our to million. cost manage optimization this disposal continue has to which will costs of We great approximately expenses. projected achieving lower A annual

second facilities due as to year, QX, would million in of farmed in than begun projects which California was $XX the first at already we is has program, primarily This in and development higher peak line add for mentioned in our as development our expected quarter. the well cadence the quarter Utah and QX production. that to in capital and expectations the CapEx in middle we As with

year. Adjusted dividend second $XX was remain than that per annual planned We impact a in higher share of CapEx. Accordingly, quarter total of cash fixed higher flow variable $XX flow the is to dividend the year-to-date the in our dividend. which flow than a for our included variable free dividend of and $X.XX QX, tracking our the higher $XXX declared is the of approved adjusted million XXXX. Board the free also generated CapEx the the XXXX. $X.XX million, within guidance on includes $X.XX million And per in the In share, quarter. per based to free Board adjusted for cash expect cash quarter, share second This

debt-to-EBITDA the debt to end driving quarter, of the Macpherson And On $XX than at the over I'll $XX reduction in our X.Xx. we lower of continue with down our flow, call payment the of strong balance the our now this the the on the million prioritize included we revolver QX, reduced $XX further to Danielle to a strength ratio turn July of Berry's million balances at end President, maintain free along speaks balance made transaction. Reducing final to nature and our revolver debt to Berry's sheet cash to proactive we Hunter. million of XXXX and goal

Danielle Hunter

Thanks, Mike.

for time the X to employees third in row, and had core a I safety our acknowledge safely of quarter a priorities For sustainable is ability quarter oil truly deliver a our our component and top energy. one lost gas incidents. and incidents reliable producing performance. At outstanding recordable want from Berry and another to X Berry, of

GHG methane report that with XXXX. We in end goal X achievement operations by XX% associated we release announced set We're environmental total Scope is Another core will of this of to devices. XX%. we pneumatic of to approximately Last we pleased emissions a XX% with have focus emission X with quarter, reduce our Berry's that regulated of natural already initiative, the by this our that gas estimate a the had existing from emissions Report, beginning conjunction the at XXXX Sustainability with eliminate replacement stewardship. of completed least all baseline devices

We improvements. to and expect, we our future We that operate look forward ways to to providing Back you, compliance updates will are with on make the highest exploring and strive always additional progress. to to continue Fernando. our safety standards stakeholders

Fernando Araujo

value delivered Thanks, Danny. second flow. results and have quarter commitment In our generate free our on cash create sustainable closing, to

track our We our annual production safety and meet and goals effectively continue cost compliance. an record to manage to maintaining are of outstanding while on

The to wells world-class running underway across enhance the the team X room potential very assets, economics development will XXXX, excited is record advantages opportunity. operational drilling have that operational achieving of of our has from and well and competitive Halfway are about remain performance the we a and built-in exceptional year proven to of solid performance. We always Utah an delivering track date, financial significant driving another We our the outstanding results. acreage activity. our to well horizontal future improvements

has turn the development the I portfolio to to Basin the over Uinta questions. world-class operator call Our of now our for complementary economic to highly California will potential locations. be

Operator

[Operator Instructions].

comes Rice. from Meade Charles the question first Our line of from Johnson

Charles Meade

why reason us better I -- than Fernando, expectations appreciate bit what your the rate think were. or I'm because a laughing you told that the Uinta you've haven't I wells -- But expectations. they're probably the there's told us said some on the what little

some for -- days what XX, you to next help So you an at to can, you over XX that brackets -- maybe these extent get quantify, and you or where wells give not XX understanding would expect us, have least specifically whatever some if in come of there? what can see the or us guideposts

Fernando Araujo

more Very good, the in Charles. That's horizontal color let Utah. And wells provide question. around a me good little a very

acreage As the X to we to side acreage. farmed you that's know, of wells adjacent in our into acreage the Northeast our

XXX,XXX a those of by well in and horizontal good that the we'll a production But Uteland to targeted than in results one is here geology, we being especially the mentioned, reservoir well to the X have reservoirs in nearly predrill, initially uniform X we which that provide Butte are by minute. than operated Uteland the the with basin more of for for I or little color, potential has targeted Butte want Most emphasize Berry. do really held I as better just And expected, to activity. And development. geology, better get horizontal that details acres reservoir

very about So we're very, excited that.

that cost we to a in have do position, fact addition mentioned, the In the I play. as advantage

of the in end We the basin. are shallow

no in have and significant have infrastructure place entry cost those help wells We put to production. us on we

efficiency. to going So that's capital our drive

of itself, of day, good, IP-ed pressures. which at lower we is day XX% at a are As shallow very far reservoir X,XXX oil, the equivalent as the remember gas. basin a with wells that about a But XX% barrels of rate production also the barrels end oil the

lower are the slightly of to the in the deep in IPs compared basin. some end the northern of IPs basin our So

we in have that position wells. But that. those of the mindful mentioned really what's do be some to significant that economics have that's to I drive advantage cost before. going we And of So improvement

So helps, hopefully, that Charles.

Charles Meade

does not high other laterals the rates. stout that the to may help lot. north, really look, that of it It's are as No, but those some X-mile -- a be as

were you of Fernando. One clear only thank I'd total it acres had then said you previously, So position. only is, of were the the that that quantifying ask it -- that, for way piece your other back to you that was XX,XXX And piece like prospective. reflected

Now Is results you're And -- West? other X with these is just XXX. more you reflect to that context? at there like or industry that, that is into that just can success that wells? Or -- does some you give the plays can perhaps your --

Fernando Araujo

and question, currently before been Charles, talked when about acres. Another referred have acres we we for. are that The we're -- permits XX,XXX XX,XXX is good to should specific applying the well that more we acreage the

focusing So acres and activity. entire base. the acres, on permits weeks. prospective But where which the few XXX,XXX next ready side we're the in horizontal acreage here those submitted is with that's we're to focusing what's on just of northern XX,XXX the is But area our get

Operator

question-and-answer [Operator Instructions]. does today's session conclude the of And this program.

Meade a Rice. have Charles Johnson from We follow-up from

moment. follow-up, please. one And Just your

Charles Meade

Yes.

Okay.

questions on the of end Fernando, One and you Utah you're twice on one then the California. at So to then. basin. that X shallow other mentioned

And less because other all And drilling. so a lot got all usually here. a well lower costs on this shallower the section. But being equal, got my is means presumably, of you've little northward vertical things slightly dip a understanding overpressured you've

mean -- that when end horizons of big might the shallow that you cost. of this beyond a costs? And have of operators a the basin that the basin? To about what's deeper horizons does you horizons talking the the most be of because have for your deeper been prospective as significance well the in what being not might Uteland the big to some of in productive other vertical you -- look the in in some of not so that And Does going perhaps historically wells. it, are maybe below see shallower the part well -- are reduction at that Butte some in number mean

Fernando Araujo

And question, than -- Another very a end good we the couple feet basin. are of the shallower, Charles. seller deep of thousand

expected So our to drilling be costs lower. are

have that in infrastructure we that of advantages of the we place. have one the that's So outside

you As we've like infrastructure. with know, of a got X,XXX that in Utah something wells, lot

lower, fact. pressures these the completing we're and But robust. type So little the the that's wells because very capital lower seeing the a to bit associated reservoir be economics curves with going wells, are to and cost just shallower, and our drilling a are are from horizontal we

So we're happy about that.

Uinta. Now with success be Below that, reservoirs. good. We've It's we upside those the at provide deeper Yes. that than that reservoirs hope more deeper we the well, as operators happen is those we've Douglas few Creek And helps got we've little we're targeting I geology got a there's have additional just than The with to the the got an that a do additional that? color. opportunities we have targeting. that Uinta know and Wasatch.

Charles Meade

kind a the it's of rapidly No, years been play industry. It's we've this in a unfolding had few really Yes. interesting. like a since

again. those kind So it's turn fun of cranks to

Fernando Araujo

We're excited it. about

Charles Meade

Can acquisitions, what not had for successful there's the marketplace look But long give in mean might be to ago. that, now? California. there update additional may opportunities waiting I Transition the outlook like that Macpherson any wings? if the like you on you deal more

Fernando Araujo

No, as know, acquisition, been you synergies. Macpherson we by XX% had with our able operating that expenses operational We've lower successful results. to very good. Yes, great

So that's great success. been a

at like small and additional and opportunities few having of talk. be got to and terms companies really have opportunities. And just willing this We're base parties, lot deal a sense talking before, they're up I California. we're we operational to But different the years. But we've Kern seeing parties. makes conversations are, in to business. Obviously, a But technical deal and of stay privates, close can apply structure is many, Now are A a of consider opportunities, of said, it mostly for takes in mentioned with have willing time. good with when the as realize our these They're everybody. looking opportunities come with to expertise. at County, part of bolt-on what we would these up we ways and least many down to we for a we've our come synergies conversations, handful in that creative that's handful

Operator

program today's session back Araujo conclude the Fernando does to remarks. program. of This like to question-and-answer for I'd further the any hand

Fernando Araujo

look in about Thank Thank forward what much. our the and that Berry. forward company, we Thank to to in for call. the you, are everyone, for you have in talking to in you potential about about in joining we your interest you excited we activity QX, touch. We California. excited so look Utah, excited have And we staying

Operator

and ladies This the program. conclude in for you, does Thank your participation gentlemen, today's conference.

disconnect. You day. may Good now

Berry (BRY) 9 Aug 242024 Q2 Earnings call transcript