Berry Corporation reports Q2 adjusted EPS 15c, consensus (2c)

Reports Q2 revenue $229.36M, consensus $172.07M. The Company’s average daily production increased in the second quarter 2023 to 25,900 boe/d compared to 24,300 boe/d in the first quarter 2023. Company-wide oil production in the second quarter 2023 was 24,000 bbl/d, accounting for 93% of total Company production, with California production contributing 20,800 boe/d or 80% of total production. Production was nearly 7% higher quarter-over-quarter due to improved base production from optimized steam injection in California, as well as making up for first quarter weather-related production downtime. “In the second quarter we successfully executed on our strategy to deliver meaningful returns,” said Fernando Araujo, Berry’s CEO. “Our operational and financial performance was strong. We delivered a nearly 7% increase, or more than 1,600 boe per day, in production volumes quarter over quarter with less capital than planned. Additionally, we reduced lease operating expenses, net of hedges, by 23% compared to the first quarter, driven by lower fuel prices and a reduction in lease maintenance costs. As a result, we will pay total dividends this quarter of $0.14 per share, fixed plus variable. We also opportunistically repurchased 1.4 million shares in the open market at an average price of $7.04 per share. “We are excited about our pending acquisition of Macpherson Energy Corporation, achieving our important strategic objective to acquire accretive, producing bolt-on assets. This transaction provides additional production and improved capital efficiency and will be funded partially through a reallocation of $35 million of capital in 2023. The Macpherson assets are high-quality, low decline oil producing properties, and are a natural fit with our existing rural Kern County portfolio. In addition to the attractive base production, we see upside for near-term production enhancement and development opportunities,” Araujo said.