Q1 2024 Berry Corporation (Bry) Earnings Call Transcript
Key Points
- Berry Corp (bry) (BRY) reported solid financial and operational results with adjusted EBITDA of $69 million and daily production of 25,400 barrels, aligning with projections.
- The company achieved a 10% reduction in lease operating expenses compared to the previous quarter, highlighting successful cost management.
- Berry Corp (bry) (BRY) is enhancing its portfolio through strategic acquisitions, such as increasing working interest in the Round Mountain field.
- The company maintains a strong focus on safety and environmental compliance, reporting zero recordable incidents and no reportable spills for the second consecutive quarter.
- Berry Corp (bry) (BRY) is actively managing its debt, with plans to use adjusted free cash flow to pay down its revolver and considering refinancing options for notes maturing in early 2026.
- Despite stable production, Berry Corp (bry) (BRY) experienced a 4% decrease in commodity revenues due to a 1% drop in oil production and lower oil prices.
- The company's adjusted free cash flow significantly decreased to $1 million in Q1 2024 from $55 million in Q4 2023, primarily due to seasonal working capital uses.
- Berry Corp (bry) (BRY) faces ongoing challenges with the Kern County EIR litigation, which restricts the issuance of new drilling permits, potentially impacting future expansion plans.
- There is uncertainty in the success and capital requirements of the horizontal play in the Uinta Basin, which may necessitate significant capital expenditure or the formation of joint ventures.
- The company did not issue a variable dividend for Q1 2024 due to the nominal adjusted free cash flow generated during the quarter.
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.
Thank you, Jerald, and welcome, everyone, and thank you for joining us for Berry's First Quarter 2024 Earnings Teleconference. Earlier today, Berry issued an earnings release highlighting 2024 1st quarter results. Speaking this morning will be Fernando Araujo, our Chief Executive Officer; Danielle Hunter, our President; and Mike Helm, our Chief Financial Officer. Before we begin, I would like to call your attention to the safe harbor language found in our earnings release that was issued this morning.
The release in today's discussion contains certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties
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