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DALLAS, Oct. 07, 2019 (GLOBE NEWSWIRE) -- Berry Petroleum Corporation (NASDAQ: BRY) (“Berry” or the “Company”) announced today preliminary third quarter production results in line with its full-year production guidance. In addition, the company is continuing its commitment to returning value to shareholders through its fixed dividend and share buy-back policies.
Third Quarter 2019 Production Highlights
“The production growth we have seen in the third quarter is in line with our plan and validates the potential of our quality assets. Our production performance reinforces our confidence that our fields respond to capital and have a long future of manageable, high-returning, low-risk oil production growth, with a well inventory that we believe is at least 20 years,” said Trem Smith, Berry’s chairman of the board and CEO. “Berry’s management team’s focus since 2017 has been on creating and delivering shareholder value. Berry is committed to protecting the base, growing production at a deliberate long-term rate, returning capital to our shareholders, and doing it all out of levered free cash flow throughout the cycle.”
Berry’s third quarter production growth is in line with the plan and prior quarterly statements. This growth also highlights Berry’s strong capital efficiency with a 7.9% and 17.7% increase in production compared to the third quarter of 2018 for the Company and California, respectively. The monthly production exit rate for the Company’s third quarter was 15.8% higher in September than the June exit rate for the prior quarter.
Preliminary total Company production for the third quarter ended September 30, 2019 averaged 29,600 boe/d with the month of September averaging 31,700 boe/d, compared to June’s average of 27,400. The month of September production is nearly 88% oil, an increase from 86% in the second quarter of 2019.
This improvement is primarily attributed to Berry’s capital deployment to grow its California production. Preliminary California production, consisting of 100% Brent-based oil, for the quarter is approximately 22,900 bbl/d, an increase of 10.4% compared with last quarter and 17.7% with the third quarter 2018.
Berry also increased its hedge position as highlighted in the table below.
|Barrels per day of Brent ¹||Previously Disclosed Amounts||Current Amounts||Average Price ²|
|4th quarter 2019||15,000||18,000||$70.20|
|Fiscal year 2020||12,000||16,000||$64.26|
|Fiscal year 2021||—||2,000||$58.50|
|¹ Does not include 1,000 barrels of WTI hedged at $61.75 through April 2020.|
|² Average Price only in reference to “Current Amounts”.|
Full-year production and capital spending for 2019 are expected to be at the mid-point of Berry’s original guidance of 28,000 to 31,000 boe/day and $195 million to $225 million, respectively.
Return of Capital
Berry’s business model is designed to create and deliver value to its shareholders. The company has several different levers it can utilize, including fixed dividends and share buybacks, to deliver on this promise. Since going public last July, Berry has delivered $47 million in dividends and repurchased $39 million in shares.
Berry continues to create value for shareholders through the efficient management of operations, and deploying and returning capital. The Company continues to focus on accretive acquisitions that work with its financial policy.
About Berry Petroleum
Berry Petroleum Corporation is a publicly-traded (NASDAQ:BRY) western United States independent upstream energy company with a focus on the conventional, long-lived oil reserves in the San Joaquin basin of California. More information can be found at the Company’s website at www.berrypetroleum.com.
The information in this press release includes forward-looking statements that involve risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects. Such statements specifically include our expectations as to our future:
Actual results may differ from expectations, sometimes materially, and reported results should not be considered an indication of future performance. Factors (but not all the factors) that could cause results to differ include:
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Contact Contact: Berry Petroleum Corporation Todd Crabtree - Manager, Investor Relations (661) 616-3811 firstname.lastname@example.org