Berry Corporation (NASDAQ:BRY) reported its financial results for the second quarter of 2024
Intellectia.AI Updated: 1970-01-01
Berry Corporation (NASDAQ:BRY) reported its financial results for the second quarter of 2024 on August 9, 2024. Below is a detailed summary of the company's performance, including key financial metrics and operational highlights.
Key Financial Metrics
| Metric | Q2 2024 | Q1 2024 | Q2 2023 | YoY % Change | QoQ % Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $188 million | $171 million | $180 million | 4.4% | 9.9% | $177.17 million |
| Earnings Per Share (EPS) | -$0.07 | -$0.24 | $0.06 | -216.7% | 70.8% | $0.20 |
| Adjusted EBITDA | $74 million | $69 million | $68 million | 8.8% | 7.3% | N/A |
| Cash Flow from Operations | $71 million | $65 million | $69 million | 2.9% | 9.2% | N/A |
| Adjusted Free Cash Flow | $19 million | $18 million | $22 million | -13.6% | 5.6% | N/A |
Interpretation: Berry Corporation experienced a solid quarter-over-quarter revenue increase of 9.9% and a year-over-year growth of 4.4%, outperforming consensus estimates. However, the company reported a negative EPS of -$0.07, largely due to a $33 million after-tax impairment related to new regulations in California. Adjusted EBITDA and Cash Flow from Operations both increased, demonstrating stronger operational performance.
Segment Revenue Performance
| Segment | Q2 2024 | Q1 2024 | Q2 2023 | YoY % Change | QoQ % Change | Previous Guidance |
|---|---|---|---|---|---|---|
| Exploration & Production (E&P) | $162 million | $146 million | $159 million | 1.9% | 11.0% | N/A |
| Well Servicing & Abandonment | $26 million | $25 million | $21 million | 23.8% | 4.0% | N/A |
Interpretation: The E&P segment grew modestly year-over-year but displayed a robust quarter-over-quarter increase of 11.0%, driven by higher oil prices. The increased activity in the Uinta Basin contributed positively to this segment. Well Servicing & Abandonment saw a significant year-over-year increase, reflecting the company's growing focus on well servicing and horizontal drilling activities.
Operational Data
| Operational Data | Q2 2024 | Q1 2024 | Q2 2023 | YoY % Change | QoQ % Change |
|---|---|---|---|---|---|
| Production Volume (Boe/d) | 25,300 | 25,300 | 25,000 | 1.2% | 0.0% |
| Lease Operating Expenses | $23.47/boe | $26.38/boe | $23.70/boe | -1.0% | -11.0% |
| Capital Expenditures | $42 million | $17 million | $22 million | 90.9% | 147.1% |
Interpretation: Berry Corporation maintained steady production volumes while significantly reducing lease operating expenses by 11% quarter-over-quarter due to lower energy costs. Capital expenditures increased sharply, reflecting accelerated development projects in California and Utah.
Comments from Company Officers
Fernando Araujo, CEO, emphasized the strong financial and operational results, highlighting the performance of the horizontal drilling program in the Uinta Basin. He reiterated the company's focus on sustainable free cash flow, cost optimization, and balance sheet strength.
Mike Helm, CFO, noted the successful reduction in lease operating expenses and the company's efforts to refinance its maturing notes.
Dividends and Share Repurchase Program
Berry Corporation declared a total dividend of $0.17 per share, including a fixed dividend of $0.12 and a variable dividend of $0.05, payable on August 20, 2024, to shareholders of record as of August 12, 2024.
Forward Guidance
The company did not provide specific forward guidance for the upcoming quarters but expressed confidence in meeting its full-year guidance.
Stock Price Movement
Following the earnings release, Berry Corporation's stock experienced a price increase of approximately 1.5%.
Conclusion: Berry Corporation demonstrated strong financial and operational performance in the second quarter of 2024, achieving notable revenue growth and cost reductions. The company's strategic focus on horizontal drilling and cost optimization could pave the way for sustainable future growth.
