Berry Corporation (NASDAQ:BRY) Q4 2023 Earnings Call Transcript

Berry Corporation (NASDAQ:BRY) Q4 2023 Earnings Call Transcript March 6, 2024

Berry Corporation misses on earnings expectations. Reported EPS is $0.13 EPS, expectations were $0.22. BRY isn't one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).

Operator: Good day, and thank you for standing by. Welcome to Berry Corporation Q4 and Full Year 2023 Earnings Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to pass the call over to Todd Crabtree with Investor Relations.

Todd Crabtree: Thank you, Carmen, and welcome, everyone, and thank you for joining us for Berry's fourth quarter and full year 2023 earnings teleconference. Earlier today, Berry issued an earnings release, highlighting full year 2023 and fourth quarter results. Speaking this morning will be Fernando Araujo, our Chief Executive Officer; 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 and today's discussion contain certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements.

These include risks and other factors outlined in our filings with the SEC, including our 10-K, which will be filed this week. Our website, bry.com, has a link to the earnings release and our slides for this call. Any information, including forward-looking statements made today are contained in the earnings release and that presentation reflect our analysis as of the date made. We have no plans or duty to update them, except as required by law. Please refer to the tables in our earnings release and on our website for a reconciliation between all adjusted measures mentioned in today's call and the related GAAP measures. We will also post a replay link of this call and the transcript on our website. I will now turn the call over to Fernando.

Fernando Araujo: Thanks, Todd. Welcome, everyone, and thank you for joining us. A year ago, during my first earnings call as Berry's CEO, I highlighted 3 priorities: One, we're committed to delivering top-tier shareholder returns by being a cost-effective producer, optimizing production without compromising safety. Two, we have the assets and the technical team to achieve that goal and successfully navigate California's regulatory environment. And three, we would pursue accretive bolt-on opportunities in California. 2023 was a strong year for Berry, and we delivered on all fronts. We generated top-tier returns to our shareholders. We held production essentially flat with less CapEx than planned, and we expanded our production base and future cash flow with 2 financially accretive acquisitions.

In 2023, we generated $97 million of adjusted free cash flow and returned $65 million to shareholders. More than half of the adjusted free cash flow, $55 million was attributable to the fourth quarter, which is typically our largest adjusted free cash flow quarter of the year, compared to the third quarter that represents a 54% increase or $19 million. Total annual production was at the top end of our updated guidance, and we achieved that with a strong safety performance, highlighted by zero lost time incidents during the year. Our full year average production of 25,400 barrels a day was driven by innovative reservoir management practices, a successful drilling and workover campaign and bolt-on acquisitions that benefited the fourth quarter.

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