Berry Provides Clarification of Moratorium Impact
November 20 2019 - 3:38PM
On November 19, 2019 the California Department of Conservation,
Division of Oil and Gas released a number of initiatives designed
to safeguard public health and the environment, advance
California’s goal to become carbon-neutral by 2045 and manage the
decline of oil production and consumption in the state.
As a conventional oil producer with a low corporate decline
rate, the company would like to outline our understanding of the
initiatives’ impact to Berry’s business:
- Berry continues to see strong year over year growth in 2020
despite the moratorium.
- Berry’s 2020 growth initiatives do not require well stimulation
permits.
- Berry holds abundant inventory in California that is not
impacted by the moratorium.
- Production growth is not dependent on any single field or
completion method.
- The overwhelming majority of Berry’s cyclic steam operations
does not require high-pressure cyclic steam injection.
- Existing permits secured by the company enable Berry to drill,
produce and grow production using high-pressure cyclic steaming
processes into 2020.
- Berry will continue to grow and pay its dividend within levered
free cash flow.
- Berry’s commitment to safety and environmental stewardship is
reflected in the exemplary operational record of the existing
management team.
Our focus remains on delivering shareholder value through the
development and realization of the intrinsic value in the company’s
assets. Berry will continue to proactively work with the California
regulatory and legislative communities to provide affordable energy
for all citizens while being a good steward of the environment and
natural resources that are so important to the state.
Additional information can be found at: November Investor
Presentation.
About Berry PetroleumBerry
Petroleum is a publicly-traded (NASDAQ:BRY), California-based
independent upstream energy company engaged primarily in the
development and production of onshore conventional oil reserves
located in the western United States.
Forward Looking StatementsThe 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:
- financial position,
- liquidity,
- cash flows,
- results of operations and business strategy,
- potential acquisition opportunities,
- other plans and objectives for operations,
- maintenance capital requirements,
- expected production and costs,
- reserves,
- hedging activities,
- return of capital,
- capital investments and other guidance.
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:
- volatility of oil, natural gas and natural gas liquids (NGL)
prices;
- our ability to obtain permits and otherwise to meet our
proposed drilling schedule and to successfully drill wells that
produce oil and natural gas in commercially viable quantities;
- price and availability of natural gas and electricity;
- changes in laws or regulations;
- our ability to use derivative instruments to manage commodity
price risk;
- the impact of environmental, health and safety, and other
governmental regulations, and of current or pending or future
legislation;
- uncertainties associated with estimating proved reserves and
related future cash flows;
- our ability to replace our reserves through exploration and
development activities;
- timely and available drilling and completion equipment and crew
availability and access to necessary resources for drilling,
completing and operating well;
- our ability to make acquisitions and successfully integrate any
acquired businesses;
- catastrophic events; and
- other material risks that appear in the Risk Factors section of
our Annual Report on Form 10-K filed with the Securities and
Exchange Commission.
You can typically identify forward-looking statements by words
such as aim, anticipate, achievable, believe, continue, could,
estimate, expect, forecast, goal, guidance, intend, likely, may,
might, objective, outlook, plan, potential, predict, project, seek,
should, target, will or would and other similar words that reflect
the prospective nature of events or outcomes. We undertake no
responsibility to publicly release the result of any revision of
our forward-looking statements after the date they are made.
Contact:
Berry Petroleum Corporation
Todd Crabtree - Manager, Investor Relations
(661) 616-3811
ir@bry.com
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