Berry Corporation (bry) Substantially Increases 2020 Hedge Position
March 06 2020 - 11:46AM
Berry Corporation (bry) (NASDAQ: BRY) announced today that is has
added more Brent-based oil hedges to protect cash flows for fiscal
year 2020.
The Company now has 24,000 oil barrels, or
approximately 80% of its Brent-based production, hedged at $59.85
Brent through December 2020. This includes an additional 8,000
bbl/d added, running from April 2020 through year-end 2020, since
the Company’s most recent earnings report on February 26, 2020.
“Based on the uncertainties surrounding the
global economy, we have decided to hedge the overwhelming majority
of our 2020 production. This action should ensure that we have the
appropriate pricing to execute our 2020 budget,” stated Trem Smith,
Berry board chair, chief executive officer and president. “With the
unknown global impact of the coronavirus, we do believe it is in
the best interest of our shareholders to remove uncertainty for
2020. Berry’s unique business model, visibility into our cost
structure and low-decline curves is a differentiating factor across
the oil and gas landscape and provides us with significant
flexibility by which to successfully execute against our strategic
plan and budget. Under our increased hedged position for 2020, we
are still planning for year-over-year oil growth in the 10-12%
range, paying one of the industry’s best dividend yields, and
building excess cash. Our 2020 strategy highlights how Berry is
uniquely positioned to create shareholder value throughout energy
market cycles. We remain committed to delivering industry leading
returns, achieving year-over-year production growth with
disciplined capital spending, and generating attractive excess
levered free cash flow.”
ABOUT BERRY CORPORATION
(BRY)
Berry 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 bry.com.
FORWARD LOOKING STATEMENTS
The information in this press release includes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. All statements, other than statements of historical
facts, included in this press release that address activities,
events or developments that the Company expects, believes or
anticipates will or may occur in the future are forward-looking
statements. Such statements involve risks and uncertainties that
could materially affect our expected results of operations,
liquidity, cash flows and business prospects. Without limiting the
generality of the forgoing, such statements specifically include
our expectations as to our future:
- financial position,
- liquidity,
- cash flows,
- anticipated financial and operating results,
- our capital program and development and production plans,
- business strategy,
- potential acquisition opportunities,
- other plans and objectives for operations,
- maintenance capital requirements,
- expected production and costs,
- reserves,
- hedging activities,
- return of capital,
- payment of future dividends,
- future repurchases of stock or debt,
- 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. Known 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 on a timely basis, or at
all,
- our ability 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 or other legal or regulatory
developments;
- 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;
- the timing of planned capital expenditures;
- 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 and other periodic reports 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.
Any forward-looking statement speaks only as of
the date on which such statement is made, and we undertake no
obligation to correct or update any forward-looking statement,
whether as a result of new information, future events or otherwise,
except as required by applicable law. Investors are urged to
consider carefully the disclosure in our filings with the
Securities and Exchange Commission, available from us at via our
website or via the Investor Relations contact below, or from the
SEC’s website at www.sec.gov.
INVESTOR RELATIONS CONTACT
Berry Corporation (bry)
Todd Crabtree - Manager, Investor Relations
(661) 616-3811
ir@bry.com
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