Berry Corporation (bry) Announces New $200 Million Reserve Based Lending (RBL) Facility and Repurchases under its Previously Announced Share Repurchase Program
August 26 2021 - 4:27PM
Berry Corporation (bry) (NASDAQ: BRY) (“bry” or the “Company”)
today announced entry into a credit agreement, effective August 26,
2021, for a new Reserve Based Lending (RBL) facility with a
borrowing base of $500 million and $200 million commitment. This
new facility replaces the Company’s existing credit facility, which
was terminated. The Company also announced the open market
repurchase of approximately 471,000 shares under its previously
announced $100 million share repurchase program. Approximately $47
million remains available currently for future repurchases.
“Bry has responsibly run its operations out of
Levered Free Cash Flow1 since the current management team assumed
leadership in mid-2017. We maintain a disciplined and thoughtful
approach to capital allocation, and we have and will continue to
use our strong free cash flow generation to increase shareholder
value, while maintaining sufficient cash resources to fund our
operations. Given current plans and our free cash flow generation
expectations through 2022, we anticipate returning a substantial
portion of cash to our shareholders through various means,
including dividends, share repurchases and debt reduction. We are
pleased to have a strong bank group led by our new administrative
agent JPMorgan Chase and we are very appreciative of the long-term
support from our existing banking group including Bank of Oklahoma
and Key Bank as Joint Lead Arrangers, and welcome a new local
California lender, Valley Republic Bank, as Syndication Agent,”
stated Cary Baetz, bry EVP and CFO.
The terms of the new RBL facility include a
decrease of the leverage ratio to 3:1 from the prior facility due
to the overall macro environment, but the current ratio is
comparable to the prior facility. A description of the material
terms of the new RBL facility will be filed with the SEC on a
Current Report on Form 8-K within four business days.
The Company’s $100 million share repurchase
program was approved in December 2018, with an initial
authorization to repurchase up to $50 million of stock. Through
December 31, 2019, the Company repurchased approximately 5,057,682
shares for approximately $50 million and in February 2020, the
Board authorized the repurchase of an additional $50 million of
stock. Under the program, repurchases may be made from time to time
in the open market, in privately negotiated transactions or
otherwise. The manner, timing and amount of any purchases will be
determined by the Company based on its evaluation of market
conditions, stock price, compliance with outstanding agreements and
other factors, may be commenced or suspended at any time without
notice and does not obligate the Company to purchase shares during
any period or at all. Any shares acquired will be available for
general corporate purposes.
In February 2020, our Board of Directors adopted
a program for the opportunistic repurchase of up to $75 million of
our 2026 Notes. The manner, timing and amount of any purchases will
be determined based on our evaluation of market conditions,
compliance with outstanding agreements and other factors, may be
commenced or suspended at any time without notice and does not
obligate bry to purchase the 2026 Notes during any period or at
all.
1 Levered Free Cash Flow is a non-GAAP financial measure
that we define as Adjusted EBITDA less capital expenditures,
interest expense, and dividends. Please see our 10-K or 10-Q
for definition for Adjusted EBITDA.
About bryBry 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 StatementsThe
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 plans, activities, events,
objectives, goals, strategies, or developments that the Company
expects, believes or anticipates will or may occur in the future.
The forward-looking statements in this press release are based upon
various assumptions, many of which are based, in turn, upon further
assumptions. Although we believe that these assumptions were
reasonable when made, these assumptions are inherently subject to
significant uncertainties and contingencies which are difficult or
impossible to predict and are beyond our control. Therefore, such
forward-looking statements involve significant risks and
uncertainties that could materially affect our expected results of
operations, liquidity, cash flows and business prospects, including
those risks described under the heading “Item 1A. Risk Factors” in
the Company’s Annual Report on Form 10-K for the year ended
December 31, 2020. You can typically identify forward-looking
statements by words such as aim, anticipate, achievable, believe,
budget, continue, could, effort, 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.
Contact
Todd Crabtree – Manager, Investor Relations
(661) 616-3811
ir@bry.com
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