Berry Corporation (bry) Positioned to Be a Leader in California’s Well Abandonment and Fugitive Emission Reduction Efforts
October 04 2021 - 6:00AM
Berry Corporation (bry) (NASDAQ: BRY) (“bry” or the “Company”)
today announced the acquisition of Basic Energy Services’ (“Basic”)
California operations, which includes the legacy C&J Well
Services (“C&J”) operations acquired by Basic in March 2020.
The acquisition officially closed on October 1, 2021. The acquired
businesses will operate as C&J Well Services, LLC, a wholly
owned subsidiary of bry.
The acquisition creates a strategic growth
opportunity for bry. It is a synergistic fit with the Company’s
strategy to work with the State of California’s energy transition
goals to reduce fugitive emissions from orphan and idle wells,
including methane and CO2. The market potential for these services
is currently estimated at approximately $6 billion.
Bry’s chairman and chief executive officer Trem
Smith stated, “bry recognizes the oil and gas industry’s role in
the energy transition and is determined to be part of the solution.
Basic and C&J’s collective 74-year history of profitable
operations now constitutes one of the largest rig servicing and
well abandonment providers in California with one of the best
safety records in the service industry. We are proud to add these
services and this group of talented people, which will operate as
C&J Well Services, to our portfolio. Our winning bid of
approximately $43 million, subject to certain closing adjustments,
equates to approximately 1.2 times legacy C&J’s three-year
average EBITDA, as well as management’s projected 2021
EBITDA.
“We are excited to have C&J Well Services as
part of the bry portfolio and will avail their capabilities to
support California’s goals for the energy transition. Together, we
believe the new team is well positioned to be a leader in these
efforts,” Smith concluded.
Bry is committed to supporting C&J Well
Services’ customers and workforce and ensuring a seamless
transition. Jack Renshaw will continue to lead this business as
President of C&J Well Services, LLC, a newly formed company
established as an independent entity from bry’s E&P
operations.
About bry
Bry 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 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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