Berry Corporation (bry) (NASDAQ: BRY) (“Berry” or the “Company”)
announced second quarter 2022 results, including net income of $43
million or $0.52 per diluted share, Adjusted Net Income(1) of $53
million or $0.64 per diluted share, Adjusted EBITDA(1) of $110
million and cash flows from operating activities of $111 million.
The Board of Directors declared dividends on common stock totaling
$0.62 per share.
Quarterly Highlights
- Reported Adjusted EBITDA(1) of $110
million, up 15% from Q1 2022
- Generated Discretionary Free Cash
Flow(1) of $74 million
- Repurchased 2 million shares of
common stock
- Declared total quarterly dividends
of $0.62 per share: $0.56 variable and $0.06 fixed
- Reaffirmed FY 2022 cash dividends
expected at $1.60 - $1.90 per share, based on current plan and
commodity strip prices
_______
(1) Please see “Non-GAAP Financial Measures and
Reconciliations” later in this press release for a reconciliation
and more information on these Non-GAAP measures.
“As demonstrated by our second quarter results,
Berry continues to deliver impressive cash flows. For the quarter,
our combined dividend will be $0.62 and in the same period we
successfully repurchased two million shares of Berry stock for $23
million. Since our 2018 IPO, we will have returned over $225
million to shareholders in the form of dividends and share
repurchases, which is more than two times the $110 million of net
IPO proceeds. In fact, we have repurchased more than 7.5 million
shares or nearly 10% of Berry’s outstanding shares over the last
few years,” said Trem Smith, Berry Board Chair and CEO.
For the remainder of the year, we currently see
our production holding relatively steady and our discretionary free
cash flow remaining strong. We are focused on proactively managing
our business and adapting to the dynamic macro environment while
continuing to uphold our capital return commitments. I'm pleased to
announce an exciting development potentially allowing new Thermal
Diatomite production. We have encouraging initial results from
early testing of two new horizontal wells using a new development
concept that takes advantage of existing reservoir energy, and
therefore does not require high pressure cyclic steam injection.
While the results are still preliminary and additional testing
needs to be performed, if ultimately successful this application
offers a potentially significant opportunity. We also continue our
early stage CCS efforts through signed Letters of Intent to capture
and sequester the majority of our direct operational Scope 1 carbon
dioxide emissions in California; although these CCS projects remain
subject to regulatory approval, we look forward to working with the
counter-parties on a solution that benefits all of our
stakeholders,” continued Smith.
Second Quarter 2022 Results
Adjusted EBITDA(1), on a hedged basis, was $110
million in the second quarter 2022. This represented a 15% increase
compared to $96 million in the first quarter 2022. This increase is
largely the result of higher hedged oil prices and improved margins
from the well servicing and abandonment segment, partially offset
by lower oil and gas volumes and higher GHG prices as that market
returned to more normal levels compared to the first quarter.
The Company reported daily production of 26,200
boe/d for the second quarter 2022, compared to 26,700 boe/d for the
first quarter of 2022. The sequential decrease was primarily
attributed to the divestment of our Colorado asset in the first
quarter and shut in production during planned drilling, workover
and abandonment activities in California during the second quarter.
Production in Utah increased largely as a result of the drilling
program during the first half of the year. The Company's oil
production for the second quarter 2022 was 24,000 bbl/d, or 92% of
total production, with California production contributing 21,000
boe/d or 80% of total production.
The Company-wide hedged realized oil price for
the second quarter 2022 was $83.78 per bbl, a 9% increase from the
prior quarter. The California average oil price before hedges for
the second quarter 2022 was $107.31 per bbl, reflecting
approximately 96% of Brent, which was 15% higher than the $93.16
per bbl in the first quarter 2022, approximately 95% of Brent.
Operating expenses, or OpEx, consists of lease
operating expenses (“LOE”), third-party expenses and revenues from
electricity generation, transportation and marketing activities, as
well as the effect of derivative settlements (received or paid) for
gas purchases. On a hedged basis, operating expenses increased
slightly by $0.33 per boe or 1% to $25.97 for the second quarter
2022, compared to $25.64 for the first quarter 2022. During the
second quarter, non-energy operating expenses increased due to
higher workover and field monitoring activity associated with our
field optimization program, and well and facility maintenance
expenses. A portion of these higher costs was driven by inflation.
Energy operating expenses decreased in the second quarter due to
lower hedged fuel prices and higher electricity sales, compared to
the first quarter 2022.
Total general and administrative expenses were
comparable at $23 million for each of the second and first quarters
of 2022. Adjusted General and Administrative Expenses(1), which
exclude non-cash stock compensation costs and nonrecurring costs,
were also comparable at $19 million for the second and first
quarters of 2022.
Taxes, other than income taxes were $4.70 per
boe for the second quarter compared to $2.74 per boe in the first
quarter 2022 with the increase largely due to the GHG prices
returning to the higher, more normal levels compared to the first
quarter.
For the second quarter 2022, capital
expenditures were approximately $34 million on an accrual basis
including capitalized overhead and interest and excluding
acquisitions and asset retirement obligation spending.
Approximately 55% of this capital was directed to California oil
operations, and 34% to Utah operations. Additionally, the Company
spent approximately $6 million for plugging and abandonment
activities in the second quarter 2022. Aggregate capital
expenditures in the first half of 2022 were $62 million and the
Company expects full year capital will be at the lower end of its
guidance range due to a shift in its development plans to reuse
existing wellbores.
The operating results for C&J Well Services
improved in the second quarter 2022 compared to the first quarter
2022. For this segment in the second and first quarters 2022,
respectively, services revenues were $46 million and $40 million,
costs of services were $37 million and $33 million, and general and
administrative expenses were $3 million each quarter.
At June 30, 2022, the Company had liquidity of
$251 million consisting of $58 million cash on hand and
$193 million available for borrowings under its RBL
Facility.
“It was a strong discretionary free cash flow
quarter and, at current commodity prices, we expect to continue to
deliver top tier returns,” stated Cary Baetz, Berry's Executive
Vice President and Chief Financial Officer. “Our 2022 guidance
ranges remain in place; however, operating expenses are tracking on
the higher side of guidance due to an increase in workovers
expensed as we optimized our base production as well as incurred
some additional costs associated with our new surveillance program.
We also expect a slightly lower capital expenditure due primarily
to the increase in workovers expensed and lower overall new drill
well count for the year.”
Quarterly Dividends
The Company’s Board of Directors declared
dividends totaling $0.62 per share on the Company’s outstanding
common stock. The variable portion of $0.56 per share was based on
second quarter 2022 Discretionary Free Cash Flow(1) in accordance
with the Company's Shareholder Return Model. The fixed portion of
$0.06 per share was also declared, and both dividends are payable
on August 25, 2022 to shareholders of record at the close of
business on August 15, 2022.
Subject to approval by the Board on a quarterly
basis and depending on a variety of factors, including the
Company’s financial condition and results of operations, the
Company intends to declare a fixed and variable dividend each
quarter.
Full-Year 2022 Guidance
Berry reiterates its previously issued full-year
2022 guidance as follows.
Full-Year 2022 Guidance |
Low |
|
High |
Average Daily Production (boe/d)(1) |
25,500 |
|
27,500 |
Non-Energy Operating Expenses ($/boe) |
$13.75 |
|
$14.25 |
Operating Expenses ($/boe) |
$20.00 |
|
$22.00 |
Taxes, Other than Income Taxes ($/boe) |
$4.50 |
|
$5.50 |
Adjusted General & Administrative (G&A) expenses
($/boe)(2) |
|
|
|
Development and Production Segment & Corp |
$5.75 |
|
$6.25 |
Well Servicing and Abandonment Segment |
|
~$1.45 |
|
Capital Expenditures ($ millions) |
|
|
|
Development and Production Segment & Corp |
$125 |
|
$135 |
Well Servicing and Abandonment Segment |
|
~$8 |
|
Well Servicing & Abandonment Segment Adjusted EBITDA ($mm) |
|
~$27 |
|
______
(1) Oil production is expected
to be approximately 92% of total.
(2) Please see “Non-GAAP
Financial Measures and Reconciliations” later in this press release
for a reconciliation and more information on these
Non-GAAP measures.
Earnings Conference Call
The Company will host a conference call to
discuss these results:
Call
Date: |
Wednesday,
August 3, 2022 |
Call Time: |
11:00 a.m. Eastern Time / 10:00 a.m. Central Time / 8:00 a.m.
Pacific Time |
Join the live listen-only audio webcast at
https://edge.media-server.com/mmc/p/yaxee5u6 or at
https://bry.com/category/events |
If you would like to ask a question on the live
call, please preregister at any time using the following
link:https://register.vevent.com/register/BI057ced2ba12c4a29bd9c527438fcde56
Once registered, you will receive the dial-in
numbers and a unique PIN number. You may then dial-in or have a
call back. When you dial in, you will input your PIN and be placed
into the call. If you register and forget your PIN or lose your
registration confirmation email, you may simply re-register and
receive a new PIN.
A web based audio replay will be available
shortly after the broadcast and will be archived at
https://ir.bry.com/reports-resources or visit
https://edge.media-server.com/mmc/p/yaxee5u6
About Berry Corporation
(bry)
Berry is a publicly traded (NASDAQ: BRY) western
United States independent upstream energy company with a focus on
onshore, low geologic risk, long-lived, conventional oil reserves
located primarily in the San Joaquin basin of California, as well
as the Uinta basin of Utah. We also have well servicing and
abandonment capabilities in 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, such as those regarding its business; financial
position; liquidity; cash flows (including, but not limited to,
Discretionary Free Cash Flow); financial and operating results;
capital program; development and production opportunities and
plans; operations and business strategy; potential acquisitions and
other organic and strategic growth opportunities; reserves; hedging
activities; capital expenditures; return of capital; our new
shareholder return model; the payment of or improvement of future
dividends; future repurchases of stock or debt; capital
investments; the ability to execute ESG-related projects, including
reduction of our carbon footprint; recovery factors; and other
guidance are forward-looking statements. 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.
Berry cautions you that these forward-looking
statements are subject to all of the risks and uncertainties
incident to the exploration for and development, production,
gathering and sale of natural gas, NGLs and oil most of which are
difficult to predict and many of which are beyond Berry’s control.
These risks include, but are not limited to, commodity price
volatility; legislative and regulatory actions that may prevent,
delay or otherwise restrict our ability to drill and develop our
assets, including with respect to existing and/or new requirements
in the regulatory approval and permitting process; legislative and
regulatory initiatives in California or our other areas of
operation addressing climate change or other environmental
concerns; investment in and development of competing or alternative
energy sources; drilling, production and other operating risks;
uncertainties inherent in estimating natural gas and oil reserves
and in projecting future rates of production; cash flow and access
to capital; the timing and funding of development expenditures;
environmental, health and safety risks; effects of hedging
arrangements; potential shut-ins of production due to lack of
downstream demand or storage capacity; disruptions to, capacity
constraints in, or other limitations on the third-party
transportation and market takeaway infrastructure (including
pipeline systems) that deliver our oil and natural gas and other
processing and transportation considerations; the impact and
duration of the ongoing COVID-19 pandemic on demand and pricing
levels; the ability to effectively deploy our ESG strategy and
risks associated with initiating new projects or business in
connection therewith; overall domestic and global political and
economic conditions; inflation levels, particularly the recent rise
to historically high levels, and government efforts to reduce
inflation, including increased interest rates; and the other 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, 2021 and subsequent filings with the SEC.
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.
Tables Following
The financial information and certain other
information presented have been rounded to the nearest whole number
or the nearest decimal. Therefore, the sum of the numbers in a
column may not conform exactly to the total figure given for that
column in certain tables. In addition, certain percentages
presented here reflect calculations based upon the underlying
information prior to rounding and, accordingly, may not conform
exactly to the percentages that would be derived if the relevant
calculations were based upon the rounded numbers, or may not sum
due to rounding.
SUMMARY OF RESULTS
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ and shares in thousands, except per share amounts) |
Statement of Operations Data: |
|
|
|
|
|
Revenues and other: |
|
|
|
|
|
Oil, natural gas and natural gas liquids sales |
$ |
240,071 |
|
|
$ |
210,351 |
|
|
$ |
147,775 |
|
Services revenue |
|
46,178 |
|
|
|
39,836 |
|
|
|
— |
|
Electricity sales |
|
7,419 |
|
|
|
5,419 |
|
|
|
6,888 |
|
Losses on oil and gas sales derivatives |
|
(40,658 |
) |
|
|
(161,858 |
) |
|
|
(55,653 |
) |
Marketing revenues |
|
— |
|
|
|
289 |
|
|
|
121 |
|
Other revenues |
|
120 |
|
|
|
45 |
|
|
|
118 |
|
Total revenues and other |
|
253,130 |
|
|
|
94,082 |
|
|
|
99,249 |
|
|
|
|
|
|
|
Expenses and other: |
|
|
|
|
|
Lease operating expenses |
|
72,455 |
|
|
|
63,124 |
|
|
|
45,543 |
|
Costs of services |
|
36,709 |
|
|
|
33,472 |
|
|
|
— |
|
Electricity generation expenses |
|
6,122 |
|
|
|
4,463 |
|
|
|
4,712 |
|
Transportation expenses |
|
1,108 |
|
|
|
1,158 |
|
|
|
1,757 |
|
Marketing expenses |
|
— |
|
|
|
299 |
|
|
|
44 |
|
General and administrative expenses |
|
23,183 |
|
|
|
22,942 |
|
|
|
16,065 |
|
Depreciation, depletion and amortization |
|
38,055 |
|
|
|
39,777 |
|
|
|
35,850 |
|
Taxes, other than income taxes |
|
11,214 |
|
|
|
6,605 |
|
|
|
11,603 |
|
Losses (gains) on natural gas purchase derivatives |
|
10,661 |
|
|
|
(29,054 |
) |
|
|
(11,639 |
) |
Other operating expenses |
|
353 |
|
|
|
3,769 |
|
|
|
42 |
|
Total expenses and other |
|
199,860 |
|
|
|
146,555 |
|
|
|
103,977 |
|
|
|
|
|
|
|
Other (expenses) income: |
|
|
|
|
|
Interest expense |
|
(7,729 |
) |
|
|
(7,675 |
) |
|
|
(8,217 |
) |
Other, net |
|
(42 |
) |
|
|
(13 |
) |
|
|
(8 |
) |
Total other (expenses) income |
|
(7,771 |
) |
|
|
(7,688 |
) |
|
|
(8,225 |
) |
Income (loss) before income taxes |
|
45,499 |
|
|
|
(60,161 |
) |
|
|
(12,953 |
) |
Income tax expense (benefit) |
|
2,145 |
|
|
|
(3,351 |
) |
|
|
(72 |
) |
Net income (loss) |
$ |
43,354 |
|
|
$ |
(56,810 |
) |
|
$ |
(12,881 |
) |
|
|
|
|
|
|
Net income (loss) per share: |
|
|
|
|
|
Basic |
$ |
0.54 |
|
|
$ |
(0.71 |
) |
|
$ |
(0.16 |
) |
Diluted |
$ |
0.52 |
|
|
$ |
(0.71 |
) |
|
$ |
(0.16 |
) |
|
|
|
|
|
|
Weighted-average shares of common stock outstanding - basic |
|
79,596 |
|
|
|
80,298 |
|
|
|
80,471 |
|
Weighted-average shares of common stock outstanding - diluted |
|
83,015 |
|
|
|
80,298 |
|
|
|
80,471 |
|
|
|
|
|
|
|
Adjusted Net Income (Loss)(1) |
$ |
53,136 |
|
|
$ |
42,871 |
|
|
$ |
(6,293 |
) |
Weighted-average shares of common stock outstanding - diluted |
|
83,015 |
|
|
|
84,447 |
|
|
|
80,471 |
|
Diluted earnings per share on Adjusted Net Income (Loss) |
$ |
0.64 |
|
|
$ |
0.51 |
|
|
$ |
(0.08 |
) |
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ and shares in thousands, except per share amounts) |
Adjusted EBITDA(1) |
$ |
109,747 |
|
|
$ |
95,712 |
|
|
$ |
40,599 |
|
Adjusted EBITDA Unhedged(1) |
$ |
147,375 |
|
|
$ |
127,864 |
|
|
$ |
78,030 |
|
Adjusted General and Administrative Expenses(1) |
$ |
18,920 |
|
|
$ |
19,038 |
|
|
$ |
13,302 |
|
Effective Tax Rate, including discrete items |
|
5 |
% |
|
|
5 |
% |
|
|
1 |
% |
|
|
|
|
|
|
Cash Flow Data: |
|
|
|
|
|
Net cash provided by operating activities |
$ |
111,242 |
|
|
$ |
48,530 |
|
|
$ |
21,429 |
|
Net cash used in investing activities |
$ |
(38,863 |
) |
|
$ |
(36,560 |
) |
|
$ |
(40,575 |
) |
Net cash used in financing activities |
$ |
(37,844 |
) |
|
$ |
(9,293 |
) |
|
$ |
(3,298 |
) |
__________
(1) See further discussion and
reconciliation in “Non-GAAP Financial Measures and
Reconciliations”.
|
June 30, 2022 |
|
December 31, 2021 |
|
($ and shares in thousands) |
Balance Sheet Data: |
|
|
|
Total current assets |
$ |
204,898 |
|
$ |
147,498 |
Total property, plant and equipment, net |
$ |
1,313,927 |
|
$ |
1,301,349 |
Total current liabilities |
$ |
261,746 |
|
$ |
187,149 |
Long-term debt |
$ |
395,135 |
|
$ |
394,566 |
Total stockholders' equity |
$ |
640,769 |
|
$ |
629,648 |
Outstanding common stock shares as of |
|
78,760 |
|
|
80,007 |
|
|
|
|
|
|
The following table represents selected
financial information for the periods presented regarding the
Company's business segments on a stand-alone basis and the
consolidation and elimination entries necessary to arrive at the
financial information for the Company on a consolidated basis.
Berry acquired C&J Well Services on October 1, 2021 and the
results of their operations were included in Berry's consolidated
results beginning the fourth quarter 2021.
|
Three Months Ended June 30, 2022 |
|
Development & Production |
|
Well Servicing and Abandonment |
|
Corporate/Eliminations |
|
Consolidated Company |
|
(in thousands) |
Revenues - excluding hedges |
$ |
247,610 |
|
$ |
46,178 |
|
$ |
— |
|
|
$ |
293,788 |
Net income (loss) |
$ |
68,885 |
|
$ |
3,307 |
|
$ |
(28,838 |
) |
|
$ |
43,354 |
Adjusted EBITDA |
$ |
116,942 |
|
$ |
6,200 |
|
$ |
(13,395 |
) |
|
$ |
109,747 |
Capital expenditures |
$ |
32,134 |
|
$ |
1,066 |
|
$ |
886 |
|
|
$ |
34,086 |
Total assets |
$ |
1,456,164 |
|
$ |
71,543 |
|
$ |
2,678 |
|
|
$ |
1,530,385 |
|
Three Months Ended March 31, 2022 |
|
Development & Production |
|
Well Servicing and Abandonment |
|
Corporate/Eliminations |
|
Consolidated Company |
|
(in thousands) |
Revenues - excluding hedges |
$ |
216,104 |
|
|
$ |
39,836 |
|
|
$ |
— |
|
|
$ |
255,940 |
|
Net loss before income taxes |
$ |
(34,291 |
) |
|
$ |
(284 |
) |
|
$ |
(25,586 |
) |
|
$ |
(60,161 |
) |
Adjusted EBITDA |
$ |
105,649 |
|
|
$ |
3,300 |
|
|
$ |
(13,237 |
) |
|
$ |
95,712 |
|
Capital expenditures |
$ |
26,437 |
|
|
$ |
628 |
|
|
$ |
555 |
|
|
$ |
27,620 |
|
Total assets |
$ |
1,471,358 |
|
|
$ |
73,887 |
|
|
$ |
(50,518 |
) |
|
$ |
1,494,727 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SUMMARY BY AREA
The following table shows a summary by area of
our selected historical information and operating information for
our development and production operations for the periods
indicated.
|
California (San Joaquin and Ventura
basins)(3) |
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
($ in thousands, except prices) |
|
|
|
|
|
Oil, natural gas and natural gas liquids sales |
$ |
204,706 |
|
|
$ |
186,252 |
|
|
$ |
129,128 |
|
Operating income(1) |
$ |
63,608 |
|
|
$ |
60,162 |
|
|
$ |
11,413 |
|
Depreciation, depletion, and
amortization (DD&A) |
$ |
34,074 |
|
|
$ |
35,786 |
|
|
$ |
35,174 |
|
Average daily production (mboe/d) |
|
21.0 |
|
|
|
22.2 |
|
|
|
21.7 |
|
Production (oil % of total) |
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
Realized sales prices: |
|
|
|
|
|
Oil (per bbl) |
$ |
107.31 |
|
|
$ |
93.16 |
|
|
$ |
65.37 |
|
NGLs (per bbl) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Gas (per mcf) |
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Capital expenditures(2) |
$ |
18,672 |
|
|
$ |
14,622 |
|
|
$ |
31,303 |
|
|
Utah(Uinta basin) |
|
Colorado(Piceance
basin)(4) |
|
Three Months Ended |
|
Three Months Ended |
|
June 30,2022 |
|
March 31,2022 |
|
June 30,2021 |
|
June 30,2022 |
|
March 31,2022 |
|
June 30,2021 |
($ in thousands, except prices) |
|
|
|
|
|
|
|
|
|
|
|
Oil, natural gas and natural gas liquids sales |
$ |
35,338 |
|
|
$ |
23,038 |
|
|
$ |
16,199 |
|
|
$ |
— |
|
|
$ |
1,056 |
|
|
$ |
2,438 |
|
Operating income(1) |
$ |
20,579 |
|
|
$ |
11,173 |
|
|
$ |
6,736 |
|
|
$ |
— |
|
|
$ |
610 |
|
|
$ |
1,121 |
|
Depreciation, depletion, and amortization (DD&A) |
$ |
964 |
|
|
$ |
803 |
|
|
$ |
630 |
|
|
$ |
— |
|
|
$ |
9 |
|
|
$ |
38 |
|
Average daily production (mboe/d) |
|
5.2 |
|
|
|
4.1 |
|
|
|
4.4 |
|
|
|
— |
|
|
|
0.4 |
|
|
|
1.2 |
|
Production (oil % of total) |
|
57 |
% |
|
|
53 |
% |
|
|
52 |
% |
|
|
— |
% |
|
|
— |
% |
|
|
2 |
% |
Realized sales prices: |
|
|
|
|
|
|
|
|
|
|
|
Oil (per bbl) |
$ |
94.47 |
|
|
$ |
83.02 |
|
|
$ |
58.55 |
|
|
$ |
— |
|
|
$ |
89.41 |
|
|
$ |
56.05 |
|
NGLs (per bbl) |
$ |
56.47 |
|
|
$ |
47.03 |
|
|
$ |
29.61 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
Gas (per mcf) |
$ |
7.35 |
|
|
$ |
5.93 |
|
|
$ |
3.30 |
|
|
$ |
— |
|
|
$ |
5.12 |
|
|
$ |
3.53 |
|
Capital expenditures(2) |
$ |
11,563 |
|
|
$ |
9,752 |
|
|
$ |
9,162 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
__________
(1) Operating income (loss)
includes oil, natural gas and NGL sales, marketing revenues, other
revenues, and scheduled oil derivative settlements, offset by
operating expenses (as defined elsewhere), general and
administrative expenses, DD&A, impairment of oil and gas
properties, and taxes, other than income taxes.
(2) Excludes corporate
capital expenditures.
(3) Our Placerita properties,
in the Ventura basin, were divested in October 2021.
(4) Our properties in
Colorado were in the Piceance basin, all of which were divested in
January 2022.
COMMODITY PRICING
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
Weighted-average realized sales prices: |
|
|
|
|
|
Oil without hedges ($/bbl) |
$ |
105.70 |
|
|
$ |
92.25 |
|
|
$ |
64.72 |
|
Effects of scheduled derivative settlements ($/bbl) |
$ |
(21.92 |
) |
|
$ |
(15.38 |
) |
|
$ |
(18.33 |
) |
Oil with hedges ($/bbl) |
$ |
83.78 |
|
|
$ |
76.87 |
|
|
$ |
46.39 |
|
Natural gas ($/mcf) |
$ |
7.35 |
|
|
$ |
5.77 |
|
|
$ |
3.39 |
|
NGLs ($/bbl) |
$ |
56.47 |
|
|
$ |
47.03 |
|
|
$ |
29.61 |
|
|
|
|
|
|
|
Average Benchmark prices: |
|
|
|
|
|
Oil (bbl) – Brent |
$ |
111.98 |
|
|
$ |
97.90 |
|
|
$ |
69.08 |
|
Oil (bbl) – WTI |
$ |
108.71 |
|
|
$ |
94.54 |
|
|
$ |
66.03 |
|
Natural gas (mmbtu) – Kern, Delivered(1) |
$ |
7.36 |
|
|
$ |
4.83 |
|
|
$ |
3.23 |
|
Natural gas (mmbtu) – Henry Hub(2) |
$ |
7.50 |
|
|
$ |
4.67 |
|
|
$ |
2.95 |
|
__________
(1) Kern, Delivered
Index is the relevant index used for gas purchases in
California.
(2) Henry Hub is the
relevant index used for gas sales in the Rockies.
CURRENT HEDGING SUMMARY
As of June 30, 2022, we had the following hedges
for our crude oil production and gas purchases.
|
Q3 2022 |
|
Q4 2022 |
|
FY 2023 |
|
FY 2024 |
|
FY 2025 |
Brent |
|
|
|
|
|
|
|
|
|
Swaps |
|
|
|
|
|
|
|
|
|
Hedged volume (bbls) |
|
1,380,000 |
|
|
1,288,000 |
|
|
3,433,528 |
|
|
1,917,000 |
|
|
— |
Weighted-average price ($/bbl) |
$ |
77.73 |
|
$ |
76.07 |
|
$ |
73.06 |
|
$ |
75.52 |
|
$ |
— |
Put Spreads |
|
|
|
|
|
|
|
|
|
Hedged volume (bbls) |
|
368,000 |
|
|
368,000 |
|
|
2,190,000 |
|
|
1,281,000 |
|
|
— |
Weighted-average price ($/bbl) |
$50.00/$40.00 |
|
$50.00/$40.00 |
|
$50.00/$40.00 |
|
$50.00/$40.00 |
|
$ |
— |
Producer Collars |
|
|
|
|
|
|
|
|
|
Hedged volume (bbls) |
|
— |
|
|
— |
|
|
1,460,000 |
|
|
1,098,000 |
|
|
— |
Weighted-average price ($/bbl) |
$ |
— |
|
$ |
— |
|
$40.00/$106.00 |
|
$40.00/$105.00 |
|
$ |
— |
Henry Hub - Natural Gas purchases |
|
|
|
|
|
|
|
|
|
Consumer Collars |
|
|
|
|
|
|
|
|
|
Hedged volume (mmbtu) |
|
3,680,000 |
|
|
3,680,000 |
|
|
5,430,000 |
|
|
— |
|
|
— |
Weighted-average price ($/mmbtu) |
$4.00/$2.75 |
|
$4.00/$2.75 |
|
$4.00/$2.75 |
|
$ |
— |
|
$ |
— |
NWPL - Natural Gas purchases |
|
|
|
|
|
|
|
|
|
Swaps |
|
|
|
|
|
|
|
|
|
Hedged volume (mmbtu) |
|
— |
|
|
1,220,000 |
|
|
12,800,000 |
|
|
7,320,000 |
|
|
6,080,000 |
Weighted-average price ($/mmbtu) |
$ |
— |
|
$ |
6.40 |
|
$ |
5.48 |
|
$ |
4.27 |
|
$ |
4.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ in thousands except per boe amounts) |
Lease operating expenses |
$ |
72,455 |
|
|
$ |
63,124 |
|
|
$ |
45,543 |
|
Electricity generation expenses |
|
6,122 |
|
|
|
4,463 |
|
|
|
4,712 |
|
Electricity sales(1) |
|
(7,419 |
) |
|
|
(5,419 |
) |
|
|
(6,888 |
) |
Transportation expenses |
|
1,108 |
|
|
|
1,158 |
|
|
|
1,757 |
|
Transportation sales(1) |
|
(120 |
) |
|
|
(45 |
) |
|
|
(118 |
) |
Marketing expenses |
|
— |
|
|
|
299 |
|
|
|
44 |
|
Marketing revenues(1) |
|
— |
|
|
|
(289 |
) |
|
|
(121 |
) |
Derivative settlements (received) paid for gas purchases(1) |
|
(10,188 |
) |
|
|
(1,653 |
) |
|
|
(1,913 |
) |
Total operating expenses(1) |
$ |
61,958 |
|
|
$ |
61,638 |
|
|
$ |
43,016 |
|
|
|
|
|
|
|
Lease operating expenses ($/boe) |
$ |
30.37 |
|
|
$ |
26.25 |
|
|
$ |
18.33 |
|
Electricity generation expenses ($/boe) |
|
2.57 |
|
|
|
1.86 |
|
|
|
1.90 |
|
Electricity sales ($/boe) |
|
(3.11 |
) |
|
|
(2.25 |
) |
|
|
(2.77 |
) |
Transportation expenses ($/boe) |
|
0.46 |
|
|
|
0.48 |
|
|
|
0.70 |
|
Transportation sales ($/boe) |
|
(0.05 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
Marketing expenses ($/boe) |
|
— |
|
|
|
0.13 |
|
|
|
0.02 |
|
Marketing revenues ($/boe) |
|
— |
|
|
|
(0.12 |
) |
|
|
(0.05 |
) |
Derivative settlements (received) paid for gas purchases
($/boe) |
|
(4.27 |
) |
|
|
(0.69 |
) |
|
|
(0.77 |
) |
Total operating expenses ($/boe) |
$ |
25.97 |
|
|
$ |
25.64 |
|
|
$ |
17.31 |
|
Total unhedged operating expenses ($/boe)(2) |
$ |
30.24 |
|
|
$ |
26.33 |
|
|
$ |
18.08 |
|
|
|
|
|
|
|
Total non-energy operating expenses(3) |
$ |
16.10 |
|
|
$ |
13.58 |
|
|
$ |
12.71 |
|
Total energy operating expenses(4) |
$ |
9.87 |
|
|
$ |
12.06 |
|
|
$ |
4.60 |
|
|
|
|
|
|
|
Total mboe |
|
2,386 |
|
|
|
2,406 |
|
|
|
2,485 |
|
__________
(1) We report electricity,
transportation and marketing sales separately in our financial
statements as revenues in accordance with GAAP. However, these
revenues are viewed and used internally in calculating operating
expenses which is used to track and analyze the economics of
development projects and the efficiency of our hydrocarbon
recovery. We purchase third-party gas to generate electricity
through our cogeneration facilities to be used in our field
operations activities and view the added benefit of any excess
electricity sold externally as a cost reduction/benefit to
generating steam for our thermal recovery operations. Marketing
revenues and expenses mainly relate to natural gas purchased from
third parties that moves through our gathering and processing
systems and then is sold to third parties. Transportation sales
relate to water and other liquids that we transport on our systems
on behalf of third parties and have not been significant to date.
Operating expenses also include the effect of derivative
settlements (received or paid) for gas purchases.
(2) Total unhedged operating
expenses equals total operating expenses, excluding the derivative
settlements paid (received) for gas purchases.
(3) Total non-energy
operating expenses equals total operating expenses, excluding fuel,
electricity sales and gas purchase derivative settlement (gains)
losses.
(4) Total energy operating
expenses equals fuel and gas purchase derivative settlement (gains)
losses less electricity sales.
PRODUCTION STATISTICS
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
Net Oil, Natural Gas and NGLs Production Per
Day(1): |
|
|
|
|
|
Oil (mbbl/d) |
|
|
|
|
|
California(2) |
21.0 |
|
22.2 |
|
21.7 |
Utah |
3.0 |
|
2.2 |
|
2.3 |
Colorado(3) |
— |
|
— |
|
— |
Total oil |
24.0 |
|
24.4 |
|
24.0 |
Natural gas (mmcf/d) |
|
|
|
|
|
California(2) |
— |
|
— |
|
— |
Utah |
11.0 |
|
9.2 |
|
10.3 |
Colorado(3) |
— |
|
2.3 |
|
7.2 |
Total natural gas |
11.0 |
|
11.5 |
|
17.5 |
NGLs (mbbl/d) |
|
|
|
|
|
California(2) |
— |
|
— |
|
— |
Utah |
0.4 |
|
0.4 |
|
0.4 |
Colorado(3) |
— |
|
— |
|
— |
Total NGLs |
0.4 |
|
0.4 |
|
0.4 |
Total Production (mboe/d)(4) |
26.2 |
|
26.7 |
|
27.3 |
__________
(1) Production represents
volumes sold during the period. We also consume a portion of the
natural gas we produce on lease to extract oil and gas.
(2) Our Placerita properties,
in the Ventura basin, were divested in October 2021.
(3) Our properties in Colorado
were in the Piceance basin, all of which were all divested in
January 2022.
(4) Natural gas volumes have
been converted to boe based on energy content of six mcf of gas to
one bbl of oil. Barrels of oil equivalence does not necessarily
result in price equivalence. The price of natural gas on a barrel
of oil equivalent basis is currently substantially lower than the
corresponding price for oil and has been similarly lower for a
number of years. For example, in the three months ended June 30,
2022, the average prices of Brent oil and Henry Hub natural gas
were $111.98 per bbl and $7.50 per mmbtu respectively.
CAPITAL EXPENDITURES (ACCRUAL
BASIS)
|
Three Months Ended |
|
June 30, 2022(2) |
|
March 31, 2022(2) |
June 30, 2021 |
|
(in thousands) |
Capital expenditures (accrual basis)(1) |
$ |
34,086 |
|
$ |
27,620 |
|
$ |
43,461 |
__________
(1) Capital expenditures on an
accrual basis include capitalized overhead and interest and
excludes acquisitions and asset retirement spending.
(2) Capital expenditures in the quarter
ended June 30, 2022 and March 31, 2022 included approximately $1
million each period for C&J Well Services which was acquired on
October 1, 2021.
NON-GAAP FINANCIAL MEASURES AND
RECONCILIATIONS
Adjusted Net Income (Loss) is not a measure of
net income (loss) and Discretionary Free Cash Flow is not a measure
of cash flow, and Adjusted EBITDA and Adjusted EBITDA Unhedged are
not measures of either, in all cases, as determined by GAAP.
Adjusted EBITDA, Adjusted EBITDA Unhedged, Adjusted Net Income
(Loss) and Discretionary Free Cash Flow are supplemental non-GAAP
financial measures used by management and external users of our
financial statements, such as industry analysts, investors, lenders
and rating agencies. We define Adjusted Net Income (Loss) as net
income (loss) adjusted for derivative gains or losses net of cash
received or paid for scheduled derivative settlements, other
unusual and infrequent items, and the income tax expense or benefit
of these adjustments using our effective tax rate. We define
Adjusted EBITDA as earnings before interest expense; income taxes;
depreciation, depletion, and amortization; derivative gains or
losses net of cash received or paid for scheduled derivative
settlements; impairments; stock compensation expense; and unusual
and infrequent items. We define Discretionary Free Cash Flow as
cash flow from operations less regular fixed dividends and the
capital needed to hold production flat.
Adjusted Net Income (Loss) excludes the impact
of unusual and infrequent items affecting earnings that vary widely
and unpredictably, including non-cash items such as derivative
gains and losses. This measure is used by management when comparing
results period over period. Our management believes Adjusted EBITDA
provides useful information in assessing our financial condition,
results of operations and cash flows and is widely used by the
industry and the investment community. The measure also allows our
management to more effectively evaluate our operating performance
and compare the results between periods without regard to our
financing methods or capital structure. We also use Adjusted EBITDA
in planning our capital allocation to sustain production levels and
to determine our strategic hedging needs aside from the hedging
requirements of the 2021 RBL Facility. Management believes
Discretionary Free Cash Flow provides useful information in
assessing our financial condition, and is the primary metric to
determine the quarterly variable dividend. We expect to allocate
60% of Discretionary Free Cash Flow predominantly in the form of
cash variable dividends, as well as opportunistic debt repurchases.
The remaining 40% will be used for opportunistic growth, including
from our extensive inventory of drilling opportunities, advancing
our short- and long-term sustainability initiatives, share
repurchases, and/or capital retention. Our management believes
Discretionary Free Cash Flow provides useful information in
assessing our financial condition, and is the primary metric to
determine the quarterly variable dividend.
Adjusted General and Administrative Expenses is
a supplemental non-GAAP financial measure that is used by
management and external users of our financial statements, such as
industry analysts, investors, lenders and rating agencies. We
define Adjusted General and Administrative Expenses as general and
administrative expenses adjusted for non-cash stock compensation
expense and unusual and infrequent costs. Management believes
Adjusted General and Administrative Expenses is useful because it
allows us to more effectively compare our performance from period
to period. We exclude the items listed above from general and
administrative expenses in arriving at Adjusted General and
Administrative Expenses because these amounts can vary widely and
unpredictably in nature, timing, amount and frequency and stock
compensation expense is non-cash in nature.
While Adjusted Net Income (Loss), Adjusted
EBITDA, Adjusted EBITDA Unhedged, Adjusted General and
Administrative Expenses and Discretionary Free Cash Flow are
non-GAAP measures, the amounts included in the calculations of
Adjusted Net Income (Loss), Adjusted EBITDA, Adjusted EBITDA
Unhedged, Adjusted General and Administrative Expenses and
Discretionary Free Cash Flow were computed in accordance with GAAP.
These measures are provided in addition to, and not as an
alternative for, income and liquidity measures calculated in
accordance with GAAP and should not be considered as an alternative
to, or more meaningful than, income and liquidity measures
calculated in accordance with GAAP. Certain items excluded from
Adjusted EBITDA are significant components in understanding and
assessing our financial performance, such as our cost of capital
and tax structure, as well as the historic cost of depreciable and
depletable assets. Our computations of Adjusted Net Income (Loss),
Adjusted EBITDA, Adjusted EBITDA Unhedged, Adjusted General and
Administrative Expenses and Discretionary Free Cash Flow may not be
comparable to other similarly titled measures used by other
companies. Adjusted Net Income (Loss), Adjusted EBITDA, Adjusted
EBITDA Unhedged, Adjusted General and Administrative Expenses and
Discretionary Free Cash Flow should be read in conjunction with the
information contained in our financial statements prepared in
accordance with GAAP.
ADJUSTED NET INCOME (LOSS)
The following table presents a reconciliation of
the GAAP financial measure of net income (loss) to the non-GAAP
financial measure of Adjusted Net Income (Loss).
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ thousands, except per share amounts) |
Net income (loss) |
$ |
43,354 |
|
|
$ |
(56,810 |
) |
|
$ |
(12,881 |
) |
Add (Subtract): |
|
|
|
|
|
Losses on derivatives |
|
51,319 |
|
|
|
132,804 |
|
|
|
44,014 |
|
Net cash paid for scheduled derivative settlements |
|
(37,628 |
) |
|
|
(32,152 |
) |
|
|
(37,431 |
) |
Other operating expenses |
|
353 |
|
|
|
3,769 |
|
|
|
42 |
|
Non-recurring costs |
|
— |
|
|
|
198 |
|
|
|
— |
|
Total additions, net |
|
14,044 |
|
|
|
104,619 |
|
|
|
6,625 |
|
|
|
|
|
|
|
Income tax expense of adjustments and discrete income tax
items |
|
(4,262 |
) |
|
|
(4,938 |
) |
|
|
(37 |
) |
Adjusted Net Income (Loss) |
$ |
53,136 |
|
|
$ |
42,871 |
|
|
$ |
(6,293 |
) |
|
|
|
|
|
|
Basic EPS on Adjusted Net Income (Loss) |
$ |
0.67 |
|
|
$ |
0.53 |
|
|
$ |
(0.08 |
) |
Diluted EPS on Adjusted Net Income (Loss) |
$ |
0.64 |
|
|
$ |
0.51 |
|
|
$ |
(0.08 |
) |
|
|
|
|
|
|
Weighted average shares of common stock outstanding - basic |
|
79,596 |
|
|
|
80,298 |
|
|
|
80,471 |
|
Weighted average shares of common stock outstanding - diluted |
|
83,015 |
|
|
|
84,447 |
|
|
|
80,471 |
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA AND ADJUSTED EBITDA
UNHEDGED
The following tables present a reconciliation of
the GAAP financial measures of net income (loss) and net cash
provided by operating activities to the non-GAAP financial measures
of Adjusted EBITDA and Adjusted EBITDA Unhedged.
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ thousands) |
Net income (loss) |
$ |
43,354 |
|
|
$ |
(56,810 |
) |
|
$ |
(12,881 |
) |
Add (Subtract): |
|
|
|
|
|
Interest expense |
|
7,729 |
|
|
|
7,675 |
|
|
|
8,217 |
|
Income tax expense (benefit) |
|
2,145 |
|
|
|
(3,351 |
) |
|
|
(72 |
) |
Depreciation, depletion and amortization |
|
38,055 |
|
|
|
39,777 |
|
|
|
35,850 |
|
Losses on derivatives |
|
51,319 |
|
|
|
132,804 |
|
|
|
44,014 |
|
Net cash paid for scheduled derivative settlements |
|
(37,628 |
) |
|
|
(32,152 |
) |
|
|
(37,431 |
) |
Other operating expense |
|
353 |
|
|
|
3,769 |
|
|
|
42 |
|
Stock compensation expense |
|
4,420 |
|
|
|
3,802 |
|
|
|
2,860 |
|
Non-recurring costs(1) |
|
— |
|
|
|
198 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
109,747 |
|
|
$ |
95,712 |
|
|
$ |
40,599 |
|
Net cash paid for scheduled derivative settlements |
|
37,628 |
|
|
|
32,152 |
|
|
|
37,431 |
|
Adjusted EBITDA Unhedged |
$ |
147,375 |
|
|
$ |
127,864 |
|
|
$ |
78,030 |
|
|
|
|
|
|
|
Net cash provided by operating activities |
$ |
111,242 |
|
|
$ |
48,530 |
|
|
$ |
21,429 |
|
Add (Subtract): |
|
|
|
|
|
Cash interest payments |
|
449 |
|
|
|
14,539 |
|
|
|
288 |
|
Cash income tax payments |
|
2,484 |
|
|
|
— |
|
|
|
— |
|
Non-recurring costs(1) |
|
— |
|
|
|
198 |
|
|
|
— |
|
Other changes in operating assets and liabilities |
|
(4,428 |
) |
|
|
32,445 |
|
|
|
18,882 |
|
Adjusted EBITDA |
$ |
109,747 |
|
|
$ |
95,712 |
|
|
$ |
40,599 |
|
Net cash paid for scheduled derivative settlements |
|
37,628 |
|
|
|
32,152 |
|
|
|
37,431 |
|
Adjusted EBITDA Unhedged |
$ |
147,375 |
|
|
$ |
127,864 |
|
|
$ |
78,030 |
|
__________(1) Non-recurring
costs include legal and professional service expenses related to
acquisition and divestiture activity.
Adjusted EBITDA is the measure reported to the
chief operating decision maker (CODM) for purposes of making
decisions about allocating resources to and assessing performance
of each segment. EBITDA represents earnings before interest
expense; income taxes; depreciation, depletion, and amortization;
derivative gains or losses net of cash received or paid for
scheduled derivative settlements; impairments; stock compensation
expense; and unusual and infrequent items.
|
Three Months Ended June 30, 2022 |
|
Development & Production |
|
Well Servicing and Abandonment |
|
Corporate/Eliminations |
|
Consolidated Company |
|
(in thousands) |
Adjusted EBITDA reconciliation to net income
(loss): |
|
|
|
|
|
|
|
Net income (loss) |
$ |
68,885 |
|
|
$ |
3,307 |
|
|
$ |
(28,838 |
) |
|
$ |
43,354 |
|
Add (Subtract): |
|
|
|
|
|
|
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
7,729 |
|
|
|
7,729 |
|
Income tax benefit |
|
— |
|
|
|
— |
|
|
|
2,145 |
|
|
|
2,145 |
|
Depreciation, depletion, and amortization |
|
33,956 |
|
|
|
3,017 |
|
|
|
1,082 |
|
|
|
38,055 |
|
Losses on derivatives |
|
51,319 |
|
|
|
— |
|
|
|
— |
|
|
|
51,319 |
|
Net cash paid for scheduled derivative settlements |
|
(37,628 |
) |
|
|
— |
|
|
|
— |
|
|
|
(37,628 |
) |
Other operating expenses |
|
30 |
|
|
|
(210 |
) |
|
|
533 |
|
|
|
353 |
|
Stock compensation expense |
|
380 |
|
|
|
86 |
|
|
|
3,954 |
|
|
|
4,420 |
|
Adjusted EBITDA |
$ |
116,942 |
|
|
$ |
6,200 |
|
|
$ |
(13,395 |
) |
|
$ |
109,747 |
|
|
Three Months Ended Mar 31, 2022 |
|
Development & Production |
|
Well Servicing and Abandonment |
|
Corporate/Eliminations |
|
Consolidated Company |
|
(in thousands) |
Adjusted EBITDA reconciliation to net income
(loss): |
|
|
|
|
|
|
|
Net loss |
$ |
(34,291 |
) |
|
$ |
(284 |
) |
|
$ |
(22,235 |
) |
|
$ |
(56,810 |
) |
Add (Subtract): |
|
|
|
|
|
|
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
7,675 |
|
|
|
7,675 |
|
Income tax expense |
|
— |
|
|
|
— |
|
|
|
(3,351 |
) |
|
|
(3,351 |
) |
Depreciation, depletion, and amortization |
|
35,474 |
|
|
|
3,179 |
|
|
|
1,124 |
|
|
|
39,777 |
|
Losses on derivatives |
|
132,804 |
|
|
|
— |
|
|
|
— |
|
|
|
132,804 |
|
Net cash paid for scheduled derivative settlements |
|
(32,152 |
) |
|
|
— |
|
|
|
— |
|
|
|
(32,152 |
) |
Other operating income |
|
3,495 |
|
|
|
174 |
|
|
|
100 |
|
|
|
3,769 |
|
Stock compensation expense |
|
319 |
|
|
|
33 |
|
|
|
3,450 |
|
|
|
3,802 |
|
Non-recurring costs |
|
— |
|
|
|
198 |
|
|
|
— |
|
|
|
198 |
|
Adjusted EBITDA |
$ |
105,649 |
|
|
$ |
3,300 |
|
|
$ |
(13,237 |
) |
|
$ |
95,712 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ADJUSTED GENERAL AND ADMINISTRATIVE
EXPENSES
The following table presents a reconciliation of
the GAAP financial measure of general and administrative expenses
to the non-GAAP financial measure of Adjusted General and
Administrative Expenses.
|
Three Months Ended |
|
June 30, 2022 |
|
March 31, 2022 |
|
June 30, 2021 |
|
($ in thousands except per mboe amounts) |
General and administrative expenses |
$ |
23,183 |
|
|
$ |
22,942 |
|
|
$ |
16,065 |
|
Subtract: |
|
|
|
|
|
Non-cash stock compensation expense (G&A portion) |
|
(4,263 |
) |
|
|
(3,706 |
) |
|
|
(2,763 |
) |
Non-recurring costs |
|
— |
|
|
|
(198 |
) |
|
|
— |
|
Adjusted General and Administrative Expenses |
$ |
18,920 |
|
|
$ |
19,038 |
|
|
$ |
13,302 |
|
|
|
|
|
|
|
Well servicing and abandonment segment |
$ |
3,285 |
|
|
$ |
3,070 |
|
|
$ |
— |
|
|
|
|
|
|
|
Development and production segment, and corporate |
$ |
15,635 |
|
|
$ |
15,968 |
|
|
$ |
13,302 |
|
Development and production segment, and corporate ($/boe) |
$ |
6.55 |
|
|
$ |
6.64 |
|
|
$ |
5.35 |
|
|
|
|
|
|
|
Total mboe |
|
2,386 |
|
|
|
2,406 |
|
|
|
2,485 |
|
|
|
|
|
|
|
|
|
|
|
|
|
DISCRETIONARY FREE CASH FLOW
The following table presents a reconciliation of
the non-GAAP financial measure Discretionary Free Cash Flow to the
GAAP financial measure of operating cash flow for each of the
periods indicated.
|
Three Months Ended |
Three Months Ended |
|
June 30. 2022 |
March 31, 2022 |
|
(in thousands) |
Discretionary Free Cash Flow: |
Operating cash flow(1) |
$ |
111,242 |
|
$ |
48,530 |
|
Subtract: |
|
|
Maintenance capital(2)(3) |
|
(32,134 |
) |
|
(26,437 |
) |
Fixed dividends(4) |
|
(4,726 |
) |
|
(5,236 |
) |
Discretionary Free Cash Flow |
$ |
74,382 |
|
$ |
16,857 |
|
__________(1) On a
consolidated basis.
(2) D&P business
only.
(3) Maintenance
capital is the capital required to keep annual production flat,
calculated as the capital expenditures for the D&P business
during the period presented.
(4) Represents fixed
dividends declared which are included in the “Dividends declared on
common stock” line in the the consolidated statement of
stockholders’ equity.
Contact
Contact: Berry Corporation (bry)
Todd Crabtree - Director, Investor Relations
(661) 616-3811
ir@bry.com
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