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1. Company Snapshot

1.a. Company Description

Berry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States.It operates in two segments, Development and Production, and Well Servicing and Abandonment.The company's properties are located in the San Joaquin and Ventura basins, California; and Uinta basin, Utah.


As of December 31, 2021, it had a total of 3,417 net productive wells.The company was formerly known as Berry Petroleum Corporation and changed its name to Berry Corporation in February 2020.Berry Corporation was founded in 1909 and is headquartered in Dallas, Texas.

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1.b. Last Insights on BRY

The recent 3-month performance of Berry Corporation was negatively impacted by several factors. The company's sales declined by 23% year-over-year to $20,618 million in the fourth quarter of 2024, primarily due to lower revenue from its oilfield chemical distribution and blending business. Adjusted EBITDA also plummeted by 161% to a loss of $1,174 million, resulting in a net loss of $1,589 million. The company's financial position also deteriorated, with total assets decreasing by 15% to $58,166 million and working capital declining by 72% to $4,459 million.

1.c. Company Highlights

2. Berry Corporation's Q2 2025 Earnings: Strong Execution and Cost Savings

Berry Corporation reported actual EPS of $0.4325, beating estimates of $0.01. The company's revenue growth is expected to be 0.0% next year. Key valuation metrics include a P/E Ratio of 49.23, P/B Ratio of 0.37, and Dividend Yield of 3.76%. The company's ROIC is 1.52%, and ROE is 0.73%, indicating moderate profitability.

Publication Date: Sep -08

📋 Highlights
  • Debt Reduction and Hedging: Paid down $23M in debt year-to-date (including $11M in Q2), with 71% of 2025 oil production hedged at $75/bbl Brent.
  • Utah Cost Efficiency: Achieved $500K per well savings via dual-fuel fleets, 50% produced water use, and $680/foot lateral costs (20% below non-operated peers).
  • California Production Growth: Q3 output to rise as Q2 wells ramp up, supported by 500+ PUD locations and Kern County EIR approval progress.
  • Operational and Financial Performance: Q2 oil and gas sales of $126M, adjusted EBITDA of $53M, operating cash flow of $29M, and $54M in capital expenditures.
  • Regulatory and Strategic Momentum: Kern County EIR approval expected, C&J Well Services poised for plug-and-drill growth, and $45M annual debt reduction on track with $101M liquidity.

Operational Highlights

The company is executing its 2025 plan, focusing on balance sheet strength and high-return projects. In Utah, a completed pad achieved $500,000 per well cost savings, with costs at $680 per lateral foot, 20% below non-operated peers. California production is expected to rise in Q3, driven by Q2 wells ramping up.

Financial Performance

Q2 financials include $126 million oil and gas sales, $53 million adjusted EBITDA, and $29 million operating cash flow. The company paid down $11 million in debt during Q2, bringing the year-to-date total to $23 million. 71% of 2025 oil production is hedged at $75/bbl Brent, supporting free cash flow.

Regulatory Progress and Strategic Direction

The company is making progress on regulatory fronts, including Kern County's approved EIR, which could streamline permitting. Berry is also exploring opportunities in California, with a focus on long-term asset value. The company's strategic direction is centered on execution, cash flow generation, and debt reduction, with a dividend yield of 3.76%.

3. NewsRoom

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$HAREHOLDER ALERT: The M&A Class Action Firm Continues to Investigate the Merger—TRUE, BRY, EVOK, and FSFG

Dec -01

Source: globenewswire.com

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DT Midstream (NYSE:DTM) and Berry (NASDAQ:BRY) Critical Contrast

Nov -18

Source: defenseworld.net

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Berry Corporation $BRY Shares Sold by Connor Clark & Lunn Investment Management Ltd.

Nov -17

Source: defenseworld.net

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Bri-Chem Announces 2025 Third Quarter Financial Results

Nov -14

Source: newsfilecorp.com

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Bri-Chem Announces New CEO Leadership

Nov -14

Source: newsfilecorp.com

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Acadian Asset Management LLC Boosts Position in Berry Corporation $BRY

Nov -14

Source: defenseworld.net

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Bri-Chem Corp. Announces Leadership Transition

Nov -09

Source: newsfilecorp.com

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PacBio Supports Berry Genomics in Achieving First Regulatory Approval for Clinical Long-Read Sequencing in China

Nov -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.63%)

6. Segments

Oil, Natural Gas and Natural Gas Liquid

Expected Growth: 8%

Berry Corporation's 8% growth in Oil, Natural Gas, and Natural Gas Liquids is driven by increased production from existing wells, successful drilling programs, and strategic acquisitions. Additionally, improved operational efficiencies, higher commodity prices, and a strong hedging program contribute to the growth. Furthermore, the company's focus on low-cost operations and disciplined capital allocation also support its growth momentum.

Service

Expected Growth: 7%

Berry Corporation's 7% growth is driven by increasing demand for oil and gas services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency, cost reduction, and investment in technology have contributed to its growth. Furthermore, the rising need for energy security and the growing importance of environmental, social, and governance (ESG) considerations have also supported the company's growth.

Gains(Losses) on Oil and Gas Derivatives

Expected Growth: 5%

Berry Corporation's 5% growth in Gains(Losses) on Oil and Gas Derivatives is driven by increased hedging activities, favorable oil price movements, and improved risk management strategies. Additionally, the company's diversified portfolio and strategic partnerships have contributed to the growth, allowing it to capitalize on market opportunities and mitigate potential losses.

Electricity

Expected Growth: 6%

Berry Corporation's 6% growth in electricity is driven by increasing demand from industrial and commercial customers, expansion into new markets, and investments in renewable energy sources. Additionally, favorable government policies and declining production costs contribute to the growth. Furthermore, the company's focus on energy efficiency and grid modernization also supports the upward trend.

Other

Expected Growth: 4%

Berry Corporation's 4% growth is driven by increasing demand for oil and gas services, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on operational efficiency and cost reduction initiatives have contributed to its growth. Furthermore, Berry's diversified revenue streams and strong balance sheet have enabled it to capitalize on growth opportunities.

7. Detailed Products

Well Construction and Intervention Services

Berry Corporation provides well construction and intervention services to oil and gas operators, including drilling, completion, and production optimization.

Well Intervention and Abandonment Services

Berry Corporation offers well intervention and abandonment services, including coiled tubing, wireline, and abandonment operations.

Production Enhancement Services

Berry Corporation provides production enhancement services, including acidizing, fracturing, and cementing, to improve oil and gas production.

Pipeline and Facility Services

Berry Corporation offers pipeline and facility services, including pipeline construction, maintenance, and repair, as well as facility design and operation.

Environmental and Regulatory Services

Berry Corporation provides environmental and regulatory services, including permitting, compliance, and environmental consulting.

8. Berry Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Berry Corporation faces moderate threat from substitutes due to the availability of alternative products in the market.

Bargaining Power Of Customers

Berry Corporation's customers have high bargaining power due to the presence of many suppliers and low switching costs.

Bargaining Power Of Suppliers

Berry Corporation's suppliers have low bargaining power due to the company's large size and negotiating power.

Threat Of New Entrants

Berry Corporation faces low threat from new entrants due to high barriers to entry and significant capital requirements.

Intensity Of Rivalry

Berry Corporation operates in a highly competitive industry with many established players, leading to high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.25%
Debt Cost 12.37%
Equity Weight 63.75%
Equity Cost 12.84%
WACC 12.67%
Leverage 56.85%

11. Quality Control: Berry Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SandRidge Energy

A-Score: 6.3/10

Value: 7.4

Growth: 3.3

Quality: 7.9

Yield: 9.0

Momentum: 4.0

Volatility: 6.0

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PHX Minerals

A-Score: 6.1/10

Value: 4.3

Growth: 2.0

Quality: 6.6

Yield: 7.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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PrimeEnergy Resources

A-Score: 5.4/10

Value: 6.3

Growth: 8.9

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Berry

A-Score: 4.9/10

Value: 7.3

Growth: 4.6

Quality: 4.2

Yield: 9.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
HighPeak Energy

A-Score: 4.8/10

Value: 7.7

Growth: 9.4

Quality: 5.5

Yield: 3.0

Momentum: 0.0

Volatility: 3.0

1-Year Total Return ->

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Epsilon Energy

A-Score: 4.7/10

Value: 5.7

Growth: 2.7

Quality: 6.4

Yield: 7.0

Momentum: 1.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.43$

Current Price

3.43$

Potential

-0.00%

Expected Cash-Flows