“Macpherson’s high-quality, low decline oil producing properties are a complementary fit with Berry’s existing portfolio and demonstrates Berry’s disciplined approach to consolidation with a focus on value creation and accretion. This transaction is immediately accretive to Berry in both production and cash flows, supports our overall strategic plan to efficiently maintain our
Consideration for the Macpherson acquisition, primarily funded through a reduction in 2023 capital expenditures, comprised an all-cash purchase price of
Updated Full-Year 2023 Guidance
Reflecting the MacPherson acquisition and Berry’s results to date, based on current projections, Berry’s 2023 full year guidance is now as follows:
Prior | Updated | |
Full-Year 2023 Guidance | ||
Average Daily Production (boe/d)(1) | 24,000 - 25,200 | 24,800 - 25,400 |
Expenses from field operations ($/boe)(2) | ||
E&P non-production revenues ($/boe)(3) | ||
Natural gas purchase hedge settlements ($/boe)(4)(5) | ( | ( |
Taxes, Other than Income Taxes ($/boe) | ||
Adjusted General & Administrative (G&A) expenses ($/boe)(6) | ||
E&P Segment & Corp | ||
Well Servicing and Abandonment Segment | ||
Capital Expenditures ($ millions) | ||
E&P Segment & Corp | ||
Well Servicing and Abandonment Segment | ||
Well Servicing & Abandonment Segment Adjusted EBITDA ($mm) |
(1) Oil production is expected to be approximately 93% of total.
(2) Expenses from field operations include lease operating expenses, electricity generation expenses, transportation expenses, and marketing expenses.
(3) E&P non-production revenues include sales from electricity, transportation, and marketing activities.
(4) Natural gas purchase hedge settlements is the cash (received) or paid from these derivatives on a per boe basis.
(5) Based on natural gas hedge settlements to date and hedge positions as of
(6) Adjusted General & Administrative expenses and Well Servicing and Abandonment Segment Adjusted EBITDA are non-GAAP financial measures. The Company does not provide a reconciliation of these measures because the Company believes such reconciliation would imply a degree of precision and certainty that could be confusing to investors and is unable to reasonably predict certain items included in or excluded from the GAAP financial measures without unreasonable efforts. This is due to the inherent difficulty of forecasting the timing or amount of various items that have not yet occurred and are out of the Company’s control or cannot be reasonably predicted. Non-GAAP forward-looking measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. The Company defines Adjusted General and Administrative Expenses as general and administrative expenses adjusted for non-cash stock compensation expense and unusual and infrequent costs. The Company defines 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.
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Berry is a publicly traded (NASDAQ: BRY) western
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 our financial position; liquidity; cash flows; financial and operating results; capital program; operations and business strategy; potential acquisition and other strategic opportunities; hedging activities; capital expenditures; return of capital; our shareholder return model; projected accretion to financial and production results; projected synergies related to the merger; anticipated increases to free cash flow and shareholder returns; 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 financial position, financial and operating results, 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 acquisition transactions and 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
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 responsibility 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
Contact Contact:Berry Corporation (bry) Todd Crabtree – Director, Investor Relations (661) 616-3811 ir@bry.com
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