Berry Corporation

Second quarter oil and gas sales were $126 million, excluding derivatives, with realized oil price at 92% of Brent. Adjusted EBITDA was $53 million, operating cash flow was $29 million, and capital expenditures were $54 million on an accrual basis. Total hedged LOE was $27.97 per BOE, taxes other than income taxes were $5.95 per BOE, and adjusted G&A for E&P and corporate was $7.44 per BOE. Quarter-end total debt was $428 million, liquidity was $101 million, and Berry paid down $11 million of debt in the quarter. For the remainder of 2025, Berry said 71% of expected oil production is hedged at about $75 per barrel Brent, and if production stays flat it expects 63% of 2026 oil production hedged at about $70 Brent. Management kept 2025 guidance unchanged and said it remains on track for meaningful free cash flow for the year and at least $45 million of debt reduction.

Fernando Araujo emphasized that Berry is executing on a plan centered on balance sheet strength, high-return development, and operating efficiency. He said the company has a deep inventory of projects, permits in hand to support development into 2027, and a business model that can generate sustainable free cash flow while reducing debt and returning dividends. His tone was constructive and confident, especially on California regulatory progress and the long-term optionality of the Utah acreage position.

Jeff Magids focused on the quarter’s financial metrics and balance sheet. He cited $126 million of oil and gas sales excluding derivatives, $53 million of adjusted EBITDA, $29 million of operating cash flow, and $54 million of accrual capex, noting capex was elevated due to accelerated Utah activity. He said the quarter-end debt balance was $428 million, liquidity was $101 million, and the company paid down $11 million in the quarter while remaining in compliance with covenants and on track for at least $45 million of debt paydown in 2025. He also noted the board declared a $0.03 per share dividend, described as a 4% annualized yield.

Analysts focused mainly on California permitting and Utah economics. On the Kern County EIR, management said it feels “very optimistic,” pointing to the lack of new objections after county approval and stating the revised EIR addresses prior deficiencies; the court is expected to rule shortly. On Utah, management said the first operated horizontal pad came in about 20% below comparable non-operated costs, but there is still room to improve through better fleet uptime, more efficient cleanouts, and higher produced-water usage. Fernando also outlined additional California opportunities in Monarch, South Midway-Sunset, Hill, and Round Mountain, saying some thermal diatomite projects still generate 80% to 100% rates of return at current strip pricing.