Berry posts Q3 loss due to oil and gas sales derivatives losses

Reuters
Nov 05
Berry posts Q3 loss due to oil and gas sales derivatives losses

Overview

  • Berry reports Q3 net loss of $26 mln vs yr-ago profit

  • Company says registration statement related to merger agreement with California Resources went live on Nov 3

  • Berry paid down $11 mln of debt in Q3, total debt reduction $34 mln year-to-date

Outlook

  • Berry has discontinued providing guidance due to pending merger with CRC

Result Drivers

  • STABLE PRODUCTION - Berry maintained production at 23.9 MBoe/d, consistent with the previous quarter

  • DERIVATIVE LOSSES - Losses on oil and gas sales derivatives negatively impacted financial results

  • DEBT REDUCTION - Berry reduced total debt by $11 mln in Q3, focusing on financial stability

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Miss

-$0.08

$0.06 (3 Analysts)

Q3 EPS

-$0.34

Q3 Adjusted Net Income

-$6 mln

Q3 Net Income

-$26 mln

Q3 Adjusted EBITDA

$49 mln

Q3 Capex

$17 mln

Q3 Dividend

$0.03

Q3 Free Cash Flow

$38 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the oil & gas exploration and production peer group is "buy"

  • Wall Street's median 12-month price target for Berry Corporation (Bry) is $4.50, about 26.2% above its November 4 closing price of $3.32

  • The stock recently traded at 56 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release: ID:nGNX8TWvW

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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