Berry Petroleum 3Q profit tumbles as sales drop

Berry Petroleum posts 64 percent drop in 3rd-quarter profit on lower oil and gas sales

• On 11:10 am EDT, Friday October 30, 2009

DENVER (AP) -- Independent oil and gas producer Berry Petroleum Co. said Friday its third-quarter profit fell 64 percent on a steep drop in oil and gas sales stemming from lower energy prices.

Berry earned $19 million, or 41 cents per share, down from $53.3 million, or $1.16 per share, for the same quarter last year. Income from continuing operations dropped to $18.3 million, or 40 cents per share, from $49.6 million, or $1.08 per share.

The latest quarter's results included a gain on hedges, the write-off of certain costs related to the company's credit facility, a net gain on asset sales, and inventoried volumes that were sold in the third quarter. Excluding those items, the company posted an adjusted profit of $15.7 million, or 34 cents per share.

Revenue dropped 37 percent to $143.5 million from $227 million, as sales of oil and gas fell 34 percent to $127.5 million from $193.9 million.

The company attributed the sales drop to dramatically lower oil and gas prices compared with a year ago. Berry's average sale price per barrel of oil equivalent after hedging fell to $46.39 from $67.04.

The results still beat Wall Street predictions. Analysts polled by Thomson Reuters expected a profit of 29 cents per share on $133.8 million in revenue.

Total oil and gas production from continuing operations fell 11 percent to 28,417 barrels of oil equivalent per day.

Berry shares fell $1.83, or 6.6 percent, to $25.78 in morning trading. The stock has ranged from $5.50 to $31.37 over the past year.

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