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Berry Corporation (BRY)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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6.22+0.13 (+2.13%)
As of 2:45PM EDT. Market open.
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  • l
    lloyd poon
    Really quiet guys,what do you all think of the call?Personally I think they are moving in the right direction,with their shoring up the bank account and increasing production plus able to sell outside of hedges at today's and projected future prices ,it may take a while but i believe she will go up,, with my cost basis yielding 4% I will hold and wait with some in and out trading at the appropriate times
    Bullish
  • j
    john
    Just listened to the call. It was good, okay - nothing notable really or new. No comments re 2022 hedging...but the slide deck shows that 3,000 BOE of oil are hedged at $60 for 2022....so that cold be 6,000 BOE/day for Q1 & Q2 - who knows ... I'll call IR next week to see if I can get a breakdown on the hedging. No comments are refinancing. On the CA politics front - no bills impacting oil are in the que. 2022 permits have all been applied for. So seems like the the next few years seem good at this point.
    I'm bullish and would look to add to my position on any serious pull back (10-15%).
  • O
    Option
    @greg; Damn you called it again. I 100% agree with your hot take on Arthur "Trem" Smith and his "spin" speak. Furthermore, my equity firm is not allowed to take major position in BRY for the fact that he is both board chairman (of BOD) and acting CEO. It is a precarious position with much influence for one. Think "Power corrupts, absolute power corrupts absolutely". Also note his annual compensation of ~$5.4MM is almost 3 times the average for similar companies. Talk about spin...Here is Trem's quote on the Q1 call, ""More recently, on April 23, Governor Newsom directed CalGEM to initiate regulatory action to end the issuance of new permits for hydraulic fracturing by January 2024. This directive does not materially impact bry's operations and, as defined, does not affect our current or future thermal diatomite production...", said Trem Smith, Berry board chair and CEO. I would think this pretty wishful thinking to say there aren't major regulatory challenges for BRY. C'mon man? lol.
  • j
    john
    Wow....just checked the short-interest....there was a big spike between 3-31 and 4-15. Perhaps the recent uptick activity was driven shorts covering.....I'm wondering if the shorts were going large thinking that SB 467 would make it out of subcommittee. Clearly - the shorts weren't banking on the price of oil dropping.
  • M
    Mark
    Dow is down over 300 today but oil is holding gains and staying in that 63-65 range....this gem will bloom over 10 in the coming weeks-months!

    @ian I'm not sure we'll get to $16 but that would be fantastic. I'd like to see the divi increase when they announce it in May. I'd take that as a great bullish signal for Q2 and outlook for Q3 and 4
  • j
    john
    I'm sure you all know but the CA bill SB 467 did not make it out of the subcommittee meeting. That is a big sigh of relief. That was the bill that had the very broad definition of fracking in it, among other things. Next up - the LLL-CalGem report.... but again - it was just so good to see rational minds prevail in CA.
  • t
    trade
    Wow, interesting. I did hear BRY actively got rid of a ton of California tenured experience that was pointing out internal process deficiencies. Specifically around permitting process, safety and environmental concerns. They brought in a bunch or folks from Utah last year in Ops and even contractors from Utah to help them with their CA permitting struggles. Seems odd to need Utah consultants for CA regulatory, surely more experienced and knowledgeable people in CA for that in CA, right? Also heard from a pretty high source Trem was actively trying to remove Gene Voiland from the BOD. Gene Voiland was former CEO of Aera, the largest CA producer, only behind Chevron. Sure seems like some sort of anti-CA bias over there going on. Been losing CA experienced folks like crazy over there. I hear the culture is pure toxic and anyone with ability to jump ship would. I do know Trem's background is mainly in Russia. Regulatory compliance comes second to propaganda over there, for sure.
  • Y
    Yahoo Finance Insights
    Berry Petroleum is up 10.16% to 6.07
  • j
    james
    As a CA resident, this was a Contrarian investment I usually avoid but truth is CA has such a crazy unfunded pension employee system they need oil tax revenue to continue. Previous Governor has oil hammer heads on his own family property holdings. BRY does very little steam or fracking in CA so it has very little affect on their production capacity. That with cheap transportation cost to Los Angeles refineries keeps me long on this stock. Basically, CA for all its green talk needs oil tax revenue.
  • G
    Greg
    Claim growth potential yet newly named VP’s have little experience in CA and mainly tenure from small-time operators (Nuevo etc.) and the old family owned biz which went bankrupt after Lynn acquisition. Lost key Management with greater than 100kbbls/day experience in 2020. Can’t grow production without permitting efficiency in CA. Operations Upper Management and is severely underwhelming and myopic and came from assets outside CA (CO, UT) making no profit and lacking basic thermal production understanding. Look for type curves and falling project ROI’s in the face of double oil price. Obvious issues and lack of accountability. Lawsuits in 2021 from understating internal process deficiencies and overstating permit/project value. Pump and dump CEO. Buyer beware.
    Bearish
  • G
    Greg
    Hedges work both ways. What was good in 2020 is no bueno in 2021 with oil north of $60 now. They now HAVE to drill some wells in areas with no steam permit (UIC) due to a Chevron JV/farm out with poor ROI projects in pipeline. If Oak Tree liquidates their BRY/CA position this thing could tank with 400MM in debt at 7% the dividend is just a pump ploy. The decline rates are 20% or more and they have no solid project permits in hand to grow production. California is a low cost logistics challenge and without experienced CA leadership/management they will struggle. Probably will have to spend CapEx in UT instead due to lack of permits and opportunity in CA and a ops VP that only knows UT. Too bad it’s only half the ROI of CA projects. That’s all the new “RE-org” leadership team knows, small time production and garbage assets in CO. They lost key CA management experience in 2020 (former AERA) and CA thermal is high risk investment.
    Bearish
  • S
    Sgt. Slaughter
    7 end of month
  • j
    john
    I'm kind of underwhelmed with the PR. They tout a $100M cash, strong financial position, nicely hedged, good CapEx budget of $120M range. Um - they announce a $.04 qtrly dividend - which costs approx $14.8M for the whole year at that rate ($3.2M/qtr). Wow. There's something more to this. I can only trust that the large investors are on board with this and there's a strategy in play that we aren't privy too. I am thinking that they talk about increasing scale...and that kind of reads to me as "acquisitions" - as for 2021 - they are looking at production being relatively flat to 2020 - so the "increasing scale" doesn't seem to be coming from "increased production" - so there's not much else you can do to increase scale. I still think it's good value - but it would have been nice to hear about something like "restructuring debt".... something a bit more pro-active. G&A is up because of 'accrued compensation"... no comment, other than must be nice. I am disappointed by the paltry dividend. So much for meaning or significant dividends.
  • l
    lloyd poon
    Crazy ,Bry is wanting to track the Dow whe Brent crude is up over $2per bbl.makes no sense im long and bullish
    Bullish
  • A
    A36er
    In my opinion it was a great call (given the current times). Emphasis on strong balance sheet, strong hedges, and cash in the bank. I know the div wasn't much to write home about, however, it's too early to pop the champagne cork and I appreciate management's caution.
    Bullish
  • l
    lloyd poon
    Lots of shares changing hands early on the dip today ,hope its the big boys buying.
  • Y
    Yahoo Finance Insights
    Berry Petroleum is up 9.29% to 6.47
  • D
    Dan
    No reason for this to be below $7 if their production has been flat. Reasonable amount of debt compared to size of resource and production, good cash flow, just happens to be in CA. In a perfect world we would get some good regulatory guidance tomorrow. I can't see LOE or CAPEX being as high as previously forecast either, but that is just my gut feeling being in the industry.
  • K
    King Ed
    "We have significant concentrations of credit risk with the purchasers of our oil and natural gas. For the year ended December 31, 2019, sales to Andeavor, Phillips 66 and Kern Oil & Refining accounted for approximately 36%, 24% and 13%, respectively, of our sales. This concentration may impact our overall credit risk because our customers may be similarly affected by changes in economic conditions or commodity price fluctuations. We do not require our customers to post collateral. If the purchasers of our oil and natural gas become insolvent, we may be unable to collect amounts owed to us. Also, if we were to lose any one of our major customers, the loss could cause us to cease or delay both production and sale of our oil and natural gas in the area supplying that customer.
    Due to the terms of supply agreements with our customers, we may not know that a customer is unable to make payment to us until almost two months after production has been delivered. We do not require our customers to post collateral to protect our ability to be paid."

    Notice that this is going to become a major risk for many companies like Berry as they must hope that their customers can continue to take the oil being produced having places to store it as well as the ability to pay for that oil. So while hedges look good, they don't mean much if the customers cannot pay for it.
  • l
    lloyd poon
    Waiting patiently to see annual report, dont expect anything spectacular,but looking for guidance so I can make an educated decision on the few shares of Bry. I'm holding
    ..Come on BABY the Kids needs shoes....lol