Berry Corporation bolsters hedge position

DALLAS - Berry Corporation (NASDAQ: BRY), an independent upstream energy company currently trading at an attractive valuation according to InvestingPro analysis, has enhanced its financial strategy by improving its hedge and liquidity positions amid volatile market conditions. With a market capitalization of $190 million and trading at just 0.26 times book value, the company stands out among its peers. The company announced that it has increased its average hedged price for 2026 and 2027 by $6 per barrel on 2.3 million barrels per day (MBbls/d).

The firm’s oil volumes are now 73% hedged for the remainder of 2025 and 63% hedged for 2026, aligning with the midpoint of Berry’s full-year 2025 oil production guidance. These hedging adjustments were made by converting collars and puts into swaps, effectively raising the floor price on these contracts.

Berry’s CEO, Fernando Araujo, stated that the company’s favorable hedge position underscores its strategy and commitment to delivering sustainable cash flow through various commodity price cycles. He highlighted Berry’s low-decline rate, low capital intensity assets, and strong hedge book as key factors enabling continued debt reduction and shareholder returns. The company maintains a notable dividend yield of 6.94% and has consistently paid dividends for eight consecutive years, as revealed by InvestingPro data.

In terms of liquidity, Berry reported a strengthened position since the end of the previous year. As of March 31, 2025, the company had $120 million in liquidity, which included cash and cash equivalents, available borrowings under its credit facilities, and delayed draw borrowings under its term loan facility. By April 22, 2025, liquidity stood at $119 million, with no outstanding borrowings and $14 million in letters of credit.

Looking ahead, Berry executives will participate in several investor events, including the ONE Houlihan Lokey Global Conference in New York, the Hart Energy Super DUG Conference & Expo in Fort Worth, Texas, and the Louisiana Energy Conference in New Orleans.

Berry Corporation, with its E&P assets primarily located in California and Utah, focuses on onshore, low geologic risk, long-lived oil and gas reserves. The company also offers well servicing and abandonment services through C&J Well Services.

This update is based on a press release statement, which also includes a cautionary note regarding forward-looking statements, reminding stakeholders that such statements involve risks and uncertainties. Berry’s most recent financial and operational information can be found in its investor presentation on the company’s website.

In other recent news, Berry Petroleum Corp reported its fourth-quarter 2024 earnings, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $0.21, well above the forecasted $0.12, and its revenue reached $187.78 million, exceeding the anticipated $177.33 million. Despite these positive results, Berry Petroleum’s stock experienced a decline in after-hours trading. The company reported a 9% increase in its full-year adjusted EBITDA, amounting to $292 million. Berry Petroleum has also initiated a horizontal drilling campaign in the Uinta Basin as part of its growth strategy. The company plans to allocate 40% of its 2025 capital guidance, which ranges from $110-$120 million, to projects in Utah. Additionally, Berry Petroleum has outlined plans to sustain its production levels and develop 50 gross wells in 2025. Analyst firm Johnson Rice showed interest in Berry’s recent well results in Utah, indicating potential for future development.

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