In a challenging year for energy companies, Berry Petroleum Corp (NASDAQ:BRY) stock has touched a 52-week low, trading at $3.87. The oil and gas exploration company has faced significant headwinds, reflected in a stark 1-year change with a decline of 44.18%. Despite these challenges, the company maintains a notable 7.8% dividend yield and has consistently paid dividends for seven consecutive years. According to InvestingPro analysis, the stock appears undervalued at current levels, trading at a modest P/E ratio of 3.6x. This downturn comes amidst fluctuating oil prices and investor concerns over the future of fossil fuels. Berry Petroleum’s performance mirrors broader market trends affecting the energy sector, as investors weigh environmental considerations and seek more sustainable investment opportunities. InvestingPro analysis reveals 8 additional investment tips for BRY, with analysts setting price targets ranging from $4.70 to $9.00, suggesting potential upside from current levels.
In other recent news, Berry Corporation has made significant financial adjustments and reported robust operational performance. The company has reduced its borrowing base from $125 million to $95 million, following a semi-annual redetermination, and is exploring a new credit facility. Berry Corp also plans to repay and terminate its Revolving Credit Agreement with lenders, including JPMorgan Chase (NYSE:JPM) Bank, N.A., and establish a new Senior Secured Term Loan Credit Agreement.
In its Q3 earnings call for 2024, Berry reported average production of 24,800 barrels of oil equivalent per day and a $545 million term loan credit facility intended to refinance existing debt and enhance financial flexibility. The company’s Q3 commodity revenue was reported at $154 million, with crude prices at $72.40 per barrel. Berry’s adjusted EBITDA stood at $67 million, with free cash flow up by 55% to $45 million.
Berry Corp also declared a fixed dividend of $0.03 per share for the third quarter and announced a new capital allocation strategy. This includes advancing loan repayments, pursuing strategic growth opportunities, and increasing shareholder returns. The company is planning to maintain stable production through 2026, with a focus on production enhancement, emissions reduction, and long-term shareholder value. Berry’s expansion plans in the Uinta Basin include drilling 12 wells over the next two years. These are recent developments, and the company is actively considering the establishment of a new reserve-based credit facility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.