Berry Petroleum (BRY) AI Stock Analysis

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Berry Petroleum

(NASDAQ:BRY)

65Neutral

Berry Petroleum demonstrates a mixed overall performance. Strengths include stable financials and attractive valuation metrics, but technical analysis indicates bearish trends. Positive earnings call sentiment and strategic initiatives provide upside potential, yet market volatility and regulatory challenges remain significant risks.

Berry Petroleum (BRY) vs. S&P 500 (SPY)

Market Cap

$186.23M

Dividend Yield14.58%

Average Volume (3M)1.22M

Price to Earnings (P/E)9.6

Beta (1Y)0.83

Revenue Growth-2.73%

EPS Growth-49.90%

CountryUS

Employees1,070

SectorEnergy

Sector Strength53

IndustryOil & Gas Exploration & Production

Share Statistics

EPS (TTM)0.24

Shares Outstanding77,596,200

10 Day Avg. Volume1,463,718

30 Day Avg. Volume1,215,109

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)N/A

Price to Sales (P/S)0.33

Price to Cash Flow (P/CF)1.60

P/FCF Ratio0.50

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$4.00

Price Target Upside68.07% Upside

Rating ConsensusHold

Number of Analyst Covering2

Berry Petroleum Business Overview & Revenue Model

Company DescriptionBerry Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. It operates in two segments, Development and Production, and Well Servicing and Abandonment. The company's properties are located in the San Joaquin and Ventura basins, California; and Uinta basin, Utah. As of December 31, 2021, it had a total of 3,417 net productive wells. The company was formerly known as Berry Petroleum Corporation and changed its name to Berry Corporation in February 2020. Berry Corporation was founded in 1909 and is headquartered in Dallas, Texas.

How the Company Makes MoneyBerry Petroleum makes money primarily through the extraction and sale of crude oil and natural gas. The company's revenue model is driven by its ability to efficiently produce hydrocarbons from its reserves and sell them in the market. Key revenue streams include the sale of crude oil, which constitutes the majority of its revenues, as well as natural gas. The company may also benefit from strategic partnerships with other energy firms and service providers, which can enhance its operational capabilities and market access. Additionally, Berry Petroleum's financial performance is influenced by factors such as oil prices, production levels, and operational efficiencies.

Berry Petroleum Financial Statement Overview

Summary

Berry Petroleum demonstrates a stable financial position with strong gross profit margins and a solid equity base. However, the company faces challenges with declining net profit margins and negative revenue growth. Cash flow concerns arise from a decrease in free cash flow despite positive operating cash flow.

Income Statement

Positive

Berry Petroleum's income statement reflects a mixed performance. The gross profit margin is strong, indicating effective cost management relative to revenue. However, the net profit margin has decreased significantly from the previous year, showing declining profitability. Revenue growth is negative, which is concerning, but the company has maintained a solid EBIT margin.

Balance Sheet

Positive

The balance sheet shows a stable financial position with a moderate debt-to-equity ratio, which suggests manageable leverage. Return on equity is relatively low, pointing to limited profitability from shareholders' equity. However, the equity ratio remains healthy, reflecting a solid capital structure.

Cash Flow

Positive

Berry Petroleum's cash flow statement indicates positive operating cash flow, which is a good sign of operational efficiency. Free cash flow has declined, indicating less cash available after capital expenditures. The operating cash flow to net income ratio is robust, but the decrease in free cash flow growth raises some concerns.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
776.50M	863.45M	1.06B	701.35M	406.05M
	Gross Profit
776.50M	237.34M	431.62M	269.32M	63.92M
	EBIT
550.68M	306.22M	130.12M	-8.84M	-202.66M
	EBITDA
161.05M	251.38M	401.10M	163.58M	-96.64M
	Net Income Common Stockholders
19.25M	37.40M	250.17M	-15.54M	-262.89M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
15.34M	4.83M	46.25M	15.28M	80.56M
	Total Assets
1.52B	1.59B	1.63B	1.46B	1.42B
	Total Debt
429.63M	436.06M	397.40M	394.57M	393.48M
	Net Debt
414.30M	431.23M	351.15M	379.28M	312.92M
	Total Liabilities
787.05M	836.18M	830.54M	763.83M	705.77M
	Stockholders Equity
730.64M	757.98M	800.49M	692.65M	714.04M
Cash Flow		Free Cash Flow
107.87M	117.59M	222.31M	-10.63M	102.73M
	Operating Cash Flow
210.22M	198.66M	360.94M	122.49M	196.53M
	Investing Cash Flow
-105.56M	-175.27M	-164.55M	-168.79M	-93.62M
	Financing Cash Flow
-79.46M	-64.80M	-165.42M	-18.98M	-22.35M

Berry Petroleum Technical Analysis

Technical Analysis Sentiment

Negative

Last Price2.38

Price Trends

50DMA

3.39

Negative

100DMA

3.83

Negative

200DMA

4.68

Negative

Market Momentum

MACD

-0.33

Negative

RSI

34.80

Neutral

STOCH

48.28

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRY, the sentiment is Negative. The current price of 2.38 is below the 20-day moving average (MA) of 2.73, below the 50-day MA of 3.39, and below the 200-day MA of 4.68, indicating a bearish trend. The MACD of -0.33 indicates Negative momentum. The RSI at 34.80 is Neutral, neither overbought nor oversold. The STOCH value of 48.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRY.

Berry Petroleum Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NC	72 Outperform	$273.88M	8.09	8.57%	2.47%	10.67%	―
BRY	65 Neutral	$186.23M	9.60	2.59%	14.58%	-2.73%	-49.90%
Sector *	55 Neutral	$7.05B	3.47	-6.10%	6.00%	-0.44%	-51.04%
FET	55 Neutral	$191.11M	―	-36.95%	―	10.50%	-493.15%
REI	50 Neutral	$185.49M	2.67	8.20%	―	1.46%	-38.55%
WTI	46 Neutral	$174.21M	―	203.83%	3.39%	-1.39%	-655.53%
TBN	42 Neutral	$246.67M	―	-10.70%	―	―	57.82%

* Energy Sector Average

Performance Comparison

BRY

Berry Petroleum

2.38

-5.68

-70.47%

FET

Forum Energy Tech

14.70

-4.75

-24.42%

NACCO Industries

35.82

8.02

28.85%

WTI

W&T Offshore

1.14

-1.18

-50.86%

REI

Ring Energy

0.88

-1.16

-56.86%

TBN

Tamboran Resources Corporation

22.24

-0.26

-1.16%

Berry Petroleum Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -34.07% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment with strong financial performance in 2024, successful drilling results, and significant reserve additions. The company managed costs effectively and achieved substantial environmental goals. However, dependency on permitting processes and market volatility are challenges that could impact future operations.

Highlights

Strong Financial Performance in 2024

Berry Corporation reported $292 million of adjusted EBITDA, a 9% increase from 2023, and generated $108 million in free cash flow for the year.

Successful Drilling and Production

Berry drilled a total of 56 gross wells in 2024, including 46 in California and 10 in Utah, maintaining an average annual production of 25,400 barrels of oil equivalent per day, which is near the top of their guidance range.

Significant Reserve Replacement Ratio

The company achieved a 147% reserve replacement ratio, adding reserves in both California and the Uinta Basin, with a total proved reserves of 107 million barrels of oil equivalent.

Cost Management and Efficiency Improvements

Berry reduced hedged LOE by 12% and adjusted G&A by more than 6% year over year, and achieved a significant cost advantage in the Uinta Basin with development wells being approximately 20% less expensive per foot than other operators.

Environmental Achievements

Berry completed a methane emissions reduction project, achieving more than an 80% reduction compared to a 2022 baseline, and plans to launch further environmental initiatives in 2025.

Lowlights

Dependency on Permitting Processes

The company faces uncertainty with the Kern County EIR reinstatement process, although they have flexibility to shift capital to Utah if needed.

Commodity Market Volatility

The company is exposed to commodity market volatility, impacting strategic decisions such as potential joint ventures for future development in the Uinta Basin.

Company Guidance

During the Berry Corporation Q4 and Full Year 2024 Earnings Conference call, the company provided a comprehensive update on its financial and operational performance, as well as strategic initiatives for 2025. Berry reported an adjusted EBITDA of $292 million for 2024, marking a 9% increase from the previous year. The company successfully maintained its average annual production at 25,400 barrels of oil equivalent per day, nearing the top of its guidance range, despite a 35% decline in California's statewide oil production over the past six years. Berry drilled 56 gross wells in 2024 and plans to sustain production by drilling approximately 50 gross wells in 2025. The company achieved a reserve replacement ratio of 147%, with total proved reserves of 107 million barrels of oil equivalent valued at $2.3 billion. Berry highlighted its strategic focus on capital efficiency, cost reduction, and sustainability, including an 80% reduction in methane emissions compared to a 2022 baseline. Despite regulatory challenges, the company expressed confidence in its ability to sustain production and generate value for shareholders through its robust inventory of high-return projects and strategic flexibility.

Berry Petroleum Corporate Events

Executive/Board ChangesBusiness Operations and Strategy

Berry Petroleum Appoints New CFO for Strategic Growth

Positive

Jan 22, 2025

On January 21, 2025, Berry Corporation announced the appointment of Jeff Magids as Vice President, Chief Financial Officer, highlighting his extensive experience in finance and strategic leadership. This appointment aligns with Berry’s strategic goals of sustainable growth and value creation, enhancing the company’s financial and strategic leadership capabilities while focusing on disciplined capital deployment and shareholder returns.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.