Berry Corporation: Benefiting From Strong Commodity Prices Despite Energy Operating Cost Pressure

May 24, 2022 9:36 PM ETBerry Corporation (BRY) StockBRY85 Comments

Summary

  • Berry is projected to generate $270 million in discretionary cash flow at strip.
  • It uses fuel gas in its operations and is seeing increased energy operating costs as a result.
  • Berry is attempting to mitigate this through consumer hedges and securing pipeline capacity from the Rockies.
  • Combined base and variable dividend is estimated at $2.27 per share related to 2022 results.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil Refinery And Pipeline In Desert During Sunset

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With Brent strip at over $100 for 2022, Berry Corporation (NASDAQ:BRY) may now be able to generate around $270 million in discretionary cash flow this year. It is dealing with increased energy operating expenses due to

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This article was written by

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Aaron Chow, aka Elephant Analytics has 15+ years of analytical experience and is a top rated analyst on TipRanks. Aaron previously co-founded a mobile gaming company (Absolute Games) that was acquired by PENN Entertainment. He used his analytical and modeling skills to design the in-game economic models for two mobile apps with over 30 million in combined installs. He is the author of the investing group Distressed Value Investing, which focuses on both value opportunities and distressed plays, with a significant focus on the energy sector. Learn more>>

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