Berry Corporation: Significant FCF Generation Despite Increased Operating Expenses

Jan. 14, 2023 12:54 AM ETBerry Corporation (BRY) StockBRY6 Comments

Summary

  • Berry increased its full-year guidance around operating expenses by approximately $5 per BOE.
  • This wasn't surprising since operating expenses had trended well above guidance over the first half of the year.
  • Despite higher operating expenses, Berry could still generate over $2.35 per share in free cash flow (before cash income taxes) at $84 Brent in 2023.
  • I estimate its value at $12 per share in a long-term $75 Brent environment.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Silhouette of a oil pump and oil barrels in the desert steppe between mountains during sunset.

Torsten Asmus

Berry Corporation (NASDAQ:BRY) made a significant upwards revision to its guidance for operating expenses, increasing its full-year operating expense expectations by around $5 per BOE. This was due to a combination of cost inflation and continuing

Free Trial Offer

We are currently offering a free two-week trial to Distressed Value Investing. Join our community to receive exclusive research about various energy companies and other opportunities along with full access to my portfolio of historic research that now includes over 1,000 reports on over 100 companies.

This article was written by

11.53K Followers
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>>

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BRY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

About BRY Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on BRY

Related Stocks

SymbolLast Price% Chg
BRY
--