Berry Corporation Turns To Acquisitions To Offset Permitting Challenges

Jul. 18, 2023 11:36 PM ETBerry Corporation (BRY) StockBRY12 Comments

Summary

  • Berry made a $70 million acquisition of Macpherson Energy.`.
  • This gives it another 2,400 BOEPD (100% oil) in production at a 2.7x multiple to adjusted EBITDA at $75 Brent.
  • Operating costs for the acquired assets appear to be around $36 per barrel.
  • This helps stabilize production levels despite challenges in getting new well permits.
  • California new well permits have largely stalled this year.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil pumps and graph

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Berry Corporation (NASDAQ:BRY) recently announced a $70 million acquisition of a private Kern County operator. This helps mitigate some of the potential for Berry's production to decline amidst challenges in getting new well drilling permits.

Berry is reducing

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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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