Berry Corporation: A Look At Valuations After A Solid End To 2023

Feb. 27, 2024 5:51 PM ETBerry Corporation (BRY) StockBRY

Summary

  • Berry Corporation's 2023 production ended up 200 BOEPD above the midpoint of its full-year guidance.
  • It also reduced its debt by $25 million in Q4 2023 despite making a minor acquisition in December 2023.
  • The California permitting situation remains uncertain, with minimal new well permit approvals in 2023.
  • The Aera Energy transaction implies a slightly lower valuation for Berry than what I had been modeling, although the market liked the deal from California Resources' perspective.
  • I now estimate Berry Corporation stock value at $8 to $9 per share at long-term high-$70s Brent.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Oil pump, oil industry equipment

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Berry Corporation's (NASDAQ:BRY) full-year 2023 production ended up at approximately 25,300 BOEPD, about 200 BOEPD above the midpoint of its guidance. This implies approximately 25,700 BOEPD in Q4 2023 production, which includes a full quarter of production from

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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.

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