Berry Corporation: Increasing Focus On Utah Assets

(9min)

Summary

  • Berry is planning to put 40% of its 2025 capex to its Utah assets.
  • Utah accounts for around 19% of its total production and 12% of its oil production as of Q3 2024.
  • Berry's Utah production may increase by several percent per year as a percentage of Berry's total production due to the increased spending there.
  • With E&P and Corporate G&A and interest costs adding up to $10+ per BOE, Berry needs reasonably high oil prices to start making more progress on reducing its debt.
  • Although it can tread water at $70 Brent, a high-$70s or better Brent scenario is probably necessary for Berry.
  • Looking for more investing ideas like this one? Get them exclusively at Distressed Value Investing. Learn More »

Mountain landscape with oil pumping equipment

Heidi Patricola/iStock via Getty Images

Berry Corporation (NASDAQ:BRY) successfully completed its previously announced financial transactions in late December 2024. These transactions pushed Berry's debt maturity out to December 2027, with the potential for extensions to December 2029.

Berry also

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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>>

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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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