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Berry launches return model based on discretionary free cash flow

Dec. 07, 2021 8:50 AM ETBerry Corporation (BRY)By: Carl Surran, SA News Editor2 Comments
  • Berry Corp. (NASDAQ:BRY) fills in the details of its new shareholder return model to take effect January 1, which the company expects will "provide industry-leading returns."
  • Under the new model, Berry plans to allocate discretionary free cash flow, with 60% in the form

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Comments (2)

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This will be a great thing for Berry and Investors. 2022 will be a banner year for Berry. Also, this similar to what the CEO of Pioneer Resources said today on Squawk Box. They are holding their production steady and returning more cash flow to their Investors. They don’t want to see another price crash that showed up in 2014 and 2020. With more Energy firms adopting this philosophy, Energy firms will return to being the firms that investors will seek out!
@Mistic Agree.

It'll be interesting to see how that 60% is divided up between Cash Dividends and Opportunistic Debt repurchases.
I like the flexibility with the 40%. If they can reduce OS shares by 2-3%/year... that would be fantastic. At a $12 share price, a 3% reduction in shares would cost approx. $30M/yr.
None of this is huge in any one year...but compounded over 4-5 years, this model could yield wonderful results.
For 2022: $200M Cash Flow x 60% = $120M available for Cash Dividends and Opportunistic Debt repurchases... only $80M'sh needed for a $1/share annual dividend.

This will be interesting...the show starts in 24 days,1-1-22.
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