Berry's Q4 2024 Earnings Call: Navigating Contradictions in Permits, Investments, and Partnerships

These are the key contradictions discussed in Berry's latest 2024Q4 earnings call, specifically including: Permit and Environmental Impact Review (EIR) Status, Capital Allocation and Investment Priorities, Acquisition Environment in California, and Partnership/Joint Venture Discussions for Utah:



Strong Financial Performance and Growth:
- Berry Corporation reported adjusted EBITDA of $292 million for 2024, a 9% increase over 2023.
- The growth was driven by sustained production levels and reduced operating costs through better well drilling and lower hedged LOE.

Production and Reserve Replacement:
- Average annual production of 25,400 barrels of oil equivalent per day in 2024, near the top of guidance.
- Reserve replacement ratio of 147%, demonstrating strong reserve growth in California and Utah.

Successful Development in Uinta Basin:
- First horizontal well in the Uinta Basin reached total depth, with positive indications of hydrocarbons, on schedule, and within target range.
- Berry has identified approximately 200 potential horizontal locations in the Uinta Basin, with lower development costs compared to other operators.

Capital Efficiency and Sidetrack Success:
- Drilled better wells, exceeding type curves in most operational areas, and improved capital efficiency.
- 28 successful sidetracks in 2024 with a rate of return exceeding 100%, opening potential for additional sidetracks and future growth.