I have been an independent financial adviser for over 11 years in the city and in recent years turned my experience in finance and passion for journalism into a full time role. I perform analysis of Companies and publicize valuable information for shareholder community.
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Latest posts by Kristian Marshall (see all)
- Eye-Catching Stock to Track: Berry Petroleum Corporation (NASDAQ: BRY) - November 5, 2019
- Hot Stock in the Spotlight: Cimarex Energy Co. (NYSE: XEC) - October 29, 2019
- Stock under Consideration: WPX Energy Inc. (NYSE: WPX) - October 27, 2019
DALLAS, November 5, 2019 – Shares of Berry Petroleum Corporation (NASDAQ: BRY) inclined 2.66% to $10.02. The stock traded total volume of 355.188K shares lower than the average volume of 641.46K shares.
Berry Petroleum Corporation (BRY) reported net income of $32.0M or $0.39 per diluted share and adjusted net income of $20.0M or $0.25 per diluted share for the second quarter of 2019. In addition, the Board approved a regular $0.12 per share dividend for the third quarter of 2019.
Second Quarter Results
Adjusted EBITDA, on an unhedged basis, was $66.0M in the second quarter compared to $54.0M in the first quarter. Relative to the first quarter, the second quarter had higher oil prices and lower operating expenses largely due to lower fuel costs, partially offset by higher taxes other than income taxes. Additionally, the decrease in Adjusted EBITDA, on a hedged basis, from $69.0M in the first quarter compared to $63.0M in the second quarter includes the impact of lower oil hedge settlements received and higher gas hedge settlement payments.
General and administrative expenses were $16.20M for the second quarter compared to $14.30M for the first quarter. The second quarter was affected by higher non-cash stock compensation associated with the annual grant of stock awards in March. Adjusted general and administrative expenses were $4.92/Boe for the second quarter compared to $4.63/Boe for the first quarter primarily due to organizational growth and system enhancements.
Capital expenditures totaled $57.0M for the second quarter compared to $49.0M for the first quarter and was largely focused on California drilling in both periods. The 2019 capital program was front-end loaded resulting in more wells drilled in the first half of the year than the amount expected to be drilled in the second half. The Company expects that a significant portion of the 210 wells drilled in the first six months of 2019 will generate robust growth in the last half of the year as they come online or realize the full effects of steam injection.
Net income for the second quarter 2019 was $32.0M compared to a net loss of $34.0M in the first quarter and this difference was largely driven by derivative mark-to-market changes. Adjusted net income was $20.0M for the second quarter compared to $24.0M for the first quarter of 2019. The decrease was due to the same factors affecting Adjusted EBITDA.
At July 31, our liquidity under our $400.0M reserve-based revolver was $371.0M as we had $9.0M of outstanding letters of credit and borrowed $20.0M on our revolver to fund monthly working capital fluctuations and the $11.0M spent on share repurchases during the second quarter. The Company expects to have no revolver borrowings by year-end.
BRY has the market capitalization of $816.82M. The return on assets ratio of the Company was 4.90% while its return on investment ratio stands at 13.10%. Price to sales ratio was 1.22 while 7.64% of the stock was owned by institutional investors.