Berry | 10-Q: FY2025 Q3 Revenue: USD 151.14 M

Revenue: As of FY2025 Q3, the actual value is USD 151.14 M.

EPS: As of FY2025 Q3, the actual value is USD -0.34.

EBIT: As of FY2025 Q3, the actual value is USD -2.634 M.

Exploration and Production (E&P) Segment

• Revenue: Oil, natural gas, and NGL sales were $128.5 million for the three months ended September 30, 2025, a decrease from $154.4 million in the same period in 2024.
• Operating Expenses: Lease operating expenses increased by 6% to $58.1 million in Q3 2025 compared to Q3 2024, primarily due to higher outside services and surface facility costs.
• Impairment: A non-cash pre-tax asset impairment charge of $158 million was recorded in Q1 2025 on non-thermal diatomite proved properties in California.

Well Servicing and Abandonment Segment

• Revenue: Service revenue was $20.8 million for Q3 2025, down from $25.5 million in Q3 2024, due to decreased activity and rates.
• Operating Expenses: Costs of services decreased by 20% to $18.4 million in Q3 2025 compared to Q3 2024, reflecting lower activity levels.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $129.9 million for the nine months ended September 30, 2025, compared to $168.9 million in the same period in 2024.
• Free Cash Flow: Free cash flow was calculated as operating cash flow minus capital expenditures, which were $99.7 million for the nine months ended September 30, 2025.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue focusing on its E&P operations in California and Utah, with a capital expenditure budget for 2025 expected to be between $110 to $120 million.
• Pending Merger: Berry Corporation has entered into a merger agreement with California Resources Corporation, expected to close in Q1 2026, subject to approvals.

Hedging Strategy

• Oil and Gas Derivatives: The company reported a loss of $4.7 million on oil and gas sales derivatives for Q3 2025, compared to a gain of $75.4 million in Q3 2024.
• Natural Gas Purchase Derivatives: Losses on natural gas purchase derivatives were $16 million in Q3 2025, reflecting higher settlement losses and mark-to-market losses.