Berry Petroleum's Second Quarter Earnings Rise 35%.BAKERSFIELD Bakersfield, city (1990 pop. 174,820), seat of Kern co., S central Calif., at the southern end of the San Joaquin valley; inc. 1898. It is an oil, mining, and agricultural center and one of the fastest-growing U.S. cities. , Calif. -- Berry Berry, former province, France Berry (bĕrē`), former province, central France. Bourges, the capital, and Châteauroux are the chief towns. Petroleum Company (NYSE NYSE See: New York Stock Exchange :BRY BRY could refer to:
Bry ) earned $34.2 million, or $.76 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the second quarter of 2006, up 35% from net income of $25.3 million, or $.56 per diluted share, in the second quarter of 2005, adjusted for the two-for-one stock split effective May 17, 2006. Revenues were $123 million and discretionary cash flow Discretionary cash flow Cash flow that is available after the funding of all positive net present value (NPV) capital investment projects; it is available for paying cash dividends, repurchasing common stock, retiring debt, and so on. was $65.9 million in the second quarter of 2006. The Company's production averaged 24,768 barrels of oil equivalent per day (BOE/D), an increase of 9% over a year ago and up 6% from the first quarter of 2006. The average realized sales price of $49.75 per BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip was up 27% from the $39.32 per BOE achieved in the second quarter of 2005. Berry recorded, on a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta basis, $1.6 million in dry hole charges and a $5.6 million non-cash gain related to the Company's natural gas derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. position in the second quarter of 2006. The Company drilled 155 gross (97.6 net) wells during the second quarter of 2006, realizing a gross success rate of 99 percent, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. F. Heinemann Heinemann may refer to:
For the six months ending June June: see month. 30, 2006, Berry's net income was $57.5 million, or $1.28 per diluted share, up 20% from net income of $47.8 million, or $1.06 per diluted share, for the six months ending June 30, 2005. Revenues were $241 million in the first six months of 2006, up 33% from $181 million in the first six months of 2005. Berry's 2006 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. results include, on a pre-tax basis, $6.8 million in dry hole charges and $.7 million in non-cash gains related to the Company's natural gas derivative position. The Company drilled 251 gross (162.9 net) wells during the first six months of 2006, realizing a gross success rate of 98 percent. Mr. Heinemann stated, "In the first half of 2006 we have established a very significant position in the Piceance Basin The introduction to this article provides insufficient context for those unfamiliar with the subject matter. Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. that will enable Berry to grow its production at a double digit Noun 1. double digit - a two-digit integer; from 10 to 99 integer, whole number - any of the natural numbers (positive or negative) or zero; "an integer is a number that is not a fraction" rate for several years. We completed our second Piceance transaction for 2006 in the second quarter wherein where·in adv. In what way; how: Wherein have we sinned? conj. 1. In which location; where: the country wherein those people live. 2. we will have a 95% working interest and be the operator in 4,300 gross acres in North Parachute parachute, umbrellalike device designed to retard the descent of a falling body by creating drag as it passes through the air. The development of modern aircraft has led to many experiments in the aerodynamic problems of parachute design, with the result that the Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. . We estimate we now hold approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 850 billion cubic feet of proved plus probable gas reserves in this basin with acquisition costs of approximately $300 million. We will begin to execute an efficient and timely development plan of our acreage and should average three drilling rigs on this project in the third quarter (targeting 7 net wells) and four rigs in the fourth quarter (targeting 12 net wells). "We are on track to achieve another very strong year financially for Berry while we continue to change the asset base of the Company. While we averaged 24,118 BOE/D in the first six months of 2006, a Company record, our rate of production increase has lagged behind our targets. We are currently increasing our production and expect to average over 26,500 BOE/D in the second half of the year. "Our focus for the second half of the year is the drilling of our Piceance acreage to add production and reserves, determining the commerciality and performance of our emerging diatomite project, expanding the appraisal of our very significant Lake Canyon acreage and developing its necessary infrastructure, and accelerating three new steamfloods to increase our California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). production. We have begun a 50-well expansion of the diatomite project and expect our steam to oil ratio to continue its decline which will improve the economics of the project. We have permitted several wells at Lake Canyon and will begin drilling the next six wells in the third quarter, and our Piceance rate of development continues to ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale . We are very active in all areas of our business and believe that our efforts will add significant value to Berry as we complete our development plans." Ralph J. Goehring Goehring may refer to:
Second Quarter Production Summary
Average Daily
Production
Three Months Ended
----------------------------------------------
Oil and Gas 6/30/06 % 3/31/06 % 6/30/05 %
-------- ---- -------- ---- -------- ----
Heavy Oil Production
(Bbl/D) 15,532 63 15,407 66 15,733 69
Light Oil Production
(Bbl/D) 4,061 16 3,303 14 3,253 14
-------- ---- -------- ---- -------- ----
Total Oil Production
(Bbl/D) 19,593 79 18,710 80 18,986 83
Natural Gas Production
(Mcf/D) 31,047 21 28,507 20 22,090 17
-------- ---- -------- ---- -------- ----
Total (BOE/D) 24,768 100 23,461 100 22,668 100
Explanation and Reconciliation of Non-GAAP Financial Measures: Discretionary cash flow is net cash provided by operating activities before the net increase or decrease in current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. and current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. . This number is presented because of its acceptance as an indicator of an oil and gas exploration and production company's ability to internally fund development, exploration and exploitation activities and to service or incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional debt. This measure should not be considered as an alternative to net cash provided by operating activities as defined by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . A reconciliation of discretionary cash flow to net cash provided by operating activities is shown below for the six and three months ended June 30, 2006 and 2005 and the three months ended March 31, 2006 as follows (in millions):
Six Months Ended Three Months Ended
------------------- ------------------------------
6/30/06 6/30/05 6/30/06 3/31/06 6/30/05
-------- -------- -------- -------- --------
Net cash
provided by
operating
activities $ 84.1 $ 66.2 $ 58.8 $ 25.3 $ 46.9
Add back: Net
increase in
current assets 18.6 17.8 16.7 1.9 7.3
Add back: Net
decrease
(increase) in
current
liabilities 18.7 (5.4) (9.6) 28.3 (12.7)
-------- -------- -------- -------- --------
Discretionary
cash flow $ 121.4 $ 78.6 $ 65.9 $ 55.5 $ 41.5
Teleconference Call A conference call will be held Wednesday Wednesday: see week. , August 9, 2006 at 1:30 p.m. Eastern Time (10:30 a.m. Pacific Time). Dial 1-866-825-3354 to participate, using passcode 14675043. International callers may dial 617-213-8063. For a digital replay available until August 23, 2006, dial 1-888-286-8010 (passcode 81527857). Listen live or via replay on the Web at www.bry.com. Transcripts of this and previous calls may be viewed at www.bry.com/tele.htm. Berry Petroleum Company is a publicly traded independent oil and gas production and exploitation company with its headquarters in Bakersfield, California “Bakersfield” redirects here. For other uses, see Bakersfield (disambiguation). Bakersfield (pop. 323,213GR2) is one of the fastest-growing, large-population cities in the United States. . Safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. under the "Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995" Any statements in this news release that are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. Words such as "should," "will," "achieve," "appraisal," "continue," "target," "expect," and forms of those words and others indicate forward-looking statements. Important factors which could affect actual results are discussed in PART 1, Item 1A. Risk Factors of Berry's 2005 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission, under the heading "Other Factors Affecting the Company's Business and Financial Results" in the section titled "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" as updated in PART II, Item 1A. Risk Factors of Berry's June 30, 2006 Form 10-Q Form 10-Q See 10-Q. filed on August 9, 2006.
CONDENSED INCOME STATEMENTS
(unaudited) (In thousands, except per share data)
Three Months Six Months
------------------ ------------------
6/30/06 6/30/05 6/30/06 6/30/05
(1) (1)
-------- -------- -------- --------
Revenues
Sales of oil and gas $110,641 $ 80,825 $212,575 $156,196
Sales of electricity 11,715 11,514 26,884 23,970
Interest and other income,
net 803 350 1,296 518
-------- -------- -------- --------
Total 123,159 92,689 240,755 180,684
-------- -------- -------- --------
Expenses
Operating costs - oil & gas
production 27,074 24,194 52,813 45,086
Operating costs - electricity 10,626 10,923 24,958 24,281
Production taxes 3,373 2,180 6,606 4,695
Exploration costs 1,472 225 3,761 786
Depreciation, depletion &
amortization - oil & gas 16,263 9,461 29,359 17,988
Depreciation, depletion &
amortization - electricity 807 839 1,701 1,611
General and administrative 7,877 5,204 16,192 10,023
Interest 2,460 1,740 4,038 2,902
Commodity derivatives (5,563) - (736) -
Dry hole, abandonment &
impairment 1,573 601 6,782 2,622
-------- -------- -------- --------
Total 65,962 55,367 145,474 109,994
-------- -------- -------- --------
Income before income taxes 57,197 37,322 95,281 70,690
Provision for income taxes 22,994 12,062 37,827 22,925
-------- -------- -------- --------
Net income $ 34,203 $ 25,260 $ 57,454 $ 47,765
======== ======== ======== ========
Basic net income per share $ .78 $ .57 $ 1.31 $ 1.08
Diluted net income per share $ .76 $ .56 $ 1.28 $ 1.06
Dividends per share $ .065 $ .060 $ .13 $ .12
Weighted average common
shares:
Basic 44,053 44,134 44,020 44,048
======== ======== ======== ========
Diluted 44,939 44,902 44,955 44,928
======== ======== ======== ========
(1) The 2005 earnings per share amounts have been restated to give
retroactive effect to the two-for-one stock split that became
effective on May 17, 2006.
CONDENSED BALANCE SHEETS
(unaudited) (In thousands)
6/30/06 12/31/05
-------- ---------
Assets
Current assets $100,845 $ 74,886
Properties, buildings & equipment, net 784,216 552,984
Other long-term assets 14,934 7,181
-------- ---------
$899,995 $ 635,051
======== =========
Liabilities & Shareholders' Equity
Current liabilities $162,040 $ 129,643
Deferred income taxes 59,456 55,804
Long-term debt 249,000 75,000
Other long-term liabilities 93,577 40,394
Shareholders' equity 335,922 334,210
-------- ---------
$899,995 $ 635,051
======== =========
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited) (In thousands)
Six Months
---------------------
6/30/06 6/30/05
--------- ---------
Cash flows from operating activities:
Net income $ 57,454 $ 47,765
Depreciation, depletion & amortization (DD&A) 31,060 19,599
Dry hole, abandonment & impairment 6,375 15
Commodity derivatives (674) -
Stock-based compensation expense 2,199 969
Deferred income taxes, net 25,068 10,064
Other, net (64) 179
Net increase in current assets (18,596) (17,840)
Net (decrease) increase in current liabilities (18,726) 5,440
--------- ---------
Net cash provided by operating activities 84,096 66,191
Net cash used in investing activities (271,431) (164,221)
Net cash provided by financing activities 185,971 90,901
--------- ---------
Net (decrease) increase in cash and cash
equivalents (1,364) (7,129)
Cash and cash equivalents at beginning of year 1,990 16,690
--------- ---------
Cash and cash equivalents at end of period $ 626 $ 9,561
========= =========
COMPARATIVE OPERATING STATISTICS
Three Months Six Months
------------------ ------------------
6/30/06 6/30/05 Change 6/30/06 6/30/05 Change
-------- -------- ------ -------- -------- ------
Oil and gas:
Net production-
BOE per day 24,768 22,668 +9% 24,118 22,359 +8%
Per BOE:
Average sales
price before
hedges $ 52.46 $ 43.67 +20% $ 51.08 $ 42.34 +21%
Average sales
price after
hedges 49.75 39.32 +27% 48.92 38.62 +27%
Operating costs 12.01 11.73 +2% 12.10 11.14 +9%
Production
taxes 1.50 1.06 +42% 1.51 1.16 +30%
-------- -------- -------- --------
Total
operating
costs 13.51 12.79 +6% 13.61 12.30 +11%
DD&A - oil
and gas 7.22 4.50 +60% 6.73 4.40 +53%
General &
administrative
expenses 3.49 2.52 +38% 3.71 2.48 +50%
Interest
expense $ 1.09 $ .84 +30% $ .92 $ .72 +28%
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