Berry Petroleum's Second Quarter Net Income Climbs 65% to $1.13 Per Share.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 ) announced net income of $25.3 million, or $1.13 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 2005, up 65% from net income of $15.3 million, or $.68 per diluted share in the second quarter of 2004. Revenues rose to a record $92.7 million in the quarter, up 45% from $64.1 million in the second quarter of 2004. The Company's average daily production of 22,668 barrels of oil equivalent (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 ), which consists of 18,986 barrels of crude oil and 22.1 million cubic feet of natural gas, was a record and an increase of 12% over the 20,315 BOE achieved a year ago. The average realized sales price of $39.09 per BOE was up 37% from the $28.55 per BOE received in the second quarter of 2004. For the six months ending June June: see month. 30, 2005, Berry's net income was a record $47.8 million, or $2.13 per diluted share, up 87% from net income of $25.6 million, or $1.15 per diluted share, for the six months ending June 30, 2004. Revenues were $181 million in the first six months of 2005, up 50% from $121 million in the first six months of 2004, 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:
Mr. Heinemann continued, "Berry's excellent second quarter and first half earnings are a result of higher crude oil prices, increased production and successful execution of our strategies. For the six months ending June 30, 2005, Berry's average daily production of 22,359 BOE increased by 12% and our average realized sales price of $38.50 per BOE was up 43% from the first six months of 2004. The Company's increased natural gas production coupled with its electricity sales from Berry's existing cogeneration cogeneration In power systems, use of steam for both power generation and heating. High-temperature, high-pressure steam from a boiler and superheater first passes through a turbine to produce power. plants now allow us to benefit from higher natural gas prices. Also, as part of Berry's ongoing transformation to a more geographically and resource diverse company, in June 2005, the Company made an acquisition by securing interests in approximately 20,000 gross acres in the emerging Bakken light oil play in the Williston Williston, city (1990 pop. 13,131), seat of Williams co., NW N.Dak., on the Missouri River; inc. 1904. An early riverboating town, its importance increased with the arrival of the Great Northern Railway (1887) and later by the discovery (1951) of rich oil reserves in Basin in North Dakota North Dakota, state in the N central United States. It is bordered by Minnesota, across the Red River of the North (E), South Dakota (S), Montana (W), and the Canadian provinces of Saskatchewan and Manitoba (N). . We anticipate closing on interests in another 100,000 gross acres in the area within the next 60 days. Our goal is to begin exploiting the acreage within the next six months with an industry partner." Mr. Heinemann added, "The second half of 2005 will be very exciting for Berry as we appraise appraise v. to professionally evaluate the value of property including real estate, jewelry, antique furniture, securities, or in certain cases the loss of value (or cost of replacement) due to damage. eight of our exploitation projects. In the Rockies, Berry will drill, or participate in, two shallow Green River oil wells and one Mesaverde deep gas well at Lake Canyon, two Ferron This article is about Canadian artist. For other uses, see Ferron, Utah. Ferron (born Debbie Foisy on June 2, 1952) is a Canadian folk singer/songwriter and poet. gas wells and the initial wells of a coal bed methane methane (mĕth`ān), CH4, colorless, odorless, gaseous saturated hydrocarbon; the simplest alkane. It is less dense than air, melts at −184°C;, and boils at −161.4°C;. pilot program at Coyote Flats, and a Mesaverde deep gas well on a unit that includes a portion of our Bureau of Land Management acreage near Brundage Canyon. In the Mid-Continent, Berry will be involved in drilling several exploratory gas wells on the Tri-State Tri-State may refer to:
Net cash provided by operating activities was a record $66.2 million in the first six months of 2005, up 76% from $37.6 million in the same period in 2004. In the first six months of 2005, the Company invested $48.2 million in capital expenditures and $116 million in property acquisitions ($105 million on the Yuma County Yuma County is the name of two counties in the United States:
Ralph J. Goehring, executive vice president and chief financial officer, said, "Berry posted another excellent quarter supported by high crude prices and increasing production. Although our quarter-over-quarter production increased by 3% and was a record, we expect our third and fourth quarter production volumes to be up approximately another 1,000 BOE per day. In June 2005, the Company entered into crude oil hedges for approximately 10,000 barrels per day Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. beginning January 1, 2006, and going through December 31, 2009, with a floor of $47.50 and a ceiling of $70.00 based on WTI WTI West Texas Intermediate WTI Western Transportation Institute (Montana State University) WTI World Tribunal on Iraq WTI With The Idea (used in chess to point to the idea behind a specific move) crude oil futures prices Futures price The price at which parties to a futures contract agree to transact upon the settlement date. . This action locks in significant revenues, cash flow, and, under normal operating conditions, earnings over the next four years such that we can develop our long-lived assets and pursue exploitation opportunities with improved confidence. Additionally, we have retained substantial upside Upside The potential dollar amount by which the market or a stock could rise. Notes: This is basically an educated guess on how high a stock could go in the near future. See also: Bull, Downside to increasing crude oil prices." The Company's hedge position can be viewed at: www.bry.com/index.php?page=hedging. Mr. Goehring continued, "Also, during the second quarter, the Company entered into a new $500 million, five-year, unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. credit facility that will assist in lowering Berry's borrowing costs and is generally more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to Berry as compared to the previous facility. At June 30, 2005, the Company had $125 million of borrowings under the facility, so we have significant financial capacity and flexibility to continue to grow Berry." Teleconference Call A conference call will be held Tuesday, August 9, 2005, at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time). Dial 1-800-798-2884 to participate, using passcode 74596038. International callers may dial 617-614-2704. For a digital replay available until August 16, 2005, dial 1-888-286-8010 (passcode 72939905). 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. 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. "Safe harbor 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": With the exception of historical information, the matters discussed in this news release 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. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to: the timing and extent of changes in commodity prices for oil, gas and electricity; exploration, exploitation, drilling, development and operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. ; a limited marketplace for electricity sales within California; counterparty risk Counterparty Risk The risk to each party of a contract that the counterparty will not live up to their contractual obligations. Notes: In most financial contracts, counterparty risk is known as default risk. ; acquisition risks; competition; environmental risks; litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. uncertainties; the availability of drilling rigs and other support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services ; pipeline capacity constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. ; legislative and/or judicial decisions and other government or Tribal regulations.
CONDENSED CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share data)
(unaudited)
Three Months Six Months
----------------- ------------------
6/30/05 6/30/04 6/30/05 6/30/04
-------- -------- --------- --------
Revenues
Sales of oil and gas $80,825 $52,755 $156,196 $97,960
Sales of electricity 11,514 11,291 23,970 23,225
Interest and other income, net 350 90 518 293
-------- -------- --------- --------
Total 92,689 64,136 180,684 121,478
-------- -------- --------- --------
Expenses
Operating costs - oil & gas
production 26,374 19,451 49,781 36,677
Operating costs - electricity
generation 10,923 10,590 24,281 22,993
Exploration costs 225 - 786 -
Depreciation, depletion &
amortization - oil & gas 9,461 7,643 17,988 13,997
Depreciation, depletion &
amortization - electricity 839 861 1,611 1,716
General and administrative 5,204 4,844 10,023 11,744
Dry hole, abandonment &
impairment 601 - 2,622 -
Interest 1,740 534 2,902 1,064
-------- -------- --------- --------
Total 55,367 43,923 109,994 88,191
-------- -------- --------- --------
Income before income taxes 37,322 20,213 70,690 33,287
Provision for income taxes 12,062 4,935 22,925 7,644
-------- -------- --------- --------
Net income $25,260 $15,278 $47,765 $25,643
======== ======== ========= ========
Basic net income per share $1.14 $.70 $2.17 $1.17
Diluted net income per share $1.13 $.68 $2.13 $1.15
Cash dividends per share $.12 $.11 $.24 $.22
Weighted average capital stock
outstanding:
Basic 22,067 21,873 22,024 21,845
======== ======== ========= ========
Diluted 22,451 22,416 22,464 22,337
======== ======== ========= ========
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(unaudited)
6/30/05 12/31/04
---------------- --------------
Assets
Current assets $82,037 $61,001
Properties, buildings & equipment,
net 487,220 338,706
Other assets & deposits 6,052 12,397
---------------- --------------
$575,309 $412,104
================ ==============
Liabilities & Shareholders' Equity
Current liabilities $91,246 $64,841
Deferred income taxes 53,588 47,963
Long-term debt 125,000 28,000
Other long-term liabilities 19,285 8,214
Shareholders' equity 286,190 263,086
---------------- --------------
$575,309 $412,104
================ ==============
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended
-------------------------------
6/30/05 6/30/04
---------------- --------------
Cash flows from operating activities:
Net income $47,765 $25,643
Depreciation, depletion &
amortization (DD&A) 19,599 15,713
Deferred income taxes 10,064 6,142
Stock-based compensation expense 969 2,808
Other, net 194 528
Net changes in operating assets and
liabilities (12,400) (13,201)
---------------- --------------
Net cash provided by operating
activities 66,191 37,633
Net cash used in investing activities (164,221) (31,838)
Net cash provided by (used in)
financing activities 90,901 (4,646)
---------------- --------------
Net (decrease) increase in cash and
cash equivalents (7,129) 1,149
Cash and cash equivalents at beginning
of year 16,690 10,658
---------------- --------------
Cash and cash equivalents at end of
period $9,561 $11,807
================ ==============
COMPARATIVE OPERATING STATISTICS
(unaudited)
Three Months Ended Six Months Ended
------------------------ ------------------------
6/30/05 6/30/04 Change 6/30/05 6/30/04 Change
-------- -------- ------ -------- -------- ------
Oil and gas:
Net production-BOE
per day 22,668 20,315 +12% 22,359 19,949 +12%
Per BOE:
Average sales
price before
hedging $43.41 $30.83 +41% $42.21 $29.46 +43%
Average sales
price after
hedging 39.09 28.55 +37% 38.50 27.00 +43%
Operating costs 12.79 10.52 +22% 12.30 10.10 +22%
DD & A 4.59 4.13 +11% 4.44 3.86 +15%
General &
administrative
expenses 2.52 2.62 -4% 2.48 3.23 -23%
Interest expense $.84 $.29 +190% $.72 $.29 +148%
Electricity:
Electric power
produced -
Megawatt
hours/day 1,897 2,045 -7% 2,006 2,118 -5%
Electric power
sold -
Megawatt
hours/day 1,702 1,843 -8% 1,810 1,900 -5%
Average sales
price - $/MWh $74.52 $67.51 +10% $71.55 $67.34 +6%
Fuel gas cost -
$/MMBtu $6.15 $5.44 +13% $5.94 $5.26 +13%
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