Berry Petroleum Company Reports an 80% Increase in First Quarter Earnings.TAFT, Calif.--(BUSINESS WIRE)--May 1, 1996--Berry Petroleum Company (NYSE NYSE See: New York Stock Exchange :BRY) today announced net income for the first quarter ended March 31, 1996 of $3.9 million, or $.18 per share, on revenues of $12.6 million, up 80% from $2.2 million, or $.10 per share, on revenues of $11 million earned in the first quarter of 1995. For the first quarter of 1996, the average sales price was $14.42 per barrel of oil equivalent The barrel of oil equivalent (bboe, sometimes BOE) is a unit of energy based on the approximate energy released by burning one barrel of crude oil. The US Internal Revenue Service defines it as equal to 5.8 × 106 BTU [1]. 5. (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 ), up 11% from $13.02/BOE received in the first quarter of 1995. As of May 1, 1996, the average posted price for California heavy crude oil Heavy crude oil or Extra Heavy oil is any type of crude oil which does not flow easily. It is a relative term, compared to light crude oil, but relates to specific technical issues of its own on production, transportation, and refining. is $15.25 per barrel. Jerry Hoffman, Chief Executive Officer, stated, "The Company's 1996 first quarter results represent the highest quarterly net income from operations in over five years. Our cash flow from operating activities was up 49% to $7 million from $4.7 million in the first quarter of 1995, or to $.32 per share from $.21 per share. After adjusting for the sale of our Rincon properties (300 BOE/day) in late 1995, production was up 474 BOE/day on our core properties. Total operating costs/BOE were down 24% from $6.05 to $4.61. Taking into account all factors, our pre-tax cash margin/BOE increased by $2.90 in the period, or 52% over the 1995 first quarter." A key fundamental improvement working in favor of the California producer is the narrowing of the crude price differential between the West Texas Intermediate (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) ) barrel and the California heavy barrel Heavy Barrel is a 1987 run and gun arcade game by Data East. The story is that terrorists have seized the underground control complex of a nuclear missile site, and it is up to the player to infiltrate the base and kill the enemy leader. . In the first quarter of 1996, the price of California heavy oil (13 degrees API gravity The American Petroleum Institute gravity, or API gravity, is a measure of how heavy or light a petroleum liquid is compared to water. If its API gravity is greater than 10, it is lighter and floats on water; if less than 10, it is heavier and sinks. crude) averaged 77% of the WTI price. By comparison, in the first quarter of 1995 it averaged 70%, and for the years 1994 and 1993, it averaged 67% and 61%, respectively. The Company believes this lower differential will be sustainable because of the improved marketplace fundamentals on the West Coast. Furthermore, the recent legislation signed by the President to lift the ban on the export of Alaska North Slope Alaska North Slope or Arctic North Slope, region, N Alaska, sloping from the Brooks Range N to the Arctic Ocean. In 1968 large petroleum reserves were found in the Prudhoe Bay area. crude oil should ensure a free crude oil market on the West Coast dictated by economics rather than government mandate. The Company's development budget for 1996 is $9.4 million which includes 43 new wells of which 21 have been drilled and completed. In addition, at the time of this release, current net production approximates 9,500 BOE/day. Berry Petroleum Company is a publicly traded independent oil and gas production and exploration company with its headquarters in Taft, California Taft is a city in Kern County, California, United States. The population was 6,400 at the 2000 census. Adjoining the town to the north is the unincorporated area called Ford City. On the south end of Taft's municipal border is another unincorporated area known as South Taft. . The Company's first quarter conference call is scheduled for Friday, May 3, 1996 at 8:00 a.m. (PST PST Paroxysmal supraventricular tachycardia, see there ) and can be accessed by calling 1-800-860-3035. -0-
Comparative Operating Statistics
Three months ended March 31: 1996 1995 Net Production - BOE per day 9,101 8,927 Average Sales Price per BOE $ 14.42 $ 13.02 Operating Costs per BOE $ 4.61 $ 6.05 Depreciation/Depletion per BOE $ 1.82 $ 1.95 General & Administrative Costs per BOE $ 1.33 $ 1.39
Comparative Financial Results:
(in 000's except per share data)
Three months ended March 31: 1996 1995
Total Revenues $ 12,603 $ 10,987
Net Income $ 3,861 $ 2,210
Net Income per share $ .18 $ .10
Weighted average number of
shares outstanding 21,932 21,932
CONTACT: Berry Petroleum Company Jerry V. Hoffman/Ralph J. Goehring, 805/769-8811 |
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