Berry Petroleum Earns $6.8 Million in Second Quarter 2002.Business Editors 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.--(BUSINESS WIRE)--July 31, 2002 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 ) today announced net income for the second quarter ended June June: see month. 30, 2002, of $6.8 million, or $.31 per share, on revenues of $33.2 million, down 3% from $7 million, or $.32 per share, on revenues of $29.4 million in the second quarter of 2001. The second quarter of 2002 includes a pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta sale of $1.1 million of emission credits to a utility company which were deemed to be surplus by Company management. Net income for the six months ended June 30, 2002, was $15.4 million, or $.71 per share, on revenues of $60.6 million, up 28% from $12 million, or $.54 per share, on revenues of $78 million for the six months ended June 30, 2001. Pre-tax income in the first six months of 2002 included $3.6 million for the recovery of electricity receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed which had been written off by the Company in the first quarter of 2001. Jerry Jer·ry n. pl. Jer·ries Chiefly British Slang A German, especially a German soldier. [Alteration of German. Hoffman, Chairman, President and Chief Executive Officer, stated, "The second quarter of 2002 was another solid quarter for Berry. The Company's oil and gas production is improving due to the increased steaming activities and the implementation of the Company's $27.3 million 2002 capital development program. The Company has drilled 27 new producing wells to date, 8 of which are horizontal, with a total of 88 wells to be completed this year. Production, which averaged 14,060 BOE/day during the second quarter, has improved to over 14,500 BOE/day as of this writing, and the Company expects to exit 2002 at approximately 16,000 BOE/day." Mr. Hoffman added, "The Company's acquisition strategy continues with the Company actively pursuing various natural gas opportunities, including coalbed methane Coalbed methane is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy in United States, Canada, and other countries. properties, to complement its existing heavy oil asset base." Ralph Goehring Goehring may refer to:
1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations cash flows from operating activities in the first half of 2001. These results for the first six months of 2002 included the collection of $13.5 million in past-due electricity receivables." In discussing its operating costs operating costs npl → gastos mpl operacionales in 2002, Mr. Goehring added, "Due to higher steam injection volumes, higher natural gas prices and lower electricity prices, the Company experienced an increase in operating costs/BOE to $8.51 in the second quarter of 2002 from $6.52 in the first quarter of 2002. One of the goals of the Company's risk management program is to lower steam costs by improving the `spark spark, in electricity: see arc. (language) SPARK - An annotated subset of Ada supported by tools supplied by Praxis Critical Systems (originally by PVL). http://sparkada.com. spread' (the difference between the price realized from the sale of electricity and the cost paid for natural gas used as fuel in the 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. operations). "Since open market electric power prices have been extremely weak this year, the Company recently entered into a series of electricity swap transactions for 30 Mwh of offpeak power from August 2002 through May 2003, and 25 Mwh of onpeak power for August and September 2002. The Company may enter into additional electricity and natural gas hedging transactions to assist in reducing steam costs." An earnings conference call will be held Thursday, August 1, 2002, at 8:00 a.m. PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . Dial 1-800-219-6110 to participate. International callers may dial 303-262-2140. For a digital replay available until August 15, dial 1-800-405-2236 (passcode 481163#). A live and archived Webcast will be available at www.bry.com. 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": 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, a limited marketplace for electricity sales within 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). , 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. , 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, 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. , 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 , legislative and/or judicial decisions and other government regulations.
BERRY PETROLEUM COMPANY
CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
(unaudited) (unaudited)
Three Months Ended Six Months Ended
6/30/02 6/30/01 6/30/02 6/30/01
--------- --------- --------- ---------
Revenues:
Sales of oil and gas $ 25,568 $ 27,731 $ 45,246 $ 58,428
Sales of electricity 6,477 1,316 13,791 18,534
Interest and other income, net 1,167 357 1,545 979
--------- --------- --------- ---------
Total 33,212 29,404 60,582 77,941
--------- --------- --------- ---------
Expenses:
Operating costs - oil and gas 10,893 11,166 18,979 21,806
Operating costs - electricity 6,477 1,316 13,460 18,335
Depreciation, depletion
& amortization 4,278 3,896 8,270 8,675
General and administrative 2,032 2,021 3,894 3,938
Write-off of electricity
receivables -- -- (3,631) 6,645
Interest 261 1,155 684 2,312
--------- --------- --------- ---------
Total 23,941 19,554 41,656 61,711
--------- --------- --------- ---------
Income before income taxes 9,271 9,850 18,926 16,230
Provision for income taxes 2,444 2,875 3,479 4,233
--------- --------- --------- ---------
Net income $ 6,827 $ 6,975 $ 15,447 $ 11,997
========= ========= ========= =========
Basic net income per share $ .31 $ .32 $ .71 $ .54
Diluted net income per share $ .31 $ .32 $ .70 $ .54
Cash dividends per share $ .10 $ .10 $ .20 $ .20
Weighted average common shares:
Basic 21,735 22,034 21,734 22,034
========= ========= ========= =========
Diluted 21,974 22,084 21,915 22,088
========= ========= ========= =========
CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
June 30, 2002 December 31, 2001
------------- -----------------
ASSETS
Current assets $ 24,420 $ 28,201
Property & equipment, net 207,100 203,413
Other assets 823 912
------------ ------------
$ 232,343 $ 232,526
============ ============
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities $ 21,652 $ 22,364
Long-term debt 15,000 25,000
Deferred taxes 33,149 32,009
Shareholders' equity 162,542 153,153
------------ ------------
$ 232,343 $ 232,526
============ ============
BERRY PETROLEUM COMPANY
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Six Months Ended
6/30/02 6/30/01
Cash flows from operations:
Net income $ 15,447 $ 11,997
Depreciation, depletion & amortization 8,270 8,674
Other, net (550) 706
Net changes in operating assets and liabilities 2,205 (21,538)
Net cash provided by (used in) operations 25,372 (161)
Net cash used in investing activities (11,782) (6,457)
Net cash provided by (used in)
financing activities (14,519) 36,593
Net increase in cash & cash equivalents (929) 29,975
Cash & cash equivalents, beginning of year 7,238 2,731
Cash & cash equivalents, end of period $ 6,309 $ 32,706
COMPARATIVE OPERATING STATISTICS
Three Months Ended Six Months Ended
6/30/02 6/30/01 Change 6/30/02 6/30/01 Change
Oil and gas:
Net production -
BOE per day 14,060 13,611 +3% 13,930 14,445 -4%
Per BOE:
Average realized
sales price (a) $ 19.99 $ 21.14 -5% $ 17.96 $ 21.83 -18%
Operating costs 7.96 8.57 -7% 6.98 7.75 -10%
Production taxes .55 .45 +22% .55 .43 +28%
Total operating
costs 8.51 9.02 -6% 7.53 8.18 -8%
Depreciation &
depletion 3.34 3.15 +6% 3.28 3.32 -1%
General & admini-
strative expenses 1.59 1.63 -2% 1.54 1.51 +2%
Interest expense
per BOE .20 .93 -78% .27 .88 -69%
Electricity:
Electric power
produced -
Megawatt hours/day 1,748 224 +680% 1,819 654 +178%
Average sales price -
$/Mwh 39.46 62.17 -37% 36.79 79.14 -54%
Fuel gas cost -
$/Mmbtu 2.97 10.54 -72% 2.73 14.00 -81%
(a) Excludes effects
of the SFAS 133 -- --
unrealized hedging gain. .91 .42
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