Berry Petroleum Earns $8.6 Million in First 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)--May 7, 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 first quarter ended March 31, 2002 of $8.6 million, or $.40 per share, on revenues of $27.4 million, up 72% from $5 million, or $.23 per share, on revenues of $48.5 million in the first quarter of 2001 and $4 million, or $.19 per share, on revenues of $27.5 million in the fourth quarter of 2001. Pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta income for the first quarter of 2002 included $3.6 million from 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 due to the then payment default by Southern California Edison Southern California Edison (or SCE Corp), the largest subsidiary of Edison International (NYSE: EIX), is the primary electricity supply company for much of Southern California. It provides 11 million people with electricity. Company (Edison Edison, township (1990 pop. 88,680), Middlesex co., NE N.J., inc. 1870 as Raritan Township, renamed 1954. Edison's varied manufactures include light trucks, chemicals, metal products, electrical and electronic equipment, machinery, and instruments. ) for electricity generation from November November: see month. 2000 through March 2001. Jerry Hoffman, Chairman, President and Chief Executive Officer, stated, "The first quarter of 2002 showed solid operating improvement, both in increased production and lower costs, as the Company continues to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from the impact of last year's electricity crisis in 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). . Our financial position and quarterly operating results were positively impacted by the collection of $13.5 million of past due electricity receivables, of which $3.6 million is recorded in pre-tax income. Before consideration of non-recurring gains for the quarter, the Company would have earned approximately $.24 per share, a solid performance for the Company and 26% higher than our fourth quarter 2001 results." Production, which averaged 13,799 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 per day (BOE/D) in the first quarter of 2002 was 3% higher than 13,444 BOE/D in the fourth quarter of 2001, but still lower than the first quarter of 2001 average of 15,289 BOE/D. Although Companywide production has not yet fully recovered from the suspension of steaming operations in 2001, normal steaming operations of approximately 60,000 barrels of steam injection per day have been in place now for approximately six months. Current production is approximately 14,200 BOE/D and management expects that average production for the year will be approximately 15,000 BOE/D. Ralph Goehring, Senior Vice President and Chief Financial Officer, stated, "Cash flows from operating activities, at $16.5 million for the quarter, compared very favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. to a negative cash flow of $12.3 million in the first quarter of 2001. With the payment of $13.5 million received on March 1, 2002 from Edison, the Company has now successfully collected the majority of the $27 million in electricity receivables it was owed as a result of the California electricity crisis The California electricity crisis (also known as the Western Energy Crisis) of 2000 and 2001 resulted from the gaming of a partially deregulated California energy system by energy companies such as Enron and Reliant Energy. . The Company reduced its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by $5 million in the 2002 first quarter to $20 million and had $5.4 million of working capital at March 31, 2002. Long-term debt has been reduced further in April to a current balance of $15 million." Mr. Goehring continued, "World crude oil prices improved significantly in the first quarter and our 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. prices have increased from $13.25/Bbl at year-end to $22.00/Bbl on May 2, 2002. Primarily due to this significant price movement, the Company has hedged approximately one third of its crude oil production for the next 12 months using zero-cost collars zero-cost collar The investment position of being short a call option and long a put option for stock already owned. The premium received from selling the call option is used to pay for purchase of the put. to lock-in attractive profitability on those barrels and partially protect the Company from a near-term price decline." Hoffman added, "The fundamentals of our business have improved dramatically over the last 12 months, so we are vigorously pursuing opportunities for significant growth. The Company is proceeding with an expanded capital budget plan for 2002 of approximately $27.1 million. This plan includes the drilling of 88 new wells of which 15 will be horizontal. We anticipate that these new wells will be online by the end of the third quarter and should allow the Company to achieve an exit rate for 2002 of approximately 16,000 BOE/D. On the acquisition front, our Corporate Development department is being strengthened by hiring additional personnel, which will allow us to properly evaluate numerous opportunities. We are primarily focused on natural gas opportunities where we can establish one or more significant new core areas that can impact our reserve and production growth within a six to twenty-four month timeframe." An earnings conference call will be held Wednesday, May 8, 2002 at 8:00 a.m. PT. Dial 1-800/218-0713 to participate. International callers may dial 303/262-2171. For a digital replay available until May 22, dial 1-800/405-2236 (passcode 465246#). 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": 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, gas transportation availability, the non-existence of a liquid marketplace for electricity purchases and sales within California, 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. , uncertainties about the estimates of reserves, the prices of goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. , 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 regulation.
Berry Petroleum Company
CONDENSED INCOME STATEMENTS
(In thousands, except per share data)
(unaudited)
Three Months Ended
3/31/02 3/31/01
Revenues:
Sales of oil and gas $ 19,678 $ 30,697
Sales of electricity 7,314 17,218
Interest and other income, net 378 622
---------- -----------
Total 27,370 48,537
Expenses:
Operating costs -- oil and gas operations 8,086 10,640
Operating costs -- electricity generation 6,983 17,019
Depreciation, depletion & amortization 3,992 4,779
General and administrative 1,862 1,917
Write-off (recovery) of electricity receivables (3,631) 6,645
Interest 423 1,157
---------- -----------
Total 17,715 42,157
Income before income taxes 9,655 6,380
Provision for income taxes 1,035 1,358
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Net income $ 8,620 $ 5,022
============ ===========
Basic and diluted net income per share $ .40 $ .23
Cash dividends per share $ .10 $ .10
Weighted average common shares:
Basic 21,732 22,034
Diluted 21,811 22,097
CONDENSED BALANCE SHEETS
(In thousands)
(unaudited)
3/31/02 12/31/01
Assets
Current assets $ 26,809 $ 28,201
Property & equipment, net 203,763 203,413
Other assets 882 912
---------- -----------
$ 231,454 $ 232,526
============ ===========
Liabilities & Shareholders' Equity
Current liabilities $ 21,411 $ 22,364
Long-term debt 20,000 25,000
Deferred taxes 32,195 32,009
Shareholders' equity 157,848 153,153
---------- -----------
$ 231,454 $ 232,526
============ ===========
CONDENSED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended
3/31/02 3/31/01
Cash flows from operations:
Net income $ 8,620 $ 5,022
Depreciation, depletion & amortization 3,992 4,779
Other comprehensive income (1,790) (441)
Other, net 232 71
Net changes in operating assets and liabilities 5,419 (21,744)
Net cash provided by (used in) operations 16,473 (12,313)
Net cash used in investing activities (4,316) (1,666)
Net cash (used in) provided by financing
activities (7,176) 42,797
Net increase in cash & cash equivalents 4,981 28,818
Cash & cash equivalents, beginning of year 7,238 2,731
Cash & cash equivalents, end of period $ 12,219 $ 31,549
COMPARATIVE OPERATING STATISTICS
Three Months Ended
3/31/02 3/31/01 Change
Oil and gas:
Net production -- BOE/day 13,799 15,289 (10%)
Per BOE:
Average sales price $ 15.87 $ 22.19 (28%)
Operating costs 5.96 7.32 (19%)
Production taxes .56 .41 37%
Total operating costs 6.52 7.73 (16%)
Depreciation & depletion 3.21 3.47 (7%)
General & administrative expenses 1.50 1.39 8%
Interest expense .34 .84 (60%)
Electricity:
Electric power produced -- Mwh/day 1,890 1,089 74%
Average sales price -- $/Mwh $ 42.99 $ 175.73 (76%)
Fuel gas cost -- $/Mmbtu 2.49 15.14 (84%)
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