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Berry Corp (bry) (BRY)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 was operationally steady but financially weak versus Street; “Total revenues and other” fell to $151.1M, diluted EPS was -$0.34, and Adjusted EBITDA was $49.4M, with sequential FCF improving to $38.4M on sharply lower capex .
  • Results missed S&P Global consensus: EPS $0.06E vs -$0.08A, revenue $169.5M E vs $151.1M A, and Street EBITDA $60.7M E vs $24.7M A; the EBITDA shortfall reflects derivative losses and higher energy costs, while company-reported Adjusted EBITDA was $49.4M (non-GAAP) *.
  • Berry withdrew FY25 guidance and did not host a Q3 earnings call due to the pending CRC merger; the S-4 became effective Nov 3 and the special shareholder meeting is set for Dec 15, a near-term catalyst .
  • Uinta 4-well pad came online in August with a strong peak IP30 of ~4,000 Boe/d (93% oil), supporting H2 production trajectory despite lower Brent and weaker derivative outcomes vs prior periods .
  • Quarterly dividend of $0.03 was maintained; debt reduction continued (~$11M in Q3; ~$34M YTD); leverage ratio at 1.60x TTM Adjusted EBITDA .

What Went Well and What Went Wrong

What Went Well

  • Uinta horizontal development delivered strong results: “peak pad IP30 rate of 4,000 Boe/d (93% oil)”; management highlighted operational execution on lower-cost wells .
  • Free Cash Flow turned positive sequentially ($38.4M vs -$25.6M) driven by lower capital spending ($17.0M vs $54.2M) despite weaker pricing and derivatives .
  • Ongoing balance sheet progress: ~$11M debt repaid in Q3 and ~$34M YTD; liquidity of $94M at quarter end; leverage ratio 1.60x TTM Adjusted EBITDA .

What Went Wrong

  • Significant miss vs Street: EPS -$0.08A vs $0.06E; revenue $151.1M A vs $169.5M E; EBITDA $24.7M A vs $60.7M E; visibility reduced by guidance withdrawal and no call due to merger *.
  • Derivative headwinds and energy cost pressure: oil derivatives swung to -$14.9M unrealized (from +$47.8M in Q2) and gas purchase derivative losses rose to $16.0M; energy LOE unhedged increased to $11.87/boe .
  • Commodity backdrop weaker vs prior year: Brent averaged $68.17/bbl vs $78.71/bbl in Q3 2024; production was flat q/q (23.9 Mboe/d) but down y/y (24.8 → 23.9), contributing to margin compression .

Financial Results

Reported P&L vs prior periods

MetricQ3 2024Q2 2025Q3 2025
Total revenues and other ($USD Millions)$261.7 $210.1 $151.1
Net (loss) income ($USD Millions)$69.9 $33.6 $(26.0)
Diluted EPS ($)$0.91 $0.43 $(0.34)
Adjusted EBITDA ($USD Millions, non-GAAP)$67.1 $52.9 $49.4

Margins (S&P Global)

MetricQ3 2024Q2 2025Q3 2025
EBITDA Margin %56.36%*45.45%*16.33%*
EBIT Margin %40.03%*29.08%*-9.16%*
Net Income Margin %26.70%*15.59%*-17.21%*

Values retrieved from S&P Global.*

Actuals vs S&P Global Consensus (Q3 2025)

MetricConsensusActualSurprise
Primary EPS Consensus Mean$0.06* (4 est.)-$0.08*Miss by $0.14
Revenue Consensus Mean$169.5M* (2 est.)$151.142M*Miss by $18.4M
EBITDA Consensus Mean$60.7M*$24.7M*Miss by ~$36.0M

Values retrieved from S&P Global.*

Note: Company-reported Adjusted EBITDA was $49.4M (non-GAAP), reflecting add-backs for derivative effects and other items .

Segment breakdown (revenues, $USD thousands)

Segment Revenues (ex-hedge settlements)Q3 2024Q2 2025Q3 2025
E&P$160,809 $130,831 $135,046
Well Servicing & Abandonment Services$30,836 $31,082 $28,695
Corporate/Eliminations$(5,371) $(8,258) $(7,933)
Consolidated$186,274 $153,655 $155,808

(These segment revenues exclude hedge settlements per company disclosure.)

KPIs

KPIQ3 2024Q2 2025Q3 2025
Production (MBoe/d)24.8 23.9 23.9
Oil with hedge ($/bbl)$71.01 $67.54 $67.33
Energy LOE – unhedged ($/boe)$10.76 $10.32 $11.87
LOE – hedged ($/boe)$27.35 $27.97 $29.24
Capital expenditures ($USD Millions)$25.9 $54.2 $17.0
Free Cash Flow ($USD Millions, non-GAAP)$44.8 $(25.6) $38.4

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Average Daily Production (boe/d)FY 202524,800–26,000 Guidance discontinued Withdrawn
Non-energy LOE ($/boe)FY 2025$13.00–$15.00 Guidance discontinued Withdrawn
Energy LOE (unhedged) ($/boe)FY 2025$12.70–$14.50 Guidance discontinued Withdrawn
Natural Gas Purchase Hedge Settlements ($/boe)FY 2025$1.00–$1.60 Guidance discontinued Withdrawn
Adjusted G&A – E&P & Corp ($/boe)FY 2025$6.35–$6.75 Guidance discontinued Withdrawn
Capital Expenditures ($M)FY 2025$110–$120 Guidance discontinued Withdrawn
Dividend per share (quarterly)Q4 2025 pay date$0.03 declared $0.03 declared Maintained

Earnings Call Themes & Trends

(Company did not host a Q3 call due to the pending CRC merger .)

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
Regulatory / California permitting“Positive developments … could potentially open up new drill permitting pathways by year-end.” (Q2 CEO) No call; continued operational executionWatchlist; potential improvement
Uinta horizontal programQ1: pad drilled, first production expected Q3 ; Q2: all four wells online in Aug planned; lower costs (~20% below non-op) Pad online Aug; peak IP30 ~4,000 Boe/d (93% oil) Executed; positive
Hedging strategy / protectionQ1: converted collars/puts to swaps; strengthened 2026–27 hedge prices ; Q2: 71%’25 and 63%’26 hedged 18.2 MBbl/d hedged Q4’25; 16.0 MBbl/d for 2026; gas hedges ~40k MMBtu/d Q4’25 Stable, protective
Balance sheet & leverage$11M debt reduction per quarter; leverage ratio improved to 1.37x in Q1 , 1.51x in Q2 Further $11M reduction; leverage 1.60x TTM Adj EBITDA Steady deleveraging
Strategic actions—CRC merger S-4 effective Nov 3; special meeting Dec 15 New catalyst

Management Commentary

  • “Our full year drilling activity is now complete and we are positioned for sequential production growth through the end of the year… In Utah, … our Uinta wells should help drive production growth over the second half of the year. … Our average well cost is approximately 20% below the average cost of our non-op wells.” — CEO Fernando Araujo (Q2) .
  • “We delivered strong financial and operating results in the first quarter… Our California drilling program is focused on our thermal diatomite assets… At recent strip pricing, rates of return here exceed 100%.” — CEO Fernando Araujo (Q1) .
  • “We are confident in our ability to navigate current market volatility… Our cash flow is protected by our strong hedge position… We have a resilient business with low breakeven prices…” — CEO Fernando Araujo (Q1) .

Q&A Highlights

  • No Q3 earnings call or Q&A; Berry “will not post supplemental slides or host a conference call” due to CRC merger .
  • Guidance was formally discontinued; investors cautioned not to rely on historical forward-looking statements .
  • Dividend policy continued: $0.03 quarterly dividend declared for payment Dec 4 .

Estimates Context

  • EPS missed S&P Global consensus: $0.06E vs -$0.08A; Revenue missed: $169.5M E vs $151.1M A; EBITDA missed: $60.7M E vs $24.7M A, reflecting derivative losses and higher energy LOE; company-reported Adjusted EBITDA was $49.4M (non-GAAP) *.
  • We expect consensus to migrate lower given guidance withdrawal and cost pressure (energy LOE rose to $11.87/boe and gas derivative losses $16.0M), unless CRC merger synergies and Uinta volumes offset near-term margin headwinds .

Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Near-term trading likely pivots to the CRC merger timeline (Dec 15 vote) and deal-related disclosures; lack of guidance and no call reduce standalone visibility .
  • Fundamental miss vs Street driven by derivative swings and energy cost inflation; monitor derivative book and LOE trajectory into Q4 .
  • Operational execution is a bright spot: Uinta pad IP30 ~4,000 Boe/d could support H2 volumes and partially offset pricing/margin pressures .
  • FCF inflected positively on lower capex; with continued debt paydown and a $0.03 dividend, capital returns remain intact despite margin compression .
  • Commodity sensitivity remains high; Brent down y/y with weaker derivative outcomes vs prior periods amplified revenue/margin volatility .
  • Segment view: E&P revenue stabilized q/q; well services modestly lower; corporate costs and interest remain a drag pre-merger .
  • Watch for updated disclosures from CRC/Berry (S-4/proxy) regarding synergy targets, pro forma leverage, and capital allocation as key narrative drivers .