Berry Updates FY23 Guidance Post Macpherson Acquisition Completion

Berry Corporation BRY updated its FY23 Guidance following the completion of the Macpherson Energy Corporation acquisition.

"This transaction is immediately accretive to Berry in both production and cash flows, supports our overall strategic plan to efficiently maintain our California production, and is expected to enhance our cash flows and shareholder returns," stated Fernando Araujo, Berry's Chief Executive Officer.

Berry financed the Macpherson acquisition by cutting its FY23 capital spending. They paid $50 million upfront out of the $70 million total purchase price, with the remaining $20 million due in July 2024.

In light of the MacPherson acquisition and Berry's performance so far, the company has updated its 2023 full-year guidance.

For FY23, Berry now sees Average Daily Production (boe/d) of 24,800 - 25,400 (prior 24,000 - 25,200); E&P non-production revenues ($/boe) of $1.65 - $1.85 (prior $3.30 - $3.50) and Well Servicing & Abandonment Segment Adjusted EBITDA of ~$25 million (prior ~$27 million).

BRY sees Capital Expenditures for E&P Segment & Corp of $68 million - $74 million (prior $95 million - $105 million) and Well Servicing and Abandonment Segment of ~$6 million (prior ~$8 million).

Price Action: BRY shares closed lower by 1.79% at $8.21 on Friday.