View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
Document and Entity Information - USD ($) $ in Millions	Dec. 31, 2019	Jan. 31, 2020	Jun. 30, 2019
Document And Entity Information [Abstract]
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Entity Registrant Name	Berry Corp (bry)
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Small Business	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 575.4
Entity Common Stock, Shares Outstanding		79,546,417
Entity Central Index Key	0001705873
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Current assets:
Cash and cash equivalents	$ 0	$ 68,680
Accounts receivable, net of allowance for doubtful accounts of $1,103 at December 31, 2019 and $950 at December 31, 2018	71,867	57,379
Derivative instruments	9,166	88,596
Other current assets	19,399	14,367
Total current assets	100,432	229,022
Non-current assets:
Oil and natural gas properties	1,675,717	1,461,993
Accumulated depletion and amortization	(209,105)	(123,217)
Total oil and natural gas properties, net	1,466,612	1,338,776
Other property and equipment	135,117	119,710
Accumulated depreciation	(25,462)	(15,778)
Total other property and equipment, net	109,655	103,932
Derivative instruments	525	3,289
Other non-current assets	12,974	17,244
Total assets	1,690,198	1,692,263
Current liabilities:
Accounts payable and accrued expenses	151,811	144,118
Derivative instruments	4,817	0
Total current liabilities	156,628	144,118
Non-current liabilities:
Long term debt	394,319	391,786
Derivative instruments	141	0
Deferred income taxes	9,057	45,835
Asset retirement obligation	124,019	89,176
Other non-current liabilities	33,586	14,902
Commitments and Contingencies - Note 5
Equity:
Common stock ($.001 par value; 750,000,000 shares authorized; 84,655,222 and 81,651,098 shares issued; and 79,542,976 and 81,202,437 shares outstanding, at December 31, 2019 and December 31, 2018, respectively)	85	82
Additional paid-in capital	901,830	914,540
Treasury stock, at cost (5,112,246 shares at December 31, 2019 and 448,661 December 31, 2018)	(49,995)	(24,218)
Retained earnings	120,528	116,042
Total equity	972,448	1,006,446
Total liabilities and equity	$ 1,690,198	$ 1,692,263

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 1,103	$ 950
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common Stock, Shares, Issued	84,655,222	81,651,098
Common stock, shares outstanding (in shares)	79,542,976	81,202,437
Treasury stock, shares (in shares)	5,112,246	448,661

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Revenues and other:
Revenues	$ 79,832	$ 386,569	$ 597,403	$ 591,178
(Losses) gains on derivatives	12,886	(66,900)	(44,955)	1,735
Other revenues	1,424	3,975	316	774
Total revenues and other	92,718	319,669	559,405	586,557
Expenses and other:
Transportation expenses	6,194	19,238	8,059	9,860
Marketing expenses	653	2,320	2,073	2,140
General and administrative expenses	7,964	56,009	62,643	54,026
Depreciation, depletion, amortization and accretion	28,149	68,478	106,006	86,271
Impairment of oil and gas properties	0	0	51,081	0
Taxes, other than income taxes	5,212	34,211	40,645	33,117
Losses (gains) on derivatives	(12,886)	66,900	44,955	(1,735)
Other operating expense (income)	(183)	(22,930)	4,588	(2,747)
Total expenses and other	79,424	321,819	517,836	385,705
Other income (expenses):
Interest expense	(8,245)	(18,454)	(34,234)	(35,648)
Other, net	(63)	4,071	80	243
Total other income (expenses)	(8,308)	(14,383)	(34,154)	(35,405)
Reorganization items, net	(507,720)	(1,732)	(426)	24,690
Income (loss) before income taxes	(502,734)	(18,265)	6,989	190,137
Income tax expense (benefit)	230	2,803	(36,550)	43,035
Net income (loss)	(502,964)	(21,068)	43,539	147,102
Series A preferred stock dividends and conversion to common stock		(18,248)	0	(97,942)
Net income (loss) attributable to common stockholders		$ (39,316)	$ 43,539	$ 49,160
Net income (loss) per share attributable to common stockholders:
Basic (in dollars per share)		$ (1.02)	$ 0.54	$ 0.85
Diluted (in dollars per share)		$ (1.02)	$ 0.53	$ 0.85
Oil, natural gas and natural gas liquid sales
Revenues and other:
Revenues	74,120	$ 357,928	$ 565,596	$ 552,874
Expenses and other:
Operating and generation expenses	28,238	149,599	216,294	188,776
Electricity sales
Revenues and other:
Revenues	3,655	21,972	29,397	35,208
Expenses and other:
Operating and generation expenses	3,197	14,894	19,490	20,619
Oil derivatives
Revenues and other:
(Losses) gains on derivatives	12,886	(66,900)	(37,998)	(4,621)
Expenses and other:
Losses (gains) on derivatives	(12,886)	66,900	37,998	4,621
Marketing revenues
Revenues and other:
Revenues	633	2,694	2,094	2,322
Natural gas derivatives
Revenues and other:
(Losses) gains on derivatives	0	0	(6,957)	6,357
Expenses and other:
Losses (gains) on derivatives	$ 0	$ 0	$ 6,957	$ (6,357)

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands	Total	Member’s Capital	Series A Preferred Stock	Common Stock	Additional Paid-in Capital	Treasury Stock	Retained Earnings (Accumulated Deficit)	Series A Preferred Stock	Series A Preferred Stock Series A Preferred Stock	Common Stock	Common Stock Common Stock	Common Stock Additional Paid-in Capital
Beginning balance at Dec. 31, 2016	$ 502,963	$ 2,798,713					$ (2,295,750)
Increase (Decrease) In Members' Equity [Roll Forward]
Net (loss) income	(502,964)						(502,964)
Other	1	1
Ending balance at Feb. 27, 2017	0	2,798,714					(2,798,714)
Beginning balance at Dec. 31, 2016	502,963	2,798,713					(2,295,750)
Increase (Decrease) In Members' Equity [Roll Forward]
Net (loss) income	(502,964)
Ending balance at Feb. 28, 2017	0	0					0
Ending balance at Feb. 28, 2017	878,527		$ 335,000	$ 33	$ 543,494	$ 0	0
Beginning balance at Feb. 27, 2017	0	2,798,714					(2,798,714)
Increase (Decrease) In Members' Equity [Roll Forward]
Cancellation of Predecessor Equity		(2,798,714)					2,798,714
Ending balance at Feb. 28, 2017	0	$ 0					0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares			335,000					$ 335,000	$ 335,000	$ 543,527	$ 33	$ 543,494
Conversion of Series A preferred stock into common stock					27,000
Ending balance at Feb. 28, 2017	878,527		335,000	33	543,494	0	0
Increase (Decrease) In Members' Equity [Roll Forward]
Net (loss) income	(21,068)						(21,068)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	1,851				1,851
Ending balance at Dec. 31, 2017	859,310		335,000	33	545,345	0	(21,068)
Increase (Decrease) In Members' Equity [Roll Forward]
Net (loss) income	147,102						147,102
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of shares	133,805			10	133,795
Cash dividends declared on Series A Preferred Stock, $0.308/share	(11,301)				(11,301)
Conversion of Series A preferred stock into common stock	0		(335,000)	40	334,960
Stock based compensation	6,789				6,789
Cash payment to Series A preferred stockholders	(60,273)				(60,273)
Repurchase of common stock	(23,712)			(2)	(23,710)
Shares withheld for payment of taxes on equity awards	(3,699)			1	(3,700)
Purchase of rights to common stock	(20,265)					(20,265)
Purchase of treasury stock	(3,953)					(3,953)
Dividends declared on common stock	(17,357)				(7,365)		(9,992)
Ending balance at Dec. 31, 2018	1,006,446		0	82	914,540	(24,218)	116,042
Increase (Decrease) In Members' Equity [Roll Forward]
Net (loss) income	43,539						43,539
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock based compensation	8,826				8,826
Shares withheld for payment of taxes on equity awards	(1,268)				(1,268)
Purchase of rights to common stock	0				(20,265)	20,265
Purchase of treasury stock	(46,042)					(46,042)
Common stock issued to settle unsecured claims	0			3	(3)
Dividends declared on common stock	(39,053)						(39,053)
Ending balance at Dec. 31, 2019	$ 972,448		$ 0	$ 85	$ 901,830	$ (49,995)	$ 120,528

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares	3 Months Ended				12 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Preferred stock, dividends declared (in dollars per share)						$ 0.308
Common stock, dividends declared (in dollars per share)	$ 0.12	$ 0.12	$ 0.12	$ 0.12	$ 0.48	$ 0.21

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Cash flow from operating activities:
Net (loss) income	$ (502,964)	$ (21,068)	$ 43,539	$ 147,102
Adjustments to reconcile net (income) loss to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization	28,149	68,478	106,006	86,271
Amortization of debt issuance costs	416	1,988	5,059	5,430
Impairment of oil and gas properties	0	0	51,081	0
Stock-based compensation expense	0	1,851	8,647	6,750
Deferred income taxes	9	1,888	(36,778)	43,946
Increase (decrease) in allowance for doubtful accounts	0	970	153	(20)
Other operating expenses (income)	(25)	(22,930)	5,518	(2,747)
Reorganization expenses, net (non-cash)	501,872	0	0	(25,523)
Derivatives activities:
Total losses (gains)	(12,886)	66,900	44,955	(1,735)
Cash settlements on derivatives	534	3,068	42,197	(38,482)
Cash payments on early-terminated derivatives	0	0	0	(126,949)
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	(9,152)	(7,022)	(14,597)	(1,683)
(Increase) decrease in other assets	(2,842)	(13,175)	(5,136)	(819)
Increase (decrease) in accounts payable and accrued expenses	18,330	6,619	(917)	19,526
(Decrease) increase in other liabilities	990	19,832	(7,898)	(5,596)
Net cash provided by operating activities	22,431	107,399	241,829	105,471
Cash flow from investing activities:
Development of oil and natural gas properties	(247)	(50,229)	(219,176)	(94,225)
Changes in capital investment accruals	(2,249)	(2,483)	12,814	(20,371)
Purchases of other property and equipment	(662)	(12,767)	(16,792)	(15,056)
Acquisition of properties and equipment	0	(249,338)	(2,840)	0
Proceeds from sale of property and equipment and other	25	234,292	969	8,212
Net cash (used in) investing activities	(3,133)	(80,525)	(225,025)	(121,440)
Cash flow from financing activities:
Dividends paid on common stock	0	0	(39,157)	(7,365)
Purchase of treasury stock	0	0	(46,909)	(23,351)
Shares withheld for payment of taxes on equity awards	0	0	(1,268)	(3,699)
Issuance of 2026 Senior Unsecured Notes	0	0	0	400,000
Debt issuance costs	0	(22,170)	0	(9,193)
IPO proceeds net of issuance costs	0	0	0	133,805
Repurchase of common stock	0	0	0	(23,712)
Payment to preferred stockholders in conversion	0	0	0	(60,273)
Dividends paid on Series A preferred stock	0	0	0	(11,301)
Proceeds from sale of Series A Preferred Stock	335,000	0	0	0
Net cash (used in) provided by financing activities	(162,668)	(43,170)	(85,484)	15,911
Net decrease in cash and cash equivalents	(143,370)	(16,296)	(68,680)	(58)
Cash, cash equivalents and restricted cash:
Beginning	228,404	85,034	68,680	68,738
Ending	85,034	68,738	0	68,680
RBL Facility
Cash flow from financing activities:
Borrowings under credit facility	0	402,285	355,132	203,510
Repayments on credit facility	0	(23,285)	(353,282)	(582,510)
Emergence Credit Facility
Cash flow from financing activities:
Borrowings under credit facility	0	51,000	0	0
Repayments on credit facility	0	(451,000)	0	0
Pre-Emergence Credit Facility
Cash flow from financing activities:
Repayments on credit facility	$ (497,668)	$ 0	$ 0	$ 0

Basis of Presentation and Significant Accounting Policies

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation and Significant Accounting Policies

Effective February 18, 2020, Berry Petroleum Corporation changed its name to Berry Corporation (bry) and introduced a new logo. We believe that the name Berry Corporation (bry) is a name that better represents our progressive approach to evolving and growing the business in today’s dynamic oil and gas industry.

“Berry Corp.” refers to Berry Corporation (bry), a Delaware corporation which, on and after February 28, 2017 is the sole member of Berry Petroleum Company, LLC.

“Berry LLC” refers to Berry Petroleum Company, LLC, a Delaware limited liability company.

As the context may require, the “Company”, “we”, “our” or similar words refer to (i) Berry Corp. (the “Successor”) and Berry LLC, its consolidated subsidiary, as of and after February 28, 2017, as a whole or (ii) either Berry Corp. or Berry LLC on an individual basis as of and after February 28, 2017. References to historical activities of the “Company” prior to February 28, 2017, refer to activities of Berry LLC (the “Predecessor”).

“Linn Energy” refers to Linn Energy, LLC, a Delaware limited liability company of which Berry LLC was formerly a wholly-owned, indirect subsidiary and LinnCo, LLC (“LinnCo” and, together with Linn Energy, the “Linn Entities”), until February 28, 2017.

Nature of Business

Berry Corp. is an independent oil and natural gas company that was incorporated under Delaware law on February 13, 2017. Berry Corp. operates through its wholly-owned subsidiary, Berry LLC. Our properties are located in the United States (the “U.S.”), in California (in the San Joaquin and Ventura basins), Utah (in the Uinta basin), and Colorado (in the Piceance basin).

In July 2018, we completed the initial public offering (the “IPO”) of our common stock and as a result, on July 26, 2018, our common stock began trading on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbol BRY.

As discussed further in Note 14, on May 11, 2016 (the “Petition Date”), the Linn entities and, consequently, Berry LLC, filed voluntary petitions for relief under Chapter 11 (“Chapter 11”) of the U.S. Bankruptcy Code. Berry LLC emerged from bankruptcy as a stand-alone company separate from Linn Energy effective February 28, 2017 (the “Effective Date”).

Principles of Consolidation and Reporting

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements.

Reclassification

We reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements.

Use of Estimates

The preparation of the accompanying consolidated financial statements in conformity with GAAP required management of the Company to make informed estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses.

Estimates that are particularly significant to the financial statements include estimates of our reserves of oil and gas, future cash flows from oil and gas properties, depreciation, depletion and amortization, asset retirement obligations, fair values of commodity derivatives and fair values of assets acquired and liabilities assumed. In addition, as part of fresh-start accounting, we made estimates and assumptions related to our reorganization value, liabilities subject to compromise and the fair value of assets and liabilities recorded.

Cash Equivalents

We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents.

Inventories

Inventories were included in other current assets. Oil and natural gas inventories were valued at the lower of cost or net realizable value. Materials and supplies were valued at their weighted-average cost and are reviewed periodically for obsolescence.

Oil and Natural Gas Properties

Proved Properties

We account for oil and natural gas properties in accordance with the successful efforts method. Under this method, all acquisition costs of proved properties are capitalized and amortized on a unit-of-production basis over the remaining life of the proved reserves. All development costs of proved properties are capitalized and amortized on a unit-of-production basis over the remaining life of the proved developed reserves. Costs of retired, sold or abandoned properties that constitute a part of an amortization base are charged or credited, net of proceeds, to accumulated depreciation, depletion and amortization unless doing so significantly affects the unit-of-production amortization rate, in which case a gain or loss is recognized in the current period. Gains or losses from the disposal of other properties are recognized in the current period. For assets acquired, we base the capitalized cost on fair value at the acquisition date. We expense expenditures for maintenance and repairs necessary to maintain properties in operating condition, as well as annual lease rentals, as they are incurred. Estimated dismantlement and abandonment costs are capitalized, net of salvage, at their estimated net present value and amortized over the remaining lives of the related assets. Interest is capitalized only during the periods in which these assets are brought to their intended use. The amount of capitalized interest in 2019 was approximately $2 million, and in 2018 and 2017 these costs were not significant. The amount of capitalized exploratory well costs was zero for all periods. We only capitalize the interest on borrowed funds related to our share of costs associated with qualifying capital expenditures.

We evaluate the impairment of our proved oil and natural gas properties generally on a field by field basis or at the lowest level for which cash flows are identifiable, whenever events or changes in circumstance indicate that the carrying value may not be recoverable. We reduce the carrying values of proved properties to fair value when the expected undiscounted future cash flows are less than net book value. We measure the fair values of proved properties using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a risk-adjusted discount rate. These inputs require significant judgments and estimates by our management at the time of the valuation and are the most sensitive estimates we make and the most likely to change. The underlying commodity prices are embedded in our estimated cash flows and are the product of a process that begins with the relevant forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors our management believes will impact realizable prices. The fair value was estimated using inputs characteristic of a Level 3 fair value measurement.

Unproved Properties

A portion of the carrying value of our oil and gas properties was attributable to unproved properties. At December 31, 2019 and 2018, the net capitalized costs attributable to unproved properties were approximately $314 million and $388 million, respectively. The unproved amounts were not subject to depreciation, depletion and amortization until they were classified as proved properties and amortized on a unit-of-production basis. We evaluate the impairment of our unproved oil and gas properties whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the exploration and development work were to be unsuccessful, or management decided not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of such properties would be expensed. The timing of any write-downs of unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results. We believe our current plans and exploration and development efforts will allow us to realize the carrying value of our unproved property balance at December 31, 2019.

At year end 2019, we evaluated our proved and unproved natural gas properties in regards to the decline in our expectations of future gas prices. As a result, we recorded a non-cash pre-tax asset impairment charge of $51 million for our Piceance gas properties in Colorado, of which $23 million was for proved properties and $28 million for unproved properties.

Other Property and Equipment

Other property and equipment includes natural gas gathering systems, pipelines, buildings, software, data processing and telecommunications equipment, office furniture and equipment, and other fixed assets. These assets are recorded at cost, depreciated using the straight-line method based on expected useful lives ranging from 5 to 30 years for buildings and leasehold improvements and 2 to 30 years for plant and pipeline, drilling and other equipment, and the salvage value is considered as applicable.

Asset Retirement Obligation

We recognize the fair value of asset retirement obligations (“AROs”) in the period in which a determination is made that a legal obligation exists to dismantle an asset and remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The liability amounts were based on future retirement cost estimates and incorporate many assumptions such as time to abandonment, technological changes, future inflation rates and the risk-adjusted discount rate. When the liability was initially recorded, we capitalized the cost by increasing the related property, plant and equipment (“PP&E”) balances. If the estimated future cost of the AROs changes, we record an adjustment to both the ARO and PP&E. Over time, the liability is increased and the capitalized cost is depreciated over the useful life of the asset. Accretion expense is also recognized over time as the discounted liabilities are accreted to their expected settlement value and is included in depreciation, depletion and amortization in the statement of operations.

The following table summarizes activity in our ARO account in which approximately $124 million and $89 million were included in long term liabilities as of December 31, 2019 and December 31, 2018, respectively, with the remaining current portion included in accrued liabilities:



	Berry Corp. (Successor)
	Year Ended December 31, 2019			Year Ended December 31, 2018
	(in thousands)
Beginning balance	$	95,548		$	97,422
Liabilities incurred	11,534			4,901
Settlements and payments	(22,036		)	(3,555		)
Accretion expense	7,570			6,258
Reduction due to property sales	—			(4,145		)
Revisions	56,611			(5,333		)
Ending balance	$	149,227		$	95,548

The increase in the long-term portion of the asset retirement obligation largely reflected revisions to timing and cost estimates of $57 million, $12 million for new wells, and accretion expense of $8 million. A significant portion of the change in estimate was a result of California's new idle well regulations which became effective in the second quarter and accelerated the timing of abandonment of certain long existing idle wells. These increases were partially offset by liabilities settled or paid during the period of $22 million and an increase to the current portion of the asset retirement obligation of $19 million due to the change in timing and estimated costs

Revenue Recognition

Substantially all of the Company’s revenue is from the sale of crude oil, natural gas and NGLs. See Note 13 for information regarding the Company’s revenue recognition policy.

Fair Value Measurements

We have categorized our assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1—using quoted prices in active markets for the assets or liabilities; Level 2—using observable inputs other than quoted prices for the assets or liabilities; and Level 3—using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. We primarily apply the market approach for recurring fair value measurement, maximize our use of observable inputs and minimize use of unobservable inputs. We generally use an income approach to measure fair value when observable inputs are unavailable. This approach utilizes management’s judgments regarding expectations of projected cash flows and discounts those cash flows using a risk-adjusted discount rate.

The most significant items on our balance sheet that would be affected by recurring fair value measurements are derivatives. We determine the fair value of our oil and natural gas derivatives using valuation techniques which utilize market quotes and pricing analysis. Inputs include publicly available prices and forward price curves generated from a compilation of data gathered from third parties. We classify these measurements as Level 2.

Our PP&E is written down to fair value if we determine that there has been an impairment in its value. The fair value is determined as of the date of the assessment using discounted cash flow models based on management’s expectations for the future. Inputs include estimates of future production, prices based on commodity forward price curves as of the date of the estimate, estimated future operating and development costs and a risk-adjusted discount rate. We classify these measurements as Level 3.

Stock-based Compensation

We have issued restricted stock units (“RSUs”) that vest over time and performance-based restricted stock units (“PSUs”) that vest based on our achievement of certain average prices per share or total shareholder return, to certain employees and non-employee directors. The fair value of the stock-based awards is determined at the date of grant and is not remeasured. Prior to our IPO in July 2018, we determined the fair value of the RSUs based on an estimate of the fair value of our equity using an income approach. We used a discounted cash flow method to value the estimated future cash flows at an appropriate discount rate. Subsequent to our IPO, since the underlying shares are now trading in the public markets, these estimates are no longer necessary. For PSUs, compensation value is measured on the grant date using payout values derived from a Monte-Carlo valuation model. Estimates used in the Monte Carlo valuation model are considered highly complex and subjective. Compensation expense, net of actual forfeitures, for the RSUs and PSUs is recognized on a straight-line basis over the requisite service periods, which is over the awards’ respective vesting or performance periods which range from one to three years.

Other Loss Contingencies

In the normal course of business, we are involved in lawsuits, claims and other environmental and legal proceedings and audits. We accrue reserves for these matters when it is probable that a liability has been incurred and the liability can be reasonably estimated. In addition, we disclose, if material, in aggregate, our exposure to loss in excess of the amount recorded on the balance sheet for these matters if it is reasonably possible that an additional material loss may be incurred. We review our loss contingencies on an ongoing basis.

Loss contingencies are based on judgments made by management with respect to the likely outcome of these matters and are adjusted as appropriate. Management’s judgments could change based on new information, changes in, or interpretations of, laws or regulations, changes in management’s plans or intentions, opinions regarding the outcome of legal proceedings, or other factors.

Electricity Cost Allocation

We own five cogeneration facilities. Our investment in cogeneration facilities has been for the express purpose of lowering steam costs in our heavy oil operations in California and securing operating control of the respective steam generation. Cogeneration, also called combined heat and power, extracts energy from the exhaust of a turbine, which would otherwise be wasted, to produce steam. Such cogeneration operations also produce electricity. We allocate steam and electricity costs to lease operating expenses based on the conversion efficiency of the cogeneration facilities plus certain direct costs of producing steam. We also allocate a portion of the electricity production costs related to the power we sell to third parties, which is reported in “electricity generation expenses” in the statement of operations.

Income Taxes

Prior to the consummation of the Plan, as defined below, the Predecessor was a limited liability company treated as a disregarded entity for federal and state income tax purposes, with the exception of the state of Texas, in which income tax liabilities and/or benefits of the company are passed through to its members. Limited liability companies are subject to Texas margin tax. As such, with the exception of the state of Texas, the Predecessor was not a taxable entity, it did not directly pay federal and state income taxes and recognition was not given to federal and state income taxes for the operations of the company.

On the Effective Date, upon consummation of the Plan, the Successor became a C Corporation subject to federal and state income taxes. The impact of changes in tax regulation are reflected when enacted. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recognized when it is more likely than not that they will be realized. We periodically assess our deferred tax assets and reduce such assets by a valuation allowance if we deem it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense (benefit).

Earnings per Share

We computed basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights at the same rate as common stock.

Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income attributable to common stockholders. In loss periods, no allocation is made to participating securities because the participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding potentially dilutive securities, unless their effect is anti-dilutive.

Business and Credit Concentrations

We maintain our cash in bank deposit accounts which, at times, may exceed federally insured amounts. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk on our cash.

We also sell oil, natural gas and NGLs to various types of customers, including pipelines, refineries and other oil and natural gas companies and electricity to utility companies. Based on the current demand for oil, natural gas and NGLs and the availability of other purchasers, we believe that the loss of any one of our major purchasers would not have a material adverse effect on our financial condition, results of operations or net cash provided by operating activities.

For the year ended December 31, 2019, our three largest customers represented approximately 36%, 24% and 13% of our sales. For the year ended December 31, 2018, our three largest customers represented 35%, 28%, and 13% of our sales. For the ten months ended December 31, 2017, our three largest customers represented approximately 36%, 29% and 13% of our sales. For the two months ended February 28, 2017, our two largest customers represented approximately 34% and 29% of our sales.

At December 31, 2019, trade accounts receivable from three customers represented approximately 40%, 17%, and 11% of our receivables. At December 31, 2018, trade accounts receivable from three customers represented approximately 26%, 22% and 10% of our receivables.

Bankruptcy Accounting

The consolidated financial statements have been prepared as if the Company will continue as a going concern and reflect the application of GAAP. GAAP requires that the financial statements, for periods subsequent to filing of the bankruptcy proceedings, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that are realized or incurred in connection with the bankruptcy proceedings are recorded in “reorganization items, net” on our consolidated statements of operations. In addition, pre-petition unsecured and under-secured obligations that may be impacted by the bankruptcy reorganization process have been classified as “liabilities subject to compromise” on our balance sheet. These liabilities are reported at the amounts allowed as claims by the Bankruptcy Court, although they may be settled for less.

Upon emergence from bankruptcy on February 28, 2017, we adopted fresh-start accounting which resulted in Berry Corp. becoming the financial reporting entity. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan (see Note 14 for definition), the financial statements on or after February 28, 2017 are not comparable to the financial statements prior to that date. See Note 14 for additional information.

Recently Adopted Accounting Standards

During 2016, the FASB issued rules clarifying the new revenue recognition standard issued in 2014. The new rules are intended to improve and converge the financial reporting requirements for revenue from contracts with customers. We are an emerging growth company and elected to delay adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 31, 2018. As such, we adopted these rules in the first quarter of 2019 and applied the modified retrospective approach, meaning the cumulative effect of initially applying the standard is recognized in the most current period presented in the financial statements. We have performed an analysis of existing contracts and determined adoption did not have a material impact on our condensed consolidated financial statements. In addition, we have evaluated the changes to relevant business practices, accounting policies and control activities and we did not experience a material change in our revenue accounting as a result of the adoption of these rules. Refer to Note 13 for additional disclosure information.

New Accounting Standards Issued, But Not Yet Adopted

In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently identifying our lease population in accordance with the new lease standard. We expect the adoption of these rules to increase other assets and other liabilities on our balance sheet and we are currently evaluating the impact on our consolidated results of operations.

In December 2019, the FASB issued rules which simplifies the accounting for income taxes. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of these rules on our consolidated financial statements.

Oil and Natural Gas Properties and Other Property and Equipment

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

Oil and Natural Gas Properties and Other Property and Equipment

Oil and Natural Gas Capitalized Costs

Aggregate capitalized costs related to oil, natural gas and NGL production activities with applicable accumulated depletion and amortization are presented below:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Proved properties	$	1,361,814		$	1,073,959
Unproved properties	313,903			388,034
Total proved and unproved properties	1,675,717			1,461,993
Less accumulated depletion and amortization	(209,105		)	(123,217		)
Total proved and unproved properties, net	$	1,466,612		$	1,338,776

Other Property and Equipment

Other property and equipment consisted of the following:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Cogens, natural gas plants and pipelines	$	94,619		$	86,562
Buildings and leasehold improvements	3,752			3,359
Vehicles and service equipment	9,124			6,753
Furniture and equipment	20,078			14,964
Land	7,544			8,073
Total other property and equipment	135,117			119,710
Less: accumulated depreciation	(25,462		)	(15,778		)
Total other property and equipment, net	$	109,655		$	103,932

Debt

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

The following table summarizes our outstanding debt:



	December 31, 2019			December 31, 2018			Interest Rate	Maturity	Security
	(in thousands)
RBL Facility	$	1,850		$	—		variable rates of 5.5% (2019) and 4.5% (2018), respectively	June 29, 2022	Mortgage on 85% of Present Value of proven oil and gas reserves
2026 Notes	400,000			400,000			7.0%	February 15, 2026	Unsecured
Long-Term Debt - Principal Amount	401,850			400,000
Less: Debt Issuance Costs	(7,531		)	(8,214		)
Long-Term Debt, net	$	394,319		$	391,786

Deferred Financing Costs

We incurred legal and bank fees related to the issuance of debt. At December 31, 2019 and December 31, 2018, debt issuance costs for the RBL Facility (as defined below) reported in “other non-current assets” on the balance sheet were approximately $11 million and $16 million net of amortization, respectively. At December 31, 2019 and 2018, debt issuance costs, net of amortization, for the 2026 Senior Unsecured Notes were both approximately $8 million.

The amortization of debt issuance costs is presented in interest expense on the consolidated statements of operations. For the year ended December 31, 2019, the year ended December 31, 2018, the ten months ended December 31, 2017, and the two months ended February 28, 2017, the amortization expense for the RBL Facility and 2026 Senior Unsecured Notes were approximately $5 million, $5 million, $2 million and zero, respectively.

Fair Value

Our debt is recorded at the carrying amount on the balance sheets. The carrying amount of the RBL Facility approximates fair value because the interest rates are variable and reflect market rates. The fair value of the 2026 Senior Unsecured Notes was approximately $376 million and $368 million at December 31, 2019 and December 31, 2018, respectively.

The RBL Facility

On July 31, 2017, we entered into the RBL Facility. The RBL Facility provides for a revolving loan with up to $1.5 billion of commitments, subject to a reserve borrowing base. The RBL Facility also provides a letter of credit subfacility for the issuance of letters of credit in an aggregate amount not to exceed $25 million. Issuances of letters of credit reduce the borrowing availability for revolving loans under the RBL Facility on a dollar for dollar basis. Borrowing base redeterminations become effective each May and November, although each of the administrative agent and Berry LLC may make one interim redetermination between scheduled redeterminations. The RBL Facility has an elected commitment feature that allows us to increase commitments to the amount of our borrowing base with lender approval. In late 2019, we completed a borrowing base redetermination under our RBL Facility that set our borrowing base to $500 million and reaffirmed our elected commitment amount at $400 million. The RBL Facility matures on July 29, 2022, unless terminated earlier in accordance with the RBL Facility terms.

As of December 31, 2019, we had approximately $2 million in borrowings outstanding, $7 million in letters of credit outstanding, and approximately $391 million of available borrowings capacity under the RBL Facility.

The outstanding borrowings under the RBL Facility bear interest at a rate equal to either (i) a customary London interbank offered rate plus an applicable margin ranging from 2.50% to 3.50% per annum, and (ii) a customary base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, in each case depending on levels of borrowing base utilization. In addition, we must pay the lenders a quarterly commitment fee of 0.50% on the average daily unused amount of the borrowing availability under the RBL Facility. We have the right to prepay any borrowings under the RBL Facility with prior notice at any time without a prepayment penalty, other than customary “breakage” costs with respect to euro-dollar loans.

The RBL Facility contains customary events of default and remedies for credit facilities of a similar nature. If we do not comply with the financial and other covenants in the RBL Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the RBL Facility and exercise all of their other rights and remedies, including foreclosure on all of the collateral.

The RBL Facility requires us to maintain on a consolidated basis as of each quarter-end (i) a Leverage Ratio of no more than 4.00 to 1.00 and (ii) a Current Ratio of at least 1.00 to 1.00. The RBL Facility also contains customary restrictions. As of December 31, 2019, our Leverage Ratio and Current Ratio were 1.4:1.00 and 3.2:1.00, respectively. In addition, the RBL Facility currently provides that to the extent we incur unsecured indebtedness, including any mounts raised in the future, the borrowing base will be reduced by an amount equal to 25% of the amount of such unsecured debt. We were in compliance with all financial covenants under the RBL Facility as of December 31, 2019.

The RBL Facility permits us to repurchase equity and indebtedness, among other things, if availability is equal to or greater than 15% of the elected commitments or borrowing base, whichever is in effect, and our pro forma leverage ratio is less than or equal to 2.75 to 1.00.

Berry Corp. guarantees and each future subsidiary of Berry Corp. (other than Berry LLC), with certain exceptions, is required to guarantee, our obligations and obligations of the other guarantors under the RBL Facility and under certain hedging transactions and banking services arrangements (the “Guaranteed Obligations”). In addition, pursuant to a Guaranty Agreement dated as of July 31, 2017, Berry LLC guarantees the Guaranteed Obligations. The lenders under the RBL Facility hold a mortgage on 85% of the present value of our proven oil and gas reserves. The obligations of Berry LLC and the guarantors are also secured by liens on substantially all of our personal property, subject to customary exceptions. The RBL Facility, with certain exceptions, also requires that any future subsidiaries of Berry LLC will also have to grant mortgages, security interests and equity pledges.

Senior Unsecured Notes Offering

In February 2018, we completed a private issuance of $400 million in aggregate principal amount of 7.0% senior unsecured notes due February 2026 (the “2026 Notes”), which resulted in net proceeds to us of approximately $391 million after deducting expenses and the initial purchasers’ discount. We used a portion of the net proceeds from the issuance of the 2026 Notes to repay the $379 million outstanding balance on the RBL Facility and used the remainder for general corporate purposes.

We may, at our option, redeem all or a portion of the 2026 Notes at any time on or after February 15, 2021. We are also entitled to redeem up to 35% of the aggregate principal amount of the 2026 Notes before February 15, 2021, with an amount of cash not greater than the net proceeds that we raise in certain equity offerings at a redemption price equal to 107% of the principal amount of the 2026 Notes being redeemed, plus accrued and unpaid interest, if any. In addition, prior to February 15, 2021, we may redeem some or all of the 2026 Notes at a price equal to 100% of the principal amount thereof, plus a “make-whole” premium, plus any accrued and unpaid interest. If we experience certain kinds of changes of control, holders of the 2026 Notes may have the right to require us to repurchase their notes at 101% of the principal amount of the 2026 Notes, plus accrued and unpaid interest, if any.

The 2026 Notes are our senior unsecured obligations and rank equally in right of payment with all of our other senior indebtedness and senior to any of our subordinated indebtedness. The notes are fully and unconditionally guaranteed on a senior unsecured basis by us and will also be guaranteed by certain of our future subsidiaries (other than Berry LLC). The 2026 Notes and related guarantees are effectively subordinated to all of our secured indebtedness (including all borrowings and other obligations under our RBL Facility) to the extent of the value of the collateral securing such indebtedness, and structurally subordinated in right of payment to all existing and future indebtedness and other liabilities (including trade payables) of any future subsidiaries that do not guarantee the 2026 Notes.

The indenture governing the 2026 Notes contains restrictive covenants that may limit our ability to, among other things:


•	incur or guarantee additional indebtedness or issue certain types of preferred stock;


•	pay dividends on capital stock or redeem, repurchase or retire our capital stock or subordinated indebtedness;


•	transfer, sell or dispose of assets;


•	make investments;


•	create certain liens securing indebtedness;


•	enter into agreements that restrict dividends or other payments from our restricted subsidiaries to us;


•	consolidate, merge or transfer all or substantially all of our assets; and


•	engage in transactions with affiliates.

The indenture governing the 2026 Notes contains customary events of default, including, among others, (a) non-payment; (b) non-compliance with covenants (in some cases, subject to grace periods); (c) payment default under, or acceleration events affecting, material indebtedness and (d) bankruptcy or insolvency events involving us or certain of our subsidiaries. We were in compliance with all covenants as of December 31, 2019.

Bond Repurchase Program

In February 2020, our Board of Directors adopted a program for the opportunistic repurchase of up to $75 million of our bonds. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase bonds during any period or at all.

Corporate Organization

Berry Corp., as Berry LLC's parent company, has no independent assets or operations. Any guarantees of potential future registered debt securities by Berry Corp. or Berry LLC would be full and unconditional. Berry Corp. and Berry LLC currently do not have any other subsidiaries. In addition, there are no significant restrictions upon the ability of Berry LLC to distribute funds to Berry Corp. by distribution or loan other than under the RBL Facility. None of the assets of Berry Corp. or Berry LLC represent restricted net assets.

The RBL permits Berry LLC to make distributions to Berry Corp. so long as both before and after giving pro forma effect to such distribution no default or borrowing base deficiency exists, availability equals or exceeds 15% of the then effective borrowing base, and Berry Corp. demonstrates a pro forma leverage ratio less than or equal to 2.75 to 1.00. The conditions are currently met with significant margin.

Derivatives

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

We utilize derivatives, such as swaps, puts and calls, to hedge a portion of our forecasted oil production and gas purchases to reduce exposure to fluctuations in oil and natural gas prices. We target covering our operating expenses and a majority of our fixed charges, including capital for sustained production levels, interest and dividends, with the oil hedges for a period of up to two years out. We have hedged a portion of our exposure to differentials between ICE Brent oil (“Brent”) and NYMEX West Texas Intermediate oil (“WTI”). Additionally, we target fixing the price for a large portion of our natural gas purchases used in our steam operations for up to two years. We also, from time to time, have entered into agreements to purchase a portion of the natural gas we require for our operations, which we do not record at fair value as derivatives because they qualify for normal purchases and normal sales exclusions.

For fixed-price oil swaps, we make settlement payments for prices above the indicated weighted-average price per barrel of Brent or WTI and receive settlement payments for prices below the indicated weighted‑average price per barrel of Brent or WTI.

For oil basis swaps, we make settlement payments if the difference between Brent and WTI is greater than the indicated weighted-average price per barrel of our contracts and receive settlement payments if the difference between Brent and WTI is below the indicated weighted-average price per barrel.

For our purchased oil puts, we would receive settlement payments for prices below the indicated weighted-average price per barrel of Brent. For some of our purchased puts we paid a premium at the time the positions were created and for others, the premium payment is deferred until the time of settlement. We have mitigated the exposure to a substantial portion of the deferred premium payments by entering into offsetting put positions. We paid approximately $17 million of the net deferred premiums during the year ended December 31, 2019, which included premiums we received during these periods. As of December 31, 2019 we have offsetting put positions with an outstanding net deferred premium of approximately $55,000, which is reflected in the mark-to-market valuation and will be payable through the first quarter of 2020.

For our sold oil calls, we would make settlement payments for prices above the indicated weighted-average price per barrel of Brent.

For fixed-price gas purchase swaps, we are the buyer so we make settlement payments for prices below the weighted-average price per MMBtu and receive settlement payments for prices above the weighted-average price per MMBtu.

We use oil swaps and puts to protect against decreases in the oil price and natural gas swaps to protect against increases in natural gas prices. We do not enter into derivative contracts for speculative trading purposes and have not accounted for our derivatives as cash-flow or fair-value hedges. The changes in fair value of these instruments are recorded in current earnings. (Gains) losses on oil hedges are classified in the revenues and other section of the statement of operations and (gains) losses on natural gas hedges are presented in the expenses and other section of the statement of operations.

As of December 31, 2019, we had the following crude oil production and gas purchases hedges.



	Q1 2020		Q2 2020		Q3 2020		Q4 2020		FY 2021
Fixed Price Oil Swaps (Brent):
Hedged volume (MBbls)	1,729		1,456		1,472		1,472		730
Weighted-average price ($/Bbl)	$	63.92	$	64.30	$	64.21	$	64.21	$	58.50
Fixed Price Oil Swaps (WTI):
Hedged volume (MBbls)	91		30		—		—		—
Weighted-average price ($/Bbl)	$	61.75	$	61.75	$	—	$	—	$	—
Fixed Price Gas Purchase Swaps (Kern, Delivered):
Hedged volume (MMBtu)	5,005,000		5,005,000		5,060,000		2,315,000		900,000
Weighted-average price ($/MMBtu)	$	2.89	$	2.89	$	2.89	$	2.79	$	2.50
Fixed Price Gas Purchase Swaps (SoCal Citygate):
Hedged volume (MMBtu)	455,000		455,000		460,000		155,000		—
Weighted-average price ($/MMBtu)	$	3.80	$	3.80	$	3.80	$	3.80	$	—

Our commodity derivatives are measured at fair value using industry-standard models with various inputs including publicly available underlying commodity prices and forward curves, and all are classified as Level 2 in the required fair value hierarchy for the periods presented. These commodity derivatives are subject to counterparty netting. The following tables present the fair values (gross and net) of our outstanding derivatives as of December 31, 2019 and December 31, 2018:



	Berry Corp. (Successor)
	December 31, 2019
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value			Gross Amounts Offset on Balance Sheet			Net Fair Value Presented on Balance Sheet
	(in thousands)
Assets:
Commodity Contracts	Current assets	$	17,799		$	(8,633	)	$	9,166
Commodity Contracts	Non-current assets	773			(248		)	525
Liabilities:
Commodity Contracts	Current liabilities	(13,450		)	8,633			(4,817		)
Commodity Contracts	Non-current liabilities	(389		)	248			(141		)
Total derivatives		$	4,733		$	—		$	4,733



	Berry Corp. (Successor)
	December 31, 2018
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheet			Net Fair Value Presented in the Balance Sheet
	(in thousands)
Assets:
Commodity Contracts	Current assets	$	89,981		$	(1,385	)	$	88,596
Commodity Contracts	Non-current assets	3,289			—			3,289
Liabilities:
Commodity Contracts	Current liabilities	(1,385		)	1,385			—
Total derivatives		$	91,885		$	—		$	91,885

In May 2018, we elected to terminate outstanding commodity derivative contracts for all WTI oil swaps and certain WTI/Brent basis swaps for July 2018 through December 2019 and all WTI oil sold call options for July 2018 through June 2020. Termination costs totaled approximately $127 million and were calculated in accordance with a bilateral agreement on the cost of elective termination included in these derivative contracts; the present value of the contracts using the forward price curve as of the date termination was elected. No penalties were charged as a result of the elective termination. Concurrently, Berry Corp. entered into commodity derivative contracts consisting of Brent oil swaps for July 2018 through March 2019.

By using derivative instruments to economically hedge exposure to changes in commodity prices, we expose ourselves to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk. We do not receive collateral from our counterparties.

We minimize the credit risk in derivative instruments by limiting our exposure to any single counterparty. In addition, our RBL Facility prevents us from entering into hedging arrangements that are secured, except with our lenders and their affiliates that have margin call requirements, that otherwise require us to provide collateral or with a non-lender counterparty that does not have an A- or A3 credit rating or better from Standards & Poor’s or Moody’s, respectively. In accordance with our standard practice, our commodity derivatives are subject to counterparty netting under agreements governing such derivatives which mitigates the counterparty nonperformance risk somewhat.

(Losses) Gains on Derivatives

A summary of losses and gains on the derivatives included on the statements of operations is presented below:



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
(Losses) gains on oil derivatives	$	(37,998	)	$	(4,621	)	$	(66,900	)	$	12,886
(Losses) gains on natural gas derivatives	(6,957		)	6,357			—			—
Total (losses) gains on oil and natural gas derivatives	$	(44,955	)	$	1,735		$	(66,900	)	$	12,886

For the year ended December 31, 2019, we received net cash scheduled settlements of approximately $42 million. For the year ended December 31, 2018, we paid net cash scheduled settlements of approximately $38 million, excluding the payments for the early terminated derivatives. For the ten months ended December 31, 2017, and the two months ended February 28, 2017, we received net cash settlements of approximately $3 million, and $0.5 million, respectively.

Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

In the normal course of business, we, or our subsidiary, are subject to lawsuits, environmental and other claims and other contingencies that seek, or may seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief.

We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. We have not recorded any reserve balances at December 31, 2019 and December 31, 2018. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations.

We, or our subsidiary, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with transactions that they have entered into with us. As of December 31, 2019, we are not aware of material indemnity claims pending or threatened against us.

On May 11, 2016 our predecessor company filed the Chapter 11 Proceeding. Our bankruptcy case was jointly administered with that of Linn Energy and its affiliates under the caption In re Linn Energy, LLC, et al., Case No. 16-60040. On January 27, 2017, the Bankruptcy Court approved and confirmed the Plan. On February 28, 2017, the Effective Date occurred and the Plan became effective and was implemented. A final decree closing the Chapter 11 Proceeding was entered September 28, 2018, with the Court retaining jurisdiction as described in the confirmation order and without prejudice to the request of any party-in-interest to reopen the case including with respect to certain, immaterial remaining matters.

We have certain commitments under contracts, including purchase commitments for goods and services. We previously had an obligation to a counterparty in connection with our Piceance assets to either build a road or secure a license for alternative access, in lieu of paying a $6 million penalty. As of December 31, 2019, we fulfilled the obligation by delivering the access license pursuant to the agreement. The counterparty has since filed a claim challenging the sufficiency of such access.

In addition, we entered into certain firm commitments to secure transportation of our natural gas production to market as well as pipeline and processing capacity which require a minimum monthly charge regardless of whether the contracted capacity is used or not. We have also entered into operating lease agreements mainly for office space. Lease payments are generally expensed as part of general and administrative expenses. At December 31, 2019, future net minimum payments for non-cancelable purchase obligations and operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes and insurance and maintenance expense) were as follows:



	2020		2021		2022		2023		2024		Thereafter		Total
	(in thousands)
Minimum purchase obligations⁽¹⁾	$	7,136	$	2,675	$	2,590	$	1,061	$	—	$	—	$	13,462
Minimum lease payments	$	1,723	$	1,731	$	1,740	$	1,647	$	1,420	$	3,708	$	11,969

__________


(1)	Amounts include payments which will become due under long-term agreements to purchase goods and services used in the normal course of business to secure transportation of our natural gas production to market as well as pipeline and processing capacity.

Equity

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Equity

On the Effective Date, Berry Corp. filed with the Secretary of State of the State of Delaware the Amended and Restated Certificate of Incorporation of Berry Corp. (the “Certificate of Incorporation”) and the Certificate of Designation of Series A Convertible Preferred Stock of Berry Corp. (the “Series A Certificate of Designation”). Berry Corp. also adopted the Amended and Restated Bylaws of Berry Corp. (the “Bylaws”) on the Effective Date. The Certificate of Incorporation provides that Berry Corp.’s authorized capital stock consists of 750,000,000 shares of common stock, par value $0.001 per share, and 250,000,000 shares of undesignated preferred stock, par value $0.001 per share.

Cash Dividends

Our board of directors approved a $0.12 per share quarterly cash dividend on our common stock each quarter in 2019 for a total of $0.48 per share. We paid the fourth quarter dividend in January 2020 and declared the first quarter dividend of $0.12 per share in February 2020, which is payable in April 2020. For the year ended December 31, 2019 we paid approximately $39 million in cash dividends on our common stock.

For the year ended December 31, 2018, we declared cash dividends on our common stock beginning at our IPO, resulting in $0.21 per share. In 2018 we paid approximately $7 million in cash dividends on our common stock.

Common Stock

The Plan contemplated the distribution of 40,000,000 shares of common stock in Berry Corp. On the Effective Date, 32,920,000 shares of common stock were distributed, pro rata, to holders of Unsecured Notes claims. The holders of Unsecured Claims received a right to receive their pro rata share of either (i) 7,080,000 shares of common stock in Berry Corp. or (ii) in the event that such holder irrevocably elected to receive a cash recovery, cash distributions from the Cash Distribution Pool. Since the Effective Date we have negotiated with all claimants to settle their claims and in 2019 we issued approximately 2,770,000 shares instead of 7,080,000 to resolve these claims for approximately $20 million.

Voting Rights. Each share of common stock is entitled to one vote with respect to each matter on which holders of common stock are entitled to vote. Holders of common stock do not have cumulative voting rights.

Dividend Rights. Holders of common stock will be entitled to receive dividends, if any, as may be declared from time to time by our board of directors (the “Board”) out of legally available funds.

Liquidation Rights. Upon liquidation, dissolution or winding up of the Company, subject to the rights of the holders of outstanding preferred stock, holders of our common stock will be entitled to share ratably in the assets of the Company that are legally available for distribution to holders of our common stock after payment of the Company’s debts and other liabilities.

Holders of preferred stock that is outstanding may be entitled to dividend or liquidation preferences over holders of our common stock, which means that the Company would have to pay distributions to holders of preferred stock before paying any distributions to holders of our common stock.

Preemptive and Conversion Rights. Holders of common stock have no preemptive, conversion or other rights to subscribe for additional shares.

Preferred Stock

On the Effective Date, we issued 35,845,001 shares of preferred stock to participants in the rights offerings extended by the Company to certain holders of claims and in satisfaction of a backstop commitment fee for proceeds of $335 million. In July 2018, all shares of our Series A Preferred Stock, approximately 37.7 million in total, were converted to approximately 39.6 million common shares and, as a result, there were no shares of our Series A Preferred Stock outstanding as of December 31, 2018 and December 31, 2019.

Dividend Rights. Holders of Series A Preferred Stock were entitled to receive, when, as and if declared by the board of directors, cumulative dividends at a rate of 6.0% per annum either in cash or in additional shares of Series A Preferred Stock at the discretion of the board of directors. No dividends had been declared or paid as of December 31, 2017. The accreted cumulative and per share value of the dividends as of December 31, 2017 was approximately $18 million and $0.51, respectively.

In 2018, the board of directors approved a 0.050907 per share cumulative paid-in-kind dividend on the Series A Preferred Stock of approximately 1,825,000 shares for the periods through December 31, 2017. Also in 2018, the board approved $0.308 per share, or approximately $11.3 million in cash dividends on the Series A Preferred Stock.

A beneficial conversion feature exists when the effective conversion price of a convertible security is less than the fair value per share on the commitment date. The conversion price of the preferred stock on the date of issuance was less than the estimated fair value of the common stock distributable under the Plan. Since the preferred stock is not mandatorily redeemable and is immediately convertible, the entire amount of the beneficial conversion feature was recognized immediately. In accordance with GAAP, we recorded a non-cash deemed dividend and a corresponding increase to additional paid in capital of approximately $27 million that is attributable to this beneficial conversion feature. The financial statement impact of the deemed dividend is eliminated in the consolidated statement of equity as adopting fresh-start accounting results in an entity with no beginning retained earnings or accumulated deficit.

Registration Rights Agreement

On the Effective Date, Berry Corp. entered into a registration rights agreement (the “Registration Rights Agreement”) with certain holders of the Unsecured Notes. Subsequently, the registration rights agreement was amended and restated in connection with our IPO.

In accordance with the Registration Rights Agreement, Berry Corp. filed a shelf registration statement with the SEC subsequent to the Effective Date. The shelf registration statement registered the resale, on a delayed or continuous basis, of all Registrable Securities that have been timely designated for inclusion by specified Holders (as defined in the Registration Rights Agreement). Generally, “Registrable Securities” includes (i) common stock issued or to be issued by Berry Corp. under the Plan, (ii) preferred stock that was purchased by the participants in the Berry Rights Offerings and (iii) common stock into which the preferred stock converts, except that “Registrable Securities” does not include securities that have been sold under an effective registration statement or Rule 144 under the Securities Act. The Registration Rights Agreement will terminate when there are no longer any Registrable Securities outstanding.

Initial Public Offering of Common Stock

In July 2018, we completed our IPO and as a result, on July 26, 2018, our common stock began trading on the NASDAQ under the ticker symbol BRY. We received approximately $110 million of net proceeds, after deducting underwriting discounts and offering expenses payable by us, for the 8,695,653 shares of common stock issued for our benefit in the IPO, net of the shares sold for the benefit of certain selling stockholders. The price to the public for the shares sold in our IPO was $14.00 per share. See “—Use of IPO proceeds” below for additional information.

In connection with the IPO, each of the 37.7 million shares of our Series A Preferred Stock was automatically converted into 1.05 shares of our common stock or 39.6 million shares in aggregate and the right to receive a cash payment of $1.75 (the “Series A Preferred Stock Conversion”). The cash payment was reduced in respect of any cash dividend paid by the Company on such share of Series A Preferred Stock for any period commencing on or after April 1, 2018. Because we paid the second quarter preferred dividend of $0.15 per share in June, the cash payment for the conversion was reduced to $1.60 per share, or approximately $60 million. In connection with the IPO, we assigned the additional 1.9 million shares of common stock issued in the Series A Preferred Stock Conversion a value of $14.00 per share, which was equal to the value of shares sold in the IPO. This approximate $27 million value and the $60 million conversion cash payment reduced the income attributable to common stockholders by approximately $87 million for the year ended December 31, 2018.

Shares Outstanding

As of December 31, 2019, there were 79,542,976 shares of common stock outstanding. Up to an additional 2,348,334 shares were issuable for unvested restricted stock units and performance restricted stock units under the Company's 2017 Omnibus Incentive Plan as of December 31, 2019.

Stock Repurchase Program

In December 2018, our Board of Directors adopted a program for the opportunistic repurchase of up to $100 million of our common stock. Based on the Board’s evaluation of current market conditions for our common stock they authorized current repurchases of up to $50 million under the program. Purchases may be made from time to time in the open market, in privately negotiated transactions or otherwise. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, stock price, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase shares during any period or at all. Any shares acquired will be available for general corporate purposes.

In 2019 the Company repurchased 4,609,021 shares at an average price of $9.99. Since 2018 the Company has repurchased a total of 5,057,682 shares at an average price of $9.88 per share under the Stock Repurchase Program, which is reflected as treasury stock. In February 2020, the Board of Directors authorized the remaining $50 million of our $100 million repurchase program.

Stock-Based Compensation

The RSUs awarded are service based awards. The performance-based restricted stock units PSUs awarded include (i) awards that vest if the Company's stock price reaches certain levels over defined periods of time and (ii) awards with a market objective measured against both absolute total stockholder return (“Absolute TSR”) and total stockholder return relative (“Relative TSR”), to the Vanguard World Fund - Vanguard Energy ETF index (the “Index”) over the performance period, assuming the reinvestment of dividends. Depending on the results achieved during the two or three year performance period, the actual number of shares that a grant recipient receives at the end of the period may range from 0% to 200% of the Target Shares granted.

The fair value of the PSUs was determined using a Monte Carlo simulation analysis to estimate the total shareholder return ranking of the Company, including a comparison against the Index over the performance periods. The expected volatility of the Company’s common stock at the date of grant was estimated based on blended historical average volatility rates for the Company and selected guideline public companies. The dividend yield assumption was based on the current annualized declared dividend. The risk-free interest rate assumption was based on observed interest rates consistent with the approximate two and three year performance measurement period.

As of July 2018, the fair value of our common stock underlying our stock-based compensation awards granted will no longer be based on complex models using inputs and assumptions, but will be based on the price of our stock at the date of grant.

On June 27, 2018, our board of directors adopted the second amended and restated 2017 Omnibus Incentive Plan, as amended and restated (our “Restated Incentive Plan”). This plan constitutes an amendment and restatement of the plan (the “Prior Plan”) as in effect immediately prior to the adoption of the Restated Incentive Plan. The Prior Plan constituted an amendment and restatement of the plan originally adopted as of June 15, 2017 (the “2017 Plan”). The Restated Incentive Plan provides for the grant, from time to time, at the discretion of the board of directors or a committee thereof, of stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units, stock awards, dividend equivalents, other stock-based awards, cash awards and substitute awards. The maximum number of shares of common stock that may be issued pursuant to an award under the Restated Incentive Plan is 10,000,000 inclusive of the number of shares of common stock previously issued pursuant to awards granted under the Prior Plan or the 2017 Plan. The maximum number of shares remaining that may be issued is 6,954,454 as of December 31, 2019.

For the year ended December 31, 2019, year ended December 31, 2018, ten months ended December 31, 2017 and two months ended February 28, 2017 the stock-based compensation expense was approximately $9 million, $7 million, $2 million and zero, respectively. For the years ended December 31, 2019 and year ended December 31, 2018 the stock-based compensation had an income tax benefit of approximately zero and $1.5 million, respectively.

The table below summarizes the activity relating RSUs issued under the Restated Incentive Plan during the year ended December 31, 2019. The RSUs vest ratably over three years. Unrecognized compensation cost associated with the RSUs at December 31, 2019 was approximately $8 million which will be recognized over a weighted-average period of approximately two years.



	Number of shares		Weighted-average Grant Date Fair Value
	(shares in thousands)
Non-vested at December 31, 2018	641		$	10.82
Granted	767		$	12.62
Vested	(308	)	$	10.87
Forfeited	(86	)	$	12.19
Non-vested at December 31, 2019	1,014		$	12.05

The table below summarizes the activity relating to the PSUs issued under the Revised Incentive Plan during the year ended December 31, 2019. Unrecognized compensation cost associated with the PSUs at December 31, 2019 is approximately $5 million which will be recognized over a weighted-average period of approximately two years.



	Number of shares		Weighted-average Grant Date Fair Value
	(shares in thousands)
Non-vested at December 31, 2018	282		$	6.73
Granted	554		$	12.75
Vested	—		$	—
Forfeited	(38	)	$	9.69
Non-vested at December 31, 2019	798		$	10.77

Use of IPO Proceeds

Of the approximately $110 million of net proceeds received by us in the IPO, we used approximately $105 million to repay borrowings under our RBL Facility. This included the $60 million we borrowed on the RBL Facility to make the payment due to the holders of our Series A Preferred Stock in connection with the conversion of preferred stock to common stock. We used the remainder for general corporate purposes.

In connection with the IPO, on July 17, 2018, we entered into stock purchase agreements with certain funds affiliated with Oaktree Capital Management and Benefit Street Partners, pursuant to which we purchased an aggregate of 410,229 and 1,391,967 shares of our common stock, respectively, or 1,802,196 in total. In addition to the 8,695,653 shares of common stock issued and sold for our benefit in the IPO, we simultaneously received $24 million for selling 1,802,196 shares to the public and paid $24 million to purchase 1,802,196 shares under the stock purchase agreements. We purchased the shares immediately following the closing of the IPO and retired and returned them to the status of authorized but unissued shares. The selling stockholders also directly sold an additional 2,545,630 shares at a price to the public of $14.00 per share for which we did not receive any proceeds.

Defined Contribution Plan	12 Months Ended
Defined Contribution Plan	Dec. 31, 2019
Retirement Benefits [Abstract]
Defined Contribution Plan	Defined Contribution Plan We sponsor a defined contribution retirement plan under section 401(k) of the Internal Revenue Code to assist all full-time employees in providing for retirement or other future financial needs. The 401(k) plan provides for a matching contribution of up to 6% of an employee’s eligible compensation. Employees are eligible to participate in the 401(k) plan on their date of hire. We expensed approximately $1.7 million, $1.4 million, $0.8 million, and zero for the year ended December 31, 2019, year ended December 31, 2018, the ten months ended December 31, 2017, and the two months ended February 28, 2017, respectively, under the provisions of the 401(k) plan.

Income Taxes

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

Income taxes

Prior to the Effective Date, Berry LLC was a limited liability company treated as a disregarded entity for federal and state income tax purposes, with the exception of the state of Texas. Limited liability companies are subject to Texas margin tax. As such, with the exception of the state of Texas, Berry LLC was not a taxable entity, it did not directly pay federal and state income taxes and recognition was not given to federal and state income taxes for the operations of Berry LLC. Upon emergence from bankruptcy, Berry Corp. acquired the assets of Berry LLC in a taxable asset acquisition as part of the restructuring. Consequently, we are now taxed as a corporation and have no net operating loss carryforwards for the periods prior to February 28, 2017.

On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Act”) made significant changes to the Internal Revenue Code of 1986, including lowering the maximum federal corporate income tax rate from 35% to 21% and imposing limitations on the use of net operating losses arising in taxable years ending after December 31, 2017. The SEC permitted the recognition of provisional amounts based on a reasonable estimate, subject to adjustments in a one-year measurement period. For the ten months ended December 31, 2017, we recorded provisional estimates for the remeasurement of our net deferred tax asset before valuation allowance of $2.7 million for the reduction in the corporate tax rate and a $1.9 million increase in the valuation allowance as a result of the Act. During 2018, we completed our accounting related to the income tax effects of the Act, resulting in no significant adjustments to the provisional amounts recorded.

The key contributor to the change in our effective rate from 23% in the year ended December 31, 2018 to (523)% for the year ended December 31, 2019 is due to the recognition of US federal general business credits in 2019 and are related to the 2017 and 2018 tax periods. These credits are available to offset future federal income tax liabilities.

Income tax expense (benefit) consisted of the following:



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Current taxes:
Federal	$	—		$	(465	)	$	465	$	—
State	227			(446		)	450		221
Total current taxes	227			(911		)	915		221
Deferred taxes:
Federal	(36,756		)	33,227			1,888		—
State	(21		)	10,719			—		9
Total deferred taxes	(36,777		)	43,946			1,888		9
Total current and deferred taxes	$	(36,550	)	$	43,035		$	2,803	$	230

A reconciliation of the federal statutory tax rate to the effective tax rate is as follows:



	Berry Corp. (Successor)						Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018		Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
Federal statutory rate	21.0	%	21.0	%	35.0	%	35.0	%
State, net of federal tax benefit	8.9	%	6.3	%	7.2	%	—	%
Effect of permanent differences	0.2	%	(0.6	)%	(0.4	)%	—	%
Tax credits and federal return to provision	(546.4	)%	—	%	—	%	—	%
State return to provision	(6.6	)%	—	%	—	%	—	%
Tax reform—rate change⁽¹⁾	—	%	—	%	(14.7	)%	—	%
Income excluded from nontaxable entities	—	%	—	%	—	%	(35.0	)%
Change in valuation allowance	—	%	(4.1	)%	(42.4	)%	—	%
Effective tax rate	(522.9	)%	22.6	%	(15.3	)%	—	%

__________


(1)	For the ten months ended December 31, 2017, includes the tax rate reduction. The impact of the rate change is fully offset in the “Change in valuation allowance” item.

Significant components of the deferred tax assets and liabilities are as follows:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	14,542		$	14,310
Accruals	12,218			2,993
Asset retirement obligations	41,382			26,383
Tax credits and federal return to provision	47,803			—
Interest limitation carryforward	13,892			7,486
Other	5,154			2,033
Total deferred tax assets	134,991			53,205
Deferred tax liabilities:
Book tax differences in property basis	(143,896		)	(95,348		)
Derivative instruments	(152		)	(3,692		)
Total deferred tax liabilities	(144,048		)	(99,040		)
Net deferred tax asset (liability)	$	(9,057	)	$	(45,835	)

As of December 31, 2019, the Company had approximately $56 million of federal net operating loss (“NOL”) carryforwards and $33 million of state net operating loss carryforwards. The federal net operating loss carryovers have no expiration date. State net operating loss carry forwards will expire in varying amounts beginning after taxable year ended 2027. In addition, as of December 31, 2019, the Company had US federal general business tax credit carryforwards totaling $48 million, which, if unused, will expire after taxable years ended 2037.

The Act signed into law in 2017 imposed new limitations on the ability to deduct interest paid or accrued. As of December 2019, we recorded a deferred tax asset related to the $66 million tax benefit of interest expense that was not currently deductible in tax years 2018 and 2019. This attribute can be carried forward indefinitely but utilized subject to certain annual limitations.

We assessed the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. As of December 31, 2019, due to the positive evidence of cumulative income since the Effective Date and the reversal of existing federal and state temporary differences, we determined there is sufficient positive evidence to conclude that it is more likely than not that our deferred tax assets are realizable.



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Unrecognized tax benefits - January 1	$	—	$	—
Prior year - increase	6,720		—
Current year - increase	7,172		—
Unrecognized tax benefits - December 31	$	13,892	$	—

The $13.9 million of unrecognized tax benefits as of December 31, 2019 do not affect the effective tax rate if recognized. We believe it is reasonably possible that the total unrecognized benefits may significantly decrease within the next 12 months as new guidance and regulations related to the Act are issued. No penalties or interest expense have been accrued on unrecognized tax benefits as of December 31, 2019.

We are subject to taxation in the United States and various state jurisdictions. We are not currently under audit by any federal or state income tax authority. The 2017, 2018, and 2019 federal and state tax returns remain open to examination under the respective statute of limitations.

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows

Other current assets reported on the balance sheets included the following:



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Prepaid expenses	$	4,577	$	4,656
Materials and supplies	10,544		5,461
Oil inventories	3,432		3,786
Other	846		464
Other current assets	$	19,399	$	14,367

Other non-current assets at December 31, 2019 and December 31, 2018 included approximately $11 million and $16 million of deferred financing costs, net of amortization, respectively.

Accounts payable and accrued expenses on the balance sheets included the following:



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Accounts payable-trade	$	25,475	$	13,564
Accrued expenses	45,589		66,417
Royalties payable	25,385		26,189
Taxes other than income tax liability	9,150		10,766
Accrued interest	10,500		10,500
Dividends payable	9,888		9,992
Asset retirement obligation - current portion	25,208		6,372
Other	616		318
Total accounts payable and accrued expenses	$	151,811	$	144,118

Other non-current liabilities at December 31, 2019 and December 31, 2018 included approximately $33 million and $15 million of greenhouse gas liability, respectively.

Supplemental Information on the Statement of Operations

Other operating (income) expenses mainly consist of excess abandonment costs, as well as gain (loss) on sale of assets.

Supplemental Cash Flow Information

Supplemental disclosures to the statements of cash flows are presented below:



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties	$	10,056		$	2,371		$	—	$	—
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized	$	30,720		$	19,761		$	14,276	$	8,057
Income taxes	$	(2	)	$	(1,901	)	$	1,994	$	—
Reorganization items, net	$	—		$	832		$	1,732	$	11,838

The following table provides a reconciliation of cash, cash equivalents and restricted cash as reported in the consolidated statements of cash flows to the line items within the consolidated balance sheets:



	Berry Corp. (Successor)						Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018		Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Beginning of Period
Cash and cash equivalents	$	68,680	$	33,905	$	32,049	$	30,483
Restricted cash	—		34,833		52,860		197,793
Restricted cash in other noncurrent assets	—		—		125		128
Cash, cash equivalents and restricted cash	$	68,680	$	68,738	$	85,034	$	228,404

Ending of Period
Cash and cash equivalents	$	—	$	68,680	$	33,905	$	32,049
Restricted cash	—		—		34,833		52,860
Restricted cash in other noncurrent assets	—		—		—		125
Cash, cash equivalents and restricted cash	$	—	$	68,680	$	68,738	$	85,034

Restricted cash is associated with cash reserved to settle claims with general unsecured creditors. Cash and cash equivalents consists primarily of highly liquid investments with original maturities of three months or less and are stated at cost, which approximates fair value. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances for accounting purposes in the accounts payable and accrued expenses account.

Certain Relationships and Related Party Transactions	12 Months Ended
Certain Relationships and Related Party Transactions	Dec. 31, 2019
Related Party Transactions [Abstract]
Certain Relationships and Related Party Transactions	Certain Relationships and Related Party Transactions In connection with our emergence from bankruptcy, we entered into agreements with certain of our affiliates and with parties who received shares of our common stock and Series A Preferred Stock in exchange for their claims. Transition Services and Separation Agreement (“TSSA”) On the Effective Date, Berry LLC entered into a TSSA with Linn Energy and certain of its subsidiaries to facilitate the separation of Berry LLC’s operations from Linn Energy’s operations. Under the TSSA, Berry LLC reimbursed Linn Energy for third-party out-of-pocket costs and expenses actually incurred by Linn Energy in connection with providing certain transition services. For the ten months ended December 31, 2017, we incurred management fee expenses of approximately $17 million under the TSSA. Since the agreement commenced on the Effective Date, no expenses were incurred for the periods ended February 28, 2017.

Acquisitions and Divestitures	12 Months Ended
Acquisitions and Divestitures	Dec. 31, 2019
Business Combinations [Abstract]
Acquisitions and Divestitures	Acquisitions and Divestitures During 2019 we had various property acquisitions of approximately $2.9 million that individually were not significant. Disposition of East Texas Properties On November 30, 2018, we sold our non-core gas-producing properties and related assets located in the East Texas basin for approximately $7 million, before purchase price adjustments, which resulted in a gain of approximately $4 million. Production comprised approximately 0.7 MBoe per day of natural gas in the third quarter of 2018. Acquisition of Chevron North Midway-Sunset In April 2018, we acquired 2 leases on an aggregate of 214 acres of land owned by Chevron U.S.A. in the north Midway-Sunset field immediately adjacent to assets we currently operate. We assumed a drilling commitment of approximately $35 million to drill 115 wells on or before April 1, 2020, which we extended to April 1, 2022. We drilled 18 wells of these wells as of December 31, 2019. We paid no other consideration for the acquisition. Our drilling commitment will be tolled for a month for each consecutive 30-day period for which the posted price of WTI is less than $45 per barrel. This transaction is consistent with our business strategy to investigate areas beyond our known productive areas. Disposition of Hugoton Properties On July 31, 2017, we divested our 78% working interest in the Hugoton natural gas field located in Southwest Kansas and the Oklahoma Panhandle (the “Hugoton Disposition”) because we deemed it a non-core asset. This resulted in approximately $234 million of proceeds and a $23 million gain. Acquisition of Hill Properties On July 31, 2017, we acquired the remaining 84% working interest in the South Belridge Hill property located in Kern County, California, in which we previously owned a 16% working interest (the “Hill Acquisition”). We purchased the properties for approximately $249 million.

Earnings Per Share

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

The Predecessor was organized as a limited liability company and, as such, did not issue any stock. Accordingly, we have not presented earnings per share calculations for the predecessor company periods.

We calculate basic earnings (loss) per share by dividing net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the year ended December 31, 2019, year ended December 31, 2018, and ten months ended December 31, 2017 which is approximately 81 million, 58 million, and 39 million shares, respectively. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement, are considered common shares outstanding and are included in the computation of net income (loss) per share. Our initial capitalization included the issuance of 32,920,000 shares of common stock and another 7,080,000 shares reserved to settle claims of unsecured creditors, all of which were included in our computation of net income (loss) per share until the claims were settled and the shares issued. In March 2019, we finalized settlement of these claims, issuing approximately 2,770,000 shares. In all prior periods presented we retrospectively adjusted the weighted average shares in our earnings per share calculations for the ultimate shares issued, instead of the 7,080,000 shares that had been reserved.

In July 2018, all outstanding shares of our Series A Preferred Stock were converted to common shares in connection with the IPO of our common stock (see Note 6). The conversion was characterized as an induced conversion that required a deduction in our EPS calculation, from net income, of approximately $87 million in determining income attributable to common stockholders. This deduction represents the excess of fair value of the total consideration given to preferred stockholders in the transaction over the fair value of the common stock issuable under the original conversion terms. Included in the $87 million is a $60 million cash payment and approximately $27 million of value from the 1.9 million additional common shares received by preferred stockholders as a result of the automatic conversion that occurred in conjunction with our IPO.

The Series A Preferred Stock was not a participating security, therefore, we calculated diluted EPS using the “if-converted” method under which the preferred dividends are added back to the numerator and the convertible preferred stock is assumed to be converted at the beginning of the period. No incremental shares of Series A Preferred Stock were included in the diluted EPS calculation for the year ended December 31, 2019 as all outstanding shares of our Series A Preferred Stock were converted to common shares in connection with the IPO of our common stock in July 2018. No Series A Preferred Stock were included in the diluted EPS calculations for the year ended December 31, 2018 and for the ten months ended December 31, 2017 as their effect was anti-dilutive under the “if-converted” method.

The RSUs and PSUs are not a participating security as the dividends are forfeitable. The incremental RSU and PSU shares of 572,000 for the year ended December 31, 2019 and the incremental RSU shares of 189,000 for the year ended December 31, 2018 were included in the diluted EPS calculation for those respective years, as their effect was dilutive under the “if-converted” method. No incremental shares of RSUs were included in the diluted EPS calculation for the ten months ended December 31, 2017 as their effect was anti-dilutive under the “if-converted” method. No PSUs were included in the EPS calculations for the year end December 31, 2018, the ten months ended December 21, 2017, and the two months ended February 28, 2017, due to their contingent nature.



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands except per share amounts)
Basic EPS calculation
Net income (loss)	$	43,539	$	147,102		$	(21,068	)	n/a
less: Series A Preferred Stock dividends and conversion to common stock	—		(97,942		)	(18,248		)	n/a
Net income (loss) attributable to common stockholders	$	43,539	$	49,160		$	(39,316	)	n/a
Weighted-average shares of common stock outstanding⁽¹⁾	81,379		57,743			38,644			n/a
Basic earnings (loss) per share⁽²⁾	$	0.54	$	0.85		$	(1.02	)	n/a
Diluted EPS calculation
Net income (loss)	$	43,539	$	147,102		$	(21,068	)	n/a
less: Series A Preferred Stock dividends and conversion to common stock	—		(97,942		)	(18,248		)	n/a
Net income (loss) attributable to common stockholders	$	43,539	$	49,160		$	(39,316	)	n/a
Weighted-average shares of common stock outstanding⁽¹⁾	81,379		57,743			38,644			n/a
Dilutive effect of potentially dilutive securities⁽³⁾	572		189			—			n/a
Weighted-average common shares outstanding - diluted	81,951		57,932			38,644			n/a
Diluted earnings (loss) per share⁽²⁾	$	0.53	$	0.85		$	(1.02	)	n/a

__________


(1)	For the year ended December 31, 2018, we retrospectively adjusted the weighted average shares in our earnings per share calculations for the 2,770,000 shares issued instead of 7,080,000 shares that had been reserved for the year ended December 31, 2018 and the ten months ended December 31, 2017.


(2)	Per share amounts are stated net of tax.


(3)	No potentially dilutive securities were included in computing earnings (loss) per share for the ten months ended December 31, 2017 because the effect of inclusion would have been anti-dilutive.

Revenue Recognition

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue Recognition

We account for revenue in accordance with the Accounting Standards Codification 606, Revenue from Contracts with Customers, which we adopted on January 1, 2019, using the modified retrospective method, which was applied to all contracts that were not completed as of that date. Prior period results were not adjusted and continue to be reported under the accounting standards in effect for the prior period. The new standard did not affect the timing of our revenue recognition and did not impact net income; accordingly, we did not record an adjustment to the opening balance of retained earnings.

We adopted the practical expedient related to disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of the reporting period. The performance obligations that are unsatisfied at the end of a reporting period relate solely to future volumes that we have yet to sell. As such, these are wholly unsatisfied performance obligations as each unit of product represents a separate performance obligation as well as a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation.

We derive substantially all of our revenue from sales of oil, natural gas and natural gas liquids ("NGL"), with the remaining revenue generated from sales of electricity and marketing activities.

The following is a description of our principal activities from which we generate revenue. Revenues are recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services.

Oil, Natural Gas and NGLs

We recognize revenue from the sale of our oil, natural gas and NGLs production when delivery has occurred and control passes to the customer. Our oil and natural gas contracts are short term, typically less than a year and our NGL contracts are both short and long term. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Our commodity sales contracts are indexed to a market price or an average index price. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing.

Electricity Sales

The electrical output of our cogeneration facilities that is not used in our operations is sold to the California market based on market pricing, which includes capacity payments. The majority of the portion sold from three of our cogeneration facilities is sold under long-term contracts to two California utility companies, based on the market pricing. Revenue is recognized over time when obligations under the terms of a contract with our customer are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on average index pricing with payment due the month following delivery. Capacity payments are based on a fixed annual amount per kilowatt hour and monthly rates vary based on seasonality, which is consistent with how we earn the capacity payment. Capacity payments are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. We report electricity revenue as electricity sales on our consolidated statements of operations. We recognize revenue in the amount that we have a right to invoice once we are able to adequately estimate the consideration (i.e., when market prices are known).

Marketing Revenue

Marketing revenue primarily includes our activities associated with transporting and marketing third-party volumes. These sales are made under the same agreements with the same purchaser as our natural gas sales discussed above. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Revenues are presented excluding costs incurred prior to transferring control of these volumes to the customer, or the costs to purchase these volumes when we are acting as the principal. The revenues and expenses related to the sale and purchase of third-party volumes are presented separately as marketing revenue and marketing expenses on the condensed consolidated statements of operations.

Disaggregated Revenue

As a result of adoption of this standard, we are now required to disclose the following information regarding revenue from contracts with customers on a disaggregated basis.



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
Oil sales	$	543,634		$	520,979		$	303,589		$	54,110
Natural gas sales	19,391			26,244			40,887			14,476
Natural gas liquids sales	2,571			5,651			13,452			5,534
Electricity sales	29,397			35,208			21,972			3,655
Marketing revenues	2,094			2,322			2,694			633
Other revenues	316			774			3,975			1,424
Revenues from contracts with customers	597,403			591,178			386,569			79,832
(Losses) gains on oil derivatives	(37,998		)	(4,621		)	(66,900		)	12,886
Total revenues and other	$	559,405		$	586,557		$	319,669		$	92,718

Emergence from Voluntary Reorganization under Chapter 11

12 Months Ended

Dec. 31, 2019

Reorganizations [Abstract]

Emergence from Voluntary Reorganization under Chapter 11

On May 11, 2016 our predecessor company filed bankruptcy. Our bankruptcy case was jointly administered with that of Linn Energy and its affiliates under the caption In re Linn Energy, LLC, et al., Case No. 16–60040 (the “Chapter 11 Proceeding”). On January 27, 2017, the Bankruptcy Court approved and confirmed our plan of reorganization in the Chapter 11 Proceeding (the “Plan”). On February 28, 2017 (the “Effective Date”), the Plan became effective and was implemented. A final decree closing the Chapter 11 Proceeding was entered September 28, 2018, with the Court retaining jurisdiction as described in the confirmation order and without prejudice to the request of any party–in–interest to reopen the case including with respect to certain, immaterial remaining matters.

Plan of Reorganization

On the Effective Date, the Company consummated the following reorganization transactions in accordance with the Plan:


•	Linn Acquisition Company, LLC transferred 100% of the outstanding membership interests in Berry LLC to Berry Corp. pursuant to an assignment agreement, dated February 28, 2017 between Linn Acquisition Company, LLC and Berry Corp. (the “Assignment Agreement”). Under the Assignment Agreement, Berry LLC became a wholly-owned operating subsidiary of Berry Corp.

•

The holders of claims under the Company’s Second Amended and Restated Credit Agreement, dated November 15, 2010, by and among Berry LLC, as borrower, Wells Fargo Bank, N.A., as administrative agent, and certain lenders, (as amended, the “Pre-Emergence Credit Facility”), received (i) their pro-rated share of a cash paydown and (ii) pro-rated participation in the new facility (the “Emergence Credit Facility”). As a result, all outstanding obligations under the Pre-Emergence Credit Facility were canceled and the agreements governing these obligations were terminated.


•	Berry LLC, as borrower, entered into the Emergence Credit Facility with the holders of claims under the Pre-Emergence Credit Facility, as lenders, and Wells Fargo Bank, N.A, as administrative agent, providing for a new reserves-based revolving loan with up to $550 million in borrowing commitments. This facility was replaced with the RBL Facility in July 2017 noted above.

•

The holders of Berry LLC’s 6.75% senior notes due 2020, issued by Berry LLC pursuant to a Second Supplemental Indenture, dated November 1, 2010, and 6.375% senior notes due 2022, issued by Berry LLC pursuant to a Third Supplemental Indenture, dated March 9, 2012 (collectively, the “Unsecured Notes”), received a right to their pro-rated share of either (i) 32,920,000 shares of common stock in Berry Corp. or, for those non-accredited investors holding the Unsecured Notes that irrevocably elected to receive a cash recovery, cash distributions from a $35 million cash distribution pool (the “Cash Distribution Pool”) and (ii) specified rights to participate in a two-tranche offering of rights to purchase Series A Preferred Stock at an aggregate purchase price of $335 million (as further defined in the Plan, the “Berry Rights Offerings”). As a result, all outstanding obligations under the Unsecured Notes were canceled and the indentures and related agreements governing these obligations were terminated.

•

The holders of unsecured claims against Berry LLC, (other than the Unsecured Notes) (the “Unsecured Claims”) received a right to their pro-rated share of either (i) 7,080,000 shares of common stock in Berry Corp. or (ii) in the event that such holder irrevocably elected to receive a cash recovery, cash distributions from the Cash Distribution Pool. After the Effective Date we have negotiated with claimants to settle their claims. As a result, in early 2019, we issued 2,770,000 shares to settle these claims for which we had originally reserved 7,080,000 shares.


•	Berry LLC settled all intercompany claims against Linn Energy and its affiliates pursuant to a settlement agreement approved as part of the Plan and the Confirmation Order. The settlement agreement provided Berry LLC with a $25 million general unsecured claim against Linn Energy which Berry LLC has fully-reserved.

Bank RSA

Prior to the Petition Date, on May 10, 2016, the Debtors entered into a restructuring support agreement (the “Bank RSA”) with certain holders (the “Consenting Bank Creditors”). The Bank RSA set forth, subject to certain conditions, the commitment of the Consenting Bank Creditors to support a comprehensive restructuring of the Debtors’ long-term debt. The Bank RSA required the Debtors and the Consenting Bank Creditors to, among other things, support and not interfere with consummation of the restructuring transactions contemplated by the Bank RSA and, as to the Consenting Bank Creditors, vote their claims in favor of the Plan.

Liabilities Subject to Compromise

Through the claims resolution process, many claims were disallowed by the Bankruptcy Court because they were duplicative, amended or superseded by later filed claims, were without merit, or were otherwise overstated. Throughout the Chapter 11 proceedings, the Debtors also resolved many claims through settlements or by Bankruptcy Court orders following the filing of an objection. As a result, in early 2019, we issued 2,770,000 shares to settle these claims for which we had originally reserved 7,080,000 shares. We settled all liabilties subject to compromise through cash recovery as of December 31, 2018, resulting in a significant recognition of gains due to the return of undistributed funds. See “Reorganization Items, net” below.

Reorganization Items, Net

We have incurred expenses associated with the reorganization. Reorganization items, net represents costs and income directly associated with the Chapter 11 proceedings since the Petition Date, and also includes adjustments to reflect the carrying value of certain liabilities subject to compromise at their estimated allowed claim amounts, as such adjustments were determined. The following table summarizes the components of reorganization items included in the consolidated statements of operations:



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
Return of undistributed funds from cash distribution pool⁽¹⁾	$	—		$	22,855		$	—		$	—
Gains on resolution of pre-emergence liabilities and claims	—			3,713			—			—
Legal and other professional advisory fees	(426		)	(3,083		)	(1,027		)	(19,481		)
Gains on settlement of liabilities subject to compromise	—			—			—			421,774
Fresh-start valuation adjustments	—			—			—			(920,699		)
Other	—			1,205			(705		)	10,686
Reorganization items, net	$	(426	)	$	24,690		$	(1,732	)	$	(507,720	)

__________


(1)	This amount was reclassed from restricted cash to general cash, thus does not represent a cash transaction.

Effect of Filing on Creditors

Subject to certain exceptions, under the Bankruptcy Code, the filing of Bankruptcy Petitions automatically enjoined, or stayed, the continuation of most judicial or administrative proceedings or filing of other actions against the Debtors or their property to recover, collect or secure a claim arising prior to the Petition Date. Absent an order of the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities were subject to settlement under the Bankruptcy Code. Although the filing of Bankruptcy Petitions triggered defaults on the Debtors’ debt obligations, creditors were stayed from taking any actions against the Debtors as a result of such defaults, subject to certain limited exceptions permitted by the Bankruptcy Code. The Predecessor did not record interest expense on its senior notes for the period from January 1, 2017 through February 28, 2017. For this period, unrecorded contractual interest was approximately $9 million.

Covenant Violations

The Predecessor’s filing of the Bankruptcy Petitions constituted an event of default that accelerated the Predecessor’s obligations under its Pre-Emergence Credit Facility and its senior notes. Additionally, other events of default, including cross-defaults, occurred, including the failure to make interest payments on the Predecessor’s senior notes. Under the Bankruptcy Code, the creditors under these debt agreements were stayed from taking any action against the Predecessor as a result of any default.

Prior Credit Facility

The Pre-Emergence Credit Facility contained a requirement to deliver audited financial statements without a going concern or like qualification or exception. Consequently, the filing of the Predecessor’s 2015 Annual Report on Form 10-K which included a going concern explanatory paragraph resulted in a default under the Pre-Emergence Credit Facility as of the filing date, March 28, 2016, subject to a 30-day grace period.

On April 12, 2016, the Predecessor entered into an amendment to the Pre-Emergence Credit Facility. The amendment provided for, among other things, an agreement that (i) certain events would not become defaults or events of default until May 11, 2016, (ii) the borrowing base would remain constant until May 11, 2016, unless reduced as a result of swap agreement terminations or collateral sales, (iii) the Predecessor would have access to $45 million in cash that was previously restricted in order to fund ordinary course operations and (iv) the Predecessor, the administrative agent and the lenders would negotiate in good faith the terms of a restructuring support agreement in furtherance of a restructuring of the capital structure of the Predecessor. As a condition to closing the amendment, the Predecessor provided control agreements over certain deposit accounts.

The filing of the Bankruptcy Petitions constituted an event of default that accelerated the Predecessor’s obligations under the Pre-Emergence Credit Facility. However, under the Bankruptcy Code, the creditors under this debt agreement were stayed from taking any action against the Predecessor as a result of the default.

Senior Notes

The Predecessor deferred making an interest payment totaling approximately $18 million due March 15, 2016, on the Predecessor’s 6.375% senior notes due September 2022, which resulted in the Predecessor being in default under these senior notes. The indenture governing the notes provided the Predecessor a 30-day grace period to make the interest payment.

On April 14, 2016, within the 30-day interest payment grace period provided for in the indenture governing the notes, the Predecessor made an interest payment of approximately $18 million in satisfaction of its obligations.

The Predecessor failed to make interest payments due on its senior notes subsequent to April 14, 2016.

The filing of the Bankruptcy Petitions constituted an event of default that accelerated the Predecessor’s obligations under the indentures governing the senior notes. However, under the Bankruptcy Code, holders of the senior notes were stayed from taking any action against the Predecessor as a result of the default.

Fresh-Start Accounting

Upon our emergence from bankruptcy, we were required to adopt fresh-start accounting, which, with the recapitalization described above, resulted in Berry Corp. being treated as the new entity for financial reporting purposes. We were required to adopt fresh-start accounting upon our emergence from bankruptcy because (i) the holders of existing voting ownership interests of our predecessor company received less than 50% of the voting shares of Berry Corp. and (ii) the reorganization value of our assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims. An entity applying fresh-start accounting upon emergence from bankruptcy is viewed as a new reporting entity from an accounting perspective, and accordingly, may select new accounting policies.

The reorganization value of our assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims, as shown below:



	(in thousands)
Liabilities subject to compromise	$	1,000,336
Pre-petition debt not classified as subject to compromise	891,259
Post-petition liabilities	245,702
Total post-petition liabilities and allowed claims	2,137,297
Reorganization value of assets immediately prior to implementation of the Plan	(1,722,585		)
Excess post-petition liabilities and allowed claims	$	414,712

Upon adoption of fresh-start accounting, the reorganization value derived from the enterprise value was allocated to our assets and liabilities based on their fair values in accordance with GAAP. The Effective Date fair values of our assets and liabilities differed materially from their recorded values as reflected on the historical balance sheet. The effects of the Plan and the application of fresh-start accounting were reflected in the financial statements as of February 28, 2017, and the related adjustments thereto were recorded on the statement of operations for the two months ended February 28, 2017.

As a result of the adoption of fresh-start accounting and the effects of the implementation of the Plan, our consolidated financial statements subsequent to February 28, 2017, are not comparable to our financial statements prior to February 28, 2017.

Our consolidated financial statements and related footnotes are presented with a black line division, which delineates the lack of comparability between amounts presented after February 28, 2017, and amounts presented on or prior to February 28, 2017. Our financial results for future periods following the application of fresh-start accounting will be different from historical trends and the differences may be material.

Reorganization Value

Under GAAP, a value was assigned to the equity of the emerging entity as of the date of adoption of fresh-start accounting. The Plan and disclosure statement approved by the Bankruptcy Court did not include an enterprise value or reorganization value, nor did the Bankruptcy Court approve a value as part of its confirmation of our Plan. Our reorganization value was derived from an estimate of enterprise value, or the fair value of our long-term debt, stockholders’ equity and working capital. Reorganization value approximates the fair value of the entity before considering liabilities and approximates the amount a willing buyer would pay for the assets of the entity immediately after the restructuring. Based on the various estimates and assumptions necessary for fresh-start accounting, our enterprise value as of the Effective Date was estimated to be approximately $1.3 billion. The enterprise value was estimated using a sum of parts approach. The sum of parts approach represents the summation of the indicated fair value of the component assets of the Company. The fair value of our assets was estimated by relying on a combination of the income, market and cost approaches.

The estimated enterprise value, reorganization value and equity value are highly dependent on the achievement of the financial results contemplated in our underlying projections. While we believe the assumptions and estimates used to develop enterprise value and reorganization value are reasonable and appropriate, different assumptions and estimates could materially impact the analysis and resulting conclusions. Additionally, the assumptions used in estimating these values are inherently uncertain and require judgment. The primary assumptions for which there is a reasonable possibility of the occurrence of a variation that would have significantly affected the reorganization value include those regarding pricing, discount rates and the amount and timing of capital expenditures.

Our principal assets are our oil and natural gas properties. The fair values of oil and natural gas properties were estimated using a valuation technique consistent with the income approach; specifically, the discounted cash flows method. We also used the market approach to corroborate the valuation results from the income approach. We used a market-based weighted-average cost of capital discount rate of 10% for proved and unproved reserves, with further risk adjustment factors applied to the discounted values. The underlying commodity prices embedded in our estimated cash flows were based on the New York Mercantile Exchange (“NYMEX”) forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors that we believe will impact realizable prices. NYMEX forward curve pricing was used for years 2017 through 2019 and then was escalated at approximately 2.0%.

See below under “Fresh-Start Adjustments” for additional information regarding assumptions used in the valuation of our various other significant assets and liabilities.

The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date:



	(in thousands)
Enterprise value	$	1,278,527
Plus: Fair value of non-debt liabilities	282,511
Reorganization value of the Successor’s assets	$	1,561,038

The fair value of non-debt liabilities consists of liabilities assumed by the Successor on the Effective Date and excludes the fair value of long-term debt.

Consolidated Balance Sheet

The adjustments included in the following fresh-start consolidated balance sheet reflect the effects of the transactions contemplated by the Plan and executed on the Effective Date (reflected in the column “Reorganization Adjustments”) as well as fair value and other required accounting adjustments resulting from the adoption of fresh-start accounting (reflected in the column “Fresh-Start Adjustments”). The explanatory notes provide additional information with regard to the adjustments recorded, methods used to determine the fair values and significant assumptions.



	As of February 28, 2017
	Berry LLC (Predecessor)			Reorganization Adjustments⁽¹⁾					Fresh-Start Adjustments					Berry Corp. (Successor)
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	27,407		$	4,642		⁽²⁾		$	—				$	32,049
Accounts receivable	76,027			(15,700		)	⁽³⁾		(816		)	⁽¹⁴	⁾	59,511
Derivative instruments	243			—					—					243
Restricted cash	128			52,732			⁽⁴⁾		—					52,860
Other current assets	18,437			(5,558		)	⁽⁵⁾		3,873			⁽¹⁵	⁾	16,752
Total current assets	122,242			36,116					3,057					161,415
Non-current assets:
Oil and natural gas properties	5,031,498			—					(3,787,898		)	⁽¹⁶	⁾	1,243,600
Less accumulated depletion and amortization	(2,814,999		)	—					2,814,999			⁽¹⁶	⁾	—
Total oil and natural gas properties, net	2,216,499			—					(972,899		)			1,243,600
Other property and equipment	124,379			—					(15,576		)	⁽¹⁷	⁾	108,803
Less accumulated depreciation	(22,107		)	—					22,107			⁽¹⁷	⁾	—
Total other property and equipment, net	102,273			—					6,530					108,803
Derivative instruments	57			—					—					57
Restricted cash	197,939			(197,814		)	⁽²⁾		—					125
Other non-current assets	16,076			151			⁽⁶⁾		30,811			⁽¹⁸	⁾	47,038
Total assets	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	60,323		$	52,371		⁽⁷⁾		$	3,818		⁽¹⁹	⁾	$	116,512
Derivative instruments	5,355			—					—					5,355
Current portion of long-term debt, net	891,259			(891,259		)	⁽⁸⁾		—					—
Other accrued liabilities	7,335			(3,760		)	⁽⁹⁾		1,295			⁽²⁰	⁾	4,870
Total current liabilities	964,272			(842,648		)			5,113					126,737
Non-current liabilities:
Derivative instruments	1,710			—					—					1,710
Long-term debt	—			400,000			⁽¹⁰	⁾	—					400,000
Other non-current liabilities	170,979			—					(16,915		)	⁽²¹	⁾	154,064
Liabilities subject to compromise	1,000,336			(1,000,336		)	⁽¹¹	⁾	—					—
Equity:
Predecessor additional paid-in capital	2,798,714			(2,798,714		)	⁽¹²	⁾	—					—
Predecessor accumulated deficit	(2,280,925		)	375,159			⁽¹³	⁾	1,905,766			⁽²²	⁾	—
Successor preferred stock	—			335,000			⁽¹²	⁾	—					335,000
Successor common stock	—			33			⁽¹²	⁾	—					33
Successor additional paid-in capital	—			3,369,959			⁽¹²	⁾	(2,826,465		)	⁽²²	⁾	543,494
Total equity	517,789			1,281,437					(920,699		)			878,527
Total liabilities and equity	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038

__________

Reorganization Adjustments:

(1)

Represent amounts recorded as of the Effective Date for the implementation of the Plan, including, among other items, settlement of the Predecessor’s liabilities subject to compromise, repayment of certain of the Predecessor’s debt, cancellation of the Predecessor’s equity, issuances of the Successor’s common stock and preferred stock, proceeds received from the Berry Rights Offerings and issuance of the Successor’s debt.


(2)	Changes in cash and cash equivalents included the following:



	(in thousands)
Borrowings under the Emergence Credit Facility	$	400,000
Proceeds from issuance of preferred stock pursuant the Berry Rights Offerings	335,000
Cash receipt from Linn Energy, LLC for ad valorem taxes	23,366
Removal of restriction on cash balance (includes $128 previously recorded as short term)	197,942
Payment to the holders of claims under the Pre-Emergence Credit Facility (including $29 in bank fees and $3,760 in interest)	(897,663)
Payment of professional fees	(992)
Payment of Emergence Credit Facility fee that was capitalized	(151)
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Funding of the professional fees escrow account	(17,860)
Changes in cash and cash equivalents	$	4,642


(3)	Collection of overpayment to Linn Energy, LLC for ad valorem taxes.


(4)	Primarily reflects the transfer to restricted cash to fund the Predecessor’s professional fees escrow account and general unsecured claims Cash Distribution Pool.


(5)	Primarily reflects the write-off of the Predecessor’s deferred financing fees.


(6)	Reflects the capitalization of deferred financing fees related to the Emergence Credit Facility.


(7)	Net increase in accounts payable and accrued expenses reflects:



	(in thousands)
Recognition of payables for the general unsecured claims Cash Distribution Pool	$	35,000
Recognition of payables for the professional fees escrow account	17,860
Recognition of payable for ad valorem tax liability	7,666
Net change of other professional fees payable	(8,161)
Other	6
Net increase in accounts payable and accrued expenses	$	52,371


(8)	Reflects the repayment of the Pre-Emergence Credit Facility.


(9)	Reflects the payment of accrued interest on the Pre-Emergence Credit Facility.


(10)	Reflects borrowings under the Emergence Credit Facility.


(11)	Settlement of liabilities subject to compromise and the resulting net gains were determined as follows:



	(in thousands)
Accounts payable and accrued expenses	$	151,298
Accrued interest payable	15,238
Debt	833,800
Total liabilities subject to compromise	1,000,336
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Common stock to holders of Unsecured Notes and general unsecured creditors	(543,562)
Gains on settlement of liabilities subject to compromise	$	421,774


(12)	Net increase in capital accounts reflects:



	(in thousands)
Common stock to holders of Unsecured Notes and general unsecured creditors	$	543,562
Payment of issuance costs	(35)
Dividend related to beneficial conversion feature of preferred stock	27,751
Cancellation of the Predecessor’s additional paid-in capital	2,798,714
Par value of common stock	(33)
Change in additional paid-in capital	3,369,959
Proceeds from issuance of preferred stock	335,000
Par value of common stock	33
Predecessor’s additional paid-in capital	(2,798,714)
Net increase in capital accounts	$	906,278

See Note 6 for additional information on the issuances and distributions of the Successor’s common and preferred stock.


(13)	Net decrease in accumulated deficit reflects:



	(in thousands)
Recognition of gains on settlement of liabilities subject to compromise	$	421,774
Recognition of professional fees	(13,667)
Write-off of deferred financing fees	(5,197)
Total reorganization items, net	402,910
Dividend related to beneficial conversion feature of preferred stock	(27,751		)
Net decrease in accumulated deficit	$	375,159

Fresh-Start Adjustments:


(14)	Reflects a change in accounting policy from the entitlements method to the sales method for natural gas production imbalances.


(15)	Primarily reflects an increase in the current portion of greenhouse gas allowances.


(16)	Reflects a decrease of oil and natural gas properties, based on the methodology discussed in Note 2, and the elimination of accumulated depletion and amortization. The following table summarizes the components of oil and natural gas properties as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Proved properties	$	712,400	$	4,266,843
Unproved properties	531,200		764,655
Total proved and unproved properties	1,243,600		5,031,498
Less accumulated depletion and amortization	—		(2,814,999		)
Total proved and unproved properties, net	$	1,243,600	$	2,216,499


(17)	Reflects a decrease of other property and equipment and the elimination of accumulated depreciation. The following table summarizes the components of other property and equipment as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Natural gas plants and pipelines	$	91,427	$	109,675
Land	8,262		201
Furniture and office equipment	5,040		3,879
Buildings and leasehold improvements	2,740		5,884
Vehicles	1,156		4,542
Drilling and other equipment	178		198
Total other property and equipment	108,803		124,379
Less accumulated depreciation	—		(22,107		)
Total other property and equipment, net	$	108,803	$	102,273

In estimating the fair value of other property and equipment, we used a combination of cost and market approaches. A cost approach was used to value our natural gas plants and pipelines, buildings, and furniture and office equipment based on current replacement costs of the assets less depreciation based on the estimated economic useful lives of the assets and age of the assets. A market approach was used to value our vehicles, drilling and other equipment, and land, using recent transactions of similar assets to determine the fair value from a market participant perspective.


(18)	Primarily reflects an increase in greenhouse gas allowances of approximately $30 million and a joint venture investment of approximately $1 million. Greenhouse gas allowances were valued using a market approach based on trading prices for carbon credits on February 28, 2017. Our joint venture investment was valued based on a market approach using a market EBITDA multiple.


(19)	Reflects increases for greenhouse gas emissions liabilities of approximately $4 million and a change in accounting policy from the entitlements method to the sales method for gas production imbalances of approximately $200,000, partially offset by a decrease for the current portion of intangibles liabilities of approximately $500,000.


(20)	Reflects an increase of the current portion of asset retirement obligations.

(21)

Primarily reflects a decrease for asset retirement obligations of approximately $30 million and for intangible liabilities of approximately$6 million, partially offset by an increase for greenhouse gas emissions liabilities of approximately $19 million. The fair value of asset retirement obligations was estimated using valuation techniques that convert future cash flows to a single discounted amount. Significant inputs to the valuation include estimates of: (i) plugging and abandonment costs per well based on existing regulatory requirements; (ii) remaining life per well; (iii) future inflation factors; and (iv) a credit-adjusted risk-free interest rate. The intangible liabilities identified on the Effective Date were valued based on a combination of market and incomes approaches and will be amortized over the remaining life of the respective contract. Greenhouse gas emissions liabilities were valued using a market approach based on trading prices for greenhouse gas allowances on February 28, 2017.


(22)	Reflects the cumulative impact of the fresh-start accounting adjustments discussed above and the elimination of the Predecessor’s accumulated deficit.

Fresh-Start Accounting

12 Months Ended

Dec. 31, 2019

Reorganizations [Abstract]

Fresh-Start Accounting

Emergence from Voluntary Reorganization under Chapter 11

Plan of Reorganization

On the Effective Date, the Company consummated the following reorganization transactions in accordance with the Plan:


•	Linn Acquisition Company, LLC transferred 100% of the outstanding membership interests in Berry LLC to Berry Corp. pursuant to an assignment agreement, dated February 28, 2017 between Linn Acquisition Company, LLC and Berry Corp. (the “Assignment Agreement”). Under the Assignment Agreement, Berry LLC became a wholly-owned operating subsidiary of Berry Corp.

•


•	Berry LLC, as borrower, entered into the Emergence Credit Facility with the holders of claims under the Pre-Emergence Credit Facility, as lenders, and Wells Fargo Bank, N.A, as administrative agent, providing for a new reserves-based revolving loan with up to $550 million in borrowing commitments. This facility was replaced with the RBL Facility in July 2017 noted above.

•


•	Berry LLC settled all intercompany claims against Linn Energy and its affiliates pursuant to a settlement agreement approved as part of the Plan and the Confirmation Order. The settlement agreement provided Berry LLC with a $25 million general unsecured claim against Linn Energy which Berry LLC has fully-reserved.

Bank RSA

Liabilities Subject to Compromise

Reorganization Items, Net



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
Return of undistributed funds from cash distribution pool⁽¹⁾	$	—		$	22,855		$	—		$	—
Gains on resolution of pre-emergence liabilities and claims	—			3,713			—			—
Legal and other professional advisory fees	(426		)	(3,083		)	(1,027		)	(19,481		)
Gains on settlement of liabilities subject to compromise	—			—			—			421,774
Fresh-start valuation adjustments	—			—			—			(920,699		)
Other	—			1,205			(705		)	10,686
Reorganization items, net	$	(426	)	$	24,690		$	(1,732	)	$	(507,720	)

__________


(1)	This amount was reclassed from restricted cash to general cash, thus does not represent a cash transaction.

Effect of Filing on Creditors

Covenant Violations

Prior Credit Facility

Senior Notes

The Predecessor failed to make interest payments due on its senior notes subsequent to April 14, 2016.

Fresh-Start Accounting

The reorganization value of our assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims, as shown below:



	(in thousands)
Liabilities subject to compromise	$	1,000,336
Pre-petition debt not classified as subject to compromise	891,259
Post-petition liabilities	245,702
Total post-petition liabilities and allowed claims	2,137,297
Reorganization value of assets immediately prior to implementation of the Plan	(1,722,585		)
Excess post-petition liabilities and allowed claims	$	414,712

Reorganization Value

See below under “Fresh-Start Adjustments” for additional information regarding assumptions used in the valuation of our various other significant assets and liabilities.

The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date:



	(in thousands)
Enterprise value	$	1,278,527
Plus: Fair value of non-debt liabilities	282,511
Reorganization value of the Successor’s assets	$	1,561,038

The fair value of non-debt liabilities consists of liabilities assumed by the Successor on the Effective Date and excludes the fair value of long-term debt.

Consolidated Balance Sheet



	As of February 28, 2017
	Berry LLC (Predecessor)			Reorganization Adjustments⁽¹⁾					Fresh-Start Adjustments					Berry Corp. (Successor)
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	27,407		$	4,642		⁽²⁾		$	—				$	32,049
Accounts receivable	76,027			(15,700		)	⁽³⁾		(816		)	⁽¹⁴	⁾	59,511
Derivative instruments	243			—					—					243
Restricted cash	128			52,732			⁽⁴⁾		—					52,860
Other current assets	18,437			(5,558		)	⁽⁵⁾		3,873			⁽¹⁵	⁾	16,752
Total current assets	122,242			36,116					3,057					161,415
Non-current assets:
Oil and natural gas properties	5,031,498			—					(3,787,898		)	⁽¹⁶	⁾	1,243,600
Less accumulated depletion and amortization	(2,814,999		)	—					2,814,999			⁽¹⁶	⁾	—
Total oil and natural gas properties, net	2,216,499			—					(972,899		)			1,243,600
Other property and equipment	124,379			—					(15,576		)	⁽¹⁷	⁾	108,803
Less accumulated depreciation	(22,107		)	—					22,107			⁽¹⁷	⁾	—
Total other property and equipment, net	102,273			—					6,530					108,803
Derivative instruments	57			—					—					57
Restricted cash	197,939			(197,814		)	⁽²⁾		—					125
Other non-current assets	16,076			151			⁽⁶⁾		30,811			⁽¹⁸	⁾	47,038
Total assets	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	60,323		$	52,371		⁽⁷⁾		$	3,818		⁽¹⁹	⁾	$	116,512
Derivative instruments	5,355			—					—					5,355
Current portion of long-term debt, net	891,259			(891,259		)	⁽⁸⁾		—					—
Other accrued liabilities	7,335			(3,760		)	⁽⁹⁾		1,295			⁽²⁰	⁾	4,870
Total current liabilities	964,272			(842,648		)			5,113					126,737
Non-current liabilities:
Derivative instruments	1,710			—					—					1,710
Long-term debt	—			400,000			⁽¹⁰	⁾	—					400,000
Other non-current liabilities	170,979			—					(16,915		)	⁽²¹	⁾	154,064
Liabilities subject to compromise	1,000,336			(1,000,336		)	⁽¹¹	⁾	—					—
Equity:
Predecessor additional paid-in capital	2,798,714			(2,798,714		)	⁽¹²	⁾	—					—
Predecessor accumulated deficit	(2,280,925		)	375,159			⁽¹³	⁾	1,905,766			⁽²²	⁾	—
Successor preferred stock	—			335,000			⁽¹²	⁾	—					335,000
Successor common stock	—			33			⁽¹²	⁾	—					33
Successor additional paid-in capital	—			3,369,959			⁽¹²	⁾	(2,826,465		)	⁽²²	⁾	543,494
Total equity	517,789			1,281,437					(920,699		)			878,527
Total liabilities and equity	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038

__________

Reorganization Adjustments:

(1)


(2)	Changes in cash and cash equivalents included the following:



	(in thousands)
Borrowings under the Emergence Credit Facility	$	400,000
Proceeds from issuance of preferred stock pursuant the Berry Rights Offerings	335,000
Cash receipt from Linn Energy, LLC for ad valorem taxes	23,366
Removal of restriction on cash balance (includes $128 previously recorded as short term)	197,942
Payment to the holders of claims under the Pre-Emergence Credit Facility (including $29 in bank fees and $3,760 in interest)	(897,663)
Payment of professional fees	(992)
Payment of Emergence Credit Facility fee that was capitalized	(151)
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Funding of the professional fees escrow account	(17,860)
Changes in cash and cash equivalents	$	4,642


(3)	Collection of overpayment to Linn Energy, LLC for ad valorem taxes.


(4)	Primarily reflects the transfer to restricted cash to fund the Predecessor’s professional fees escrow account and general unsecured claims Cash Distribution Pool.


(5)	Primarily reflects the write-off of the Predecessor’s deferred financing fees.


(6)	Reflects the capitalization of deferred financing fees related to the Emergence Credit Facility.


(7)	Net increase in accounts payable and accrued expenses reflects:



	(in thousands)
Recognition of payables for the general unsecured claims Cash Distribution Pool	$	35,000
Recognition of payables for the professional fees escrow account	17,860
Recognition of payable for ad valorem tax liability	7,666
Net change of other professional fees payable	(8,161)
Other	6
Net increase in accounts payable and accrued expenses	$	52,371


(8)	Reflects the repayment of the Pre-Emergence Credit Facility.


(9)	Reflects the payment of accrued interest on the Pre-Emergence Credit Facility.


(10)	Reflects borrowings under the Emergence Credit Facility.


(11)	Settlement of liabilities subject to compromise and the resulting net gains were determined as follows:



	(in thousands)
Accounts payable and accrued expenses	$	151,298
Accrued interest payable	15,238
Debt	833,800
Total liabilities subject to compromise	1,000,336
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Common stock to holders of Unsecured Notes and general unsecured creditors	(543,562)
Gains on settlement of liabilities subject to compromise	$	421,774


(12)	Net increase in capital accounts reflects:



	(in thousands)
Common stock to holders of Unsecured Notes and general unsecured creditors	$	543,562
Payment of issuance costs	(35)
Dividend related to beneficial conversion feature of preferred stock	27,751
Cancellation of the Predecessor’s additional paid-in capital	2,798,714
Par value of common stock	(33)
Change in additional paid-in capital	3,369,959
Proceeds from issuance of preferred stock	335,000
Par value of common stock	33
Predecessor’s additional paid-in capital	(2,798,714)
Net increase in capital accounts	$	906,278

See Note 6 for additional information on the issuances and distributions of the Successor’s common and preferred stock.


(13)	Net decrease in accumulated deficit reflects:



	(in thousands)
Recognition of gains on settlement of liabilities subject to compromise	$	421,774
Recognition of professional fees	(13,667)
Write-off of deferred financing fees	(5,197)
Total reorganization items, net	402,910
Dividend related to beneficial conversion feature of preferred stock	(27,751		)
Net decrease in accumulated deficit	$	375,159

Fresh-Start Adjustments:


(14)	Reflects a change in accounting policy from the entitlements method to the sales method for natural gas production imbalances.


(15)	Primarily reflects an increase in the current portion of greenhouse gas allowances.


(16)	Reflects a decrease of oil and natural gas properties, based on the methodology discussed in Note 2, and the elimination of accumulated depletion and amortization. The following table summarizes the components of oil and natural gas properties as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Proved properties	$	712,400	$	4,266,843
Unproved properties	531,200		764,655
Total proved and unproved properties	1,243,600		5,031,498
Less accumulated depletion and amortization	—		(2,814,999		)
Total proved and unproved properties, net	$	1,243,600	$	2,216,499


(17)	Reflects a decrease of other property and equipment and the elimination of accumulated depreciation. The following table summarizes the components of other property and equipment as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Natural gas plants and pipelines	$	91,427	$	109,675
Land	8,262		201
Furniture and office equipment	5,040		3,879
Buildings and leasehold improvements	2,740		5,884
Vehicles	1,156		4,542
Drilling and other equipment	178		198
Total other property and equipment	108,803		124,379
Less accumulated depreciation	—		(22,107		)
Total other property and equipment, net	$	108,803	$	102,273


(18)	Primarily reflects an increase in greenhouse gas allowances of approximately $30 million and a joint venture investment of approximately $1 million. Greenhouse gas allowances were valued using a market approach based on trading prices for carbon credits on February 28, 2017. Our joint venture investment was valued based on a market approach using a market EBITDA multiple.


(19)	Reflects increases for greenhouse gas emissions liabilities of approximately $4 million and a change in accounting policy from the entitlements method to the sales method for gas production imbalances of approximately $200,000, partially offset by a decrease for the current portion of intangibles liabilities of approximately $500,000.


(20)	Reflects an increase of the current portion of asset retirement obligations.

(21)


(22)	Reflects the cumulative impact of the fresh-start accounting adjustments discussed above and the elimination of the Predecessor’s accumulated deficit.

Basis of Presentation and Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation and Reporting	Principles of Consolidation and Reporting The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements. Reclassification We reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact
Reclassification	Reclassification We reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements.
Use of Estimates	Use of Estimates The preparation of the accompanying consolidated financial statements in conformity with GAAP required management of the Company to make informed estimates and assumptions about future events. These estimates and the underlying assumptions affect the amount of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Estimates that are particularly significant to the financial statements include estimates of our reserves of oil and gas, future cash flows from oil and gas properties, depreciation, depletion and amortization, asset retirement obligations, fair values of commodity derivatives and fair values of assets acquired and liabilities assumed. In addition, as part of fresh-start accounting, we made estimates and assumptions related to our reorganization value, liabilities subject to compromise and the fair value of assets and liabilities recorded.
Cash Equivalents	Cash Equivalents We consider all highly liquid short-term investments with original maturities of three months or less to be cash equivalents.
Inventories	Inventories Inventories were included in other current assets. Oil and natural gas inventories were valued at the lower of cost or net realizable value. Materials and supplies were valued at their weighted-average cost and are reviewed periodically for obsolescence.
Oil and Natural Gas Properties	Oil and Natural Gas Properties Proved Properties We account for oil and natural gas properties in accordance with the successful efforts method. Under this method, all acquisition costs of proved properties are capitalized and amortized on a unit-of-production basis over the remaining life of the proved reserves. All development costs of proved properties are capitalized and amortized on a unit-of-production basis over the remaining life of the proved developed reserves. Costs of retired, sold or abandoned properties that constitute a part of an amortization base are charged or credited, net of proceeds, to accumulated depreciation, depletion and amortization unless doing so significantly affects the unit-of-production amortization rate, in which case a gain or loss is recognized in the current period. Gains or losses from the disposal of other properties are recognized in the current period. For assets acquired, we base the capitalized cost on fair value at the acquisition date. We expense expenditures for maintenance and repairs necessary to maintain properties in operating condition, as well as annual lease rentals, as they are incurred. Estimated dismantlement and abandonment costs are capitalized, net of salvage, at their estimated net present value and amortized over the remaining lives of the related assets. Interest is capitalized only during the periods in which these assets are brought to their intended use. The amount of capitalized interest in 2019 was approximately $2 million, and in 2018 and 2017 these costs were not significant. The amount of capitalized exploratory well costs was zero for all periods. We only capitalize the interest on borrowed funds related to our share of costs associated with qualifying capital expenditures. We evaluate the impairment of our proved oil and natural gas properties generally on a field by field basis or at the lowest level for which cash flows are identifiable, whenever events or changes in circumstance indicate that the carrying value may not be recoverable. We reduce the carrying values of proved properties to fair value when the expected undiscounted future cash flows are less than net book value. We measure the fair values of proved properties using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a risk-adjusted discount rate. These inputs require significant judgments and estimates by our management at the time of the valuation and are the most sensitive estimates we make and the most likely to change. The underlying commodity prices are embedded in our estimated cash flows and are the product of a process that begins with the relevant forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors our management believes will impact realizable prices. The fair value was estimated using inputs characteristic of a Level 3 fair value measurement. Unproved Properties A portion of the carrying value of our oil and gas properties was attributable to unproved properties. At December 31, 2019 and 2018, the net capitalized costs attributable to unproved properties were approximately $314 million and $388 million, respectively. The unproved amounts were not subject to depreciation, depletion and amortization until they were classified as proved properties and amortized on a unit-of-production basis. We evaluate the impairment of our unproved oil and gas properties whenever events or changes in circumstances indicate the carrying value may not be recoverable. If the exploration and development work were to be unsuccessful, or management decided not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of such properties would be expensed. The timing of any write-downs of unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results. We believe our current plans and exploration and development efforts will allow us to realize the carrying value of our unproved property balance at December 31, 2019.
Other Property and Equipment	Other Property and Equipment Other property and equipment includes natural gas gathering systems, pipelines, buildings, software, data processing and telecommunications equipment, office furniture and equipment, and other fixed assets. These assets are recorded at cost, depreciated using the straight-line method based on expected useful lives ranging from 5 to 30 years for buildings and leasehold improvements and 2 to 30 years for plant and pipeline, drilling and other equipment, and the salvage value is considered as applicable.
Asset Retirement Obligation	Asset Retirement Obligation We recognize the fair value of asset retirement obligations (“AROs”) in the period in which a determination is made that a legal obligation exists to dismantle an asset and remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The liability amounts were based on future retirement cost estimates and incorporate many assumptions such as time to abandonment, technological changes, future inflation rates and the risk-adjusted discount rate. When the liability was initially recorded, we capitalized the cost by increasing the related property, plant and equipment (“PP&E”) balances. If the estimated future cost of the AROs changes, we record an adjustment to both the ARO and PP&E. Over time, the liability is increased and the capitalized cost is depreciated over the useful life of the asset. Accretion expense is also recognized over time as the discounted liabilities are accreted to their expected settlement value and is included in depreciation, depletion and amortization in the statement of operations.
Revenue Recognition	Revenue Recognition Substantially all of the Company’s revenue is from the sale of crude oil, natural gas and NGLs. Revenue Recognition We account for revenue in accordance with the Accounting Standards Codification 606, Revenue from Contracts with Customers, which we adopted on January 1, 2019, using the modified retrospective method, which was applied to all contracts that were not completed as of that date. Prior period results were not adjusted and continue to be reported under the accounting standards in effect for the prior period. The new standard did not affect the timing of our revenue recognition and did not impact net income; accordingly, we did not record an adjustment to the opening balance of retained earnings. We adopted the practical expedient related to disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of the reporting period. The performance obligations that are unsatisfied at the end of a reporting period relate solely to future volumes that we have yet to sell. As such, these are wholly unsatisfied performance obligations as each unit of product represents a separate performance obligation as well as a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. We derive substantially all of our revenue from sales of oil, natural gas and natural gas liquids ("NGL"), with the remaining revenue generated from sales of electricity and marketing activities. The following is a description of our principal activities from which we generate revenue. Revenues are recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Oil, Natural Gas and NGLs We recognize revenue from the sale of our oil, natural gas and NGLs production when delivery has occurred and control passes to the customer. Our oil and natural gas contracts are short term, typically less than a year and our NGL contracts are both short and long term. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Our commodity sales contracts are indexed to a market price or an average index price. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing. Electricity Sales The electrical output of our cogeneration facilities that is not used in our operations is sold to the California market based on market pricing, which includes capacity payments. The majority of the portion sold from three of our cogeneration facilities is sold under long-term contracts to two California utility companies, based on the market pricing. Revenue is recognized over time when obligations under the terms of a contract with our customer are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on average index pricing with payment due the month following delivery. Capacity payments are based on a fixed annual amount per kilowatt hour and monthly rates vary based on seasonality, which is consistent with how we earn the capacity payment. Capacity payments are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. We report electricity revenue as electricity sales on our consolidated statements of operations. We recognize revenue in the amount that we have a right to invoice once we are able to adequately estimate the consideration (i.e., when market prices are known). Marketing Revenue Marketing revenue primarily includes our activities associated with transporting and marketing third-party volumes. These sales are made under the same agreements with the same purchaser as our natural gas sales discussed above. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Revenues are presented excluding costs incurred prior to transferring control of these volumes to the customer, or the costs to purchase these volumes when we are acting as the principal. The revenues and expenses related to the sale and purchase of third-party volumes are presented separately as marketing revenue and marketing expenses on the condensed consolidated statements of operations.
Fair Value Measurements	Fair Value Measurements We have categorized our assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1—using quoted prices in active markets for the assets or liabilities; Level 2—using observable inputs other than quoted prices for the assets or liabilities; and Level 3—using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. We primarily apply the market approach for recurring fair value measurement, maximize our use of observable inputs and minimize use of unobservable inputs. We generally use an income approach to measure fair value when observable inputs are unavailable. This approach utilizes management’s judgments regarding expectations of projected cash flows and discounts those cash flows using a risk-adjusted discount rate. The most significant items on our balance sheet that would be affected by recurring fair value measurements are derivatives. We determine the fair value of our oil and natural gas derivatives using valuation techniques which utilize market quotes and pricing analysis. Inputs include publicly available prices and forward price curves generated from a compilation of data gathered from third parties. We classify these measurements as Level 2. Our PP&E is written down to fair value if we determine that there has been an impairment in its value. The fair value is determined as of the date of the assessment using discounted cash flow models based on management’s expectations for the future. Inputs include estimates of future production, prices based on commodity forward price curves as of the date of the estimate, estimated future operating and development costs and a risk-adjusted discount rate. We classify these measurements as Level 3.
Stock-based Compensation	Stock-based Compensation We have issued restricted stock units (“RSUs”) that vest over time and performance-based restricted stock units (“PSUs”) that vest based on our achievement of certain average prices per share or total shareholder return, to certain employees and non-employee directors. The fair value of the stock-based awards is determined at the date of grant and is not remeasured. Prior to our IPO in July 2018, we determined the fair value of the RSUs based on an estimate of the fair value of our equity using an income approach. We used a discounted cash flow method to value the estimated future cash flows at an appropriate discount rate. Subsequent to our IPO, since the underlying shares are now trading in the public markets, these estimates are no longer necessary. For PSUs, compensation value is measured on the grant date using payout values derived from a Monte-Carlo valuation model. Estimates used in the Monte Carlo valuation model are considered highly complex and subjective. Compensation expense, net of actual forfeitures, for the RSUs and PSUs is recognized on a straight-line basis over the requisite service periods, which is over the awards’ respective vesting or performance periods which range from one to three years.
Other Loss Contingencies	Other Loss Contingencies In the normal course of business, we are involved in lawsuits, claims and other environmental and legal proceedings and audits. We accrue reserves for these matters when it is probable that a liability has been incurred and the liability can be reasonably estimated. In addition, we disclose, if material, in aggregate, our exposure to loss in excess of the amount recorded on the balance sheet for these matters if it is reasonably possible that an additional material loss may be incurred. We review our loss contingencies on an ongoing basis. Loss contingencies are based on judgments made by management with respect to the likely outcome of these matters and are adjusted as appropriate. Management’s judgments could change based on new information, changes in, or interpretations of, laws or regulations, changes in management’s plans or intentions, opinions regarding the outcome of legal proceedings, or other factors.
Electricity Cost Allocation	Electricity Cost Allocation We own five cogeneration facilities. Our investment in cogeneration facilities has been for the express purpose of lowering steam costs in our heavy oil operations in California and securing operating control of the respective steam generation. Cogeneration, also called combined heat and power, extracts energy from the exhaust of a turbine, which would otherwise be wasted, to produce steam. Such cogeneration operations also produce electricity. We allocate steam and electricity costs to lease operating expenses based on the conversion efficiency of the cogeneration facilities plus certain direct costs of producing steam. We also allocate a portion of the electricity production costs related to the power we sell to third parties, which is reported in “electricity generation expenses” in the statement of operations.
Income Taxes	Income Taxes Prior to the consummation of the Plan, as defined below, the Predecessor was a limited liability company treated as a disregarded entity for federal and state income tax purposes, with the exception of the state of Texas, in which income tax liabilities and/or benefits of the company are passed through to its members. Limited liability companies are subject to Texas margin tax. As such, with the exception of the state of Texas, the Predecessor was not a taxable entity, it did not directly pay federal and state income taxes and recognition was not given to federal and state income taxes for the operations of the company. On the Effective Date, upon consummation of the Plan, the Successor became a C Corporation subject to federal and state income taxes. The impact of changes in tax regulation are reflected when enacted. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their tax bases. Deferred tax assets are recognized when it is more likely than not that they will be realized. We periodically assess our deferred tax assets and reduce such assets by a valuation allowance if we deem it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. We recognize a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, based on the technical merits of the position. Interest and penalties related to unrecognized tax benefits are recognized in income tax expense (benefit).
Earnings per Share	Earnings per Share We computed basic and diluted earnings per share (EPS) using the two-class method required for participating securities. Restricted and performance stock awards are considered participating securities when such shares have non-forfeitable dividend rights at the same rate as common stock. Under the two-class method, undistributed earnings allocated to participating securities are subtracted from net income attributable to common stock in determining net income attributable to common stockholders. In loss periods, no allocation is made to participating securities because the participating securities do not share in losses. For basic EPS, the weighted-average number of common shares outstanding excludes outstanding shares related to unvested restricted stock awards. For diluted EPS, the basic shares outstanding are adjusted by adding potentially dilutive securities, unless their effect is anti-dilutive.
Business and Credit Concentration	Business and Credit Concentrations We maintain our cash in bank deposit accounts which, at times, may exceed federally insured amounts. We have not experienced any losses in such accounts. We believe we are not exposed to any significant credit risk on our cash. We also sell oil, natural gas and NGLs to various types of customers, including pipelines, refineries and other oil and natural gas companies and electricity to utility companies. Based on the current demand for oil, natural gas and NGLs and the availability of other purchasers, we believe that the loss of any one of our major purchasers would not have a material adverse effect on our financial condition, results of operations or net cash provided by operating activities.
Bankruptcy Accounting	Bankruptcy Accounting The consolidated financial statements have been prepared as if the Company will continue as a going concern and reflect the application of GAAP. GAAP requires that the financial statements, for periods subsequent to filing of the bankruptcy proceedings, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, gains and losses that are realized or incurred in connection with the bankruptcy proceedings are recorded in “reorganization items, net” on our consolidated statements of operations. In addition, pre-petition unsecured and under-secured obligations that may be impacted by the bankruptcy reorganization process have been classified as “liabilities subject to compromise” on our balance sheet. These liabilities are reported at the amounts allowed as claims by the Bankruptcy Court, although they may be settled for less. Upon emergence from bankruptcy on February 28, 2017, we adopted fresh-start accounting which resulted in Berry Corp. becoming the financial reporting entity. As a result of the application of fresh-start accounting and the effects of the implementation of the Plan (see Note 14 for definition), the financial statements on or after February 28, 2017 are not comparable to the financial statements prior to that date. See Note 14 for additional information.
Recently Adopted Accounting Standards and New Accounting Standards Issued, But Not Yet Adopted	Recently Adopted Accounting Standards During 2016, the FASB issued rules clarifying the new revenue recognition standard issued in 2014. The new rules are intended to improve and converge the financial reporting requirements for revenue from contracts with customers. We are an emerging growth company and elected to delay adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 31, 2018. As such, we adopted these rules in the first quarter of 2019 and applied the modified retrospective approach, meaning the cumulative effect of initially applying the standard is recognized in the most current period presented in the financial statements. We have performed an analysis of existing contracts and determined adoption did not have a material impact on our condensed consolidated financial statements. In addition, we have evaluated the changes to relevant business practices, accounting policies and control activities and we did not experience a material change in our revenue accounting as a result of the adoption of these rules. Refer to Note 13 for additional disclosure information. New Accounting Standards Issued, But Not Yet Adopted In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. We are currently identifying our lease population in accordance with the new lease standard. We expect the adoption of these rules to increase other assets and other liabilities on our balance sheet and we are currently evaluating the impact on our consolidated results of operations. In December 2019, the FASB issued rules which simplifies the accounting for income taxes. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of these rules on our consolidated financial statements.

Basis of Presentation and Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Activity in ARO Account



	Berry Corp. (Successor)
	Year Ended December 31, 2019			Year Ended December 31, 2018
	(in thousands)
Beginning balance	$	95,548		$	97,422
Liabilities incurred	11,534			4,901
Settlements and payments	(22,036		)	(3,555		)
Accretion expense	7,570			6,258
Reduction due to property sales	—			(4,145		)
Revisions	56,611			(5,333		)
Ending balance	$	149,227		$	95,548

Oil and Natural Gas Properties and Other Property and Equipment (Tables)

12 Months Ended

Dec. 31, 2019

Extractive Industries [Abstract]

Schedule Aggregate Capitalized Costs

Aggregate capitalized costs related to oil, natural gas and NGL production activities with applicable accumulated depletion and amortization are presented below:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Proved properties	$	1,361,814		$	1,073,959
Unproved properties	313,903			388,034
Total proved and unproved properties	1,675,717			1,461,993
Less accumulated depletion and amortization	(209,105		)	(123,217		)
Total proved and unproved properties, net	$	1,466,612		$	1,338,776

Schedule of Other Property and Equipment

Other property and equipment consisted of the following:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Cogens, natural gas plants and pipelines	$	94,619		$	86,562
Buildings and leasehold improvements	3,752			3,359
Vehicles and service equipment	9,124			6,753
Furniture and equipment	20,078			14,964
Land	7,544			8,073
Total other property and equipment	135,117			119,710
Less: accumulated depreciation	(25,462		)	(15,778		)
Total other property and equipment, net	$	109,655		$	103,932

Debt (Tables)

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Schedule of Outstanding Debt

The following table summarizes our outstanding debt:



	December 31, 2019			December 31, 2018			Interest Rate	Maturity	Security
	(in thousands)
RBL Facility	$	1,850		$	—		variable rates of 5.5% (2019) and 4.5% (2018), respectively	June 29, 2022	Mortgage on 85% of Present Value of proven oil and gas reserves
2026 Notes	400,000			400,000			7.0%	February 15, 2026	Unsecured
Long-Term Debt - Principal Amount	401,850			400,000
Less: Debt Issuance Costs	(7,531		)	(8,214		)
Long-Term Debt, net	$	394,319		$	391,786

Derivatives (Tables)

12 Months Ended

Dec. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of December 31, 2019, we had the following crude oil production and gas purchases hedges.



	Q1 2020		Q2 2020		Q3 2020		Q4 2020		FY 2021
Fixed Price Oil Swaps (Brent):
Hedged volume (MBbls)	1,729		1,456		1,472		1,472		730
Weighted-average price ($/Bbl)	$	63.92	$	64.30	$	64.21	$	64.21	$	58.50
Fixed Price Oil Swaps (WTI):
Hedged volume (MBbls)	91		30		—		—		—
Weighted-average price ($/Bbl)	$	61.75	$	61.75	$	—	$	—	$	—
Fixed Price Gas Purchase Swaps (Kern, Delivered):
Hedged volume (MMBtu)	5,005,000		5,005,000		5,060,000		2,315,000		900,000
Weighted-average price ($/MMBtu)	$	2.89	$	2.89	$	2.89	$	2.79	$	2.50
Fixed Price Gas Purchase Swaps (SoCal Citygate):
Hedged volume (MMBtu)	455,000		455,000		460,000		155,000		—
Weighted-average price ($/MMBtu)	$	3.80	$	3.80	$	3.80	$	3.80	$	—

Schedule of Fair Values (Gross and Net) of Outstanding Derivatives

The following tables present the fair values (gross and net) of our outstanding derivatives as of December 31, 2019 and December 31, 2018:



	Berry Corp. (Successor)
	December 31, 2019
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value			Gross Amounts Offset on Balance Sheet			Net Fair Value Presented on Balance Sheet
	(in thousands)
Assets:
Commodity Contracts	Current assets	$	17,799		$	(8,633	)	$	9,166
Commodity Contracts	Non-current assets	773			(248		)	525
Liabilities:
Commodity Contracts	Current liabilities	(13,450		)	8,633			(4,817		)
Commodity Contracts	Non-current liabilities	(389		)	248			(141		)
Total derivatives		$	4,733		$	—		$	4,733



	Berry Corp. (Successor)
	December 31, 2018
	Balance Sheet Classification	Gross Amounts Recognized at Fair Value			Gross Amounts Offset in the Balance Sheet			Net Fair Value Presented in the Balance Sheet
	(in thousands)
Assets:
Commodity Contracts	Current assets	$	89,981		$	(1,385	)	$	88,596
Commodity Contracts	Non-current assets	3,289			—			3,289
Liabilities:
Commodity Contracts	Current liabilities	(1,385		)	1,385			—
Total derivatives		$	91,885		$	—		$	91,885

Schedule of Gains and Losses of Derivatives Instruments in Statement of Operations

A summary of losses and gains on the derivatives included on the statements of operations is presented below:



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
(Losses) gains on oil derivatives	$	(37,998	)	$	(4,621	)	$	(66,900	)	$	12,886
(Losses) gains on natural gas derivatives	(6,957		)	6,357			—			—
Total (losses) gains on oil and natural gas derivatives	$	(44,955	)	$	1,735		$	(66,900	)	$	12,886

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624163-113959

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5580258-113959

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41620-113959

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579245-113959

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41638-113959

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41678-113959

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=109980867&loc=d3e41641-113959

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5624171-113959

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=109980867&loc=SL5579240-113959

+ Details

Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Net Minimum Payments for Purchase Obligations and Operating Leases

At December 31, 2019, future net minimum payments for non-cancelable purchase obligations and operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes and insurance and maintenance expense) were as follows:



	2020		2021		2022		2023		2024		Thereafter		Total
	(in thousands)
Minimum purchase obligations⁽¹⁾	$	7,136	$	2,675	$	2,590	$	1,061	$	—	$	—	$	13,462
Minimum lease payments	$	1,723	$	1,731	$	1,740	$	1,647	$	1,420	$	3,708	$	11,969

__________


(1)	Amounts include payments which will become due under long-term agreements to purchase goods and services used in the normal course of business to secure transportation of our natural gas production to market as well as pipeline and processing capacity.

Equity (Tables)

12 Months Ended

Dec. 31, 2019

Equity [Abstract]

Schedule of Restricted Stock Units (RSUs) Activity



	Number of shares		Weighted-average Grant Date Fair Value
	(shares in thousands)
Non-vested at December 31, 2018	641		$	10.82
Granted	767		$	12.62
Vested	(308	)	$	10.87
Forfeited	(86	)	$	12.19
Non-vested at December 31, 2019	1,014		$	12.05

Performance-Based Restricted Stock Unit (PSUs) Activity



	Number of shares		Weighted-average Grant Date Fair Value
	(shares in thousands)
Non-vested at December 31, 2018	282		$	6.73
Granted	554		$	12.75
Vested	—		$	—
Forfeited	(38	)	$	9.69
Non-vested at December 31, 2019	798		$	10.77

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

Income tax expense (benefit) consisted of the following:



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Current taxes:
Federal	$	—		$	(465	)	$	465	$	—
State	227			(446		)	450		221
Total current taxes	227			(911		)	915		221
Deferred taxes:
Federal	(36,756		)	33,227			1,888		—
State	(21		)	10,719			—		9
Total deferred taxes	(36,777		)	43,946			1,888		9
Total current and deferred taxes	$	(36,550	)	$	43,035		$	2,803	$	230

Schedule of Effective Tax Rate

A reconciliation of the federal statutory tax rate to the effective tax rate is as follows:



	Berry Corp. (Successor)						Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018		Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
Federal statutory rate	21.0	%	21.0	%	35.0	%	35.0	%
State, net of federal tax benefit	8.9	%	6.3	%	7.2	%	—	%
Effect of permanent differences	0.2	%	(0.6	)%	(0.4	)%	—	%
Tax credits and federal return to provision	(546.4	)%	—	%	—	%	—	%
State return to provision	(6.6	)%	—	%	—	%	—	%
Tax reform—rate change⁽¹⁾	—	%	—	%	(14.7	)%	—	%
Income excluded from nontaxable entities	—	%	—	%	—	%	(35.0	)%
Change in valuation allowance	—	%	(4.1	)%	(42.4	)%	—	%
Effective tax rate	(522.9	)%	22.6	%	(15.3	)%	—	%

__________


(1)	For the ten months ended December 31, 2017, includes the tax rate reduction. The impact of the rate change is fully offset in the “Change in valuation allowance” item.

Schedule of Deferred Tax Assets and Liabilities

Significant components of the deferred tax assets and liabilities are as follows:



	Berry Corp. (Successor)
	December 31, 2019			December 31, 2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	14,542		$	14,310
Accruals	12,218			2,993
Asset retirement obligations	41,382			26,383
Tax credits and federal return to provision	47,803			—
Interest limitation carryforward	13,892			7,486
Other	5,154			2,033
Total deferred tax assets	134,991			53,205
Deferred tax liabilities:
Book tax differences in property basis	(143,896		)	(95,348		)
Derivative instruments	(152		)	(3,692		)
Total deferred tax liabilities	(144,048		)	(99,040		)
Net deferred tax asset (liability)	$	(9,057	)	$	(45,835	)

Summary of Unrecognized Tax Benefits



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Unrecognized tax benefits - January 1	$	—	$	—
Prior year - increase	6,720		—
Current year - increase	7,172		—
Unrecognized tax benefits - December 31	$	13,892	$	—

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows (Tables)

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Schedule of Other Current Assets

Other current assets reported on the balance sheets included the following:



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Prepaid expenses	$	4,577	$	4,656
Materials and supplies	10,544		5,461
Oil inventories	3,432		3,786
Other	846		464
Other current assets	$	19,399	$	14,367

Schedule of Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses on the balance sheets included the following:



	Berry Corp. (Successor)
	December 31, 2019		December 31, 2018
	(in thousands)
Accounts payable-trade	$	25,475	$	13,564
Accrued expenses	45,589		66,417
Royalties payable	25,385		26,189
Taxes other than income tax liability	9,150		10,766
Accrued interest	10,500		10,500
Dividends payable	9,888		9,992
Asset retirement obligation - current portion	25,208		6,372
Other	616		318
Total accounts payable and accrued expenses	$	151,811	$	144,118

Supplemental Cash Flow Information

Supplemental disclosures to the statements of cash flows are presented below:



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties	$	10,056		$	2,371		$	—	$	—
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized	$	30,720		$	19,761		$	14,276	$	8,057
Income taxes	$	(2	)	$	(1,901	)	$	1,994	$	—
Reorganization items, net	$	—		$	832		$	1,732	$	11,838



	Berry Corp. (Successor)						Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018		Ten Months Ended December 31, 2017		Two Months Ended February 28, 2017
	(in thousands)
Beginning of Period
Cash and cash equivalents	$	68,680	$	33,905	$	32,049	$	30,483
Restricted cash	—		34,833		52,860		197,793
Restricted cash in other noncurrent assets	—		—		125		128
Cash, cash equivalents and restricted cash	$	68,680	$	68,738	$	85,034	$	228,404

Ending of Period
Cash and cash equivalents	$	—	$	68,680	$	33,905	$	32,049
Restricted cash	—		—		34,833		52,860
Restricted cash in other noncurrent assets	—		—		—		125
Cash, cash equivalents and restricted cash	$	—	$	68,680	$	68,738	$	85,034

Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share



	Berry Corp. (Successor)								Berry LLC (Predecessor)
	Year Ended December 31, 2019		Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands except per share amounts)
Basic EPS calculation
Net income (loss)	$	43,539	$	147,102		$	(21,068	)	n/a
less: Series A Preferred Stock dividends and conversion to common stock	—		(97,942		)	(18,248		)	n/a
Net income (loss) attributable to common stockholders	$	43,539	$	49,160		$	(39,316	)	n/a
Weighted-average shares of common stock outstanding⁽¹⁾	81,379		57,743			38,644			n/a
Basic earnings (loss) per share⁽²⁾	$	0.54	$	0.85		$	(1.02	)	n/a
Diluted EPS calculation
Net income (loss)	$	43,539	$	147,102		$	(21,068	)	n/a
less: Series A Preferred Stock dividends and conversion to common stock	—		(97,942		)	(18,248		)	n/a
Net income (loss) attributable to common stockholders	$	43,539	$	49,160		$	(39,316	)	n/a
Weighted-average shares of common stock outstanding⁽¹⁾	81,379		57,743			38,644			n/a
Dilutive effect of potentially dilutive securities⁽³⁾	572		189			—			n/a
Weighted-average common shares outstanding - diluted	81,951		57,932			38,644			n/a
Diluted earnings (loss) per share⁽²⁾	$	0.53	$	0.85		$	(1.02	)	n/a

__________


(1)	For the year ended December 31, 2018, we retrospectively adjusted the weighted average shares in our earnings per share calculations for the 2,770,000 shares issued instead of 7,080,000 shares that had been reserved for the year ended December 31, 2018 and the ten months ended December 31, 2017.


(2)	Per share amounts are stated net of tax.


(3)	No potentially dilutive securities were included in computing earnings (loss) per share for the ten months ended December 31, 2017 because the effect of inclusion would have been anti-dilutive.

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

As a result of adoption of this standard, we are now required to disclose the following information regarding revenue from contracts with customers on a disaggregated basis.



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
Oil sales	$	543,634		$	520,979		$	303,589		$	54,110
Natural gas sales	19,391			26,244			40,887			14,476
Natural gas liquids sales	2,571			5,651			13,452			5,534
Electricity sales	29,397			35,208			21,972			3,655
Marketing revenues	2,094			2,322			2,694			633
Other revenues	316			774			3,975			1,424
Revenues from contracts with customers	597,403			591,178			386,569			79,832
(Losses) gains on oil derivatives	(37,998		)	(4,621		)	(66,900		)	12,886
Total revenues and other	$	559,405		$	586,557		$	319,669		$	92,718

Emergence from Voluntary Reorganization under Chapter 11 (Tables)

12 Months Ended

Dec. 31, 2019

Reorganizations [Abstract]

Schedule of Reorganization Items

The following table summarizes the components of reorganization items included in the consolidated statements of operations:



	Berry Corp. (Successor)									Berry LLC (Predecessor)
	Year Ended December 31, 2019			Year Ended December 31, 2018			Ten Months Ended December 31, 2017			Two Months Ended February 28, 2017
	(in thousands)
Return of undistributed funds from cash distribution pool⁽¹⁾	$	—		$	22,855		$	—		$	—
Gains on resolution of pre-emergence liabilities and claims	—			3,713			—			—
Legal and other professional advisory fees	(426		)	(3,083		)	(1,027		)	(19,481		)
Gains on settlement of liabilities subject to compromise	—			—			—			421,774
Fresh-start valuation adjustments	—			—			—			(920,699		)
Other	—			1,205			(705		)	10,686
Reorganization items, net	$	(426	)	$	24,690		$	(1,732	)	$	(507,720	)

__________


(1)	This amount was reclassed from restricted cash to general cash, thus does not represent a cash transaction.

Fresh-Start Accounting (Tables)

12 Months Ended

Dec. 31, 2019

Reorganizations [Abstract]

Schedule of Post-Petition Liabilities and Allowed Claims

The reorganization value of our assets immediately prior to confirmation of the Plan was less than the total of all post-petition liabilities and allowed claims, as shown below:



	(in thousands)
Liabilities subject to compromise	$	1,000,336
Pre-petition debt not classified as subject to compromise	891,259
Post-petition liabilities	245,702
Total post-petition liabilities and allowed claims	2,137,297
Reorganization value of assets immediately prior to implementation of the Plan	(1,722,585		)
Excess post-petition liabilities and allowed claims	$	414,712

Reconciliation of Enterprise Value to Estimated Reorganization Value

The following table reconciles the enterprise value to the estimated reorganization value as of the Effective Date:



	(in thousands)
Enterprise value	$	1,278,527
Plus: Fair value of non-debt liabilities	282,511
Reorganization value of the Successor’s assets	$	1,561,038

Summary of Adjustments in Fresh-Start Consolidated Balance Sheet



	As of February 28, 2017
	Berry LLC (Predecessor)			Reorganization Adjustments⁽¹⁾					Fresh-Start Adjustments					Berry Corp. (Successor)
	(in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	27,407		$	4,642		⁽²⁾		$	—				$	32,049
Accounts receivable	76,027			(15,700		)	⁽³⁾		(816		)	⁽¹⁴	⁾	59,511
Derivative instruments	243			—					—					243
Restricted cash	128			52,732			⁽⁴⁾		—					52,860
Other current assets	18,437			(5,558		)	⁽⁵⁾		3,873			⁽¹⁵	⁾	16,752
Total current assets	122,242			36,116					3,057					161,415
Non-current assets:
Oil and natural gas properties	5,031,498			—					(3,787,898		)	⁽¹⁶	⁾	1,243,600
Less accumulated depletion and amortization	(2,814,999		)	—					2,814,999			⁽¹⁶	⁾	—
Total oil and natural gas properties, net	2,216,499			—					(972,899		)			1,243,600
Other property and equipment	124,379			—					(15,576		)	⁽¹⁷	⁾	108,803
Less accumulated depreciation	(22,107		)	—					22,107			⁽¹⁷	⁾	—
Total other property and equipment, net	102,273			—					6,530					108,803
Derivative instruments	57			—					—					57
Restricted cash	197,939			(197,814		)	⁽²⁾		—					125
Other non-current assets	16,076			151			⁽⁶⁾		30,811			⁽¹⁸	⁾	47,038
Total assets	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	60,323		$	52,371		⁽⁷⁾		$	3,818		⁽¹⁹	⁾	$	116,512
Derivative instruments	5,355			—					—					5,355
Current portion of long-term debt, net	891,259			(891,259		)	⁽⁸⁾		—					—
Other accrued liabilities	7,335			(3,760		)	⁽⁹⁾		1,295			⁽²⁰	⁾	4,870
Total current liabilities	964,272			(842,648		)			5,113					126,737
Non-current liabilities:
Derivative instruments	1,710			—					—					1,710
Long-term debt	—			400,000			⁽¹⁰	⁾	—					400,000
Other non-current liabilities	170,979			—					(16,915		)	⁽²¹	⁾	154,064
Liabilities subject to compromise	1,000,336			(1,000,336		)	⁽¹¹	⁾	—					—
Equity:
Predecessor additional paid-in capital	2,798,714			(2,798,714		)	⁽¹²	⁾	—					—
Predecessor accumulated deficit	(2,280,925		)	375,159			⁽¹³	⁾	1,905,766			⁽²²	⁾	—
Successor preferred stock	—			335,000			⁽¹²	⁾	—					335,000
Successor common stock	—			33			⁽¹²	⁾	—					33
Successor additional paid-in capital	—			3,369,959			⁽¹²	⁾	(2,826,465		)	⁽²²	⁾	543,494
Total equity	517,789			1,281,437					(920,699		)			878,527
Total liabilities and equity	$	2,655,086		$	(161,547	)			$	(932,501	)			$	1,561,038

__________

Reorganization Adjustments:

(1)


(2)	Changes in cash and cash equivalents included the following:



	(in thousands)
Borrowings under the Emergence Credit Facility	$	400,000
Proceeds from issuance of preferred stock pursuant the Berry Rights Offerings	335,000
Cash receipt from Linn Energy, LLC for ad valorem taxes	23,366
Removal of restriction on cash balance (includes $128 previously recorded as short term)	197,942
Payment to the holders of claims under the Pre-Emergence Credit Facility (including $29 in bank fees and $3,760 in interest)	(897,663)
Payment of professional fees	(992)
Payment of Emergence Credit Facility fee that was capitalized	(151)
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Funding of the professional fees escrow account	(17,860)
Changes in cash and cash equivalents	$	4,642


(3)	Collection of overpayment to Linn Energy, LLC for ad valorem taxes.


(4)	Primarily reflects the transfer to restricted cash to fund the Predecessor’s professional fees escrow account and general unsecured claims Cash Distribution Pool.


(5)	Primarily reflects the write-off of the Predecessor’s deferred financing fees.


(6)	Reflects the capitalization of deferred financing fees related to the Emergence Credit Facility.


(7)	Net increase in accounts payable and accrued expenses reflects:



	(in thousands)
Recognition of payables for the general unsecured claims Cash Distribution Pool	$	35,000
Recognition of payables for the professional fees escrow account	17,860
Recognition of payable for ad valorem tax liability	7,666
Net change of other professional fees payable	(8,161)
Other	6
Net increase in accounts payable and accrued expenses	$	52,371


(8)	Reflects the repayment of the Pre-Emergence Credit Facility.


(9)	Reflects the payment of accrued interest on the Pre-Emergence Credit Facility.


(10)	Reflects borrowings under the Emergence Credit Facility.


(11)	Settlement of liabilities subject to compromise and the resulting net gains were determined as follows:



	(in thousands)
Accounts payable and accrued expenses	$	151,298
Accrued interest payable	15,238
Debt	833,800
Total liabilities subject to compromise	1,000,336
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Common stock to holders of Unsecured Notes and general unsecured creditors	(543,562)
Gains on settlement of liabilities subject to compromise	$	421,774


(12)	Net increase in capital accounts reflects:



	(in thousands)
Common stock to holders of Unsecured Notes and general unsecured creditors	$	543,562
Payment of issuance costs	(35)
Dividend related to beneficial conversion feature of preferred stock	27,751
Cancellation of the Predecessor’s additional paid-in capital	2,798,714
Par value of common stock	(33)
Change in additional paid-in capital	3,369,959
Proceeds from issuance of preferred stock	335,000
Par value of common stock	33
Predecessor’s additional paid-in capital	(2,798,714)
Net increase in capital accounts	$	906,278

See Note 6 for additional information on the issuances and distributions of the Successor’s common and preferred stock.


(13)	Net decrease in accumulated deficit reflects:



	(in thousands)
Recognition of gains on settlement of liabilities subject to compromise	$	421,774
Recognition of professional fees	(13,667)
Write-off of deferred financing fees	(5,197)
Total reorganization items, net	402,910
Dividend related to beneficial conversion feature of preferred stock	(27,751		)
Net decrease in accumulated deficit	$	375,159

Fresh-Start Adjustments:


(14)	Reflects a change in accounting policy from the entitlements method to the sales method for natural gas production imbalances.


(15)	Primarily reflects an increase in the current portion of greenhouse gas allowances.


(16)	Reflects a decrease of oil and natural gas properties, based on the methodology discussed in Note 2, and the elimination of accumulated depletion and amortization. The following table summarizes the components of oil and natural gas properties as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Proved properties	$	712,400	$	4,266,843
Unproved properties	531,200		764,655
Total proved and unproved properties	1,243,600		5,031,498
Less accumulated depletion and amortization	—		(2,814,999		)
Total proved and unproved properties, net	$	1,243,600	$	2,216,499


(17)	Reflects a decrease of other property and equipment and the elimination of accumulated depreciation. The following table summarizes the components of other property and equipment as of the Effective Date:



	Berry Corp. (Successor)		Berry LLC (Predecessor)
	Fair Value		Historical Book Value
	(in thousands)
Natural gas plants and pipelines	$	91,427	$	109,675
Land	8,262		201
Furniture and office equipment	5,040		3,879
Buildings and leasehold improvements	2,740		5,884
Vehicles	1,156		4,542
Drilling and other equipment	178		198
Total other property and equipment	108,803		124,379
Less accumulated depreciation	—		(22,107		)
Total other property and equipment, net	$	108,803	$	102,273


(18)	Primarily reflects an increase in greenhouse gas allowances of approximately $30 million and a joint venture investment of approximately $1 million. Greenhouse gas allowances were valued using a market approach based on trading prices for carbon credits on February 28, 2017. Our joint venture investment was valued based on a market approach using a market EBITDA multiple.


(19)	Reflects increases for greenhouse gas emissions liabilities of approximately $4 million and a change in accounting policy from the entitlements method to the sales method for gas production imbalances of approximately $200,000, partially offset by a decrease for the current portion of intangibles liabilities of approximately $500,000.


(20)	Reflects an increase of the current portion of asset retirement obligations.

(21)


(22)	Reflects the cumulative impact of the fresh-start accounting adjustments discussed above and the elimination of the Predecessor’s accumulated deficit.

Basis of Presentation and Significant Accounting Policies - Narrative (Details)	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) facility	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Public Utilities, General Disclosures [Line Items]
Capitalized interest			$ 2,000,000
Capitalized exploratory well costs		$ 0	0	$ 0	$ 0
Net capitalized costs attributable to unproved properties	$ 531,200,000		313,903,000	388,034,000
Net capitalized costs attributable to unproved properties				388,000,000
Impairment of oil and gas properties	$ 0	$ 0	51,081,000	0
Asset retirement obligation, noncurrent, increase in timing and cost estimates			57,000,000
Asset retirement obligation, noncurrent, increase due to new wells			11,534,000	4,901,000
Asset retirement obligation, noncurrent, increase due to accretion expense			7,570,000	6,258,000
Asset retirement obligation, liabilities settled			(22,036,000)	$ (3,555,000)
Asset retirement obligation, current, increase in timing and cost estimates			$ 19,000,000
Number of cogeneration facilities \| facility			5
Largest customers \| Sales \| Customer one
Public Utilities, General Disclosures [Line Items]
Concentration risk	34.00%		36.00%	35.00%	36.00%
Largest customers \| Sales \| Customer two
Public Utilities, General Disclosures [Line Items]
Concentration risk	29.00%		24.00%	28.00%	29.00%
Largest customers \| Sales \| Customer three
Public Utilities, General Disclosures [Line Items]
Concentration risk			13.00%	13.00%	13.00%
Largest customers \| Trade accounts receivable \| Customer one
Public Utilities, General Disclosures [Line Items]
Concentration risk			40.00%	26.00%
Largest customers \| Trade accounts receivable \| Customer two
Public Utilities, General Disclosures [Line Items]
Concentration risk			17.00%	22.00%
Largest customers \| Trade accounts receivable \| Customer three
Public Utilities, General Disclosures [Line Items]
Concentration risk			11.00%	10.00%
Buildings and leasehold improvements \| Minimum
Public Utilities, General Disclosures [Line Items]
Expected useful life			5 years
Buildings and leasehold improvements \| Maximum
Public Utilities, General Disclosures [Line Items]
Expected useful life			30 years
Plant and pipeline, drilling and other equipment \| Minimum
Public Utilities, General Disclosures [Line Items]
Expected useful life			2 years
Plant and pipeline, drilling and other equipment \| Maximum
Public Utilities, General Disclosures [Line Items]
Expected useful life			30 years
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) \| Minimum
Public Utilities, General Disclosures [Line Items]
Vesting period			1 year
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs) \| Maximum
Public Utilities, General Disclosures [Line Items]
Vesting period			3 years
Restricted Stock Units (RSUs)
Public Utilities, General Disclosures [Line Items]
Vesting period			3 years
Performance-based Restricted Stock Units (PSUs) \| Minimum
Public Utilities, General Disclosures [Line Items]
Vesting period			2 years
Performance-based Restricted Stock Units (PSUs) \| Maximum
Public Utilities, General Disclosures [Line Items]
Vesting period			3 years
Proved Oil and Gas Properties
Public Utilities, General Disclosures [Line Items]
Impairment of oil and gas properties			$ 23,000,000
Unproved Oil and Gas Properties
Public Utilities, General Disclosures [Line Items]
Impairment of oil and gas properties			$ 28,000,000

Basis of Presentation and Significant Accounting Policies - Asset Retirement Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Asset retirement obligation, noncurrent	$ 124,019	$ 89,176
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
Beginning balance	95,548	97,422
Liabilities incurred	11,534	4,901
Settlements and payments	(22,036)	(3,555)
Accretion expense	7,570	6,258
Reduction due to property sales	0	(4,145)
Revisions	56,611	(5,333)
Ending balance	$ 149,227	$ 95,548

Oil and Natural Gas Properties and Other Property and Equipment - Summary of Aggregate Capitalized Costs (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Extractive Industries [Abstract]
Proved properties	$ 1,361,814	$ 1,073,959	$ 712,400
Unproved properties	313,903	388,034	531,200
Oil and natural gas properties	1,675,717	1,461,993	1,243,600
Less accumulated depletion and amortization	(209,105)	(123,217)	0
Total oil and natural gas properties, net	$ 1,466,612	$ 1,338,776	$ 1,243,600

Oil and Natural Gas Properties and Other Property and Equipment - Schedule of Other Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Property, Plant and Equipment [Line Items]
Other property and equipment	$ 135,117	$ 119,710	$ 108,803
Less accumulated depreciation	(25,462)	(15,778)	0
Total other property and equipment, net	109,655	103,932	$ 108,803
Natural gas plants and pipelines
Property, Plant and Equipment [Line Items]
Other property and equipment	94,619	86,562
Buildings and leasehold improvements
Property, Plant and Equipment [Line Items]
Other property and equipment	3,752	3,359
Vehicles
Property, Plant and Equipment [Line Items]
Other property and equipment	9,124	6,753
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Other property and equipment	20,078	14,964
Land
Property, Plant and Equipment [Line Items]
Other property and equipment	$ 7,544	$ 8,073

Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Long-Term Debt - Principal Amount	$ 401,850	$ 400,000
Less: Debt Issuance Costs	(7,531)	(8,214)
Long-Term Debt, net	$ 394,319	391,786
Line of credit \| RBL Facility
Debt Instrument [Line Items]
Present value of proven oil and gas reserves	85.00%
Long-Term Debt - Principal Amount	$ 1,850	$ 0
Medium-term notes \| 2026 Notes
Debt Instrument [Line Items]
Interest Rate		7.00%
Long-Term Debt - Principal Amount	$ 400,000	$ 400,000
Line of credit \| RBL Facility
Debt Instrument [Line Items]
Variable rate	5.50%	4.50%

Debt - Narrative (Details)		1 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
Debt - Narrative (Details)	Jul. 31, 2017 USD ($)	Feb. 28, 2018 USD ($)	Feb. 28, 2017 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Feb. 27, 2020 USD ($)
Debt Instrument [Line Items]
Debt issuance costs for the 2026 Senior Unsecured Notes					$ 7,531,000	$ 8,214,000
Amortization of debt issuance costs			$ 416,000	$ 1,988,000	5,059,000	5,430,000
Maximum pro forma leverage ratio allowable which will permit repurchase of equity and indebtedness	2.75
Mortgage held on present value of proven oil and gas reserves	85.00%
Net proceeds from issuance of debt			0	0	$ 0	400,000,000
Minimum availability of borrowing base required which will permit distributions to parent company					10.00%
RBL Facility
Debt Instrument [Line Items]
Debt issuance costs for the RBL Facility					$ 11,000,000	16,000,000
Medium-term notes \| 2026 Notes
Debt Instrument [Line Items]
Fair value of debt					376,000,000	$ 368,000,000
Interest rate						7.00%
Line of credit \| RBL Facility
Debt Instrument [Line Items]
Borrowings outstanding					2,000,000
Unsecured debt \| 2026 Notes
Debt Instrument [Line Items]
Principal amount of debt issued		$ 400,000,000
Interest rate		7.00%
Net proceeds from issuance of debt		$ 391,000,000
Aggregate principal amount able to be redeemed		35.00%
Redemption price in event of change in control		101.00%
Line of credit \| RBL Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 1,500,000,000.0
Borrowing base					500,000,000
Initial borrowing commitment					400,000,000
Letters of credit outstanding					7,000,000
Available borrowing capacity					$ 391,000,000
Commitment fee	0.50%
Leverage ratio (no more than)	4.00
Current ratio (at least)	1.00
Leverage ratio at period end					1.38
Current ratio at period end					3.18
Reduction in borrowing base if unsecured indebtedness is incurred	25.00%
Minimum availability of borrowing base required which will permit repurchase of equity and indebtedness	15.00%
Maximum pro forma leverage ratio allowable which will permit distributions to parent company					3.00
Letters of credit \| RBL Facility
Debt Instrument [Line Items]
Maximum borrowing capacity	$ 25,000,000
LIBOR \| Minimum \| Line of credit \| RBL Facility
Debt Instrument [Line Items]
Applicable margin	2.50%
LIBOR \| Maximum \| Line of credit \| RBL Facility
Debt Instrument [Line Items]
Applicable margin	3.50%
Customary base rate \| Minimum \| Line of credit \| RBL Facility
Debt Instrument [Line Items]
Applicable margin	1.50%
Customary base rate \| Maximum \| Line of credit \| RBL Facility
Debt Instrument [Line Items]
Applicable margin	2.50%
On or after February 15, 2021 \| Unsecured debt \| 2026 Notes
Debt Instrument [Line Items]
Redemption price		107.00%
Prior to February 15, 2021 \| Unsecured debt \| 2026 Notes
Debt Instrument [Line Items]
Redemption price		100.00%
Interest expense
Debt Instrument [Line Items]
Amortization of debt issuance costs			$ 0	$ 2,000,000	$ 5,000,000	$ 5,000,000
Subsequent Event
Debt Instrument [Line Items]
Bond repurchase program, authorized amount							$ 75,000,000

Derivatives - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
Derivatives - Narrative (Details) - USD ($) $ in Thousands	May 31, 2018	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Target period to cover operating expenses and fixed charges (up to)				2 years
Target period for fixing the price natural gas purchases used in steam operations (up to)				2 years
Purchased put options premium				$ 17,000
Deferred premiums, remaining				55
Derivative termination costs	$ 127,000
Cash settlements received on derivatives		$ 3,000	$ 500	42,000
Cash settlements paid on normal derivatives		$ (534)	$ (3,068)	$ (42,197)	$ 38,482

Derivatives - Schedule of Derivative Instruments (Details) - Scenario, Forecast MMBTU in Thousands, MBbls in Thousands	3 Months Ended				12 Months Ended
	Dec. 31, 2020 MMBTU $ / bbl $ / MMBtu MBbls	Sep. 30, 2020 MMBTU $ / bbl $ / MMBtu MBbls	Jun. 30, 2020 MMBTU $ / bbl $ / MMBtu MBbls	Mar. 31, 2020 MMBTU $ / bbl $ / MMBtu MBbls	Dec. 31, 2021 MMBTU $ / bbl $ / MMBtu MBbls
Fixed Price Oil Swaps (Brent)
Derivative [Line Items]
Hedged volume (MBbls) \| MBbls	1,472	1,472	1,456	1,729	730
Weighted-average price ($/Bbl) \| $ / bbl	64.21	64.21	64.30	63.92	58.50
Fixed Price Oil Swaps (WTI)
Derivative [Line Items]
Hedged volume (MBbls) \| MBbls	0	0	30	91	0
Weighted-average price ($/Bbl) \| $ / bbl	0.00	0.00	61.75	61.75	0.00
Fixed Price Gas Purchase Swaps (Kern, Delivered)
Derivative [Line Items]
Hedged volume (MMBtu) \| MMBTU	2,315	5,060	5,005	5,005	900
Weighted-average price ($/MMBtu) \| $ / MMBtu	2.79	2.89	2.89	2.89	2.50
Fixed Price Gas Purchase Swaps (SoCal Citygate)
Derivative [Line Items]
Hedged volume (MMBtu) \| MMBTU	155	460	455	455	0
Weighted-average price ($/MMBtu) \| $ / MMBtu	3.80	3.80	3.80	3.80	0.00

Derivatives - Schedule of Fair Values (Gross and Net) of Outstanding Derivatives (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Total derivatives	$ 4,733	$ 91,885
Commodity Contracts \| Current assets
Derivatives, Fair Value [Line Items]
Gross Amounts Recognized at Fair Value	17,799	89,981
Gross Amounts Offset on Balance Sheet	(8,633)	(1,385)
Net Fair Value Presented on Balance Sheet	9,166	88,596
Commodity Contracts \| Non-current assets
Derivatives, Fair Value [Line Items]
Gross Amounts Recognized at Fair Value	773	3,289
Gross Amounts Offset on Balance Sheet	(248)	0
Net Fair Value Presented on Balance Sheet	525	3,289
Commodity Contracts \| Current liabilities
Derivatives, Fair Value [Line Items]
Gross Amounts Recognized at Fair Value	(13,450)	(1,385)
Gross Amounts Offset in the Balance Sheet	8,633	1,385
Net Fair Value Presented in the Balance Sheet	(4,817)	$ 0
Commodity Contracts \| Non-current liabilities
Derivatives, Fair Value [Line Items]
Gross Amounts Recognized at Fair Value	(389)
Gross Amounts Offset in the Balance Sheet	248
Net Fair Value Presented in the Balance Sheet	$ (141)

Derivatives - Schedule of Gains and Losses of Derivatives Instruments in Statement of Operations (Details) - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Derivative [Line Items]
Total (losses) gains on oil and natural gas derivatives	$ 12,886	$ (66,900)	$ (44,955)	$ 1,735
Oil derivatives
Derivative [Line Items]
(Losses) gains on derivatives	12,886	(66,900)	(37,998)	(4,621)
Natural gas derivatives
Derivative [Line Items]
(Losses) gains on derivatives	0	0	(6,957)	6,357
Oil and natural gas derivatives
Derivative [Line Items]
Total (losses) gains on oil and natural gas derivatives	$ 12,886	$ (66,900)	$ (44,955)	$ 1,735

Commitments and Contingencies - Narrative (Details) $ in Millions	Dec. 31, 2019 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitments under contracts	$ 6

Commitments and Contingencies - Schedule of Future Net Minimum Payments for Purchase Obligations and Operating Leases (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Minimum purchase obligations(1)
2019	$ 7,136
2020	2,675
2021	2,590
2022	1,061
2023	0
Thereafter	0
Total	13,462
Minimum lease payments
2019	1,723
2020	1,731
2021	1,740
2022	1,647
2023	1,420
Thereafter	3,708
Total minimum lease payments	$ 11,969

Equity - Additional Information (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands		2 Months Ended	3 Months Ended				10 Months Ended	12 Months Ended
	Feb. 27, 2020	Feb. 28, 2017	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Subsequent Event [Line Items]
Common stock, shares authorized (in shares)		750,000,000	750,000,000					750,000,000	750,000,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001					$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)		250,000,000
Preferred stock, par value (in dollars per share)		$ 0.001
Common stock, dividends declared (in dollars per share)			$ 0.12	$ 0.12	$ 0.12	$ 0.12		$ 0.48	$ 0.21
Dividends paid on common stock		$ 0					$ 0	$ 39,157	$ 7,365
Subsequent Event
Subsequent Event [Line Items]
Common stock, dividends declared (in dollars per share)	$ 0.12

Equity - Common Stock (Narrative) (Details) $ in Millions		2 Months Ended
Equity - Common Stock (Narrative) (Details) $ in Millions	Feb. 28, 2017 vote shares	Feb. 28, 2019 USD ($)	Mar. 31, 2019 shares
Class of Stock [Line Items]
Common stock contemplated by the Plan (in shares)	40,000,000
Common stock reserved to settle claims of unsecured creditors (in shares)	7,080,000
Shares issued to settle claims (in shares)			2,770,000
Payments for repurchase of common stock, subject to claims \| $		$ 20
Number of voting rights per share \| vote	1
Common Stock
Class of Stock [Line Items]
Issuance of shares (in shares)	32,920,000

Equity - Preferred Stock (Narrative) (Details) - USD ($)				1 Months Ended	12 Months Ended
	Jul. 26, 2018	Dec. 31, 2017	Feb. 28, 2017	Jul. 31, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2019
Class of Stock [Line Items]
Issuance of shares					$ 133,805,000
Preferred shares outstanding (in shares)					0		0
Preferred stock, dividend rate			6.00%
Preferred stock, cash dividend					$ 11,300,000	$ 0
Preferred stock, cumulative dividends		$ 18,000,000
Preferred stock, cumulative dividends (in dollars per share)		$ 0.51
Cumulative preferred in-kind dividend per share (in dollars per share)					$ 0.050907
Preferred share dividend (in shares)					1,825,000
Preferred stock, dividends declared (in dollars per share)					$ 0.308
Conversion of Series A preferred stock into common stock					$ 0
Series A Preferred Stock
Class of Stock [Line Items]
Issuance of shares (in shares)			35,845,001
Issuance of shares			$ 335,000,000
Conversion of Series A preferred stock into common stock					(335,000,000)
Additional Paid-in Capital
Class of Stock [Line Items]
Issuance of shares					133,795,000
Conversion of Series A preferred stock into common stock			$ 27,000,000		$ 334,960,000
Conversion of Series A to Common Shares
Class of Stock [Line Items]
Number of shares converted (in shares)	37,700,000			37,700,000
Common shares issued on conversion (in shares)	39,600,000			39,600,000

Equity - Initial Public Offering of Common Stock (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended		2 Months Ended	10 Months Ended	12 Months Ended
	Jul. 26, 2018	Jul. 17, 2018	Jul. 31, 2018	Jun. 30, 2018	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Net proceeds from IPO					$ 0	$ 0	$ 0	$ 133,805
Preferred dividend paid (in dollars per share)				$ 0.15
Conversion of Series A to Common Shares
Subsidiary, Sale of Stock [Line Items]
Number of shares converted (in shares)	37,700,000		37,700,000
Common shares issued on conversion (in shares)	39,600,000		39,600,000
Right to receive cash payment per share (in dollars per share)	$ 1.75
Right to receive cash payment less paid dividends per share (in dollars per share)	$ 1.60
Cash payment for conversion of preferred shares	$ 60,000
Common Stock \| Conversion of Series A to Common Shares
Subsidiary, Sale of Stock [Line Items]
Number of shares converted per each share of preferred stock (in shares)	1.05
Series A Preferred Stock Conversion and Common Stock Offering
Subsidiary, Sale of Stock [Line Items]
Net proceeds from IPO	$ 110,000
Increase in common stock outstanding (in shares)	8,695,653	8,695,653
Sale of stock, price per share (in dollars per share)	$ 14.00
Cash payment for conversion of preferred shares	$ 60,000
Sale of stock, consideration received	$ 27,000		$ 27,000
Reduction in income available to common stockholders								$ 87,000
Over-allotment option
Subsidiary, Sale of Stock [Line Items]
Sale of stock, price per share (in dollars per share)	$ 14.00
Sale of stock, underwriter option to purchase additional shares (in shares)	1,900,000		1,900,000

Equity - Shares Outstanding (Narrative) (Details) - shares	Dec. 31, 2019	Dec. 31, 2018
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	79,542,976	81,202,437
2017 Omnibus Incentive Plan
Class of Stock [Line Items]
Common stock, shares outstanding (in shares)	79,542,976
Unvested restricted stock units and performance restricted stock units outstanding (in shares)	2,348,334

Equity - Stock Repurchase Program (Narrative) (Details) - USD ($)	1 Months Ended	12 Months Ended
	Feb. 27, 2020	Dec. 31, 2019	Dec. 31, 2018
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares)		4,609,021	5,057,682
Average price of shares repurchased (in dollars per share)		$ 9.99	$ 9.88
Stock Repurchase Program
Equity, Class of Treasury Stock [Line Items]
Authorized amount of repurchases			$ 100,000,000
Stock Repurchase Program \| Subsequent Event
Equity, Class of Treasury Stock [Line Items]
Authorized amount of repurchases	$ 100,000,000
Authorized current repurchases	$ 50,000,000
Stock Repurchase Program, Current Repurchases Authorized
Equity, Class of Treasury Stock [Line Items]
Authorized amount of repurchases			$ 50,000,000

Equity - Stock-Based Compensation (Narrative) (Details) - USD ($)	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Jun. 27, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance (in shares)	7,080,000
Allocated share-based compensation expense	$ 0	$ 2,000,000	$ 9,000,000	$ 7,000,000
Tax benefit from compensation expense			$ 0	$ 1,500,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Unrecognized compensation costs			$ 8,000,000
Unrecognized compensation cost, weighted average period of recognition			2 years
Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation costs			$ 5,000,000
Unrecognized compensation cost, weighted average period of recognition			2 years
Restated Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares reserved for future issuance (in shares)					10,000,000
Number of shares available for grant (in shares)			6,954,454
Minimum \| Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			2 years
Vesting rights percentage			0.00%
Maximum \| Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period			3 years
Vesting rights percentage			200.00%

Equity - RSUs and PRUs Activity (Details) - $ / shares shares in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Restricted Stock Units (RSUs)
Number of shares
Outstanding, beginning of period (in shares)	641
Granted (in shares)	767
Vested (in shares)	(308)
Forfeited (in shares)	(86)
Outstanding, end of period (in shares)	1,014	641
Weighted-average Grant Date Fair Value
Outstanding, beginning of period (in dollars per share)	$ 10.82
Granted (in dollars per share)	12.62
Vested (in dollars per share)	10.87
Forfeited (in dollars per share)	12.19
Outstanding, end of period (in dollars per share)	$ 12.05	$ 10.82
Performance-based Restricted Stock Units (PSUs)
Number of shares
Outstanding, beginning of period (in shares)	282
Granted (in shares)		554
Vested (in shares)		0
Forfeited (in shares)		(38)
Outstanding, end of period (in shares)	798	282
Weighted-average Grant Date Fair Value
Outstanding, beginning of period (in dollars per share)	$ 6.73
Granted (in dollars per share)		$ 12.75
Vested (in dollars per share)		0.00
Forfeited (in dollars per share)		9.69
Outstanding, end of period (in dollars per share)	$ 10.77	$ 6.73

Equity - Use of IPO Proceeds (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
	Jul. 26, 2018	Jul. 17, 2018	Feb. 28, 2018	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Subsidiary, Sale of Stock [Line Items]
Net proceeds from IPO				$ 0	$ 0	$ 0	$ 133,805
Series A Preferred Stock Conversion and Common Stock Offering
Subsidiary, Sale of Stock [Line Items]
Net proceeds from IPO	$ 110,000
Net proceeds received	$ 60,000
Issuance of shares of common stock in the IPO (in shares)	8,695,653	8,695,653
Sale of stock, price per share (in dollars per share)	$ 14.00
Additional shares sold directly by the selling shareholders
Subsidiary, Sale of Stock [Line Items]
Number of shares sold (in shares)		2,545,630
Sale of stock, price per share (in dollars per share)		$ 14.00
RBL Facility
Subsidiary, Sale of Stock [Line Items]
Payment to the holders of claims under the Pre-Emergence Credit Facility				$ 0	$ 23,285	$ 353,282	$ 582,510
Line of credit \| RBL Facility
Subsidiary, Sale of Stock [Line Items]
Payment to the holders of claims under the Pre-Emergence Credit Facility	$ 105,000		$ 379,000
Oaktree Capital Management and Benefit Street Partners Stock Purchase Agreements \| Oaktree Capital Management And Benefit Street Partners
Subsidiary, Sale of Stock [Line Items]
Number of shares purchased (in shares)		1,802,196
Net proceeds from the IPO to purchase shares of common stock from certain stockholders		$ 24,000
Oaktree Capital Management and Benefit Street Partners Stock Purchase Agreements \| Oaktree Capital Management
Subsidiary, Sale of Stock [Line Items]
Number of shares purchased (in shares)		410,229
Oaktree Capital Management and Benefit Street Partners Stock Purchase Agreements \| Benefit Street Partners
Subsidiary, Sale of Stock [Line Items]
Number of shares purchased (in shares)		1,391,967

Defined Contribution Plan (Details) - USD ($)	2 Months Ended	10 Months Ended	12 Months Ended
Defined Contribution Plan (Details) - USD ($)	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Retirement Benefits [Abstract]
Defined contribution plan, matching contribution, percentage of employee's gross pay			6.00%
Defined contribution plan, cost	$ 0	$ 800,000	$ 1,700,000	$ 1,400,000

Income Taxes - Narrative (Details) - USD ($)	2 Months Ended	10 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($)	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Components Of Income Tax Expense (Benefit) [Line Items]
Net operating loss carryforwards	$ 0
Tax cuts and jobs act of 2017, change in tax rate, deferred tax asset, provisional income tax expense		$ 2,700,000
Tax cuts and jobs act of 2017, change in tax rate, deferred tax asset, provisional increase (decrease) in valuation allowance		$ 1,900,000
Effective tax rate	0.00%	(15.30%)	(522.90%)	22.60%
US federal general business tax credit carryforwards			$ 48,000,000
Unrecognized tax benefits		$ 0	13,892,000	$ 0
Deferred tax asset related to the tax benefit of interest expense not currently deductible in tax years 2018 and 2019			66,000,000
Unrecognized tax benefits, accrued penalties or interest expense			0
Domestic
Components Of Income Tax Expense (Benefit) [Line Items]
Net operating loss carryforwards			56,000,000
State and Local Jurisdiction
Components Of Income Tax Expense (Benefit) [Line Items]
Net operating loss carryforwards			$ 33,000,000

Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Current taxes:
Federal	$ 0	$ 465	$ 0	$ (465)
State	221	450	227	(446)
Total current taxes	221	915	227	(911)
Deferred taxes:
Federal	0	1,888	(36,756)	33,227
State	9	0	(21)	10,719
Total deferred taxes	9	1,888	(36,777)	43,946
Total current and deferred taxes	$ 230	$ 2,803	$ (36,550)	$ 43,035

Income Taxes - Schedule of Effective Tax Rate (Details)	2 Months Ended	10 Months Ended	12 Months Ended
Income Taxes - Schedule of Effective Tax Rate (Details)	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Federal statutory rate	35.00%	35.00%	21.00%	21.00%
State, net of federal tax benefit	0.00%	7.20%	8.90%	6.30%
Effect of permanent differences	(0.00%)	(0.40%)	0.20%	(0.60%)
Tax credits and federal return to provision	(0.00%)	(0.00%)	(546.40%)	(0.00%)
State return to provision	(0.00%)	(0.00%)	(6.60%)	(0.00%)
Tax reform - rate change	0.00%	(14.70%)	0.00%	0.00%
Income excluded from nontaxable entities	(35.00%)	(0.00%)	(0.00%)	(0.00%)
Change in valuation allowance	0.00%	(42.40%)	0.00%	(4.10%)
Effective tax rate	0.00%	(15.30%)	(522.90%)	22.60%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Net operating loss carryforwards	$ 14,542	$ 14,310
Accruals	12,218	2,993
Asset retirement obligations	41,382	26,383
Tax credits and federal return to provision	47,803	0
Interest limitation carryforward	13,892	7,486
Other	5,154	2,033
Total deferred tax assets	134,991	53,205
Deferred tax liabilities:
Book tax differences in property basis	(143,896)	(95,348)
Derivative instruments	(152)	(3,692)
Total deferred tax liabilities	(144,048)	(99,040)
Net deferred tax asset (liability)	$ (9,057)	$ (45,835)

Income Taxes - Summary of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Unrecognized tax benefits - January 1	$ 0	$ 0
Prior year - increase	6,720	0
Current year - increase	7,172	0
Unrecognized tax benefits - December 31	$ 13,892	$ 0

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses	$ 4,577	$ 4,656
Materials and supplies	10,544	5,461
Oil inventories	3,432	3,786
Other	846	464
Other current assets	$ 19,399	$ 14,367	$ 16,752

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred financing costs, non-current, net of amortization	$ 11	$ 16
Greenhouse gas liability	$ 33	$ 15

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows - Schedule of Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable-trade	$ 25,475	$ 13,564
Accrued expenses	45,589	66,417
Royalties payable	25,385	26,189
Taxes other than income tax liability	9,150	10,766
Accrued interest	10,500	10,500
Dividends payable	9,888	9,992
Asset retirement obligation - current portion	25,208	6,372
Other	616	318
Total accounts payable and accrued expenses	$ 151,811	$ 144,118	$ 116,512

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties	$ 0	$ 0	$ 10,056	$ 2,371
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized	8,057	14,276	30,720	19,761
Income taxes	0	1,994	(2)	(1,901)
Reorganization items, net	$ 11,838	$ 1,732	$ 0	$ 832

Supplemental Disclosures to the Balance Sheets and Statements of Cash Flows - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Feb. 28, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and cash equivalents	$ 0	$ 68,680	$ 33,905	$ 32,049	$ 30,483
Restricted cash	0	0	34,833	52,860	197,793
Restricted cash in other noncurrent assets	0	0	0	125	128
Cash, cash equivalents and restricted cash	$ 0	$ 68,680	$ 68,738	$ 85,034	$ 228,404

Certain Relationships and Related Party Transactions (Details) - USD ($)	2 Months Ended	10 Months Ended
	Feb. 28, 2017	Dec. 31, 2017
LINN Energy \| Transition Services and Separation Agreement
Related Party Transaction [Line Items]
Related party transaction, amount of transaction	$ 0	$ 17,000,000

Acquisitions and Divestitures (Details)			1 Months Ended	2 Months Ended	3 Months Ended	10 Months Ended	12 Months Ended
Acquisitions and Divestitures (Details)	Nov. 30, 2018 USD ($)	Jul. 31, 2017 USD ($)	Apr. 30, 2018 USD ($) a lease well $ / bbl	Feb. 28, 2017 USD ($)	Sep. 30, 2018 MBoe	Dec. 31, 2017 USD ($)	Dec. 31, 2019 USD ($) well	Dec. 31, 2018 USD ($)	Jul. 30, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of property and equipment and other				$ 25,000		$ 234,292,000	$ 969,000	$ 8,212,000
Business Acquisition [Line Items]
Payments to acquire property		$ 249,000,000					$ 2,900,000
Percentage of working interest acquired		84.00%
Percentage of working interest in investment									16.00%
East Texas operating area
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from sale of non-core oil and gas properties	$ 7,000,000
Gains on sale of assets and other, net	$ 4,000,000
Daily production (Mboe) \| MBoe					0.7
Hugoton Natural Gas Field
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gains on sale of assets and other, net		$ 23,000,000
Working interest divested		78.00%
Proceeds from sale of property and equipment and other		$ 234,000,000
Chevron North Midway-Sunset Acquisition
Business Acquisition [Line Items]
Number of leases acquired \| lease			2
Area of land acquired in lease (in acres) \| a			214
Drilling commitment assumed			$ 35,000,000
Drilling commitment, number of wells \| well			115
Drilling commitment, number of wells drilled \| well							18
Consideration transferred in acquisition			$ 0
Oil and gas delivery commitments, consecutive period for which price not met which will incur a toll			30 days
Oil and gas delivery commitments, fixed price to be met, less than (in dollars per barrel) \| $ / bbl			45

Earnings Per Share - Narrative (Details) - USD ($) $ in Thousands			1 Months Ended	2 Months Ended	10 Months Ended	12 Months Ended
	Jul. 26, 2018	Feb. 28, 2017	Jul. 31, 2018	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average shares of common stock outstanding (in shares)					38,644,000	81,379,000	57,743,000
Common stock reserved to settle claims of unsecured creditors (in shares)		7,080,000			7,080,000		7,080,000
Shares issued to settle claims (in shares)								2,770,000
Series A preferred stock dividends and conversion to common stock			$ 87,000		$ 18,248	$ 0	$ 97,942
Cash payment to preferred stockholders			60,000	$ 0	$ 0	$ 0	$ 60,273
Incremental common shares attributable to dilutive effect of preferred stock (in shares)					0	0	0
Series A Preferred Stock Conversion and Common Stock Offering
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Sale of stock, consideration received	$ 27,000		$ 27,000
Over-allotment option
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Additional common shares received by preferred stockholders (in shares)	1,900,000		1,900,000
Restricted Stock Units (RSUs) and Performance-based Restricted Stock Units (PSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of preferred stock (in shares)						572,000
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)				0	0		189,000
Performance-based Restricted Stock Units (PSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)							0
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Issuance of shares (in shares)		32,920,000

Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended	2 Months Ended		10 Months Ended	12 Months Ended
	Feb. 28, 2017	Jul. 31, 2018	Feb. 28, 2017	Feb. 27, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net (loss) income			$ (502,964)	$ (502,964)	$ (21,068)	$ 43,539	$ 147,102
less: Series A preferred stock dividends and conversion to common stock		$ (87,000)			(18,248)	0	(97,942)
Net income (loss) attributable to common stockholders					$ (39,316)	$ 43,539	$ 49,160
Weighted-average shares of common stock outstanding (in shares)					38,644,000	81,379,000	57,743,000
Basic earnings (loss) per share (in dollars per share)					$ (1.02)	$ 0.54	$ 0.85
Dilutive effect of potentially dilutive securities (in shares)					0	572,000	189,000
Weighted-average common shares outstanding - diluted (in shares)					38,644,000	81,951,000	57,932,000
Diluted earnings (loss) per share (in dollars per share)					$ (1.02)	$ 0.53	$ 0.85
Common stock reserved to settle claims of unsecured creditors (in shares)	7,080,000				7,080,000		7,080,000
Potentially dilutive securities (in shares)					0
Scenario, Adjustment
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average shares of common stock outstanding (in shares)							2,770,000

Revenue Recognition - Narrative (Details)	12 Months Ended
Revenue Recognition - Narrative (Details)	Dec. 31, 2019 utlity_company cogeneration_facility
Revenue from Contract with Customer [Abstract]
Payment term (within)	30 days
Number of cogeneration facilities selling majority of electric output not used in operations \| cogeneration_facility	3
Number of utility companies under long term contract to buy electrical output \| utlity_company	2

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Revenues	$ 79,832	$ 386,569	$ 597,403	$ 591,178
(Losses) gains on oil derivatives	12,886	(66,900)	(44,955)	1,735
Other revenues	1,424	3,975	316	774
Total revenues and other	92,718	319,669	559,405	586,557
Oil sales
Disaggregation of Revenue [Line Items]
Revenues	54,110	303,589	543,634	520,979
Natural gas sales
Disaggregation of Revenue [Line Items]
Revenues	14,476	40,887	19,391	26,244
Natural gas liquids sales
Disaggregation of Revenue [Line Items]
Revenues	5,534	13,452	2,571	5,651
Electricity sales
Disaggregation of Revenue [Line Items]
Revenues	3,655	21,972	29,397	35,208
Marketing revenues
Disaggregation of Revenue [Line Items]
Revenues	633	2,694	2,094	2,322
Oil
Disaggregation of Revenue [Line Items]
(Losses) gains on oil derivatives	$ 12,886	$ (66,900)	$ (37,998)	$ (4,621)

Emergence from Voluntary Reorganization under Chapter 11 - Narrative (Details) - USD ($)					2 Months Ended
	Feb. 28, 2017	Apr. 14, 2016	Mar. 28, 2016	Mar. 15, 2016	Feb. 28, 2017	Dec. 31, 2019	Mar. 31, 2019	Dec. 31, 2018	Apr. 12, 2016
Reorganization Items [Line Items]
Shares of common stock issued under plan of reorganization (in shares)	32,920,000				32,920,000
Cash distribution pool	$ 35,000,000				$ 35,000,000
Berry rights offerings	$ 335,000,000				$ 335,000,000
Bankruptcy claims, common shares available to unsecured creditors (in shares)	7,080,000				7,080,000
Shares issued to settle claims (in shares)							2,770,000
Common stock, shares reserved for future issuance (in shares)	7,080,000				7,080,000
Unrecorded contractual interest					$ 9,000,000
Deferred interest payment						$ 10,500,000		$ 10,500,000
Revolving credit facility
Reorganization Items [Line Items]
Maximum borrowing capacity	$ 550,000,000				$ 550,000,000
Senior Notes due 2020
Reorganization Items [Line Items]
Interest Rate	6.75%				6.75%
Senior Notes due 2022
Reorganization Items [Line Items]
Interest Rate	6.375%				6.375%
Pre-Emergence Credit Facility
Reorganization Items [Line Items]
Debt default, grace period			30 days
Pre-Emergence Credit Facility, Amended
Reorganization Items [Line Items]
Maximum borrowing capacity									$ 45,000,000
Senior Notes, 6.375%, due September 2022
Reorganization Items [Line Items]
Interest Rate				6.375%
Deferred interest payment				$ 18,000,000
Interest payment, grace period		30 days		30 days
Interest payment		$ 18,000,000
LINN Energy
Reorganization Items [Line Items]
General unsecured claims settled	$ 25,000,000				$ 25,000,000
Berry LLC \| Linn Acquisition Company, LLC
Reorganization Items [Line Items]
Outstanding membership interests received under plan of reorganization	100.00%

Emergence from Voluntary Reorganization under Chapter 11 - Schedule of Reorganization Items (Details) - USD ($) $ in Thousands	2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Reorganizations [Abstract]
Return of undistributed funds from cash distribution pool	$ 0	$ 0	$ 0	$ 22,855
Gain on resolution of pre-emergence liabilities	0	0	0	3,713
Legal and other professional advisory fees	(19,481)	(1,027)	(426)	(3,083)
Gain on settlement of liabilities subject to compromise	421,774	0	0	0
Fresh start valuation adjustments	(920,699)	0	0	0
Other	10,686	(705)	0	1,205
Reorganization items, net	$ (507,720)	$ (1,732)	$ (426)	$ 24,690

Fresh-Start Accounting - Narrative (Details) $ in Thousands	Feb. 28, 2017 USD ($)
Reorganizations [Abstract]
Existing voting ownership interest, percentage of shares (less than)	50.00%
Enterprise value	$ 1,278,527
Proved and Unproved Reserves \| Discount Rate
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.10
Proved and Unproved Reserves \| Forward Curve Pricing
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Measurement input	0.020

Fresh-Start Accounting - Schedule of Post-Petition Liabilities and Allowed Claims (Details) $ in Thousands	Feb. 28, 2017 USD ($)
Reorganizations [Abstract]
Liabilities subject to compromise	$ 1,000,336
Pre-petition debt not classified as subject to compromise	891,259
Post-petition liabilities	245,702
Total post-petition liabilities and allowed claims	2,137,297
Reorganization value of assets immediately prior to implementation of the Plan	(1,722,585)
Excess post-petition liabilities and allowed claims	$ 414,712

Fresh-Start Accounting - Reconciliation of Enterprise Value to the Estimated Reorganization of Value (Details) $ in Thousands	Feb. 28, 2017 USD ($)
Reorganizations [Abstract]
Enterprise value	$ 1,278,527
Plus: Fair value of non-debt liabilities	282,511
Reorganization value of the Successor’s assets	$ 1,561,038

Fresh-Start Accounting - Summary of Adjustments in Fresh-Start Consolidated Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Feb. 28, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 0	$ 68,680	$ 33,905	$ 32,049	$ 30,483
Accounts receivable	71,867	57,379		59,511
Derivative instruments	9,166	88,596		243
Restricted cash	0	0	34,833	52,860	$ 197,793
Other current assets	19,399	14,367		16,752
Total current assets	100,432	229,022		161,415
Non-current assets:
Oil and natural gas properties	1,675,717	1,461,993		1,243,600
Less accumulated depletion and amortization	(209,105)	(123,217)		0
Total oil and natural gas properties, net	1,466,612	1,338,776		1,243,600
Other property and equipment	135,117	119,710		108,803
Less accumulated depreciation	(25,462)	(15,778)		0
Total other property and equipment, net	109,655	103,932		108,803
Derivative instruments	525	3,289		57
Restricted cash				125
Other non-current assets	12,974	17,244		47,038
Total assets	1,690,198	1,692,263		1,561,038
Current liabilities:
Accounts payable and accrued expenses	151,811	144,118		116,512
Derivative instruments	4,817	0		5,355
Current portion of long-term debt, net				0
Other accrued liabilities				4,870
Total current liabilities	156,628	144,118		126,737
Derivative instruments	141	0		1,710
Long-term debt	394,319	391,786		400,000
Other non-current liabilities	33,586	14,902		154,064
Liabilities subject to compromise				0
Equity:
Additional paid-in capital	901,830	914,540
Accumulated deficit	120,528	116,042
Successor preferred stock				335,000
Successor common stock	85	82		33
Total equity	972,448	1,006,446	$ 859,310	878,527
Total liabilities and equity	$ 1,690,198	$ 1,692,263		1,561,038
Fresh-Start Adjustments
Current assets:
Cash and cash equivalents				0
Accounts receivable				(816)
Derivative instruments				0
Restricted cash				0
Other current assets				3,873
Total current assets				3,057
Non-current assets:
Oil and natural gas properties				(3,787,898)
Less accumulated depletion and amortization				2,814,999
Total oil and natural gas properties, net				(972,899)
Other property and equipment				(15,576)
Less accumulated depreciation				22,107
Total other property and equipment, net				6,530
Derivative instruments				0
Restricted cash				0
Other non-current assets				30,811
Total assets				(932,501)
Current liabilities:
Accounts payable and accrued expenses				3,818
Derivative instruments				0
Current portion of long-term debt, net				0
Other accrued liabilities				1,295
Total current liabilities				5,113
Derivative instruments				0
Long-term debt				0
Other non-current liabilities				(16,915)
Liabilities subject to compromise				0
Equity:
Accumulated deficit				1,905,766
Successor preferred stock				0
Successor common stock				0
Total equity				(920,699)
Total liabilities and equity				(932,501)
Previously Reported
Current assets:
Cash and cash equivalents				27,407
Accounts receivable				76,027
Derivative instruments				243
Restricted cash				128
Other current assets				18,437
Total current assets				122,242
Non-current assets:
Oil and natural gas properties				5,031,498
Less accumulated depletion and amortization				(2,814,999)
Total oil and natural gas properties, net				2,216,499
Other property and equipment				124,379
Less accumulated depreciation				(22,107)
Total other property and equipment, net				102,273
Derivative instruments				57
Restricted cash				197,939
Other non-current assets				16,076
Total assets				2,655,086
Current liabilities:
Accounts payable and accrued expenses				60,323
Derivative instruments				5,355
Current portion of long-term debt, net				891,259
Other accrued liabilities				7,335
Total current liabilities				964,272
Derivative instruments				1,710
Long-term debt				0
Other non-current liabilities				170,979
Liabilities subject to compromise				1,000,336
Equity:
Accumulated deficit				(2,280,925)
Total equity				517,789
Total liabilities and equity				2,655,086
Reorganization Adjustments
Current assets:
Cash and cash equivalents				4,642
Accounts receivable				(15,700)
Derivative instruments				0
Restricted cash				52,732
Other current assets				(5,558)
Total current assets				36,116
Non-current assets:
Oil and natural gas properties				0
Less accumulated depletion and amortization				0
Total oil and natural gas properties, net				0
Other property and equipment				0
Less accumulated depreciation				0
Total other property and equipment, net				0
Derivative instruments				0
Restricted cash				(197,814)
Other non-current assets				151
Total assets				(161,547)
Current liabilities:
Accounts payable and accrued expenses				52,371
Derivative instruments				0
Current portion of long-term debt, net				(891,259)
Other accrued liabilities				(3,760)
Total current liabilities				(842,648)
Derivative instruments				0
Long-term debt				400,000
Other non-current liabilities				0
Liabilities subject to compromise				(1,000,336)
Equity:
Accumulated deficit				375,159
Successor preferred stock				335,000
Successor common stock				33
Total equity				1,281,437
Total liabilities and equity				(161,547)
Predecessor additional paid-in capital \| Previously Reported
Equity:
Additional paid-in capital				2,798,714
Predecessor additional paid-in capital \| Reorganization Adjustments
Equity:
Additional paid-in capital				(2,798,714)
Successor additional paid-in capital
Equity:
Additional paid-in capital				543,494
Successor additional paid-in capital \| Fresh-Start Adjustments
Equity:
Additional paid-in capital				(2,826,465)
Successor additional paid-in capital \| Reorganization Adjustments
Equity:
Additional paid-in capital				$ 3,369,959

Fresh-Start Accounting - Changes in Cash (Details) - USD ($) $ in Thousands		2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2016
Changes in Cash and Cash Equivalents
Proceeds from issuance of preferred stock pursuant the Berry Rights Offerings		$ 335,000	$ 0	$ 0	$ 0
Cash and cash equivalents	$ 32,049	32,049	$ 33,905	$ 0	$ 68,680	$ 30,483
Reorganization Adjustments
Changes in Cash and Cash Equivalents
Borrowings under the Emergence Credit Facility	400,000
Proceeds from issuance of preferred stock pursuant the Berry Rights Offerings	335,000
Cash receipt from Linn Energy, LLC for ad valorem taxes	23,366
Removal of restriction on cash balance (includes $128 previously recorded as short term)	197,942
Payment to the holders of claims under the Pre-Emergence Credit Facility (including $29 in bank fees and $3,760 in interest)	(897,663)
Restriction on cash balance, previously recorded as short term	(128)
Repayments of bank fees	29
Repayments of interest	3,760
Payment of professional fees	(992)
Payment of Emergence Credit Facility fee that was capitalized	(151)
Funding of the general unsecured claims Cash Distribution Pool	(35,000)	(35,000)
Funding of the professional fees escrow account	(17,860)	(17,860)
Cash and cash equivalents	$ 4,642	$ 4,642

Fresh-Start Accounting - Changes in Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Net Increase in Accounts Payable and Accrued Expenses
Other	$ 616	$ 318
Total accounts payable and accrued expenses	$ 151,811	$ 144,118	$ 116,512
Reorganization Adjustments
Net Increase in Accounts Payable and Accrued Expenses
Recognition of payables for the general unsecured claims Cash Distribution Pool			35,000
Recognition of payables for the professional fees escrow account			17,860
Recognition of payable for ad valorem tax liability			7,666
Net change of other professional fees payable			(8,161)
Other			6
Total accounts payable and accrued expenses			$ 52,371

Fresh-Start Accounting - Settlement of Liabilities Subject to Compromise (Details) - USD ($) $ in Thousands		12 Months Ended
	Feb. 28, 2017	Dec. 31, 2018
Liabilities Subject to Compromise
Liabilities subject to compromise	$ 1,000,336
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Common stock to holders of Unsecured Notes and general unsecured creditors		$ (133,805)
Reorganization Adjustments
Liabilities Subject to Compromise
Accounts payable and accrued expenses	151,298
Accrued interest payable	15,238
Debt	833,800
Liabilities subject to compromise	1,000,336
Funding of the general unsecured claims Cash Distribution Pool	(35,000)
Common stock to holders of Unsecured Notes and general unsecured creditors	(543,562)
Gains on settlement of liabilities subject to compromise	$ 421,774

Fresh-Start Accounting - Increase in Capital Accounts (Details) - USD ($) $ in Thousands		2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Net Increase in Capital Accounts
Common stock to holders of Unsecured Notes and general unsecured creditors					$ 133,805
Payment of issuance costs		$ 0	$ (22,170)	$ 0	(9,193)
Dividend related to beneficial conversion feature of preferred stock					11,301
Additional paid-in capital				901,830	914,540
Successor common stock	$ 33	33		$ 85	$ 82
Successor preferred stock	335,000	335,000
Reorganization Adjustments
Net Increase in Capital Accounts
Common stock to holders of Unsecured Notes and general unsecured creditors	543,562
Payment of issuance costs	(35)
Dividend related to beneficial conversion feature of preferred stock	27,751
Successor common stock	33	33
Change in additional paid-in capital	3,369,959	3,369,959
Successor preferred stock	335,000	335,000
Net increase in capital accounts	906,278
Predecessor additional paid-in capital \| Reorganization Adjustments
Net Increase in Capital Accounts
Additional paid-in capital	$ (2,798,714)	$ (2,798,714)

Fresh-Start Accounting - Decrease Accumulated Deficit (Details) - USD ($) $ in Thousands		2 Months Ended	10 Months Ended	12 Months Ended
	Feb. 28, 2017	Feb. 28, 2017	Dec. 31, 2017	Dec. 31, 2019	Dec. 31, 2018
Net Increase in Accumulated Deficit
Recognition of gains on settlement of liabilities subject to compromise		$ 421,774	$ 0	$ 0	$ 0
Recognition of professional fees		(19,481)	(1,027)	(426)	(3,083)
Reorganization items, net		507,720	$ 1,732	426	(24,690)
Dividend related to beneficial conversion feature of preferred stock					(11,301)
Accumulated deficit				$ 120,528	$ 116,042
Reorganization Adjustments
Net Increase in Accumulated Deficit
Recognition of gains on settlement of liabilities subject to compromise	$ 421,774
Recognition of professional fees	(13,667)
Write-off of deferred financing fees	(5,197)
Reorganization items, net	402,910
Dividend related to beneficial conversion feature of preferred stock	(27,751)
Accumulated deficit	$ 375,159	$ 375,159

Fresh-Start Accounting - Oil and Natural Gas Properties (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Components of Oil and Natural Gas Properties
Proved properties	$ 1,361,814	$ 1,073,959	$ 712,400
Unproved properties	313,903	388,034	531,200
Oil and natural gas properties	1,675,717	1,461,993	1,243,600
Less accumulated depletion and amortization	(209,105)	(123,217)	0
Total oil and natural gas properties, net	$ 1,466,612	$ 1,338,776	1,243,600
Previously Reported
Components of Oil and Natural Gas Properties
Proved properties			4,266,843
Unproved properties			764,655
Oil and natural gas properties			5,031,498
Less accumulated depletion and amortization			(2,814,999)
Total oil and natural gas properties, net			$ 2,216,499

Fresh-Start Accounting - Other Property and Equipment (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Feb. 28, 2017
Reorganization Items [Line Items]
Natural gas plants and pipelines			$ 91,427
Land			8,262
Furniture and office equipment			5,040
Buildings and leasehold improvements			2,740
Total other property and equipment			108,803
Other property and equipment	$ 135,117	$ 119,710	108,803
Less accumulated depreciation			0
Less accumulated depreciation	(25,462)	(15,778)	0
Total other property and equipment, net			108,803
Total other property and equipment, net	109,655	103,932	108,803
Natural gas plants and pipelines
Reorganization Items [Line Items]
Other property and equipment	94,619	86,562
Land
Reorganization Items [Line Items]
Other property and equipment	7,544	8,073
Furniture and office equipment
Reorganization Items [Line Items]
Other property and equipment	20,078	14,964
Buildings and leasehold improvements
Reorganization Items [Line Items]
Other property and equipment	3,752	3,359
Vehicles
Reorganization Items [Line Items]
Vehicles			1,156
Other property and equipment	$ 9,124	$ 6,753
Drilling and other equipment
Reorganization Items [Line Items]
Drilling and other equipment			178
Previously Reported
Reorganization Items [Line Items]
Other property and equipment			124,379
Less accumulated depreciation			(22,107)
Total other property and equipment, net			102,273
Previously Reported \| Natural gas plants and pipelines
Reorganization Items [Line Items]
Other property and equipment			109,675
Previously Reported \| Land
Reorganization Items [Line Items]
Other property and equipment			201
Previously Reported \| Furniture and office equipment
Reorganization Items [Line Items]
Other property and equipment			3,879
Previously Reported \| Buildings and leasehold improvements
Reorganization Items [Line Items]
Other property and equipment			5,884
Previously Reported \| Vehicles
Reorganization Items [Line Items]
Other property and equipment			4,542
Previously Reported \| Drilling and other equipment
Reorganization Items [Line Items]
Other property and equipment			$ 198

Fresh-Start Accounting - All Other Adjustments (Details) - Fresh-Start Adjustments $ in Thousands	Feb. 28, 2017 USD ($)
Reorganization Items [Line Items]
Increase in greenhouse gas allowances	$ 30,000
Joint venture investment	1,000
Increase in greenhouse gas emissions liabilities	4,000
Decrease in asset retirement obligations	30,000
Decrease in intangible liabilities	6,000
Increase in greenhouse gas emissions liabilities	19,000
Change from entitlements method to sales method
Reorganization Items [Line Items]
Change in accounting policy for gas production imbalances	200
Decrease in current portion of intangible liabilities	$ 500