UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): April 29, 2008
BERRY PETROLEUM
COMPANY
(Exact
Name of Registrant as Specified in its Charter)
|
|
|
|
|
|
|
DELAWARE
(State
or Other Jurisdiction of
Incorporation
or Organization)
|
|
1-9735
(Commission
File Number)
|
|
77-0079387
(IRS
Employer
Identification
Number)
|
|
|
|
|
|
5201 TRUXTUN AVE., STE. 300,
BAKERSFIELD, CA
(Address
of Principal Executive Offices)
|
|
93309
(Zip
Code)
|
Registrant’s
telephone number, including area code: (661) 616-3900
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
- 1
- -
Item
2.02 Results of Operations and Financial Condition
On April
29, 2008, Berry Petroleum Company issued a news release announcing its financial
and operational results for the first quarter ended March 31, 2008.
These results are discussed in the news release attached hereto as Exhibit 99.1,
which is incorporated by reference in its entirety.
Item 9.01
Financial
Statements and Exhibits
(d)
Exhibits
99.1 -
News Release by Berry Petroleum Company dated April 9, 2008, titled "Berry
Petroleum Earns $.95 Per Share in First Quarter 2008" announcing the
Registrant's results for the first quarter ended March 31, 2008.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereto
duly authorized.
|
|
|
|
|
|
|
|
BERRY PETROLEUM
COMPANY
|
|
||
|
|
By:
|
/s/ Kenneth A.
Olson
|
|
|
|
|
|
Kenneth
A. Olson
|
|
|
|
|
|
Corporate
Secretary
|
|
|
|
|
||||
Date: April
29, 2008
- 2
- -
 |
Berry Petroleum Company News
Contact:
Berry Petroleum Company
5201 Truxtun Ave., Ste.
300
Bakersfield,
CA 93309
1-661-616-3900
|
 |
|
Contacts:
Robert F. Heinemann, President and CEO - - Ralph J. Goehring, Executive
Vice President and CFO
|
||
Berry
Petroleum Earns $.95 Per Share in First Quarter 2008
Achieved
record first quarter discretionary cash flow of over $100 million
Bakersfield, Calif. -- (BUSINESS
WIRE) -- April 29, 2008 -- Berry Petroleum Company
(NYSE:BRY)
earned net income of $43 million, or $.95 per diluted share, for the three
months ended March 31, 2008, up 128% from 2007 net income of $18.9 million, or
$.42 per diluted share in the first quarter of 2007, according to Robert F.
Heinemann, president and chief executive officer. Net income for the 2008
quarter includes a net $.08 per diluted share increase related to a gain on the
sale of an asset, abandonment of three wells, exploration costs, a non-recurring
correction arising from a multi-year royalty adjustment and a commodity hedge
charge related to ineffectiveness. Discretionary cash flow totaled a record $102
million in the quarter, up 113% from $48 million in the first quarter of 2007.
(Discretionary cash flow is a non-GAAP measure; see reconciliation
below.)
For the
first quarter ended March 31, 2008 net production averaged a record 28,066
barrels of oil equivalent per day (BOE/D), an increase of 10% from the 25,490
BOE per day achieved in the same 2007 period. The Company drilled 145 gross (128
net) wells in the first quarter of 2008. The average realized sales price, net
of hedging, for the 2008 first quarter was $60.43 per BOE, up 38% over the
$43.84 per BOE received in the 2007 period. Oil and gas revenues rose
61% to $164 million, including $10.5 million related to a multi-year royalty
correction, in 2008 compared to $102 million in 2007.
For 2008
and 2007, net production in BOE per day was as follows:
|
First
Quarter Ended March 31
|
||||||||||||||||
|
2008 Production
|
2007 Production
|
|||||||||||||||
|
Oil
(Bbls)
|
19,885 | 71 | % | 19,373 | 76 | % | ||||||||||
|
Natural
Gas (BOE)
|
8,181 | 29 | % | 6,117 | 24 | % | ||||||||||
|
Total
BOE per day
|
28,066 | 100 | % | 25,490 | 100 | % | ||||||||||
Mr.
Heinemann said, “We continue to execute the development plans on our heavy oil
projects at Poso Creek and N. Midway diatomite in California. Production from
Poso Creek is up 13% from the fourth quarter of 2007 and S. Midway
production was flat over the same period. We continue with our drilling program
at the diatomite, increasing steam capacity and making infrastructure
improvements as we place wells on production. In the current price environment,
the economic returns from Berry’s oil projects are exceptional.
“Our
natural gas projects will become increasingly important over the next three to
five years as we develop our significant Piceance acreage through a four-rig
drilling program and infrastructure improvements. During the first quarter of
2008 we increased production from the Piceance 15% over the fourth quarter 2007
totals. Our acquisition focus in 2008 is on oil consolidation, bolt-on
opportunities and establishing a position in a new core area.
(more)
Berry
Petroleum Company News
“We are
on target to achieve a 10% increase in both production and net proved reserves
in 2008 at a finding and development cost between $10 and $12 per BOE, and
expect to end the year with between 180 million and 190 million BOE of proved
reserves and average production of between 29,500 and 30,500 BOE/D. For the
second quarter of 2008 we expect to average above
29,000 BOE/D and to achieve an exit rate of 30,000 BOE/D. We anticipate
continued production gains throughout the year as the Piceance moves into the
summer completion season and as the diatomite and Poso Creek respond to
this year’s development program.”
Ralph J.
Goehring, executive vice president and chief financial officer, stated, “We
achieved a record $102 million in discretionary cash flow in the first quarter,
up from $48 million a year ago and from $71 million in our 2007 fourth
quarter. We are in an excellent financial position as we anticipate
generating more cash from operations than we will spend in our capital program
in 2008 and as our cash position improves due to higher commodity pricing and
increased production. Our financial flexibility is also improving as evidenced
by our ability to increase our funding commitment from our banking syndicate to
$600 million from $550 million which will provide nearly $350 million of
available funds. We also received an upgrade to our corporate bond
rating in April to “B+” from “B” from Standard & Poor’s Rating Services and
are on review for possible upgrade from Moody’s Investors
Services.”
Explanation
and Reconciliation of Non-GAAP Financial Measures
|
Three
Months Ended
|
||||||||||||
|
03/31/08
|
03/31/07
|
12/31/07
|
||||||||||
|
Net
cash provided by operating activities
|
$ | 87.2 | $ | 6.9 | $ | 57.3 | ||||||
|
Add
back: Net increase (decrease) in current assets
|
.1 | 13.3 | 37.1 | |||||||||
|
Add
back: Net decrease (increase) in current liabilities
|
14.4 | 28.1 | (23.5 | ) | ||||||||
|
Discretionary
cash flow
|
$ | 101.7 | $ | 48.3 | $ | 70.9 | ||||||
Teleconference
Call
An
earnings conference call will be held Tuesday, April 29, 2008 at 1:30 p.m.
Eastern Time (10:30 a.m. Pacific Time). Dial 1-800-798-2796 to
participate, using passcode 36727979. International callers may dial
617-614-6204. For a digital replay available until May 13, 2008 dial
1-888-286-8010 (passcode 52074632). Listen live or via replay on the web at
http://www.bry.com.
Transcripts of this and previous calls may be viewed at www.bry.com in the
“Investor Center.”
About
Berry Petroleum Company
Berry
Petroleum Company is a publicly traded independent oil and gas production and
exploitation company with operations in California, Utah and
Colorado.
Safe
harbor under the “Private Securities Litigation Reform Act of 1995”
Any
statements in this news release that are not historical facts are
forward-looking statements that involve risks and uncertainties. Words such as
"plans,” "will," "expect," “target,” “goal,” and forms of those words and others
indicate forward-looking statements. Important factors which could affect actual
results are discussed in PART 1, Item 1A. Risk Factors of Berry's 2007 Form 10-K
filed with the Securities and Exchange Commission on February 26, 2008 under the
heading "Other Factors Affecting the Company's Business and Financial Results"
in the section titled "Management's Discussion and Analysis of Financial
Condition and Results of Operations and all material changes are updated in Part
II, Item 1A within our Form 10-Qs filed subsequent to that date."
(more)
Berry
Petroleum Company News
|
CONDENSED
INCOME STATEMENTS
|
||||||||
|
(In
thousands, except per share data)
|
||||||||
|
(unaudited)
|
||||||||
|
Three
Months
|
||||||||
|
03/31/08
|
03/31/07
|
|||||||
|
Revenues
|
||||||||
|
Sales
of oil and gas
|
$ | 164,495 | $ | 101,773 | ||||
|
Sales
of electricity
|
15,927 | 14,596 | ||||||
|
Gas
marketing
|
3,231 | - | ||||||
|
Gain
on sale of assets
|
415 | - | ||||||
|
Interest and other, net
|
1,329 | 1,110 | ||||||
|
Total
|
185,397 | 117,479 | ||||||
|
Expenses
|
||||||||
|
Operating
costs – oil &
gas
|
41,629 | 33,610 | ||||||
|
Operating
costs – electricity
|
16,399 | 14,170 | ||||||
|
Production
taxes
|
5,967 | 3,815 | ||||||
|
Depreciation,
depletion & amortization - oil & gas
|
27,076 | 18,725 | ||||||
|
Depreciation,
depletion & amortization - electricity
|
693 | 762 | ||||||
|
Gas
marketing
|
2,982 | - | ||||||
|
General
and
administrative
|
11,383 | 10,307 | ||||||
|
Interest
|
3,738 | 4,292 | ||||||
|
Commodity
derivatives
|
708 | - | ||||||
|
Dry
hole, abandonment, impairment & exploration
|
4,126 | 649 | ||||||
|
Total
|
114,701 | 86,330 | ||||||
|
Income
before income
taxes
|
70,696 | 31,149 | ||||||
|
Provision
for income
taxes
|
27,665 | 12,294 | ||||||
|
Net
income
|
$ | 43,031 | $ | 18,855 | ||||
|
Basic
net income per
share
|
$ | 0.97 | $ | 0.43 | ||||
|
Diluted
net income per
share
|
$ | 0.95 | $ | 0.42 | ||||
|
Cash
dividends per
share
|
$ | 0.075 | $ | 0.075 | ||||
|
Weighted
average common shares:
|
||||||||
|
Basic
|
44,392 | 43,916 | ||||||
|
Diluted
|
45,310 | 44,631 | ||||||
(more)
Berry
Petroleum Company News
|
CONDENSED
BALANCE SHEETS
|
||||||||
|
(In
thousands)
|
||||||||
|
(unaudited)
|
||||||||
|
03/31/08
|
12/31/07
|
|||||||
|
Assets
|
||||||||
|
Current
assets
|
$ | 175,243 | $ | 161,019 | ||||
|
Property,
buildings & equipment, net
|
1,333,578 | 1,275,091 | ||||||
|
Other
assets
|
15,308 | 15,996 | ||||||
| $ | 1,524,129 | $ | 1,452,106 | |||||
|
Liabilities
& Shareholders’ Equity
|
||||||||
|
Current
liabilities
|
$ | 298,491 | $ | 271,369 | ||||
|
Deferred
taxes
|
134,694 | 128,824 | ||||||
|
Long-term
debt
|
445,000 | 445,000 | ||||||
|
Other
long-term liabilities
|
184,864 | 146,939 | ||||||
|
Shareholders’
equity
|
461,080 | 459,974 | ||||||
|
|
$ | 1,524,129 | $ | 1,452,106 | ||||
|
CONDENSED
STATEMENTS OF CASH FLOWS
|
||||||||
|
(In
thousands)
|
||||||||
|
(unaudited)
|
||||||||
|
Three
Months
|
||||||||
|
03/31/08
|
03/31/07
|
|||||||
|
Cash
flows from operating activities:
|
||||||||
|
Net
income
|
$ | 43,031 | $ | 18,855 | ||||
|
Depreciation,
depletion & amortization (DD&A)
|
27,769 | 19,487 | ||||||
|
Dry
hole & impairment
|
2,728 | 187 | ||||||
|
Commodity
derivatives
|
271 | 439 | ||||||
|
Stock
based compensation
|
2,107 | 1,792 | ||||||
|
Deferred
income taxes
|
22,082 | 12,311 | ||||||
|
Gain
on sale of asset
|
(415 | ) | - | |||||
|
Other,
net
|
491 | 209 | ||||||
|
Net
changes in operating assets and liabilities
|
(10,829 | ) | (46,374 | ) | ||||
|
Net
cash provided by operating activities
|
87,235 | 6,906 | ||||||
|
Net
cash used in investing activities
|
(79,715 | ) | (76,576 | ) | ||||
|
Net
cash (used in) provided by financing activities
|
(5,157 | ) | 69,349 | |||||
|
Net
increase (decrease) in cash and cash equivalents
|
2,363 | (321 | ) | |||||
|
Cash
and cash equivalents at beginning of year
|
316 | 416 | ||||||
|
Cash
and cash equivalents at end of period
|
$ | 2,679 | $ | 95 | ||||
(more)
Berry
Petroleum Company News
|
COMPARATIVE
OPERATING STATISTICS
|
||||||||||||
|
(unaudited)
|
||||||||||||
|
Three
Months
|
||||||||||||
|
|
03/31/08
|
03/31/07
|
Change
|
|||||||||
|
Oil
and gas:
|
||||||||||||
|
Net production
- BOE per day
|
28,066 | 25,490 | 10 | % | ||||||||
|
Per
BOE:
|
||||||||||||
|
Average
sales price before hedges
|
$ | 71.67 | $ | 43.62 | 64 | % | ||||||
|
Average
sales price after hedges
|
$ | 60.43 | $ | 43.84 | 38 | % | ||||||
|
Operating
costs - oil and gas production
|
$ | 16.30 | $ | 14.65 | 11 | % | ||||||
|
Production
taxes
|
2.34 | 1.66 | 41 | % | ||||||||
|
Total
operating costs
|
18.64 | 16.31 | 14 | % | ||||||||
|
DD&A -
oil and
gas
|
10.60 | 8.16 | 30 | % | ||||||||
|
General
& administrative expenses
|
4. 46 | 4.49 | -1 | % | ||||||||
|
|
||||||||||||
|
Interest
expense
|
$ | 1.46 | $ | 1.69 | -14 | % | ||||||
# #
#