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DELAWARE
(State
or Other Jurisdiction of
Incorporation
or Organization)
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1-9735
(Commission
File Number)
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77-0079387
(IRS
Employer
Identification
Number)
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1999 Broadway, Suite 3700
- Denver, CO 80202
(Address
of Principal Executive Offices)
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93309
(Zip
Code)
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BERRY PETROLEUM
COMPANY
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By:
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/s/ Kenneth A.
Olson
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Kenneth
A. Olson
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Corporate
Secretary
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Third
Quarter Ended September 30
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2008 Production
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2007 Production
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Oil
(Bbls)
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21,162 | 60 | % | 19,481 | 73 | % | ||||||||||
Natural
Gas (BOE)
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13,988 | 40 | % | 7,392 | 27 | % | ||||||||||
Total
BOE per day
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35,150 | 100 | % | 26,873 | 100 | % |
Three
Months Ended
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Nine
Months Ended
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09/30/08
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09/30/07
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09/30/08
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09/30/07
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Net
cash provided by operating activities
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$ 137.4
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$ 93.6
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$ |
331.2
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$
181.5
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Add
back: Net increase in current assets
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6.1
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5.7
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35.4
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10.8
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Add
back: Net decrease (increase) in current liabilities
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(21.6)
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(27.7)
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(34.5)
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(13.1)
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Discretionary
cash flow
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$ 121.9
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$ 71.6
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$ |
332.1
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$
179.2
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CONDENSED
STATEMENTS OF INCOME
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(In
thousands)
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(unaudited)
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Three Months
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Nine Months
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09/30/08
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09/30/07
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09/30/08
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09/30/07
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Revenues
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Sales
of oil and gas
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$ | 207,863 | $ | 118,733 | $ | 557,689 | $ | 333,933 | ||||||||
Sales
of electricity
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18,317 | 12,241 | 51,223 | 40,704 | ||||||||||||
Gas
marketing
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13,284 | - | 28,046 | - | ||||||||||||
Gain
on sale of assets
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95 | 1,418 | 510 | 51,816 | ||||||||||||
Interest and other, net
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1,202 | 1,108 | 4,095 | 3,754 | ||||||||||||
Total
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240,761 | 133,500 | 641,563 | 430,207 | ||||||||||||
Expenses
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Operating
costs – oil &
gas
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56,038 | 33,995 | 152,852 | 103,330 | ||||||||||||
Operating
costs – electricity
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13,706 | 9,760 | 45,620 | 35,014 | ||||||||||||
Production
taxes
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9,673 | 4,344 | 23,121 | 12,297 | ||||||||||||
Depreciation,
depletion & amortization - oil & gas
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40,440 | 23,356 | 96,588 | 65,478 | ||||||||||||
Depreciation,
depletion & amortization - electricity
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646 | 938 | 1,991 | 2,661 | ||||||||||||
Gas
marketing
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12,034 | - | 26,087 | - | ||||||||||||
General
and
administrative
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14,524 | 9,333 | 37,067 | 29,291 | ||||||||||||
Interest
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8,755 | 4,326 | 16,444 | 13,593 | ||||||||||||
Commodity
derivatives
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(594 | ) | - | 172 | - | |||||||||||
Dry
hole, abandonment, impairment & exploration
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1,571 | 5,175 | 9,162 | 9,342 | ||||||||||||
Total
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156,793 | 91,227 | 409,104 | 271,006 | ||||||||||||
Income
before income
taxes
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83,968 | 42,273 | 232,459 | 159,201 | ||||||||||||
Provision
for income
taxes
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30,620 | 15,418 | 86,939 | 61,534 | ||||||||||||
Net
income
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$ | 53,348 | $ | 26,855 | $ | 145,520 | $ | 97,667 | ||||||||
Basic
net income per
share
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$ | 1.20 | $ | .61 | $ | 3.27 | $ | 2.22 | ||||||||
Diluted
net income per
share
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$ | 1.17 | $ | .60 | $ | 3.20 | $ | 2.18 | ||||||||
Cash
dividends per
share
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$ | 0.075 | $ | 0.075 | $ | 0.225 | $ | 0.225 | ||||||||
Weighted
average common shares:
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Basic
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44,527 | 44,112 | 44,466 | 44,020 | ||||||||||||
Diluted
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45,541 | 45,002 | 45,506 | 44,836 | ||||||||||||
CONDENSED
BALANCE SHEETS
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(In
thousands)
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(unaudited)
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09/30/08
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12/31/07
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Assets
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Current
assets
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$ | 206,442 | $ | 161,019 | ||||
Property,
buildings & equipment, net
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2,196,322 | 1,275,091 | ||||||
Other
assets
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17,307 | 15,996 | ||||||
$ | 2,420,071 | $ | 1,452,106 | |||||
Liabilities
& Shareholders’ Equity
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Current
liabilities
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$ | 353,920 | $ | 271,369 | ||||
Deferred
taxes
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206,848 | 128,824 | ||||||
Long-term
debt
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1,109,300 | 445,000 | ||||||
Other
long-term liabilities
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153,099 | 146,939 | ||||||
Shareholders’
equity
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596,904 | 459,974 | ||||||
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$ | 2,420,071 | $ | 1,452,106 |
CONDENSED
STATEMENTS OF CASH FLOWS
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(In
thousands)
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(unaudited)
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Nine
Months
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09/30/08
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09/30/07
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Cash
flows from operating activities:
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Net
income
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$ | 145,520 | $ | 97,667 | ||||
Depreciation,
depletion & amortization (DD&A)
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98,579 | 68,139 | ||||||
Dry
hole & impairment
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6,858 | 8,725 | ||||||
Commodity
derivatives
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(180 | ) | 804 | |||||
Stock
based compensation
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6,653 | 5,437 | ||||||
Deferred
income taxes
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76,502 | 53,162 | ||||||
Gain
on sale of asset
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(510 | ) | (51,816 | ) | ||||
Other,
net
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(2,174 | ) | (574 | ) | ||||
Net
cash provided by operating activities
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331,248 | 181,544 | ||||||
Net
cash used in investing activities
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(986,865 | ) | (210,079 | ) | ||||
Net
cash provided by financing activities
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655,360 | 28,310 | ||||||
Net
decrease in cash and cash equivalents
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(257 | ) | (225 | ) | ||||
Cash
and cash equivalents at beginning of year
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316 | 416 | ||||||
Cash
and cash equivalents at end of period
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$ | 59 | $ | 191 | ||||
COMPARATIVE
OPERATING STATISTICS
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(unaudited)
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Three
Months
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Nine
Months
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09/30/08
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09/30/07
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Change
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09/30/08
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09/30/07
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Change
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Oil
and gas:
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Net production-BOE
per day
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35,150 | 26,873 | +31 | % | 30,755 | 26,525 | +16 | % | ||||||||||||||||
Per
BOE:
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Average
sales price before hedges
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$ | 80.22 | $ | 49.35 | +63 | % | $ | 82.57 | $ | 45.98 | +80 | % | ||||||||||||
Average
sales price after hedges
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64.98 | 47.93 | +36 | % | 66.37 | 45.82 | +45 | % | ||||||||||||||||
Operating
costs - oil and gas
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17.33 | 13.75 | +26 | % | 18.14 | 14.27 | +27 | % | ||||||||||||||||
Production
taxes
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2.99 | 1.76 | +70 | % | 2.74 | 1.70 | +61 | % | ||||||||||||||||
Total
operating costs
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20.32 | 15.51 | + 31 | % | 20.88 | 15.97 | + 31 | % | ||||||||||||||||
DD&A -
oil and
gas
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12.51 | 9.45 | +32 | % | 11.46 | 9.04 | +27 | % | ||||||||||||||||
General
& administrative expenses
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4.49 | 3.78 | +19 | % | 4.40 | 4.05 | +9 | % | ||||||||||||||||
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Interest
expense
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$ | 2.71 | $ | 1.75 | +55 | % | $ | 1.95 | $ | 1.88 | +4 | % | ||||||||||||