Berry Petroleum Corp (NASDAQ:BRY) Q3 2018 Earnings Conference Call Transcript

Nov 08, 2018 • 11:00 am ET

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Berry Petroleum Corp (NASDAQ:BRY) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Hello, and welcome to the Berry Petroleum Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will follow at that time. As a reminder, this conference is being recorded.

And I'd now like to introduce your host for today's call, Todd Crabtree, IR. You may begin.

Executive
Todd Crabtree

Thank you, Twanada, and welcome to everyone. Speaking this morning will be Trem Smith, President and CEO; Gary Grove, EVP and COO; and Cary Baetz, EVP and CFO.

Trem will review our objectives and strategies, our differentiators and third quarter highlights. Gary will discuss our key operational results. Cary will follow with an overview of Berry's financial results. Trem will have a few concluding remarks before we open it up to questions.

(Forward-Looking Cautionary Statements)

We refer to non-GAAP financial measures and we'll provide a reconciliation to GAAP with our financial statements. Today, we will be referencing slides from the November 2018 investor presentation deck, which is posted on our investor webpage. The replay link of this call and a transcript will also be made available on our investor webpage.

I will now turn the call over to Trem Smith, Berry's President and CEO.

Executive
Trem Smith

Thanks, Todd and good morning. I want to welcome everyone to Berry Petroleum's third quarter earnings call. The third quarter has been an exciting one for Berry Petroleum, in addition to the results we are announced today, we completed our IPO in July and began trading on the NASDAQ on July 26, a great milestone for the company.

Berry is focused on value creation for our shareholders, which means we are focused on executing the plan we have communicated to the markets. Our business model is simple and clear. Our goal is always to generate top-tier EBITDA margin, while operating within our levered free cash flow. We manage the value not just through production growth, but also operational efficiencies and incident prevention. Our culture is by definition focused on and build-on our five core values of leadership, entrepreneurship, accountability, ownership and communication. It is a culture of the organization and all the employees now own.

Our results this quarter reflect this philosophy and culture and I'm very pleased to share with you how our values contributed to those results. We are on track to meet our 2018 guidance with G&A increasing slightly due to cost associated with the growth of the company and becoming a public company in July. We are meeting the guidance because we are executing our plan with excellence. Today, we are going to communicate with you how we are meeting the plan and remind you of the characteristics of our planning process, which are key for us to succeed in the areas we operate; namely, we have a lot of opportunity in our existing lease hold and we are proactive in handling of our external events that might impact the plan positively or negatively. Let me explain.

We are on target