Berry Petroleum Corp (NASDAQ:BRY) Q4 2018 Earnings Conference Call - Final Transcript
Mar 07, 2019 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Berry Petroleum Fourth Quarter and Full Year 2018 Earnings Call. (Operator Instructions) As a reminder, today's call will be recorded. I would now like to turn the call over to Todd Crabtree with Investor Relations. Sir, you may begin.
Thank you, Sydney (ph) and welcome everyone. Speaking this morning will be Trem Smith, President and CEO and Board Chair; Gary Grove, Executive Vice President and COO; and Cary Baetz, Executive Vice President and CFO. Trem will review our objectives and strategies, our differentiators and a few fourth quarter and full year highlights. Gary and then Cary will discuss our key operational and financial results for the same periods. Trem will have a few concluding remarks mainly on governance before we open it up to questions.
As a reminder, today's call contains certain projections and other forward-looking statements in the meaning of federal securities laws. These statements risks and uncertainties that may cause actual results to differ from those expressed or implied in these statements. These include risks outlined in our public filings. We refer to non-GAAP financial measures, and we have provided a reconciliation to the GAAP with our financial statements. Today, we will be referencing slides from the March 2019 Investor Presentation deck, which is posted on our Investor webpage. The replay link of this call and transcript will also be made available on our Investor page.
I will now turn the call over to Trem Smith, Berry President and CEO.
Thank you, Todd. Welcome, and thank you for joining us for Berry Petroleum's fourth quarter and year-end earnings call. The past year was monumental for Berry. In this call, we will describe the reasons why it was such a great year and why we are set up for an equally strong or even stronger in 2019. Most importantly, I want to clearly and concisely communicate to you that all we have done, continue to do and will continue to do is absolutely consistent with our business model.
We managed to value not just the production growth, we are basin agnostic, we have no long-term capital commitments, i.e. we can turn capital off such as a drilling rig and back on within 30 days and always lived within our definition of levered free cash flow, which as a reminder, is we pay our expenses, OpEx, taxes, we pay our financial obligations including interests, we return capital to our shareholders in the form of dividends and we fund sufficient CapEx to maintain production. The remainder is our levered free cash flow, which we use to grow the value of the company for our shareholders.
In addition, we continue to keep our debt-to-EBITDA ratio well below our two-time target. In other words, we are not increasing debt. We have been living these simple strategies since we took over leadership of the new Berry in March 2017 and will continue to do so into the future. This is our competitive advantage. Now let's talk