Berry Petroleum Corp (NASDAQ:BRY) Q3 2019 Earnings Conference Call - Final Transcript

Nov 07, 2019 • 05:00 pm ET


Berry Petroleum Corp (NASDAQ:BRY) Q3 2019 Earnings Conference Call - Final Transcript


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Good afternoon, ladies and gentlemen, and welcome to the Berry Corporation Third Quarter 2019 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. [Operator Instructions] As a reminder, this conference call is being recorded.

And without further delay, I would like to hand over the conference to your host, Mr. Todd Crabtree of Investor Relations.

Todd Crabtree

Thank you, Ian, and welcome to everyone. Speaking this afternoon will be Trem Smith, Board Chair, CEO and President; Gary Grove, Chief Operating Officer and Executive Vice President; and Cary Baetz, Chief Financial Officer and Executive Vice President. Trem will review activities and highlights from the quarter, Gary and then Cary will discuss our key operational and financial results. Trem will have a few concluding remarks.

As a reminder, today's call contains certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to 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. Our website has a link to the November Investor Presentation. Our website also includes reconciliations for the non-GAAP financial measures we use to the related GAAP measures from our financial statements. Later, we will also post the replay link of this call and the transcript on the site and we will file the 10-Q later today.

I will now turn the call over to Trem Smith.

Trem Smith

Thank you, Todd, and thanks everyone for joining us today for our third quarter earnings call. This quarter was extremely productive for Berry. We delivered according to plan, growing total Company production by 8% and California production by 10%, since the second quarter. And we're confident this growth will continue into the fourth quarter.

Our focus continues to be on creating value for our shareholders across market cycles through a combination of growth and returning capital. Specifically, this year, we expect to see double-digit production growth of about 12% company-wide, providing attracted dividend yield, and have repurchased 4% of our stock. We're also pleased to announce that the Board has approved the fourth quarter dividend of $0.12 per share. We are delivering on our promises, and we are executing within levered free cash flow, which we define as free cash flow, less dividends and the capital to maintain production.

Towards the end of the second quarter, we began to see the fruits of our 2019 capital program and that production growth continues today. The Company's third quarter production was in line with our plan at 29,600 barrels of oil equivalent per day. We are projected to end the year in line with our full year production guidance. In California, where we spent 91% of our capital year to date, we grew 10% in the third quarter. Importantly, we are demonstrating that our assets respond to capital investment, and if we can toggle our capital spend