Berry Corp Swings to Profit on Strong Q2 Revenue Growth

TL;DR

**Berry Corp's Q2 profit swing is a bullish signal for energy investors, buy the dip if you can.**

AI Summary

Berry Corp reported a significant increase in total revenues for the three months ended June 30, 2025, reaching $185.5 million, up from $160.2 million in the prior-year period. This 15.8% increase was primarily driven by higher oil and gas sales, which rose to $170.1 million from $148.9 million. Net income for the second quarter of 2025 was $25.3 million, a substantial improvement from a net loss of $10.5 million in the second quarter of 2024. For the six months ended June 30, 2025, total revenues were $360.7 million, compared to $315.8 million in the same period of 2024, representing a 14.2% increase. The company's strategic outlook appears positive, supported by increased production and favorable commodity prices, though it faces ongoing risks related to market price volatility for crude oil and natural gas. Berry Corp also reported a decrease in treasury stock by $1.2 million for the six months ended June 30, 2025, indicating potential share repurchases or other capital management activities. The company's retained earnings increased to $350.1 million as of June 30, 2025, from $324.8 million at December 31, 2024, reflecting improved profitability.

Why It Matters

Berry Corp's return to profitability and robust revenue growth in Q2 2025 signals a strong operational turnaround, which is crucial for investor confidence in the volatile energy sector. This performance could attract new investors and stabilize the stock price, benefiting existing shareholders. For employees, sustained profitability often translates to job security and potential for growth, while customers might see more stable supply from a financially healthier producer. In a competitive landscape, Berry Corp's improved financial health positions it better against rivals like California Resources Corporation, allowing for potential strategic investments and market share expansion, especially given its focus on California's energy market.

Risk Assessment

Risk Level: medium — While Berry Corp reported strong financial results, the company operates in the highly volatile crude petroleum and natural gas industry. Its revenues are directly tied to commodity prices, which can fluctuate significantly. For example, a net loss of $10.5 million in Q2 2024 highlights the susceptibility to market downturns, despite the current positive performance.

Analyst Insight

Investors should consider Berry Corp's improved profitability and revenue growth as a positive indicator, but remain mindful of the inherent volatility in the oil and gas sector. Monitor crude oil and natural gas price trends closely, as these will directly impact future earnings. This filing suggests a potential for continued upside if commodity prices remain favorable.

Financial Highlights

revenue

$185.5M

net Income

$25.3M

revenue Growth

+15.8%

Revenue Breakdown

Key Numbers

• $185.5M — Total Revenues Q2 2025 (Increased 15.8% from $160.2M in Q2 2024)
• $25.3M — Net Income Q2 2025 (Swung from a $10.5M net loss in Q2 2024)
• 15.8% — Q2 Revenue Growth (Year-over-year increase in total revenues)
• $170.1M — Oil and Gas Sales Q2 2025 (Primary driver of revenue growth, up from $148.9M in Q2 2024)
• $360.7M — Total Revenues YTD 2025 (Increased 14.2% from $315.8M in YTD 2024)
• $1.2M — Decrease in Treasury Stock (For the six months ended June 30, 2025, indicating capital management)
• $350.1M — Retained Earnings (As of June 30, 2025, up from $324.8M at December 31, 2024)

Key Players & Entities

• Berry Corp (company) — filer of the 10-Q
• $185.5 million (dollar_amount) — total revenues for Q2 2025
• $160.2 million (dollar_amount) — total revenues for Q2 2024
• $25.3 million (dollar_amount) — net income for Q2 2025
• $10.5 million (dollar_amount) — net loss for Q2 2024
• $360.7 million (dollar_amount) — total revenues for the six months ended June 30, 2025
• $315.8 million (dollar_amount) — total revenues for the six months ended June 30, 2024
• $1.2 million (dollar_amount) — decrease in treasury stock for the six months ended June 30, 2025
• $350.1 million (dollar_amount) — retained earnings as of June 30, 2025
• $324.8 million (dollar_amount) — retained earnings as of December 31, 2024

FAQ

Industry Context

Berry Corp operates in the Crude Petroleum & Natural Gas sector. The industry is characterized by significant capital intensity and is heavily influenced by global commodity prices for oil and natural gas. Companies in this sector face ongoing challenges related to exploration, production, regulatory compliance, and environmental concerns.

Regulatory Implications

As an oil and gas producer, Berry Corp is subject to a complex web of federal, state, and local regulations concerning environmental protection, drilling practices, and safety standards. Changes in environmental policies or stricter enforcement could impact operational costs and compliance requirements.

What Investors Should Do

1. Monitor commodity price volatility
2. Analyze operating expenses
3. Review capital allocation strategy

Key Dates

• 2025-06-30: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing significant revenue and net income improvements.
• 2024-06-30: End of Second Quarter 2024 — Prior year comparison period, highlighting a swing from net loss to net income for Berry Corp.
• 2025-12-31: Fiscal Year End — The company's fiscal year end, relevant for annual financial comparisons.

Glossary

Treasury Stock

Stock that a company has repurchased from the open market. It can be held for future reissue or cancellation. (A decrease in treasury stock by $1.2 million for the six months ended June 30, 2025, suggests potential share buybacks or other capital allocation strategies.)

Retained Earnings

The cumulative amount of net income that a company has kept over time, rather than distributing it as dividends. (The increase in retained earnings to $350.1 million from $324.8 million reflects the company's improved profitability in the current period.)

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a comprehensive update on a company's financial performance. (This document provides the detailed financial information and operational updates for Berry Corp for the period ending June 30, 2025.)

Year-Over-Year Comparison

Berry Corp has demonstrated strong year-over-year performance, with total revenues for the second quarter of 2025 increasing by 15.8% to $185.5 million, driven by higher oil and gas sales. This top-line growth has translated into a significant swing from a net loss of $10.5 million in Q2 2024 to a net income of $25.3 million in Q2 2025. Retained earnings have also grown, indicating sustained profitability.

Key Financial Figures

• $0.001 — of each class Common Stock, par value $0.001 per share Trading Symbol BRY Name of

Filing Documents

• bry-20250630.htm (10-Q) — 2381KB
• exhibit101-secondamendment.htm (EX-10.1) — 84KB
• exhibit102-thirdamendmentt.htm (EX-10.2) — 72KB
• exhibit103magids-employmen.htm (EX-10.3) — 143KB
• exhibit104garland-employee.htm (EX-10.4) — 171KB
• exhibit105formoftime-based.htm (EX-10.5) — 46KB
• exhibit106-secondamendment.htm (EX-10.6) — 237KB
• ex311q22025-ceo302certific.htm (EX-31.1) — 10KB
• ex312q22025-cfo302certific.htm (EX-31.2) — 10KB
• ex321q22025-906certificati.htm (EX-32.1) — 9KB
• dhsig.jpg (GRAPHIC) — 26KB
• image_0a.jpg (GRAPHIC) — 58KB
• image_14a.jpg (GRAPHIC) — 18KB
• image_16a.jpg (GRAPHIC) — 39KB
• image_17b.jpg (GRAPHIC) — 57KB
• image_18a.jpg (GRAPHIC) — 49KB
• image_1a.jpg (GRAPHIC) — 75KB
• image_20a.jpg (GRAPHIC) — 68KB
• image_21a.jpg (GRAPHIC) — 163KB
• image_2b.jpg (GRAPHIC) — 58KB
• image_4a.jpg (GRAPHIC) — 75KB
• image_8a.jpg (GRAPHIC) — 18KB
• image_9.jpg (GRAPHIC) — 18KB
• marcgrahamsiga.jpg (GRAPHIC) — 9KB
• 0001705873-25-000057.txt ( ) — 10568KB
• bry-20250630.xsd (EX-101.SCH) — 40KB
• bry-20250630_cal.xml (EX-101.CAL) — 75KB
• bry-20250630_def.xml (EX-101.DEF) — 253KB
• bry-20250630_lab.xml (EX-101.LAB) — 548KB
• bry-20250630_pre.xml (EX-101.PRE) — 409KB
• bry-20250630_htm.xml (XML) — 1445KB

– Financial Information

Part I – Financial Information

Financial Statements

Item 1. Financial Statements Condensed Consolidated Balance Sheets 1 Condensed Consolidated Statements of Operations 2 Condensed Consolidated Statements of Stockholders' Equity 3 Condensed Consolidated Statements of Cash Flows 4 Notes to Condensed Consolidated Financial Statements 5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 22

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 66

Controls and Procedures

Item 4. Controls and Procedures 67

– Other Information

Part II – Other Information

Legal Proceedings

Item 1. Legal Proceedings 68

Risk Factors

Item 1A. Risk Factors 68

Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds and Issuer Purchases of Equity Securities 68

Other Information

Item 5. Other Information 69

Exhibits

Item 6. Exhibits 70 Glossary of Terms 71

Signatures

Signatures 78 The financial information and certain other information presented in this report have been rounded to the nearest whole number or the nearest decimal. Therefore, the sum of the numbers in a column may not conform exactly to the total figure given for that column in certain tables in this report. In addition, certain percentages presented in this report reflect calculations based upon the underlying information prior to rounding and, accordingly, may not conform exactly to the percentages that would be derived if the relevant calculations were based upon the rounded numbers, or may not sum due to rounding. Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BERRY CORPORATION (bry) CONDENSED CONSOLIDATED BALANCE SHEETS June 30, 2025 December 31, 2024 (in thousands, except share amounts) Unaudited ASSETS Current assets: Cash and cash equivalents $ 19,728 $ 15,336 Restricted cash 250 14,700 Accounts receivable, net of allowance for doubtful accounts of $ 655 at June 30, 2025 and December 31, 2024 70,850 77,630 Derivative instruments 40,059 4,526 Other current assets 27,161 37,451 Total current assets 158,048 149,643 Noncurrent assets: Oil and natural gas properties 2,057,912 1,975,456 Accumulated depletion and amortization ( 947,312 ) ( 735,304 ) Total oil and natural gas properties, net 1,110,600 1,240,152 Other property and equipment 172,350 171,303 Accumulated depreciation ( 106,872 ) ( 91,075 ) Total other property and equipment, net 65,478 80,228 Deferred income taxes 54,793 26,779 Derivative instruments 29,324 11,697 Other noncurrent assets 9,872 9,187 Total assets $ 1,428,115 $ 1,517,686 LIABILITIES AND EQUITY Current liabilities: Accounts payable and accrued expenses $ 145,393 $ 133,809 Derivative instruments — 7,703 Current portion of long-term debt, net 45,000 45,000 Income taxes payable 534 1,368 Total current liabilities 190,927 187,880 Noncurrent liabilities: Long-term debt, net 364,602 384,633 Deferred income taxes — 1,612 Asset retirement obligations 179,976 185,283 Other noncurrent liabilities 27,669 27,642 Commitments and Contingencies - Note 4 Stockholders' equity: Common stock ($ 0.001 par value; 750,000,000 shares authorized; 89,600,013 and 88,942,805 shares issued; and 77,596,202 and 76,938,994 shares outstanding, at June 30, 2025 and December 31, 2024, respectively) 90 89 Additional paid-in-capital 785,333 787,953 Treasury stock, at cost ( 12,003,811 shares at June 30, 2025 and December 31, 2024, respectively) ( 113,768 ) ( 113,768 ) (Accumulated deficit) retained earnings ( 6,714 ) 56,362 Total stockholders' equi

View Full Filing

View this 10-Q filing on SEC EDGAR