Berry Corporation (bry)

Good day, and thank you for standing by. Welcome to the Berry Corporation Q4 and Full Year 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the presentation, there will be a question and answer session. To ask a question during the session, you press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised, today's conference is being recorded. I would now like to turn the conference over to your speaker.

Thank you, Lisa, and welcome, everyone. And thank you for joining us for Barry's fourth quarter and full year 2024 earnings call. Yesterday afternoon, Barry issued an earnings release highlighting our 2024 results. Speaking this morning will be Fernando Araujo, our CEO, Danielle Hunter, our president, and Jeff McGitts, our CFO. I would like to call your attention to the safe harbor language found in the earnings release. The release in today's discussion 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 materially from those expressed or implied in these statements. These include risks and other factors disclosed in our filings with the SEC, including our 10-K, which will be filed shortly. Our website has a link to the earnings release and our updated investor presentation. Any information, including forward-looking statements, reflects our analysis as of the date made. We have no plans or duty to update them except as required by law. Please refer to the tables in our earnings release and on our website for a reconciliation between all adjusted measures mentioned in today's call and the related GAAP measures. We will also post the replay link of this call on our website. I will now turn the call over to Fernando.

Thanks, Todd, and good morning, everyone. We appreciate your time today and your interest in Barry. Our fourth quarter and year-end 2024 results highlight our continued success executing on our strategy to create long-term shareholder value and generate sustainable free cash flow. Underpinning our strategy, we are proud to have an innovative team operating our high-quality assets with the highest health, safety, and environmental standards. 2024 was a strong year, demonstrated by our financial and operational results. We delivered on key goals and positioned BERI for greater future success by unlocking the development potential from our thermal diatomite reservoir in California and laying the groundwork for our horizontal well development program in the Uanta Basin. I will share details on these significant value drivers in a moment. Last year, we generated $292 million of adjusted EBITDA 9% higher than 2023, and we reduced hedged LOE by 12% and our adjusted GNA by more than 6% year-over-year. In 2024, we improved our top-tier capital efficiency. We drilled better wells, exceeding type curves in most operational areas. Our average annual production of 25,400 barrels of oil equivalent per day was near the top of our guidance range and even to 2023. It is notable that Berry has been able to sustain total production levels during the last six years, net of divestments, while during the same time period, California's statewide oil production has declined by 35%. This is a testament to the quality of Barry's assets and the strength of our team. In 2024, we drilled a total of 56 gross wells, 46 in California, which includes 10 new drills and 36 sidetracks, plus 10 in Utah, which includes four vertical plus six horizontal wells via farmings. In 2025, we plan to sustain production year over year and drill approximately 50 gross wells, We entered the year with an active rig in California when we started our horizontal drilling campaign in the Uinta Basin in February. In fact, we reached TD, total depth, on our first horizontal well this week with 93% of the lateral within target range and positive indication of hydrocarbons throughout, on cost and on schedule. At year end, BERI's total approved reserves of 107 million barrels of oil equivalent had a PV10 value of $2.3 billion at SCC pricing. Our 2024 reserve replacement ratio was 147 percent, which is a great achievement by our technical teams. In California, we added reserves in our thermal dynamite asset based on production performance and new sidetrack opportunities. In the Uinta Basin, we added reserves due to the farmings and various change in focus from vertical to horizontal development. Our thermal diatomite reservoir continues to deliver value-enhancing results and is a catalyst for future opportunities. In 2024, we successfully drilled 28 sidetracks with exceptional results and a rate of return exceeding 100 percent. These results have unlocked the potential to drill an additional 115 sidetracks in this asset over the next few years, including 34 planned for 2025. As an important side note, I want to emphasize that we have identified another 110 sidetrack opportunities in other locations across our California assets. Turning to the Uinta Basin, we have another exciting catalyst with significant growth potential. In 2024, we took steps toward proving up the value of our 100,000 acre operated position, over 90% of which is held by production. The second quarter, we entered our first farming to drill four horizontal wells in the Yilden Butte reservoir. The results confirmed significant potential value. In the fourth quarter, we executed on the second farming to drill an additional 12 horizontal wells in the same reservoir over the course of the next 18 to 24 months. The first two wells were put on production in January, with initial peak production rates of 1,900 and 2,000 barrels of oil equivalent per day, which is better than the peak production from the wells drilled in the first farm end. These two farm ends helped us to de-risk and accelerate the appraisal phase of our UENTA assets. While our analysis is still evolving, we have identified approximately 200 potential horizontal locations. I also want to highlight the significant cost advantage we have in the basin. We estimate that our development wells could be approximately 20% less expensive on a per foot basis compared to other operators in the basin. In addition to operating in the shallower end of the basin, we can leverage our extensive existing infrastructure to drive synergies and cost savings. Our ability to utilize these gas to fuel our drilling and completion operations is another important cost advantage. Plus, we have no entry cost or time pressures from these expirations. In summary, we are excited about the future. We have the capability to deliver on the significant near-term value drivers I've mentioned. Our team has a proven track record of delivering on key objectives through commodity cycles and regulatory challenges. and we have a compelling pipeline of value-adding opportunities. We see tremendous value in our stock price and are confident in our ability to create significant, sustainable value for our stakeholders. Now, I will turn the call over to Dani.