Berry Corporation (bry)

Hello and welcome to the Barrie Corporation Q1 2025 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. If you'd like to ask a question by that time, please press star 1 on your telephone keypad. Thank you. I would like to turn the conference over to Chris Dennison, Director of Investor Relations. You may begin.

Thank you, Tricia, and welcome, everyone. Thank you for joining us for Barry's first quarter 2025 earnings call. This morning, Barry issued an earnings release highlighting our quarterly results. Speaking this morning will be Fernando Araujo, our CEO, Danielle Hunter, our president, and Jeff Maggots, our CFO. Our website has a link to the earnings release and our updated presentation. I would like to call your attention to the safe harbor language found in the earnings release. The release, the presentation, and today's discussion contain certain projections and other forward-looking statements within the meaning of the 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 that are disclosed in our filings with the SEC, including our quarterly report on Form 10-Q, which will be filed shortly. We have no plans or duty to update our forward-looking statements 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 a replay link of this call on our website. With that, I will now turn the call over to Fernando.

Thank you, Chris, and good morning, everyone. Welcome to our first quarter earnings call. Barry is off to a strong start in 2025, and we are reaffirming our full-year guidance. Our solid first quarter results are underpinned by our balance sheet strength, high return development projects, and the capital efficiencies we are delivering. We are confident in our ability to navigate current market volatility, and our 2025 outlook remains unchanged. Our cash flow is protected by our strong hedge position For the remainder of the year, we have approximately 73% of our oil production hedged at $75 per barrel. Our business plan is anchored by our high return assets, stable production base, and low capital intensity projects. This is a competitive advantage for Berry. We have the permits in hand to execute our 2025 development projects and continue to add inventory for 2026. Turning to our first quarter results, we strengthened our balance sheet by paying down $11 million of debt and returned $2 million in cash to shareholders. Liquidity increased to $120 million, and we improved our leverage ratio to 1.37 times. Highlighting our commitment to shareholder value, we are on track to deliver approximately 10 percent of our enterprise value annually to our dividend and debt reduction. We generated $17 million of free cash flow in the first quarter due to cost improvements and stable production. We achieved a 9% reduction in hedged energy LOE when compared to the midpoint of our full-year guidance. In California, we drilled twice as many wells during Q1 compared to Q4 last year. Production for the quarter averaged 24,700 barrels per day, slightly below prior quarter due to planned downtime our 2025 california development program is primarily focused on the thermal dynamite reservoir and our drilling program is front loaded towards the first half of the year therefore we expect most of our capex will be incurred by the end of the third quarter as referenced on slide 12 in our presentation the economics of the thermal dynamite remain highly attractive at current oil prices Most of these projects generate a rate of return in excess of 100 percent. We expect to complete our thermal diatomite drilling by mid-summer, which sets up production and cash flow growth through the second half of the year. With highly competitive economics and a deep inventory of sidetracks, this will be a core area of capital allocation for years to come. Horizontal development of our UENTA asset is also progressing successfully. We recently finished drilling our four-well horizontal pad ahead of schedule and on budget. By utilizing produced gas and leveraging our existing facilities, we lowered fuel costs in our drilling operations by roughly 25 percent. Also, we expect to reduce completion costs by approximately $500,000 per well by utilizing produced gas to drive our pumps. Geologic results are in line with expectations as the Eutland Butte reservoir is fairly uniform across our acreage space. We are planning to commence frac operations in June with first production expected in the third quarter. We continue to see strong results from our six non-operated horizontal wells where production is exceeding our pre-trail estimates and supports farther delineation of our acreage. industry's recognition and excitement over the Uinta Basin is accelerated. We believe our 100,000-acre position with high working interest and majority held by production has significant upside and provides long-term optionality in capital allocation and growth. In summary, our priorities remain unchanged to generate sustainable free cash flow, reduce debt while returning dividends, and create value by investing in our high return development portfolio. Now I will turn the call over to Dan.