Net loss was $6 million and net income was $72 million and Adjusted EBITDA was $59 million and $78 million in the first quarter 2023 and in the fourth quarter 2022, respectively. The decrease in Adjusted EBITDA was largely driven by lower oil prices and production, coupled with higher fuel costs, partially offset by higher natural gas sales.

The Company's average daily production decreased in the first quarter of 2023 to 24,300 boe/d compared to 25,800 boe/d in the fourth quarter 2022. The Company-wide oil production in the first quarter 2023 was 22,600 bbl/d, or 93% of total Company production, with California production contributing 19,900 boe/d or 82% of total production. Production in California was negatively impacted by severe weather in the first quarter, recovering to expected levels in March. Utah production was also hampered by above-average snowfall, limiting access to wells, which increased well downtimes and the ability to transport produced oil, and also prevented normal workover and well maintenance.

The Company-wide realized oil price, including hedging effects, was $71.04 per bbl for the first quarter 2023 compared to $73.39 per bbl in the fourth quarter 2022. Excluding hedging effects, California's average realized oil prices were $76.24 per bbl in the first quarter, 93% of Brent, and $81.66 per bbl in the fourth quarter, 92% of Brent. California prices were unfavorably impacted by a temporary market disruption as a key third-party pipeline system was down for repairs, but this had no impact on volumes sold and the pipeline has now been restarted.

Lease operating expenses, which includes fuel gas costs for our California steam operations, increased in the first quarter 2023 from the fourth quarter 2022 mostly due to higher natural gas purchase prices, and to a much lesser extent higher weather-related services and lease maintenance costs. Fuel cost increases were largely offset by the positive results of gas purchase hedges.

Taxes, other than income taxes, decreased 21% in the first quarter compared to the fourth quarter 2022 due to lower greenhouse gas ("GHG") mark-to-market prices and lower property taxes.

General and administrative expenses increased 18% in the first quarter of 2023 compared to the fourth quarter 2022, almost entirely due to non-recurring executive transition and workforce reduction costs. Adjusted General and Administrative Expenses⁽¹⁾, which excludes non-cash stock compensation costs and nonrecurring costs, remained essentially flat quarter over quarter.

The income for the well servicing and abandonment business, C&J Well Services, declined 68% to $2 million in the first quarter 2023 compared to the fourth quarter 2022, due to weather-related impacts to both revenues and costs.

For the first quarter 2023, capital expenditures were approximately $20 million, excluding acquisitions, asset retirement obligation spending and well servicing and abandonment capital of $1 million. This represented a 56% decrease compared to the fourth quarter, reflecting the constraints imposed by the current permitting environment impacting Kern County. The current capital program for 2023 focuses on new wells for which we already had permits in hand or is in areas covered by existing CEQA analysis, and otherwise focuses on workovers and other activities related to existing wellbores. Based on activity to date and expected for the remainder of 2023, the Company currently anticipates its full year capital expenditures will be in-line with its initial budget between $95 and $105 million for the E&P segment and corporate and approximately $8 million for the well servicing and abandonment segment. Additionally, the Company spent approximately $5 million for plugging and abandonment activities in the first quarter 2023.

At March 31, 2023, the Company had liquidity of $179 million consisting of $14 million cash and $165 million available for borrowings under its revolving credit facilities.

Berry CFO Mike Helm stated:"Our first quarter financial results met our expectations and we are on track to generate returns to shareholders totaling about $130 million in 2023. This represents almost 20% of our current market capitalization, with an inclusive 2023 cash dividend yield expected to be in the high single digits from our fixed and variable dividends."

"Our annual cumulative Adjusted Free Cash Flows, which are calculated after our fixed dividend payments, are allocated in accordance with our shareholder return model. This allocates 20% for variable dividends and 80% for opportunistic uses, including share and debt repurchases for which the Company has existing authorization, and also acquisitions of bolt-ons with existing production. Our Adjusted Free Cash Flows are historically the lowest in the first quarter each year and this was the case again this quarter due to working capital uses, which include annual royalty and bonus payments."