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July 2018 Investor Presentation – Berry Petroleum Corp.

Berry Petroleum Corp. · Jul 31, 2018 · 48 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 1
    Investor Presentation July 2018
  2. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 2
    Disclaimer (Cont.) Berrys estimated net proved Strip Pricing reserves were prepared on the same basis as Berrys SEC reserves, except for the use of pricing based on closing monthly futures prices as reported on the ICE (Brent) for oil and…
  3. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 3
    Todays Presenters Summary Backgrounds CEO of Berry Petroleum since March 2017 (previously named Interim CEO in January 2017) Former CEO of Hillwood International Energy Trem Smith 25 years at Chevron; numerous international and…
  4. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 4
    Table of Contents I. Introduction II. Key Investment Highlights III. Financial Attributes IV. Asset Overview Appendix A. Other Reference Materials Ethel D lease, Berrys first oil prospect in 1909 5
  5. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 5
    I. Introduction Sunrise over Berrys Belgian lease in Kern County, CA 6
  6. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 6
    Berry Petroleum: A U.S. Onshore Conventional Oil Company Conventional, oil-driven, Western United States focused Map of Berry Assets1,2 Brent-influenced oil pricing dynamics Oil Gas Long production history and high operational…
  7. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 7
    California Has a Rich History in Oil Native Americans used oil from California is home to world-class, ground seepages as a lubricant and prolific oil basins sealant Basins1: San Joaquin (EUR 19 Bboe) Seeps spurred commercial…
  8. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 8
    California is a Major Oil Producing State California was the third largest oil producing state in Top Crude Oil Producing Counties in Lower 48 (Feb 2018)3 Lower 48 during 20171 14,000 Over 26 billion in annual state and local tax…
  9. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 9
    The New Berry Petroleum Summary of Events What Changed Since Our Emergence In December 2013, LINN Energy acquired Berrys predecessor Production Commodity company for 4.6 billion Total Debt1 (mm) Mix2 (% Oil) 1,725 On February 28,…
  10. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 10
    We Are Broadly Advantaged vs. Unconventional Resource Players Resource / Shale Players The Berry Benefit Production History Decades of History Still Learning Production Declines Low High IP Rates Lower Higher Capital and Service…
  11. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 11
    We Have Significant Financial Flexibility Across Oil Price Scenarios Our capital allocation priorities are flexible and focused on delivering value to shareholders across cycles Currently Planned Capital Allocation / Results…
  12. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 12
    II. Key Investment Highlights Berry's Poso Creek field, California 13
  13. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 13
    Our Key Asset, Operational and Financial Advantages 1 Oil dominated, low-risk conventional asset base 7 2 Long-lived reserves Strong balance sheet with low and and liquidity predictable production decline rates 6 3 Many…
  14. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 14
    1 Our Low Risk, Oily Reserve Base Has a Long Reserve Life Berry is highly differentiated relative to other oil-focused E&Ps through its unique combination of high oil content production and long lived reserves What Makes Our Assets…
  15. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 15
    2 Our Conventional, Low-Declining Asset Base Our low production decline profile enhances capital flexibility through commodity price cycles and allows for efficient hedging of significant quantities of future expected production…
  16. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 16
    2 Our Low Declining Wells and Production Base Mitigate Treadmill Conundrum Experienced in Unconventional Shale Plays 100% 100% The decline rates from our conventional oil development % of Initial Rate From Peak Production (New…
  17. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 17
    3 Californias Oil Market is Isolated From Rest of Lower 48 Californias oil market is disconnected. There are no major crude oil pipelines connecting it to the rest of the US. Crude Oil Pipelines in the U.S. Source: EIA 18
  18. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 18
    3 Waterborne Supply Sources Drive a Brent-Influenced Pricing Dynamic in California California oil prices are Brent-influenced because California refiners import 67% of supplies from Bay Area waterborne sources, including 50% from…
  19. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 19
    4 Our Geological Advantages and Lack of Shale Play Service Intensity Drive Substantially Lower and More Stable Drilling and Completion Costs The lower cost nature of our equipment and the relative abundance of service providers allow…
  20. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 20
    5 Significant Inventory of High Return Development Opportunities Tier 1 Additional 870 80 7,053 793 (Wells / Incl. Producers & Injectors) 424 IRRs1,2 904 78 % 359 % 65 % 585 Well Count 452 3,397 1,860 774…
  21. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 21
    6 Continued Improvement to EUR and Economic Upside We are focused on enhancing the economic value of our existing reserve base and have identified several areas of potential upside Change recovery process dynamics in Thermal Diatomite…
  22. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 22
    6 Chevron North Midway-Sunset Transaction Transaction typifies the opportunities we will continue to pursue around McKittrick Field Railroad Gap our existing position Field Finalized transaction on April 20, 2018 No upfront capital…
  23. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 23
    7 Our Leverage is Low and our Liquidity is Strong Current Capital Structure Current Liquidity (mm) Capitalization March 31,2018 635 Cash & Cash Equivalents 67 RBL Facility - Senior Notes 400 175 Total Debt 400 Net Debt 333…
  24. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 24
    III. Financial Attributes Ethel D lease outside of Taft, California 25
  25. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 25
    We Believe That Our Differentiated Asset Base and Operations Will Result in Top-tier corporate level returns Long-term capital efficient growth High degree of capital flexibility with low breakeven oil prices Positive…
  26. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 26
    We Generate Strong Adj. EBITDA Margins and Positive Free Cash Flow Historical Adjusted EBITDA Unhedged Margin1 (/Boe) Historical Adjusted EBITDA less Capex2 (mm) Average Brent Price (/Bbl): 54.65 67.16 26.47 101 99 15.52 10…
  27. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 27
    III. Financial Policy Header in the Thermal Diatomite area, North Midway Sunset 28
  28. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 28
    Our Financial Policy Target Net Debt to EBITDA of 1.5 2.0x or lower through commodity price cycles Prudent Balance Sheet Management Deleveraging will be achieved through organic growth and excess levered free cash flow Return…
  29. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 29
    Prudent Commodity Price Risk Management High degree of margin visibility via proactive hedging program and cost stability Hedge Volumes in MMBbls (MBbl/d) 3.7 (10.2) Purchased Put Option (Brent) 0.9 Fixed Swaps (Brent) Sold Call…
  30. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 30
    IV. Asset Overview A view of Berrys Homebase acreage in South Midway-Sunset 31
  31. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 31
    Our Large, Conventional and Diversified Asset Base is Oil-Weighted and Valuable May 2018 Strip Net May 2018 March Proved 1Q18 Strip 1P Gross 2018 Reserves1 Avg. Net 1Q18 PV-101,2 Drilling Producing (MMBoe) / Production % Oil (mm) / %…
  32. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 32
    Our California Assets Asset Overview Drilling opportunities exist in each asset area allowing for production growth and increased recovery and reserves We have a concentrated position in California's San Joaquin Basin Prolific history…
  33. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 33
    Our California Operational Areas and Producing Intervals AGE Quaternary Holocene Pleistocene Tulare San Pliocene Joaquin Etchegoin Potter Reef Ridge Neogene Sublakeview Monarch 10-10 Webster Miocene…
  34. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 34
    Berrys Completion and Recovery Mechanisms State Project Type Well Type Completion Type Recovery Mechanism Depth (ft.) Pressure Depletion Low intensity pin point Hill Diatomite (non-thermal) Vertical augmented with water 1,300 2,000…
  35. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 35
    San Joaquin Thermal Diatomite Well Type Curve1 Overview Type Curve and Historical Well Results (Boe/d) Asset Information 90 Area NW San Joaquin Basin Dataset: Approximately 100 wells 80 in the Tidewater lease Reservoir Thermal…
  36. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 36
    San Joaquin Sandstone Flood Pattern Type Curve1 Overview Type Curve and Historical Well Results (Boe/d) Asset Information 140 Area San Joaquin Basin Dataset: Approximately 30 patterns Historical Results 120 in the McKittrick 21Z…
  37. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 37
    San Joaquin Hill Diatomite Fairway Pattern Type Curve1 Overview Type Curve and Historical Well Results (Boe/d) Asset Information 140 Area San Joaquin Basin Dataset: Approximately 230 diatomite wells in the fairway Reservoir Diatomite…
  38. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 38
    Our Actual Realized D&C Costs Have Aligned Closely with AFEs D&C Cost Per Well ( in thousands) California Area Over (Under) Budget 443 411 353 359 Thermal Sandstone (6)% 244 230 Thermal Diatomite 2% Hill Diatomite (7)% 443…
  39. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 39
    Concluding Remarks Berry is a highly differentiated E&P company with a clear strategic, operational and financial vision Conventional, stable, oil-weighted asset base Favorable West Coast crude pricing dynamics Positive levered…
  40. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 40
    A. Other Reference Materials 41
  41. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 41
    Historical Well List for Hill Diatomite Fairway Well Name Date API Well Name Date API Well Name Date API Well Name Date API 1 HILL 412A 1989-11-01 04029845870000 61 HILL 632K 2013-04-01 04030479820000 121 HILL 553B 2005-06-01…
  42. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 42
    Historical Well List for Thermal Diatomite Well Name Date API Well Name Date API Well Name Date API 1 TDW 34-28 2013-08-01 04030468620000 36 TDW 40-26 2014-01-01 04030468740000 71 TDW 46-22 2014-01-01 04030514260000 2 TDW 35-25…
  43. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 43
    Historical Well List for Sandstone Well Name Date API Well Name Date API Well Name Date API 1 21Z 09-C2 2010-04-10 04030396340000 37 21Z O-18 2012-04-12 04030434490000 73 21Z LM-22Ai N/A 04030528910000 2 21Z 09-C3 2010-04-10…
  44. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 44
    Reconciliation for Adjusted EBITDA Hedged and Unhedged Three Months Ended Ten Months Ended ( in thousands) March 31, 2018 December 31, 2017 Net income (loss) 6,410 (21,068) (+) Depreciation, depletion, amortization and accretion…
  45. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 45
    Reconciliation for Adjusted EBITDA less Capital Expenditures Three Months Ended Ten Months Ended ( in thousands) March 31, 2018 December 31, 2017 Net cash provided by operating activities 27,592 107,399 (+) Cash Interest Payments…
  46. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 46
    Reconciliation for Adjusted G&A Expenses Three Months Ended Ten Months Ended ( in thousands) March 31, 2018 December 31, 2017 General and administrative expenses 11,985 56,009 (-) Non-recurring restructuring and other costs…
  47. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 47
    Proved Reserves as of December 31, 2017 SEC and Strip Prices Proved Reserves and PV-101 as of December 31, 2017 Proved Reserves and PV-101 as of December 31, 2017 (SEC Pricing)2 (Strip Pricing)3 Natural Natural Oil Gas NGLs Total % of…
  48. July 2018 Investor Presentation – Berry Petroleum Corp. – slide 48
    Proved Reserves as of December 31, 2017 SEC and Strip Prices (Cont.) Proved Reserves as of December 31, 2017 (SEC Pricing)1 Proved Reserves as of December 31, 2017 (Strip Pricing)2 San Joaquin San Joaquin and Ventura Piceance East…

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