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March 2019 Investor Presentation – Berry Petroleum Corp.

Berry Petroleum Corp. · Mar 7, 2019 · 35 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. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 1
    Investor Presentation March 2019 March 2019
  2. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 2
    Introductory Overview of Berry Petroleum Conventional properties in California, Utah and Colorado Map of Berry Assets1 Q4 2018 Production: 85% Oil Q4 2018 California Production: 100% Oil Proven management team Oil Established track…
  3. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 3
    Framework for Success Focus on Creating Long-Term Value Committed to our Strategy Managing to value not to production or volume growth Directing capital primarily to our oil-rich and low risk development opportunities in the San…
  4. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 4
    Framework for Success Powered by Our Principals and Assets Low production declines with stable operational costs influenced by Brent pricing creates high margins Highly Oil Weighted Mix for 2019 will average 87% oil Management…
  5. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 5
    Our Low Declining Wells and Production Base Mitigate Treadmill Conundrum Experienced in Unconventional Shale Plays The decline rates from our new conventional oil wells in % of Initial Rate From Peak Production (New Wells) California…
  6. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 6
    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…
  7. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 7
    Focused on Our California San Joaquin Basin Assets Map of Operations 8 March 2019
  8. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 8
    2018 Drilling Results & California Production 2018 Drilling Program California Asset Map 80 76 69 San Joaquin Basin: 18.3 Mboe/D 60 57 Midway Sunset: 10.6 Mboe/D Belridge: 3.3 Mboe/D Drill Count 40 McKittrick: 1.7 Mboe/D 30…
  9. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 9
    Proved Reserves YE 2018 Results D&M View of Assets California Reserve Reconciliation Replacement Metrics BRY California BRY California 275 300% 20 % 14.50 14.70 15 R/P Ratio Years 200% 114 10 % 100% 5 0% 0…
  10. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 10
    Significant California Inventory Tier 1 Additional 7,030 1,663 489 979 585 (Wells / Incl. Producers & Injectors) 444 3,314 1,811 787 Additional Well Count 272 Upside Hill Diatomite (non-thermal)…
  11. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 11
    Californias Oil Market is Isolated From Rest of Lower 48 There are no major crude oil pipelines connecting Refineries - Bay Area Crude Capacity California to the rest of the US. Refinery Name (MBbl/d) Chevron Richmond 245…
  12. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 12
    California Runs on California Crude, With Plenty of Takeaway Capacity Kern County oil production benefits from access to multiple, intra- state pipelines connecting Kern County producers to refineries in Kern County, the Bay Area and…
  13. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 13
    We Have Significant Financial Flexibility Across Oil Price Scenarios Simple financial principles Applied rationally across and planned allocations... the price cycle Jun. 2014, 116 120 110 100 Historical Brent Crude Pricing…
  14. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 14
    Key Company Highlights Q4 2018 Full-year 2018 79% directed to 88% directed to 53 148 development capital in development capital in California MM Capital Expenditures MM California 76 Wells Drilled 232 85% Oil 82% Oil…
  15. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 15
    Key Area Highlights (Excludes E. Texas) 2018 California 2018 Rockies1 227 19 93% from California MM Operating Income2 MM 100% Oil 19.7 Daily Production 6.7 88% in California 126 Capital Expenditures 17 74% in California…
  16. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 16
    Berry Total Production California continues to be our focus with investment of 88% of 2018 development capital o California grew 11% year over year and 15% January to December 2018 o 2018 Total company production is 27.0 Mboe/D…
  17. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 17
    Strong Oil-Driven Cash Margins are Backed by a Stable Cost Structure Total Company Margin All-in Unhedged Realized Price (/Boe): 53.32 57.05 58.33 55.57 20.72 25.81 22.64 26.46 10/Boe to replace and 2.40 2.35 2.95 2.89…
  18. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 18
    Our calculation of Levered Free Cash Flow (Hedged) 1 We define Operating Expenses as LOE, electricity expense, transportation expense, and marketing expense, net of electricity, transportation and marketing sales, as well as…
  19. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 19
    Key 2018 Financial Metrics / Debt/Proved Interest Leverage PV-10/Debt Reserves CROIC Coverage (/Boe) 1.5x 7.2x 5.5x 2.75 20% Leverage ratio = Long-term Debt / Adj. EBITDA Interest coverage = Adj. EBITDA / Interest expense…
  20. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 20
    Prudent & Proactive Commodity Price Risk Management High degree of margin visibility via proactive hedging program and cost stability Hedging Volumes in MMBls (MBbl/d) As of Feb 28, 2019 5.6 (15.3) 2.6 3.0 0 2019 2020…
  21. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 21
    Revised 2019E Guidance1 Reduced capital spending by 35 million or 14% with a little more than a 3% decrease in production Eliminated spending in the Rockies, adjusted CA capital Included CROIC ranges Category 2019E Guidance Low…
  22. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 22
    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 free cash flow Return Capital…
  23. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 23
    Concluding Remarks Berry is a highly differentiated E&P company with a clear strategic, operational and financial vision Highly Differentiated from Public Conventional and Shale E&P Companies Positive Levered Free Cash Flow Through…
  24. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 24
    Appendix Berry's Poso Creek field, California 25 March 2019
  25. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 25
    Operational Areas Focused in California Super Basin Corporate & Executive Office Division Offices Producing Assets Basin Boundary Uinta Basin San Joaquin Basin Bakersfield Southern San Joaquin Basin Piceance Basin E.…
  26. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 26
    Key Operational Activities Development is primarily in the San Joaquin Basin Notable California Development Programs in 2018 Three rigs through 2018 and an average of four rigs in 2019 Completed 30+ wells in the Hill Diatomite Select…
  27. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 27
    Non-GAAP Reconciliation Adjusted EBITDA Unhedged The following tables present a reconciliation of the GAAP financial measures of net income (loss) and net cash (used in) provided by operating activities to the non-GAAP financial measures…
  28. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 28
    Non-GAAP Reconciliation Adjusted EBITDA Unhedged The following tables present a reconciliation of the GAAP financial measures of net income (loss) and net cash (used in) provided by operating activities to the non-GAAP financial measures…
  29. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 29
    Non-GAAP Reconciliation - Levered Free Cash Flow Quarter Ended Year Ended December 31, December 31, ( thousands) 2018 2018 Adjusted EBITDA 81,669 257,924 Subtract: Capital expenditures - accrual basis (53,326) (147,831) Interest…
  30. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 30
    Non-GAAP Reconciliation - Adjusted General & Administrative Expenses The following table presents a reconciliation of the GAAP financial measure of general and administrative expenses to the non-GAAP financial measures of Adjusted…
  31. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 31
    Non-GAAP Reconciliation - Cash Return on Invested Capital Twelve Months Ended December 31, 2018 (in thousands) Cash Return on Invested Capital: Net cash provided by operating activities 103,100 Subtract: Changes in working…
  32. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 32
    33 Non GAAP Reconciliation for PV-10 At December 31, 2018 (in millions) California PV-10 2,027 Rockies PV-10 125 Total Company PV-10 2,152 Less: present value of future income taxes discounted at 10% (390) Standardized…
  33. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 33
    Non-GAAP Reconciliation - Reserve Replacement and Costs Total Company California (in MMBoe, except ratio and cost amounts) Extensions and discoveries (B) 22.4 19.3 Revisions of previous estimates (10.1) (0.4) Purchases of minerals…
  34. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 34
    Non-GAAP Reconciliation - Reserves and PV-10 December 31, 2018 California Rockies (San Joaquin (Uinta and Total and Ventura Piceance basins) basins) Proved developed reserves: Oil (MMBbl) 66 7 73 Natural Gas (Bcf) 76 76 NGLs…
  35. March 2019 Investor Presentation – Berry Petroleum Corp. – slide 35
    Thank you berrypetroleum.com 36 March 2019

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