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February 2020 Investor Presentation – Berry Petroleum Corp.

Berry Petroleum Corp. · Feb 27, 2020 · 37 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. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 1
    FOCUSED A Responsible California Energy Partner FEBRUARY 2020 INVESTOR PRESENTATION
  2. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 2
    Our Strategy Focus on attractive organic growth through cycle Return capital to shareholders Top quartile fixed dividend within E&P industry (0.12/quarter / 0.48 annually) Share repurchases to manage dilution (net 5% share…
  3. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 3
    Framework for Success Focus on Creating Long-Term Value Grow Value Managing value; not production or volume growth Directing capital to oil-rich and low risk development opportunities in the San Joaquin Super basin Assets…
  4. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 4
    Framework for Success Powered by Our Principles and Assets Highly Oil-Weighted Brent pricing + stable operational costs = High Margins Q4 2019 production 89% oil Operational Control and Stable Cost 2020 est. production 90% oil…
  5. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 5
    Our Financial Policy Prudent Balance Sheet Management Target Net Debt to EBITDA of 1.0 2.0x or lower through commodity price cycles Deleveraging through organic growth and excess free cash flow Return Capital to Shareholders via…
  6. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 6
    Planning for Success in California Every barrel we produce is one less barrel imported Grasstops outreach Aggressive outreach team Lobbyist in Sacramento Well-known holistic energy expert for grasstops/grassroots Grassroots outreach…
  7. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 7
    Operational Commitment to ESG Board oversight of ESG risks and opportunities Internal cross-functional ESG Steering Committee Proactive engagement across stakeholder groups, including employees, legislators and regulators,…
  8. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 8
    Berry Overview Conventional properties in California, Utah and Colorado California Q4 production of 25,500 Boe/d up 11% compared to last quarter California Production: 100% Oil Oil Gas NGL Proven management team Established track…
  9. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 9
    Kern County & CA Still Top Oil Producers 5 11.0MM barrels/mo. AK 1 ND 17.3MM barrels/mo. Top 7 Oil Producing States2 MMBbl/Month Texas 159.9 North Dakota 44.4 New Mexico 31.8 Top 7 Oil Producing Oklahoma 17.3 Colorado…
  10. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 10
    Focused on Our California San Joaquin Basin Assets Thermal Non-Thermal Thermal Sandstones Diatomite Diatomite Poso Creek South Belridge Population Density1 McKittrick People/Sq Mile 2,420 N. Midway Sunset S. Midway…
  11. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 11
    Proved Reserves YE 2019 Results DeGolyer and MacNaughton View of Assets California Reserve Reconciliation 2019 Replacement Metrics BRY California BRY California 299% 14.83 R/P Ratio Years 13.04 Up 23% before 57%…
  12. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 12
    San Joaquin Basin Production History Field Performance Responds to Investment CA Total San Joaquin Basin WTI Price 1,200 120 No investment in Conventional CA Harvest 1,000 100 Production grew two-fold as majors invested in…
  13. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 13
    The Berry Advantage - Ease of Operations Resource / Shale Companies Decades of History Production History Still Learning Low Production Declines High Lower IP Rates Higher Low Capital and Service Cost Intensity Higher…
  14. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 14
    Understanding Cyclical Steaming Types & VS. . Sandstone Producer Sandstone Injector Thermal Diatomite Berrys South & North Midway Sunset, McKittrick, Berrys North-Midway Sunset field Poso Creek, Placerita Fields & Hill Lease…
  15. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 15
    Time to Peak Production Drilling % of 2020 Facility Hook-up Planned Single Well Package Wells1 Steaming Peak Production 14 boe/d 70-75% Sandstone Producer Number of Wells Single Well Package 20-30% 38 boe/d Sandstone…
  16. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 16
    Type Curve Comparison Berry Hill Diatomite Thermal Diatomite Sandstone Steam Flood Midland Eagle Ford STACK Non-Berry Bakken 200 1,600 180 1,400 160 1,200 140 Berry Non-Berry 1,000 BOE/day 120 BOE/day 100 800 80…
  17. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 17
    Californias Oil Market is Isolated From Rest of Lower 48 - There are no major crude oil pipelines connecting California to the rest of the US. Advantaged Oil Pricing Refineries - Bay Area Crude Capacity Refinery Name (MBbl/d)…
  18. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 18
    Strong Oil-Driven Cash Margins are Backed by a Stable Cost Structure 2019 Q4 2019 All-in Unhedged Realized Price 53.39 54.35 (/Boe) Excess Cash Margin 6.47 7.61 Available for growth Protect the base 11.00 11.00…
  19. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 19
    We Have Significant Financial Flexibility Through the Price Cycle The Plan at Each Price 120 Jun. 2014, 116 60 110 100 Accelerate development program, pursue accretive Historical Brent Crude Pricing 90 acquisitions and…
  20. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 20
    Prudent & Proactive Commodity Price Risk Management Oil hedging volumes in MMBbl (MMBbl / day) as of 1/31/2020 (17 MMBbl / day) 0.1 6.1 (2 MMBbl / day) 0.7 2020 2021 Brent Swaps 64.15 58.50 WTI Swaps 61.75 -…
  21. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 21
    Prudent & Proactive Commodity Price Risk Management Purchased Gas hedging volumes in MMBtu (MMBtu/day) As of 1/31/2020 (52,000 MMBtu / day) 1,525 17,385 (10,000 MMBtu / day) (through March 2021) 900 2020 2021 Kern,…
  22. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 22
    Growth + Dividend = 2019 Total Return 29.0 26.31 Total annual 10.3% production growth plus + MMBoe / day Dividend yield2 4.6% plus + Net share buybacks3 5.4% Total Return 20% 2018 2019 1 Excludes East Texas 2…
  23. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 23
    2019 Financial Metrics / Debt / Interest PV-10 / Proved Leverage Coverage Debt Reserves (/Boe) 1.4x 8.8x 4.5x 2.89 Leverage: Debt / TTM Adj. EBITDA Interest coverage = TTM Adj. EBITDA / TTM Interest expense Proved…
  24. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 24
    2020 Estimated Guidance Low High Average Daily Production (MBoe/d) 29.5 32.5 Oil as % of Production 90% Operating Expenses (/Boe) 19.00 21.00 Taxes, Other than Income Taxes (/Boe) 4.00 4.50 Adjusted General & Administrative…
  25. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 25
    Berrys Value Proposition Tools to Unlock Shareholder Value Organic Growth Strategic Growth Fixed Dividend Share Buybacks Debt Repurchases Other Tools in use today February 2020 25
  26. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 26
    Reconciliation of Non-GAAP Measures For reconciliations of Non-GAAP to GAAP measures and other important information see https://ir.berrypetroleum.com/non-gaap-reconciliations-to-gaap Appendix February 2020 26
  27. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 27
    Q4 2019 Q3 2019 Key Company Highlights Capital Expenditures 42mm 63mm Wells Drilled 46 82 96% California development 100% California development Production Mboe/d 31.3 29.6 89% Oil 87% Oil 77% California 77% California…
  28. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 28
    2019 2018 Key Company Highlights Capital Expenditures 211mm 148mm Wells Drilled 338 232 99% California development 97% California development Production Mboe/d 29.0 26.3 1 89% Oil 87% Oil 77% California 77% California…
  29. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 29
    California California Key Area 2019 2018 Highlights Operating Income1 230mm 186mm Daily Production Mboe/d 22.6 19.7 100% Oil 100% Oil Capital Expenditures 192 126 Excludes Corporate Items Proved Reserves2 122 106 Mboe…
  30. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 30
    Levered Free Cash Flow 1 2 2 2 1 Includes cash gain (loss) on purchase of gas derivatives 2 Please see https://ir.berrypetroleum.com/non-gaap-reconciliations-to-gaap for non-GAAP reconciliations to GAAP measures and…
  31. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 31
    Kern Delivered Gas Monthly Average Price 9.00 Anomalous price spike impacted OpEx in Q119 6.00 / mmbtu 4.94 Majority of Fuel Gas Hedged for 4.15 12-18 Months 3.00 2.78 2014 2015 2016 2017 2018 2019 2020 BRY…
  32. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 32
    California Permitting Process Well UIC Permit Drilling Permit AE Permit Stimulation Permit Obtained in development areas. Obtained in all fields except Working with agencies Ongoing Proceeding in expansion areas MWSS where it is…
  33. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 33
    2019 Drilling Results by Well Type 114 15 96 18 82 11 39 1 14 30 46 38 2 23 60 49 29 26 10 Q1 Q2 Q3 Q4 Thermal Diatomite Sandstone Sandstone Producers Producers Injectors Uinta Delineation February 2020 33…
  34. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 34
    Status of 2019-2020 CA Legislation Bill Date Introduced Status Expected Impact on Berry SB 37 - Corporate Tax Increase 12/3/2019 Senate R ules Moderate SB 169 - Pipeline Safety R ecords 1/28/2019 Assembly G.O. Minimal SB 246 Oil and…
  35. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 35
    Even-Year CA Legislative Calendar Highlights (2020) Jan 1, Jan 6 Feb 21 Jun 15 Aug 31 2021 Final Recess Last day for Last day for Last Day to Last Day for Last Day for Budget to Budget Bill pass Statutes Take Legislature…
  36. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 36
    Berry Corporation (bry) In mid-February 2020, Berry introduced a new logo and shortened name to reflect the companys progressive approach to evolving and growing the business in todays dynamic oil and About our new gas industry..…
  37. February 2020 Investor Presentation – Berry Petroleum Corp. – slide 37
    bry.com February 2020

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