FOCUSED A Responsible California Energy Partner AUGUST 2020 INVESTOR PRESENTATION
Our COVID-19 Response Berry continues to closely monitor the rapidly evolving concerns, guidelines, and recommendations regarding the spread of the novel coronavirus (COVID-19). During this unsettling time, the health and safety of our…
Our Long-Term Strategy Build cash position to have flexibility through 2020/2021 Live out of Levered Free Cash Flow1 Maintain low leverage profile Return capital to shareholders Focus on attractive organic growth through…
Framework for Success Focus on Creating Long-Term Value Levered Free Cash Flow1 Capital program funded from Levered Free Cash Flow1 - today and into the future Maintain current production as appropriate in the cycle and pay…
Framework for Success Powered by Our Principles and Assets Highly Oil-Weighted Brent pricing + stable operational costs = High Margins Q2 2020 production 88% oil Operational Control and Stable Cost 2020 est. production 90% oil…
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…
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…
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,…
Berry Overview Conventional properties in California, Utah and Colorado California Q2 production of 23,400 Boe/d California Production: 100% Oil Oil Gas NGL Proven management team Established track record of leading public companies…
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…
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…
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%…
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…
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…
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)…
Stable Cost Structure Q2 2020 Q1 2020 11 Protect the base 11 3.42 3.27 3.19 Dividends 5.31 5.20 Interest 3.94 1.56 Adjusted G&A2 Taxes, other than income taxes 19.81 18.11 Operating Expenses 1 1 We define…
We Have Significant Financial Flexibility Through the Price Cycle The Plan at Each Price 60 120 Accelerate development Jun 2014, 114 program, pursue accretive 110 acquisitions and bolt-ons, purchase debt in the open 100 market,…
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 August 2020 22
Q2 2020 Q1 2020 Key Company Highlights Capital Expenditures 17mm 39mm Wells Drilled 4 19 100% California development 100% California development Production Mboe/d 29.1 30.8 88% Oil 89% Oil 80% California 81% California…
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…
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…
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…
Drilling Activity by Well Type 2019 2020 114 96 82 46 19 9 2 4 8 4 Q1 Q2 Well Types Thermal Diatomite Sandstone Sandstone Producers Producers Injectors Uinta Delineation 27 August 2020
Status of 2019-2020 CA Legislation Bill Date Introduced Status Potential Impact on Berry SB 169 - Pipeline Safety Records 1/28/2019 Assembly G.O. Minimal SB 246 Oil and Gas Severance Tax 2/11/2019 Dead None AB 345 Oil and Gas:…
California Legislation 101 California has a bicameral legislature, which means there are two chambers: the Assembly and the Senate. The Assembly has 80 members: currently 60 Democrats and 20 Republicans. All 80 seats are up for election…
Even-Year CA Legislative Calendar Highlights (2020) The house of origin deadlines have passed for both houses; new legislation can only be introduced through the gut and amend process. The Governor signed 2020-21 budget on June 29th;…
Berry Corporation (bry) In 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 gas About our new industry.. The…
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