Berry Corporation (BRY) has reported its financial results for the fourth quarter and full-year 2023. In the fourth quarter, the company's net income was $63 million, showing a significant improvement from a loss of $45 million in the third quarter. Adjusted net income for the fourth quarter was $10 million, down from $12 million in the third quarter. The company's cash flows from operating activities for the fourth quarter were $79 million, reflecting a positive trend from the previous period.
For the full year 2023, Berry Corporation reported a net income of $37 million, a decrease from $250 million in 2022. However, the adjusted net income for the full year was $39 million, demonstrating a slight increase from the third quarter's $12 million. The company generated cash flows from operating activities of $199 million for the full year. Adjusted free cash flow for 2023 was $97 million, with $55 million attributable to the fourth quarter.
In terms of production, Berry Corporation reported an average daily production of 25,400 barrels of oil equivalent per day (boe/d) for the full year 2023, slightly down from 26,100 boe/d in 2022. However, in the fourth quarter of 2023, the company's average daily production increased by 2% to 25,900 boe/d compared to the third quarter volumes.
The company's financial performance was also impacted by changes in realized oil prices. In the fourth quarter of 2023, the average realized oil price, including hedging effects, was $72.65 per barrel, while excluding hedging effects, California's average realized oil prices were $77.74 per barrel. These figures show a slight decrease from the third quarter's average realized oil prices.
In terms of expenses, Berry Corporation experienced a 13% increase in lease operating expenses, which includes fuel gas costs for California steam operations, in the fourth quarter of 2023 compared to the third quarter. Additionally, taxes, other than income taxes, decreased by 12% in the fourth quarter, mainly due to lower severance expense and greenhouse gas (GHG) allowance requirements.
Looking ahead to 2024, Berry Corporation has provided guidance for its capital program, focusing on maximizing adjusted free cash flow and shareholder value. The company's current plan is based on 2024 production that is essentially flat compared to 2023. Berry Corporation also aims to focus on debt and leverage, reduce general and administrative expenses, and operating costs, particularly energy costs, as reflected in its 2024 guidance.
The market has reacted to these announcements by moving the company's shares 1.9% to a price of $7.05. If you want to know more, read the company's complete 8-K report here.
