DB:1P6

Stock Analysis Report

Berry Petroleum

Executive Summary

Berry Petroleum Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States.


Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Berry Petroleum's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1P6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.4%

1P6

-2.8%

DE Oil and Gas

-0.9%

DE Market


1 Year Return

-32.9%

1P6

74.7%

DE Oil and Gas

12.8%

DE Market

Return vs Industry: 1P6 underperformed the German Oil and Gas industry which returned 74.7% over the past year.

Return vs Market: 1P6 underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

1P6IndustryMarket
7 Day-1.4%-2.8%-0.9%
30 Day0%-1.1%0.6%
90 Day-31.0%25.7%2.9%
1 Year-29.6%-32.9%79.7%74.7%16.3%12.8%
3 Yearn/a13.1%3.8%15.8%5.7%
5 Yearn/a310.6%247.0%19.7%3.3%

Price Volatility Vs. Market

How volatile is Berry Petroleum's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Berry Petroleum undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 1P6 (€6.9) is trading below our estimate of fair value (€16.36)

Significantly Below Fair Value: 1P6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 1P6 is good value based on its PE Ratio (3.3x) compared to the Oil and Gas industry average (10.7x).

PE vs Market: 1P6 is good value based on its PE Ratio (3.3x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: 1P6 is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 1P6 is good value based on its PB Ratio (0.6x) compared to the DE Oil and Gas industry average (1.4x).


Next Steps

Future Growth

How is Berry Petroleum forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

5.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1P6's forecast earnings growth (5.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: 1P6's earnings (5.5% per year) are forecast to grow slower than the German market (13% per year).

High Growth Earnings: 1P6's earnings are forecast to grow, but not significantly.

Revenue vs Market: 1P6's revenue (5.5% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: 1P6's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1P6's Return on Equity is forecast to be low in 3 years time (10.9%).


Next Steps

Past Performance

How has Berry Petroleum performed over the past 5 years?

36.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1P6 has high quality earnings.

Growing Profit Margin: 1P6 became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 1P6 has become profitable over the past 5 years, growing earnings by 36.4% per year.

Accelerating Growth: 1P6 has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 1P6 has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-5.1%).


Return on Equity

High ROE: 1P6's Return on Equity (18.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berry Petroleum's financial position?


Financial Position Analysis

Short Term Liabilities: 1P6's short term assets ($130.0M) do not cover its short term liabilities ($148.9M).

Long Term Liabilities: 1P6's short term assets ($130.0M) do not cover its long term liabilities ($619.3M).


Debt to Equity History and Analysis

Debt Level: 1P6's debt to equity ratio (40.3%) is considered high.

Reducing Debt: 1P6's debt to equity ratio has reduced from 76.4% to 40.3% over the past 5 years.


Balance Sheet

Inventory Level: 1P6 has a high level of physical assets or inventory.

Debt Coverage by Assets: 1P6's debt is not covered by short term assets (assets are 0.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: 1P6 is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: 1P6 is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Berry Petroleum's current dividend yield, its reliability and sustainability?

6.67%

Current Dividend Yield


Dividend Yield vs Market

company6.7%marketbottom25%1.3%markettop25%3.6%industryaverage6.3%forecastin3Years6.7%

Current dividend yield vs market & industry

Notable Dividend: 1P6's dividend (6.67%) is higher than the bottom 25% of dividend payers in the German market (1.31%).

High Dividend: 1P6's dividend (6.67%) is in the top 25% of dividend payers in the German market (3.63%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, 1P6 has been paying a dividend for less than 10 years.

Growing Dividend: 1P6 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (21.7%), 1P6's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 1P6's dividends in 3 years are forecast to be well covered by earnings (29.7% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.5yrs

Average management tenure


CEO

Trem Smith (63yo)

US$5,572,525

Compensation

Mr. Arthur T. Smith, also known as Trem, has been the President, Chief Executive Officer and Director at Berry Petroleum Company, LLC and Berry Petroleum Corporation since March 2017. Mr. Smith serves as C ...


CEO Compensation Analysis

Compensation vs Market: Trem's total compensation ($USD5.57M) is above average for companies of similar size in the German market ($USD802.74K).

Compensation vs Earnings: Trem's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arthur Smith
Chairman0yrsUS$5.57m0.27% $1.4m
Cary Baetz
Executive VP2.8yrsUS$3.04m0.23% $1.2m
Gary Grove
Executive VP & COO2.8yrsUS$2.71m0.19% $1.0m
Michael Helm
Chief Accounting Officer2.3yrsno data0.016% $85.7k
Todd Crabtree
Manager of Investor Relations0yrsno datano data
Danielle Hunter
Executive VP0.08yrsno datano data
Kurt Neher
Executive Vice President of Business Development2.8yrsno datano data
Megan Silva
Executive Vice President of Corporate Affairs0yrsno data0.0081% $43.6k

2.5yrs

Average Tenure

58yo

Average Age

Experienced Management: 1P6's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Arthur Smith
Chairman0yrsUS$5.57m0.27% $1.4m
Cary Baetz
Executive VP2.8yrsUS$3.04m0.23% $1.2m
Donald Paul
Independent Director1yrsno datano data
Anne Mariucci
Lead Independent Director0.9yrsUS$133.74k0.024% $131.1k
Eugene Voiland
Independent Director2.7yrsUS$276.45k0.058% $308.9k
C. Potter
Independent Director1.4yrsUS$133.74k0.0079% $42.2k
Brent Buckley
Independent Director3yrsno datano data

1.4yrs

Average Tenure

63yo

Average Age

Experienced Board: 1P6's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 1P6 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 83.2%.


Top Shareholders

Company Information

Berry Petroleum Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berry Petroleum Corporation
  • Ticker: 1P6
  • Exchange: DB
  • Founded: 1909
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$583.181m
  • Listing Market Cap: US$536.877m
  • Shares outstanding: 81.00m
  • Website: https://www.berrypetroleum.com

Number of Employees


Location

  • Berry Petroleum Corporation
  • 16000 North Dallas Parkway
  • Suite 500
  • Dallas
  • Texas
  • 75248
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRYNasdaqGS (Nasdaq Global Select)YesNew Common StockUSUSDJul 2017
1P6DB (Deutsche Boerse AG)YesNew Common StockDEEURJul 2017

Biography

Berry Petroleum Corporation, an independent upstream energy company, engages in the development and production of conventional oil reserves located in the western United States. The company’s properties are located in the San Joaquin and Ventura basins, California; Uinta basin, Utah; and Piceance basin, Colorado. As of December 31, 2018, it had a total of 3,743 net producing wells. The company was founded in 1909 and is headquartered in Dallas, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:31
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.