NasdaqGS:BRY

Stock Analysis Report

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.

Rewards

PE ratio (3.9x) is below the US market (18.5x)

Earnings are forecast to grow 5.51% per year

Became profitable this year

Risk Analysis

Shareholders have been substantially diluted in the past year

Has a high level of debt

Unstable dividend track record

Highly volatile share price over past 3 months



Snowflake Analysis

Good value 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: BRY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

13.3%

BRY

1.9%

US Oil and Gas

0.7%

US Market


1 Year Return

-16.4%

BRY

-9.2%

US Oil and Gas

18.2%

US Market

Return vs Industry: BRY underperformed the US Oil and Gas industry which returned -9.2% over the past year.

Return vs Market: BRY underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

BRYIndustryMarket
7 Day13.3%1.9%0.7%
30 Day-22.4%-2.7%1.5%
90 Day-12.5%-2.8%5.0%
1 Year-12.4%-16.4%-5.8%-9.2%20.8%18.2%
3 Yearn/a-13.7%-21.6%45.2%35.8%
5 Yearn/a-8.1%-21.6%71.6%52.7%

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

Valuation

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

3.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRY ($8.58) is trading above our estimate of fair value ($4.2)

Significantly Below Fair Value: BRY is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRY is good value based on its PE Ratio (3.9x) compared to the Oil and Gas industry average (9.7x).

PE vs Market: BRY is good value based on its PE Ratio (3.9x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BRY is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BRY is good value based on its PB Ratio (0.7x) compared to the US Oil and Gas industry average (0.8x).


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: BRY's forecast earnings growth (5.5% per year) is above the savings rate (1.7%).

Earnings vs Market: BRY's earnings (5.5% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: BRY's revenue (6.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BRY's revenue (6.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRY's Return on Equity is forecast to be low in 3 years time (9.2%).


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: BRY has high quality earnings.

Growing Profit Margin: BRY became profitable in the past.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: BRY has become profitable in the last year, making it difficult to compare its past year earnings growth to the Oil and Gas industry (-15.6%).


Return on Equity

High ROE: BRY'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: BRY's short term assets ($130.0M) do not cover its short term liabilities ($148.9M).

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


Debt to Equity History and Analysis

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

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

Debt Coverage: BRY's debt is well covered by operating cash flow (62.5%).

Interest Coverage: BRY's interest payments on its debt are well covered by EBIT (7.9x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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

5.59%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Berry Petroleum before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.6%marketbottom25%1.4%markettop25%3.7%industryaverage4.2%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: BRY's dividend (5.59%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BRY's dividend (5.59%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: Too early to tell whether BRY's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if BRY's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: BRY's dividends in 3 years are forecast to be well covered by earnings (32.3% payout ratio).


Next Steps

Management

What is the CEO of Berry Petroleum's salary, the management and board of directors tenure and is there insider trading?

2.3yrs

Average management tenure


CEO

Trem Smith (63yo)

0yrs

Tenure

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 ($USD5.57M) is above average for companies of similar size in the US market ($USD2.63M).

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


Management Age and Tenure

2.3yrs

Average Tenure

58yo

Average Age

Experienced Management: BRY's management team is considered experienced (2.3 years average tenure).


Board Age and Tenure

1.3yrs

Average Tenure

63yo

Average Age

Experienced Board: BRY's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$125,64729 Nov 19
Eugene Voiland
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares16,600
Max PriceUS$7.57
BuyUS$100,09427 Nov 19
Anne Mariucci
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares13,403
Max PriceUS$7.47
BuyUS$107,25022 Nov 19
Arthur Smith
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares15,000
Max PriceUS$7.15
BuyUS$84,57722 Nov 19
Gary Grove
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares12,000
Max PriceUS$7.05
BuyUS$97,29722 Nov 19
Cary Baetz
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares14,000
Max PriceUS$6.95
SellUS$12,430,00018 Nov 19
Benefit Street Partners L.L.C.
EntityCompany
Shares1,100,000
Max PriceUS$11.30
SellUS$50,023,68814 Jun 19
Benefit Street Partners L.L.C.
EntityCompany
Shares5,085,000
Max PriceUS$9.84
SellUS$886,77415 Mar 19
BlackRock, Inc.
EntityCompany
Shares76,512
Max PriceUS$11.59
BuyUS$51,10014 Dec 18
Arthur Smith
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares5,000
Max PriceUS$10.22
BuyUS$206,60014 Dec 18
Gary Grove
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares20,000
Max PriceUS$10.33

Ownership Breakdown

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


Management Team

  • Cary Baetz (54yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$3.04m
  • Gary Grove (58yo)

    Executive VP & COO

    • Tenure: 2.6yrs
    • Compensation: US$2.71m
  • Michael Helm

    Chief Accounting Officer

    • Tenure: 2.1yrs
  • Kurt Neher (58yo)

    Executive Vice President of Business Development

    • Tenure: 2.6yrs
  • Trem Smith (63yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$5.57m
  • Kendrick Royer (55yo)

    Executive VP

    • Tenure: 2.1yrs
  • Todd Crabtree

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Don Paul (72yo)

    Independent Director

    • Tenure: 0.8yrs
  • Anne Mariucci (61yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$133.74k
  • Gene Voiland (72yo)

    Independent Director

    • Tenure: 2.5yrs
    • Compensation: US$276.45k
  • C. Potter (72yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$133.74k
  • Cary Baetz (54yo)

    Executive VP

    • Tenure: 2.6yrs
    • Compensation: US$3.04m
  • Trem Smith (63yo)

    Chairman

    • Tenure: 0yrs
    • Compensation: US$5.57m
  • Brent Buckley (47yo)

    Independent Director

    • Tenure: 2.8yrs

Company Information

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


Key Information

  • Name: Berry Petroleum Corporation
  • Ticker: BRY
  • Exchange: NasdaqGS
  • Founded: 1909
  • Industry: Oil and Gas Exploration and Production
  • Sector: Energy
  • Market Cap: US$694.958m
  • 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 ar ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:27
End of Day Share Price2019/12/09 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.