Berry Corporation (bry) Announces New $200 Million Reserve Based Lending (RBL) Facility and Repurchases under its Previously Announced Share Repurchase Program
Berry Corporation (BRY) announced a new Reserve Based Lending (RBL) facility with a borrowing base of $500 million and a commitment of $200 million, replacing the previous facility. The company also stated it has repurchased approximately 471,000 shares under its $100 million buyback program, with $47 million remaining. Management emphasized a disciplined capital allocation strategy focused on returning cash to shareholders while maintaining operational liquidity. The leverage ratio has decreased to 3:1, aligning with macroeconomic conditions.
- New RBL facility with a borrowing base of $500 million enhances financial flexibility.
- Share repurchase of 471,000 shares under a $100 million program boosts shareholder value.
- Management maintains a disciplined capital allocation strategy, potentially increasing dividends and further share buybacks.
- Leverage ratio decreased to 3:1, indicating increased financial caution amid market conditions.
DALLAS, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“bry” or the “Company”) today announced entry into a credit agreement, effective August 26, 2021, for a new Reserve Based Lending (RBL) facility with a borrowing base of
“Bry has responsibly run its operations out of Levered Free Cash Flow1 since the current management team assumed leadership in mid-2017. We maintain a disciplined and thoughtful approach to capital allocation, and we have and will continue to use our strong free cash flow generation to increase shareholder value, while maintaining sufficient cash resources to fund our operations. Given current plans and our free cash flow generation expectations through 2022, we anticipate returning a substantial portion of cash to our shareholders through various means, including dividends, share repurchases and debt reduction. We are pleased to have a strong bank group led by our new administrative agent JPMorgan Chase and we are very appreciative of the long-term support from our existing banking group including Bank of Oklahoma and Key Bank as Joint Lead Arrangers, and welcome a new local California lender, Valley Republic Bank, as Syndication Agent,” stated Cary Baetz, bry EVP and CFO.
The terms of the new RBL facility include a decrease of the leverage ratio to 3:1 from the prior facility due to the overall macro environment, but the current ratio is comparable to the prior facility. A description of the material terms of the new RBL facility will be filed with the SEC on a Current Report on Form 8-K within four business days.
The Company’s
In February 2020, our Board of Directors adopted a program for the opportunistic repurchase of up to
1 Levered Free Cash Flow is a non-GAAP financial measure that we define as Adjusted EBITDA less capital expenditures, interest expense, and dividends. Please see our 10-K or 10-Q for definition for Adjusted EBITDA.
About bry
Bry is a publicly traded (NASDAQ: BRY) western United States independent upstream energy company with a focus on the conventional, long-lived oil reserves in the San Joaquin basin of California. More information can be found at the Company’s website at bry.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address plans, activities, events, objectives, goals, strategies, or developments that the Company expects, believes or anticipates will or may occur in the future. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. Therefore, such forward-looking statements involve significant risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects, including those risks described under the heading “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. You can typically identify forward-looking statements by words such as aim, anticipate, achievable, believe, budget, continue, could, effort, estimate, expect, forecast, goal, guidance, intend, likely, may, might, objective, outlook, plan, potential, predict, project, seek, should, target, will or would and other similar words that reflect the prospective nature of events or outcomes. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise except as required by applicable law. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at via our website or via the Investor Relations contact below, or from the SEC’s website at www.sec.gov.
FAQ
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