Berry Petroleum Files for IPO

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Berry Petroleum has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, although the offering is valued up to $100 million, but this number is usually just a placeholder. The company intends to list its shares on the Nasdaq under the symbol BRY.

The underwriters for the offering are Goldman Sachs, Wells Fargo and BMO Capital Markets.

This is a California-based independent upstream energy company engaged primarily in the development and production of conventional oil reserves located in the western United States. Its long-lived, predictable and high-margin asset base is uniquely positioned to support management’s objectives of generating top-tier corporate-level returns and positive free cash flow through commodity price cycles.

Management believes that executing this strategy across its low-declining production base and extensive inventory of identified drilling locations will result in long-term, capital-efficient production growth, as well as the ability to return excess free cash flow to stockholders.

The company’s asset base is concentrated in the oil-rich San Joaquin basin in California. It also owns assets in the Uinta basin in Utah and in the East Texas basin, as well as in the Piceance basin in Colorado.

As of the end of 2017, the company had estimated total proved reserves of 141,384 thousand barrels of oil equivalents (MBoe). For the three months ended March 31, it had average production of roughly 26.2 MBoe per day, of which 81% was oil. In California, the average production for this three-month period was 18.8 MBoe per day, of which approximately 100% was oil.

The company intends to use the net proceeds from this offering to first repay its debt, and then to pay preferred shareholders. The remainder will be used for general corporate purposes.