Berry Corporation (Bry) (BRY) 2024 Q3 法說會逐字稿

Welcome to the Berry Corporation Q3 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

歡迎參加 Berry Corporation 2024 年第三季財報電話會議。（操作員指示）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your first speaker today, Todd Crabtree, Investor Relations. Please go ahead.

現在我想將會議交給今天的第一位發言人，投資者關係部門的 Todd Crabtree。請繼續。

Thank you, Corrine, and welcome, everyone, and thank you for joining us for Berry's third-quarter 2024 earnings conference call.

謝謝 Corrine，歡迎大家，並感謝您加入我們參加 Berry 2024 年第三季財報電話會議。

Earlier today, Berry issued an earnings release highlighting 2024 third quarter results and other exciting developments. Speaking this morning will be Fernando Araujo, Berry's Chief Executive Officer; Danielle Hunter, our President; and Mike Helm, our Chief Financial Officer.

今天早些時候，Berry 發布了一份財報，重點介紹了 2024 年第三季業績和其他令人興奮的進展。今天上午，Berry 首席執行官費爾南多·阿勞霍 (Fernando Araujo) 將發表講話。丹妮爾‧亨特，我們的總裁；以及我們的財務長 Mike Helm。

Before we begin, I would like to call your attention to the Safe Harbor language found in our earnings release that was issued this morning. The release and today's discussion contain certain projections and other forward-looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. These include risks and other factors outlined in our filings with the SEC including our 10-Q, which will be filed shortly.

在我們開始之前，我想提請您注意今天早上發布的收益報告中的安全港語言。新聞稿和今天的討論包含聯邦證券法含義內的某些預測和其他前瞻性陳述。這些陳述存在風險和不確定性，可能導致實際結果與這些陳述中明示或暗示的結果有重大差異。其中包括我們向 SEC 提交的文件中概述的風險和其他因素，包括即將提交的 10-Q 報告。

Our Investor Relations website, ir.bry.com, has a link to the earnings release and investor deck aligned with this call SEC filings and our most recent investor presentation. Any information, including forward-looking statements made on this call are contained in the earnings release and those presentations reflects our analysis as of the date made. We have no plans or duty to update them, except as required by law. Please refer to the tables in our earnings release and on our website for a reconciliation between all adjusted measures mentioned in today's call and related GAAP measures. We will also post the replay link of this call and the transcript on our website.

我們的投資者關係網站 ir.bry.com 提供了與本次電話會議 SEC 文件和我們最近的投資者簡報一致的收益發布和投資者資料的連結。任何信息，包括本次電話會議中所做的前瞻性陳述，均包含在收益發布中，這些演示反映了我們截至發布之日的分析。除非法律要求，否則我們沒有計劃或義務更新它們。請參閱我們的收益報告和我們網站上的表格，以了解今天電話會議中提到的所有調整後的指標與相關公認會計準則指標之間的對帳情況。我們也會在我們的網站上發布本次通話的重播連結和文字記錄。

I will now turn the call over to Fernando.

我現在將把電話轉給費爾南多。

Thanks, Todd. Welcome, everyone, and thank you for joining us. In addition to covering some of the operational highlights for the third quarter, including recent results in California and Utah has surpassed expectations. We have exciting news to report about our successful debt refinancing and our plans to unlock the significant value we are seeing in the Uinta Basin. We are excited about the road ahead and the value creation levers we have.

謝謝，托德。歡迎大家，感謝您加入我們。除了涵蓋第三季的一些營運亮點外，包括加州和猶他州最近的業績超出了預期。我們有令人興奮的消息要報道，關於我們成功的債務再融資以及我們計劃釋放我們在尤因塔盆地看到的巨大價值。我們對未來的道路和我們擁有的價值創造槓桿感到興奮。

First, turning to our third quarter performance. We delivered strong financial and operational results as we remain focused on optimizing our operations and managing our world-class assets with the highest health safety and environmental standards, all in an effort to drive sustainable free cash flow and maintain a healthy balance sheet and generate long-term shareholder value.

首先，轉向我們第三季的業績。我們取得了強勁的財務和營運業績，因為我們仍然專注於優化我們的營運並以最高的健康安全和環境標準管理我們的世界級資產，所有這些都是為了推動可持續的自由現金流，保持健康的資產負債表並產生長期的收益。

Total production for the quarter averaged 24,800 barrels of oil equivalent per day, a slight decrease from the prior quarter, mainly due to the timing of connecting new wells to production in our Midway-Sunset field. These wells were put online at the end of the quarter with production increasing as we exited Q3, and this operational momentum continues. As a result, we are on track to reach the midpoint of our full year production guidance and once again demonstrate our proven ability to sustain production levels year-over-year.

本季的總產量平均為每天 24,800 桶油當量，較上一季略有下降，這主要是由於我們的 Midway-Sunset 油田新井與生產的連接時間安排所致。這些油井在本季末上線，隨著第三季的結束，產量不斷增加，並且這種營運勢頭仍在繼續。因此，我們有望達到全年生產指引的中點，並再次證明我們有能力維持逐年生產水準。

Year-to-date, we have drilled a total of 48 wells, including 10 new wells in California. Production from our drilling activity has exceeded expectations. We are excited about the exceptional results from the sidetrack wells drilled in thermal diatomite reservoir, which are yielding returns greater than 100%. These returns underscore the quality of our world-class farming assets and the strength of our technical teams whose experience and expertise have consistently created value. We have significant running room for similar sidetrack activity in 2025 and beyond, and these permits have continued to be available.

年初至今，我們共鑽探了 48 口井，其中 10 口位於加州的新井。我們的鑽探活動產量超出了預期。我們對在熱矽藻土油藏中鑽探的側鑽井所取得的非凡成果感到興奮，這些井的回報率超過 100%。這些回報凸顯了我們世界一流農業資產的品質以及我們技術團隊的實力，他們的經驗和專業知識不斷創造價值。我們在 2025 年及以後有很大的運行空間來進行類似的側線活動，並且這些許可證將繼續可用。

For the past six years, we have been able to achieve our goal of maintaining stable production year-over-year net of divestments, despite the challenging and the changing regulatory and permitting environment. We have done so by drilling new wells and sidetracks and performing workovers, all of which are capital-efficient, high-return activities. As we plan for 2025, based on current permitting processes in our healthy California inventory, we are confident that we can continue to successfully execute the strategy, maintain production for the next few years while generating sustainable free cash flow.

在過去的六年裡，儘管監管和許可環境充滿挑戰且不斷變化，但我們仍然能夠實現在扣除撤資後保持穩定生​​產的目標。我們透過鑽新井、側鑽以及修井來實現這一目標，所有這些都是資本效率高、回報高的活動。在我們計劃 2025 年時，根據加州健康庫存中當前的許可流程，我們有信心能夠繼續成功執行該策略，維持未來幾年的生產，同時產生可持續的自由現金流。

Switching gears, we have signed a new commitment for a $545 million term loan credit facility that will enable Berry to redeem all of our outstanding notes that are due in February 2026, and replace our current RBL facility that matures next year. This refinancing marks a pivotal moment in our company's journey and positions us well to pursue strategic opportunities and drive long-term shareholder value. Mike will share more details on this momentarily.

換個方式，我們簽署了一項新的 5.45 億美元定期貸款信貸承諾，這將使 Berry 能夠贖回 2026 年 2 月到期的所有未償還票據，並取代我們目前明年到期的 RBL 信貸額度。此次再融資標誌著我們公司發展歷程中的關鍵時刻，使我們能夠更好地尋求策略機會並推動長期股東價值。麥克將立即分享更多細節。

Finally, I want to update you on our Uinta business opportunity that continues to build momentum, and we believe has the potential to drive significant value for years to come. The four Uinta Basin horizontal wells we farmed into earlier this year continued to perform better than expected, with an average gross peak production rate of approximately 1,100 barrels of oil equivalent per day per well. These wells are producing from the prolific Uteland Butte reservoir, which is one of several reservoirs being targeted for horizontal well development in the basin. Also, we just signed a second farming agreement covering nearly 5,800 gross acres and currently contemplating around 12 horizontal wells. The first two wells should be online by year-end and the remainder will be drilled in 2025 and 2026.

最後，我想向您介紹我們 Uinta 商業機會的最新情況，該機會繼續發展勢頭，我們相信有潛力在未來幾年推動巨大價值。我們今年稍早開採的四口 Uinta 盆地水平井的表現繼續優於預期，平均總峰值產量約為每口井每天 1,100 桶油當量。這些井產自儲量豐富的 Uteland Butte 油藏，該油藏是該盆地水平井開發的幾個目標油藏之一。此外，我們剛剛簽署了第二份農業協議，佔地近 5,800 英畝，目前正在考慮打約 12 口水平井。前兩口井將於年底上線，其餘井將於 2025 年和 2026 年鑽探。

On other benefits, these two families help accelerate the appraisal of our nearly 100,000 acres, which is almost entirely held by production. In addition to the performance of those farming wells, increased activity on our neighbors across the basin and adjacent to our existing acreage refers to significant value potential in our Utah acreage. As a result, we are actively evaluating potential JV partners to help accelerate the development with horizontal wells. We would likely begin by drilling two multi-well pads starting in 2025.

在其他好處方面，這兩個家族幫助加快了我們近 100,000 英畝土地的評估速度，這些土地幾乎全部用於生產。除了這些農田水井的性能外，整個盆地和鄰近我們現有種植面積的鄰居的活動增加也意味著我們猶他州種植面積的巨大價值潛力。因此，我們正在積極評估潛在的合資夥伴，以幫助加快水平井的開發。我們可能會從 2025 年開始鑽探兩個多孔平台。

We have a unique low-cost advantage position in Utah. We are in the shallow end of the basin with no additional entry cost, and we have significant infrastructure in place, including access to fuel gas that with lower drilling and completion costs, which will further drive long-term capital efficiencies.

我們在猶他州擁有獨特的低成本優勢地位。我們位於盆地的淺水區，沒有額外的進入成本，並且擁有重要的基礎設施，包括以較低的鑽井和完井成本獲取燃氣，這將進一步提高長期資本效率。

In sum, I want to emphasize that the opportunity and value potential we see in Utah has increased significantly over the last few months. We have still a lot of work ahead of us to delineate and realize the full potential of this asset. However, based on what we know today, we believe Utah could, over the long term, be a transformational value creator that would accrete directly to our shareholders.

總之，我想強調的是，過去幾個月我們在猶他州看到的機會和價值潛力顯著增加。我們還有很多工作要做，才能描繪和實現這項資產的全部潛力。然而，根據我們今天所了解的情況，我們相信從長遠來看，猶他州可以成為一個變革性的價值創造者，直接為我們的股東帶來利益。

With that, let me turn it over to Dani.

那麼，讓我把它交給丹尼。

Thanks, Fernando. Good morning, everyone. As mentioned earlier, we have been and continue to be granted permits in California for sidetracks and rework as well as new drills in areas with CEQA compliance. Although we're still finalizing our 2025 plan, I can share that we already have in hand approximately one-third of the permits necessary to complete our entire 2025 California drilling program. Based on that inventory and current permitting processes, and with our healthy portfolio of development inventory, we have clear line of sight to maintain stable production through 2026 at least.

謝謝，費爾南多。大家早安。如前所述，我們已經並將繼續獲得在加州進行側線鑽探和返工以及在符合 CEQA 的地區進行新鑽探的許可證。儘管我們仍在敲定 2025 年計劃，但我可以分享的是，我們已經掌握了完成整個 2025 年加州鑽探計劃所需的大約三分之一的許可證。根據該庫存和當前的許可流程，以及我們健康的開發庫存組合，我們有明確的目標，至少在 2026 年之前保持穩定的生產。

Turning to our methane reduction goals. Earlier this year, we announced our commitment to reduce these emissions by 80% compared to a 2022 baseline by the end of 2025. I'm happy to announce that we have already achieved a significant goal. Thanks to the efforts of our dedicated operations teams over the course of this year, we were able to complete this initiative over a year ahead of schedule.

轉向我們的甲烷減排目標。今年早些時候，我們宣布承諾到 2025 年底，與 2022 年基準相比，將這些排放量減少 80%。我很高興地宣布，我們已經實現了一個重要目標。感謝我們專門的營運團隊今年以來的努力，我們能夠提前一年多完成這項計劃。

I want to highlight that in addition to the important environmental benefit, this $2.5 million investment to replace gas-powered pneumatic devices, primarily in Utah, is expected to save the company over $2.9 million in 2024 waste emission charges alone. Taking into account the IRAs’ escalating fee structure and entering 2025 with 80% lower emissions than when we entered 2024. That return will be multifold in future years.

我想強調的是，除了重要的環境效益外，這項用於更換燃氣氣動裝置的250 萬美元投資（主要在猶他州）預計僅在2024 年的廢物排放費用上就能為公司節省超過290 萬美元。考慮到 IRA 不斷升級的費用結構，進入 2025 年，排放量將比進入 2024 年時減少 80%。未來幾年，這種回報將會倍增。

Powered by our core values and commitment to be a responsible and sustainable producer of ample, safe, reliable, and affordable energy, we will continue to look for additional ways to reduce our GHG emissions, minimize our environmental impact, and improve the ways in which we operate by investing in economical solutions and embracing practices that generate results.

在我們的核心價值和成為充足、安全、可靠和負擔得起的能源的負責任和可持續生產商的承諾的推動下，我們將繼續尋找其他方法來減少溫室氣體排放，最大限度地減少對環境的影響，並改進我們透過投資經濟的解決方案並採用產生成果的實踐來運作。

I'll now turn the call over to Mike.

我現在將電話轉給麥克。

Thank you, DaniI will highlight a few financial takeaways from another good quarter. For more in-depth information, please refer to our earnings release issued earlier this morning and our 10-Q to be filed shortly. I will also provide additional details on our capital structure and the shareholder return model. Let's begin with the results.

謝謝，丹尼將重點介紹另一個好季度的一些財務要點。如需了解更深入的信息，請參閱我們今天早上早些時候發布的收益報告以及即將提交的 10-Q 財報。我還將提供有關我們的資本結構和股東回報模型的更多詳細資訊。讓我們從結果開始。

Realized crude prices were down 7% at $72.40 per barrel for the quarter, and this price represented 92% of Brent, contributing to total commodity revenue of $154 million. Lease operating expense net of gas hedges decreased by approximately 2% for the third quarter and adjusted G&A was down 3% compared to Q2. All of this contributed to adjusted EBITDA of $67 million for the third quarter.

本季已實現原油價格下跌 7%，至每桶 72.40 美元，該價格佔布蘭特原油價格的 92%，為商品總收入貢獻了 1.54 億美元。扣除天然氣對沖後的租賃營運費用在第三季下降了約 2%，調整後的一般費用與第二季相比下降了 3%。所有這些為第三季調整後的 EBITDA 貢獻了 6700 萬美元。

As we have talked about on prior calls, our capital expenditure cadence was expected to peak in the middle of the year due primarily to development activity in California and the second quarter Utah farming development program. Aligned with that guidance, CapEx in Q3 was $26 million, which was $16 million lower than Q2 and brings year-to-date capital expenditures to $85 million. We expect to remain within our CapEx guidance of between $95 million and $110 million for the year.

正如我們在之前的電話會議中談到的那樣，我們的資本支出節奏預計將在今年年中達到頂峰，這主要是由於加州的開發活動和猶他州第二季度的農業發展計劃。根據該指引，第三季的資本支出為 2,600 萬美元，比第二季減少 1,600 萬美元，使年初至今的資本支出達到 8,500 萬美元。我們預計今年的資本支出指導價值將維持在 9,500 萬美元至 1.1 億美元之間。

Operating cash flow was $71 million in the third quarter, which was flat with the second quarter. Free cash flow was $45 million for Q3, an increase of 55% over Q2 due to the expected reduction in capital expenditures.

第三季營運現金流為7,100萬美元，與第二季持平。由於資本支出預期減少，第三季自由現金流為 4,500 萬美元，比第二季成長 55%。

As we look towards 2025, we remain focused on strengthening our balance sheet, developing our world-class assets, and driving shareholder value. Let me discuss our actions to continue advancing these objectives. Starting with the balance sheet. As Fernando mentioned, we have signed a new $545 million term loan credit facility that will allow us to pay off all $400 million outstanding of our 2026 notes and replace our current RBL facility that is due August of '25. We are working to put in place a new RBL facility, but the new term loan provides the capacity and delayed draw capabilities that would more than cover our liquidity needs should we decide to forgo the new RBL facility.

展望 2025 年，我們仍專注於強化資產負債表、發展世界級資產並提高股東價值。讓我討論一下我們為繼續推進這些目標而採取的行動。從資產負債表開始。正如費爾南多所提到的，我們已經簽署了一項新的5.45 億美元定期貸款信貸安排，這將使我們能夠償還2026 年票據的所有4 億美元未償票據，並取代我們目前將於25 年8 月到期的RBL 安排。我們正在努力建立新的 RBL 便利，但如果我們決定放棄新的 RBL 便利，新的定期貸款提供的能力和延遲提款能力將足以滿足我們的流動性需求。

The new term loan facility has an initial three-year term with options to extend for up to two additional years, which could extend the maturity to 2029. Key terms of the agreement include the ability to have a long-term capital plan consistent with our focus on disciplined capital deployment into high rate of return projects while reducing our leverage ratios. Importantly, the unique structure provides us with the flexibility to repay the loan in advance, pursue strategic opportunities and return capital to shareholders.

新的定期貸款工具的初始期限為三年，可選擇延長最多兩年，期限可能延長至 2029 年。該協議的關鍵條款包括制定長期資本計劃的能力，該計劃與我們將嚴格的資本部署到高回報率項目的重點相一致，同時降低我們的槓桿率。重要的是，獨特的結構為我們提供了提前償還貸款、尋求策略機會以及向股東返還資本的靈活性。

In connection with our new refinancing, we are transitioning to a new capital allocation approach that balances returning capital to our shareholders at a sustainable level while reducing our overall debt and leverage ratios. Accordingly, beginning this quarter, our go-forward dividend policy targets a fixed dividend rate of $0.12 per share annually. As announced in the earnings release, the Board has declared a $0.03 per share fixed dividend for the third quarter of 2024.

就我們的新再融資而言，我們正在轉向新的資本配置方法，在可持續水平上平衡向股東返還資本，同時降低我們的整體債務和槓桿率。因此，從本季開始，我們的前瞻性股利政策的目標是每年每股 0.12 美元的固定股利率。正如收益發布中所宣布的，董事會宣布 2024 年第三季每股固定股息 0.03 美元。

Now I'll turn the call back over to Fernando for his closing comments.

現在我將把電話轉回給費爾南多，聽取他的結束語。

Thanks, Mike. In closing, our performance this year has been strong. We delivered solid results quarter after quarter from our base business while undertaking a number of initiatives that we believe will drive long-term value. I am really proud of our teams and the great work they have done to advance new development opportunities, while tightly managing our cost and enhancing operational efficiencies. Because of them, we are stronger, more resilient and better positioned to capitalize on the opportunities now in front of us. We are excited about the significant long-term potential for both production growth and transformational value creation from our Utah assets. With the success of our initial Uinta Basin Permian program, a second one underway and the possibility of a JV to accelerate development, we have a lot of positive momentum entering 2025.

謝謝，麥克。最後，我們今年的表現非常強勁。我們的基礎業務每季都取得了穩健的業績，同時採取了許多我們相信將推動長期價值的舉措。我對我們的團隊以及他們為推動新的發展機會、同時嚴格管理成本並提高營運效率所做的出色工作感到非常自豪。正因為有了他們，我們變得更強大、更有韌性，並且能夠更好地利用眼前的機會。我們對猶他州資產在產量成長和轉型價值創造方面的巨大長期潛力感到興奮。隨著我們最初的 Uinta Basin Permian 專案的成功、第二個專案的實施以及合資企業加速開發的可能性，我們在進入 2025 年時擁有許多積極的勢頭。

We are also excited about the promising upside opportunities in California. We truly operate world-class assets. Not many fields under development for 100 years can still generate 100% rate of return projects like we can in California. As someone who has operated fields around the world, this is amongst the best field development economics I have seen. 2024 will be another year of solid operational and financial performance. We have created exceptional teams with a proven track record of delivering results. And the stage is set for us to continue this momentum and drive shareholder value in the future.

我們也對加州充滿希望的上昇機會感到興奮。我們真正經營世界一流的資產。沒有多少油田開發了100年仍能像我們加州一樣產生100%回報率的專案。作為一個在世界各地經營油田的人，這是我見過的最好的油田開發經濟學之一。 2024 年將是營運和財務表現穩健的另一年。我們創建了卓越的團隊，在交付成果方面擁有良好的記錄。我們已經為未來繼續保持這一勢頭並推動股東價值做好了準備。

And with that, I will now turn the call over to the operator for questions.

現在，我將把電話轉給接線員詢問問題。

(Operator Instructions) Charles Meade, Johnson Rice.

（操作員說明）查爾斯·米德、約翰遜·賴斯。

Good morning, Fernando, Danielle, and Mike. I want to thank you, start by thanking for putting these slides in your presentation the maps of this -- of your Uinta Basin position with the new farm out. And I can see how you'd be derisking as you go to the west. I think that the picture makes it clear. But I wondered if you could talk more about how this -- how the second farm-out came together? What the -- whether this is the kind of the thing that you explicitly sought out to try to derisk your Western acreage or if it came in together some other way? And also with two wells that are supposed to be on before year-end, I guess I'm not seeing the dollars for that in your capital budget, but maybe I'm missing something there.

早安，費南多、丹妮爾和麥克。我要感謝您，首先感謝您將這些投影片放入您的簡報中，即您在尤因塔盆地的位置以及新農場的地圖。我可以想像當你去西方時你會如何規避風險。我認為這張圖片已經很清楚了。但我想知道你是否可以更多地談談第二次農場是如何走到一起的？這是什麼——這是否是你明確尋求的那種試圖消除你的西部土地風險的東西，或者它是否以其他方式結合在一起？還有兩口井應該在年底前投入使用，我想我在你們的資本預算中沒有看到這方面的資金，但也許我在那裡遺漏了一些東西。

No, Charles, very good question, and thanks again for listening and looking through all the information that we posted. And yes, in order to accelerate the appraisal phase and in order to derisk our acreage, we're looking at different potential opportunities, and farm-ins is one of them.

不，查爾斯，非常好的問題，再次感謝您聆聽和瀏覽我們發布的所有資訊。是的，為了加快評估階段並降低我們的種植面積風險，我們正在尋找不同的潛在機會，農場收購就是其中之一。

As you know, we have a significant land base in Utah, 100,000 acres, which is very interesting. And it has huge potential, as we've said. And we entered into additional farm-in with WEM, Wasatch Energy Management. And they're the ones that -- we've worked with them before, and they're a basin leader. And in this particular farm-in, what we're doing is we're combining nine sections total of about 5,800 acres to be able to drill 12 wells over the next essentially 24 months.

如您所知，我們在猶他州擁有 100,000 英畝的重要土地基地，這非常有趣。正如我們所說，它具有巨大的潛力。我們也與 WEM、瓦薩奇能源管理公司簽訂了額外的農場協議。我們以前曾與他們合作過，他們是流域的領導者。在這個特定的農場中，我們正在做的是將 9 個區域合併起來，總面積約為 5,800 英畝，以便能夠在接下來的 24 個月內鑽探 12 口井。

And the first two wells will be put online in the -- at the -- before the end of the year, and it is incorporated into our capital outlook. At the end of the day, if you look at what we're doing, again, we're accelerating our development. We're derisking our acreage. And in this particular farm-in, our working interest is about 16%. So the capital requirement is not huge.

前兩口井將於今年年底前上線，並將其納入我們的資本展望中。歸根結底，如果你再看看我們正在做的事情，你會發現我們正在加速發展。我們正在消除我們的土地風險。在這個特定的農場中，我們的工作權益約為 16%。所以資金需求不大。

Got it. That's a critical metric there. That's 16% and it makes sense when you look at kind of the two sections it looks like you're contributing there.

知道了。這是一個關鍵指標。那是 16%，當您查看您在其中做出貢獻的兩個部分時，這是有道理的。

And the second question, going back to the California assets. You highlighted thermal diatomite in your press release and again in your prepared comments, Fernando. But I'm curious, you guys have had a lot of success with thermal diatomite over the last -- I think it's probably been two years -- at least two years ago, you started talking about it is the key piece of your California asset there or the program there. Is there something different that's happened just this last quarter? Is this a step change? Or is this just a continuation of results that you just want to highlight here?

第二個問題，回到加州的資產。費爾南多，您在新聞稿中強調了熱矽藻土，並在準備好的評論中再次強調了這一點。但我很好奇，過去你們在熱矽藻土方面取得了很大的成功——我想可能已經兩年了——至少兩年前，你們開始談論它是你們加州資產的關鍵部分那裡或那裡的程式.上個季度發生了什麼不同的事情嗎？這是一步改變嗎？或者這只是您只想在此強調的結果的延續？

As I've mentioned before, the thermal diatomite is a great asset. It truly is a world-class asset. In terms of oil in place, it's amongst the highest oil in place per acre reservoirs in the world. So there's huge potential in the thermal diatomite. Before this year, up to the end of 2023, for the last two -- basically four years before that, we were actually able to increase production in the thermal diatomite asset by 19%, which is by enhancing our steam and injection strategy and by doing workovers and recompletions, which is great. It just tells you the quality of the reservoir.

正如我之前提到的，熱矽藻土是一項巨大的資產。它確實是世界級的資產。就石油儲量而言，它是世界上每英畝油藏儲量最高的國家之一。因此熱矽藻土具有巨大的潛力。今年之前，到2023 年底，在過去兩年（基本上是在此之前的四年）中，我們實際上能夠將熱矽藻土資產的產量增加19%，這是透過增強我們的蒸汽和注入策略以及進行修井和重新完井，這很棒。它只是告訴您水庫的品質。

But since this year, we started sidetracking. So we -- the wells that we put online at the end of the quarter, at the end of Q3, a group of those wells are thermal diatomite wells, about 20 of them. And those are the first sidetracks. The thermal diatomite that we've done with excellent results, again, rates of return exceeding 100%. And we've got we've got more of an inventory, and that's going to be drilled in 2025. And we're excited about the thermal diatomite, which is on the sidetrack front. And then outside of that, obviously, we've got a lot of new well potential as well.

但從今年開始，我們開始偏離正軌。因此，我們在本季末、第三季末上線的油井中，有一組是矽藻土熱井，大約有 20 個。這些就是第一個岔路口。我們做的導熱矽藻土效果非常好，回報率再次超過100%。我們已經有了更多的庫存，並將在 2025 年進行鑽探。我們對位於側軌前方的熱矽藻土感到興奮。除此之外，顯然我們還有很多新的油井潛力。

So the sidetracks are delivering something that just the workovers and adjusting the steam production wasn't doing for you. Is that the right understanding?

因此，側線工程所提供的東西只是修井和調整蒸汽產量無法為您帶來的好處。這是正確的理解嗎？

And again, by adjusting steam production and doing workovers, we were able to increase the production in our assets by 19% over, essentially, four years. This is just enhancing that. This is just improvement of production. So everything is very economic, and everything is contributing to enhanced production in thermal diatomite.

同樣，透過調整蒸汽產量和進行修井，我們在四年內將資產產量提高了 19%。這只是加強這一點。這只是生產的改進。因此，一切都非常經濟，一切都有助於提高熱矽藻土的產量。

Thank you for that detail.

謝謝你的詳細資料。

(Operator Instructions) Michael Schwartz, Jefferies.

（操作員說明）Michael Schwartz，Jefferies。

Hi, Berry. Thanks for having me and my questions today. Can you walk me through kind of uses of cash priority following term loan and the dividend change?

嗨，貝瑞。感謝您今天接受我的採訪並提出我的問題。您能否向我介紹一下定期貸款和股息變動後現金優先權的使用方式？

Yeah, Michael. We -- as you can see in the release, we have adjusted our allocation of available cash. First of all, the part of the allocation is driven by -- being in compliance with the terms of the term loan. But I think more importantly, one of the things this does is this term loan allows us to delever the balance sheet over time. And the other thing that is important to us is we still have the ability and intent to maintain a dividend rate that's really more in line with our peers. Previously, our dividend rate was significantly exceeded most of the peer group that we look at. So the dividend rate is more in line with the peers.

是的，邁克爾。正如您在新聞稿中看到的，我們調整了可用現金的分配。首先，分配的部分是由遵守定期貸款條款所驅動的。但我認為更重要的是，這樣做的作用之一是定期貸款使我們能夠隨著時間的推移去槓桿化資產負債表。對我們來說另一件重要的事情是，我們仍然有能力和意圖維持與同業更一致的股息率。此前，我們的股息率明顯超過了我們關注的大多數同行。因此股息率與同業較為一致。

And part of what we're trying to achieve there is kind of building on the excitement that Fernando talked about with the opportunities in Utah is make sure that we have the appropriate ability to allocate capital in a disciplined way, but to our high development opportunities in both Utah and California. So that's -- so we do have a kind of a change in the capital allocation approach.

我們試圖實現的部分目標是建立在費爾南多談到的猶他州機會的興奮之上，確保我們有適當的能力以嚴格的方式分配資本，但我們的發展機會很高在猶他州和加利福尼亞州。所以我們確實對資本配置方法進行了某種改變。

Makes sense to me. My second question was, could you give an update on CUP and multi-basin new drill permits? Are you expecting any of those to come through in 2025? And what kind of impact should we see from that?

對我來說很有意義。我的第二個問題是，您能否提供有關 CUP 和多盆地新鑽探許可證的最新資訊？您預計其中任何一個會在 2025 年實現嗎？我們應該從中看到什麼樣的影響？

Well, in terms of permits, we are currently getting permits for sidetrack activity for workover activity and for new wells in areas with prior CEQA approval. Based on the inventory level that we have in those categories, initially for 2025, our plan is obviously -- is going to be focused on those activities on those type of drilling activities and workovers. It's not going to be reliant on the EIR process.

嗯，就許可證而言，我們目前正在獲得修井活動的側線活動許可證以及在獲得 CEQA 事先批准的地區新井的許可證。根據我們在這些類別中的庫存水平，最初到 2025 年，我們的計劃顯然將重點放在這些類型的鑽井活動和修井活動上。它不會依賴 EIR 流程。

And at the same time, we are following and looking for additional options. And one of those options are -- or is the conditional use permit category that you mentioned in specific fields. But the timing for that is still going to be about 18 months away. But independent of that, we've got enough inventory to be able to keep production essentially flat for next year and the year to come just with workover activity -- workovers and new wells in areas with prior CEQA approval.

同時，我們正在關注並尋找其他選擇。這些選項之一是—或者是您在特定欄位中提到的有條件使用許可類別。但距離實現這一目標的時間大約還需要 18 個月。但除此之外，我們有足夠的庫存，能夠在明年和​​後一年保持產量基本持平，僅靠修井活動——修井和在事先獲得 CEQA 批准的地區的新井。

Makes sense. Thank you.

有道理。謝謝。

Jay Spencer, Stifel.

傑·史賓塞，斯蒂菲爾。

Hi. Thanks for taking my question. My questions were mainly around the $545 million term loan. Could you just give me a sense of where you are in the timing of that? And has that closed? And if not, can you kind of indicate when that might occur?

你好。感謝您提出我的問題。我的問題主要是圍繞著 5.45 億美元的定期貸款。你能告訴我你在這個時間點的位置嗎？那已經關閉了嗎？如果沒有，你能指出什麼時候會發生嗎？

Yeah. Happy to take that question. It is effective. We actually signed the effective papers. We have a commitment were signed yesterday. Part of the reason that we didn't close it right away was trying to get through the finalization of those terms and give us an opportunity to put together an RBL. We have discussions ongoing with banks, including a potential lead bank.

是的。很高興回答這個問題。這是有效的。我們實際上簽署了有效文件。我們昨天簽署了一份承諾。我們沒有立即關閉它的部分原因是試圖完成這些條款的最終確定，並讓我們有機會制定 RBL。我們正在與銀行進行討論，包括潛在的牽頭銀行。

But I think it's important to -- so those discussions are going on right now. But it's important to note that the term loan provides us with the liquidity that it's really our choice whether or not to put together the RBL. We have the liquidity to close out on the term loan that would kind of basically supplant kind of what we would need on RBL. The goal is to have all this done well in advance of the end of this year.

但我認為重要的是——所以這些討論現在正在進行。但值得注意的是，定期貸款為我們提供了流動性，我們可以選擇是否要合併 RBL。我們有足夠的流動性來結束定期貸款，這基本上可以取代我們 RBL 所需的流動性。目標是在今年年底前完成這一切。

Got it. Okay. Thank you. And if you do get a new RBL, would the $545 million commitment decrease? Or do you know yet?

知道了。好的。謝謝。如果確實獲得新的 RBL，5.45 億美元的承諾會減少嗎？或者你知道了嗎？

No. If we knew -- yes, it would. Sorry. It would decrease kind of dollar-for-dollar. We're looking at it really comes in two tranches. There's a $450 million term loan on day one once it closes. And then the $95 million liquidity component if we get the RBL at $95 million, that would replace the $95 million commitment on the term loan.

不。如果我們知道──是的，就會的。對不起。美元兌美元的匯率會下降。我們正在研究它實際上分為兩部分。交易結束後第一天就有 4.5 億美元的定期貸款。然後，如果我們將 RBL 定為 9500 萬美元，則 9500 萬美元的流動性部分將取代定期貸款的 9500 萬美元承諾。

Got it. Understood. And then the term loan piece, I guess, the $450 million. Is that -- would that amortize?

知道了。明白了。然後是定期貸款，我猜是 4.5 億美元。那是——會攤提嗎？

Yes. It's got a 10% per year amortization.

是的。每年攤銷率為 10%。

Okay. That's all I had. Thank you very much.

好的。這就是我所擁有的一切。非常感謝。

Thank you.

謝謝。

(Operator Instructions) This concludes the question-and-answer session. I would now like to turn it back to Fernando Araujo for closing remarks.

（操作員說明）問答環節到此結束。現在我想請費爾南多·阿勞霍（Fernando Araujo）發表閉幕詞。

Yeah. Thank you very much for listening. And as you heard, we continue to be very excited about Berry and Berry's future. And we'll see you on the road here in the next few weeks. Thank you very much.

是的。非常感謝您的聆聽。正如您所聽到的，我們仍然對 Berry 和 Berry 的未來感到非常興奮。在接下來的幾週內，我們將在路上見到您。非常感謝。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參加今天的會議。這確實結束了該程式。您現在可以斷開連線。