Berry Corporation (Bry) (BRY) 2025 Q1 法說會逐字稿

Hello and welcome to the Berry Corporation Q1 2025 Earnings Call. (Operator Instructions)

您好，歡迎參加 Berry Corporation 2025 年第一季財報電話會議。（操作員指示）

I would like to turn the conference over to Chris Denison, Director of Investor Relations. You may begin.

我想將會議交給投資者關係總監克里斯·丹尼森 (Chris Denison)。你可以開始了。

Thank you, Trisha, and welcome, everyone. Thank you for joining us for Berry's First Quarter 2025 Earnings Call. This morning, Berry issued an earnings release highlighting our quarterly results. Speaking this morning will be Fernando Araujo, our CEO; Danielle Hunter, our President; and Jeff Magids, our CFO.

謝謝你，Trisha，歡迎大家。感謝您參加 Berry 2025 年第一季財報電話會議。今天上午，Berry 發布了一份收益報告，重點介紹了我們的季度業績。今天早上發言的有我們的執行長 Fernando Araujo、我們的總裁 Danielle Hunter 和我們的財務長 Jeff Magids。

Our website has a link to the earnings release and our updated presentation. I would like to call your attention to the safe harbor language found in the earnings release. The release, the presentation, and today's discussion contains certain projections and other forward-looking statements within the meaning of the 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 that are disclosed in our filings with the SEC, including our quarterly report on Form 10-Q, which will be filed shortly. We have no plans or duty to update our forward-looking statements except as required by law. Please refer to the tables in our earnings release and on our website for reconciliation between all adjusted measures mentioned in today's call and the related GAAP measures. We will also post a replay link of this call on our website.

我們的網站上有收益報告和最新簡報的連結。我想提請您注意收益報告中的安全港語言。該發布、演示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。這些聲明受風險和不確定性的影響，可能導致實際結果與這些聲明中表達或暗示的結果有重大差異。這些包括我們向美國證券交易委員會提交的文件中揭露的風險和其他因素，包括我們將很快提交的 10-Q 表季度報告。除法律要求外，我們沒有計劃或義務更新我們的前瞻性聲明。請參閱我們的收益報告和網站上的表格，以了解今天電話會議中提到的所有調整指標與相關 GAAP 指標之間的對比。我們也將在我們的網站上發布本次通話的重播連結。

With that, I will now turn the call over to Fernando.

說完這些，我現在將發言權交給費爾南多。

Thank you, Chris, and good morning, everyone. Welcome to our first quarter earnings call. Berry is off to a strong start in 2025, and we are reaffirming our full year guidance. Our solid first quarter results are underpinned by our balance sheet strength, high-return development projects, and the capital efficiencies we are delivering. We are confident in our ability to navigate current market volatility, and our 2025 outlook remains unchanged.

謝謝你，克里斯，大家早安。歡迎參加我們的第一季財報電話會議。貝裡 (Berry) 在 2025 年取得了強勁開局，我們重申全年業績預期。我們穩健的第一季業績得益於我們強勁的資產負債表、高回報的開發項目以及我們正在實現的資本效率。我們對應對當前市場波動的能力充滿信心，我們對 2025 年的展望保持不變。

Our cash was protected by our strong hedge position. For the remainder of the year, we have approximately 73% of our oil production hedged at $75 per barrel. Our business plan is anchored by our high-return assets, stable production base, and low capital intensity projects. This is a competitive advantage for Berry. We have the permits in hand to execute our 2025 development projects and continue to add inventory for 2026.

我們的現金受到強大對沖頭寸的保護。在今年剩餘時間內，我們將約 73% 的石油產量以每桶 75 美元的價格進行對沖。我們的商業計劃以高回報資產、穩定的生產基礎和低資本密集度項目為基礎。這對 Berry 來說是一個競爭優勢。我們已獲得許可證，可以執行 2025 年的開發項目，並繼續增加 2026 年的庫存。

Turning to our first quarter results, we strengthened our balance sheet by paying down $11 million of debt and returned $2 million in cash to shareholders. Liquidity increased to $120 million and we improved our leverage ratio to 1.37 times. Highlighting our commitment to shareholder value, we are on track to deliver approximately 10% of our enterprise value annually to our dividend and debt reduction.

談到我們的第一季業績，我們透過償還 1,100 萬美元的債務並向股東返還 200 萬美元現金來增強我們的資產負債表。流動性增加至 1.2 億美元，我們將槓桿率提高至 1.37 倍。為了強調我們對股東價值的承諾，我們計劃每年將企業價值的約 10% 用於股利和債務削減。

We generated $17 million of free cash flow in the first quarter due to cost improvements and stable production. We achieved a 9% reduction in hedge energy LOE when compared to the midpoint of our full year guidance.

由於成本改善和生產穩定，我們在第一季產生了 1700 萬美元的自由現金流。與全年預期中位數相比，對沖能源損失率 (LOE) 降低了 9%。

In California, we drilled twice as many wells during Q1 compared to Q4 last year. Production for the quarter averaged 24,700 barrels of oil equivalent per day, slightly below the prior quarter due to planned downtime. Our 2025 California development program is primarily focused on the Thermal Diatomite reservoir, and our drilling program is front loaded towards the first half of the year. Therefore, we expect most of our CapEx will be incurred by the end of the third quarter.

在加州，我們第一季鑽探的油井數量是去年第四季的兩倍。本季平均產量為每天 24,700 桶油當量，由於計劃停機，產量略低於上一季。我們的 2025 年加州開發計畫主要集中在熱矽藻土儲層，我們的鑽探計畫主要集中在上半年。因此，我們預計大部分資本支出將在第三季末發生。

As referenced on slide 12 in our presentation, the economics of Thermal Diatomite remain highly attractive at current oil prices. Most of these projects generate a rate of return in excess of 100%. We expect to complete our Thermal Diatomite drilling by midsummer, which sets up production and cash flow growth through the second half of the year. With highly competitive economics and a deep inventory of sidetracks, this will be a core area of capital allocation for years to come.

正如我們簡報的第 12 張幻燈片中提到的那樣，在當前油價下，熱矽藻土的經濟效益仍然極具吸引力。其中大多數項目的回報率都超過100%。我們預計將在仲夏之前完成熱矽藻土鑽探，這將為下半年的生產和現金流成長奠定基礎。由於經濟競爭激烈且存在大量岔路，這將成為未來幾年資本配置的核心領域。

Horizontal development of our Uinta asset is also progressing successfully. We recently finished drilling our four-well horizontal pad ahead of schedule and on budget. By utilizing produced gas and leveraging our existing facilities, we lowered fuel costs in our drilling operations by roughly 25%. Also, we expect to reduce completion costs by approximately $500,000 per well by utilizing produced gas to drive our pumps.

我們的 Uinta 資產的水平開發也正在順利進行中。我們最近提前並在預算內完成了四口水平井的鑽探。透過利用生產的天然氣和利用我們現有的設施，我們將鑽井作業的燃料成本降低了約 25%。此外，我們預計透過利用產出的氣體來驅動我們的泵，每口井的完井成本可降低約 50 萬美元。

Geologic results are in line with expectations as the Uteland Butte reservoir is fairly uniform across our space. We are planning to commence frac operations in June, with first production expected in the third quarter. We continue to see strong results from our six non-operated horizontal wells, where production is exceeding our pre-drill estimates and supports further delineation of our acreage.

地質結果符合預期，因為 Uteland Butte 儲層在我們的空間內相當均勻。我們計劃於六月開始壓裂作業，預計第三季將首次生產。我們繼續看到六口未營運的水平井取得強勁業績，其產量超過了鑽探前的估計，並支持進一步劃分我們的油田面積。

Industry's recognition and excitement over the Uinta Basin is accelerating. We believe our 100,000-acre position with high working interest and majority held by production has significant upside and provides long-term optionality in capital allocation and growth.

業界對尤因塔盆地的認可和興奮正在加速成長。我們相信，我們擁有 10 萬英畝土地，擁有較高的工作權益，且大部分由生產部門持有，具有顯著的上升空間，並為資本配置和成長提供長期選擇。

In summary, our priorities remain unchanged: to generate sustainable free cash flow, reduce debt while returning dividends, and create value by investing in our high-return development portfolio.

總而言之，我們的優先事項保持不變：產生可持續的自由現金流，在返還股息的同時減少債務，並透過投資高回報的開發組合創造價值。

Now, I will turn the call over to Danny.

現在，我將把電話轉給丹尼。

Thanks, Fernando. Good morning, everyone. Thank you for joining us and for your interest in our company. Supporting our first quarter accomplishments is our commitment to HSC excellence and regulatory compliance. We believe that protecting the environment, investing in the talented people we employ, and enriching the communities in which we live and operate is critical to our success. We execute on that commitment, and in our E&P operations, we had 0 recordable incidents, 0 lost time incidents, and no reportable spills during the first quarter.

謝謝，費爾南多。大家早安。感謝您加入我們並對我們公司的關注。我們第一季的成就源自於我們對 HSC 卓越性和法規遵循的承諾。我們相信，保護環境、投資我們僱用的人才以及豐富我們生活和經營的社區對於我們的成功至關重要。我們履行這項承諾，在我們的勘探與生產業務中，第一季我們沒有發生任何可記錄事故、0 起工時損失事故，也沒有發生任何可通報的洩漏。

Continuing with sustainability, last month, we published updated and expanded performance metrics, and we'll be publishing a fulsome report this summer once our 2024 emissions data is finalized. These efforts reflect our commitment to enhancing our voluntary reporting and providing greater transparency to our stakeholders.

繼續永續發展，上個月，我們發布了更新和擴展的績效指標，一旦我們的 2024 年排放數據最終確定，我們將在今年夏天發布一份詳細的報告。這些努力體現了我們致力於加強自願報告和為利害關係人提供更高透明度的承諾。

On the regulatory front, we're seeing a notable constructive shift in messaging from California's decision makers. Last month, Governor Newsom directed the California Energy Commission to engage with the oil and gas industry to reinforce the state's openness to a collaborative relationship. We are hopeful that this will allow for a meaningful and productive discussion on the many benefits from increasing in-state production. This not only helps improve the affordability, security, and environmental impact of the energy supply chain required to meet the daily needs of Californians, local production also creates jobs to further fuel the economy and generates critical funding for schools, roads, public safety, and other vital services.

在監管方面，我們看到加州決策者的訊息傳遞出現了顯著的建設性轉變。上個月，紐森州長指示加州能源委員會與石油和天然氣產業合作，以加強該州對合作關係的開放態度。我們希望這將促成一場關於增加州內生產的許多好處的有意義且富有成效的討論。這不僅有助於提高滿足加州人日常需求所需的能源供應鏈的可負擔性、安全性和環境影響，而且本地生產還可以創造就業機會，進一步推動經濟發展，並為學校、道路、公共安全和其他重要服務提供關鍵資金。

We are proud to safely and responsibly produce oil under world-leading labor, human rights, and health, safety, and environmental standards. Berry stands ready. We're committed to working with the state to meet its goals and ensure all Californians have access to clean, affordable, and reliable energy now and in the future.

我們很自豪能夠在世界領先的勞工、人權、健康、安全和環境標準下安全、負責任地生產石油。貝瑞已經做好準備。我們致力於與加州合作實現其目標，並確保所有加州人現在和將來都能獲得清潔、負擔得起和可靠的能源。

Moving to permitting, as Fernando stated, we have all the permits we need to execute our 2025 plan, and we're now building permit inventory for our 2026 drilling program. Berry's proven ability to successfully navigate the regulatory environment is a competitive advantage. We are returns focused and will leverage the flexibility provided by our ample development inventory to allocate capital to our highest-return projects while efficiently managing our stable base production. Berry has a solid runway and multiple avenues to drive sustainable and profitable value creation for years to come.

談到許可，正如費爾南多所說，我們擁有執行 2025 年計劃所需的所有許可證，現在我們正在為 2026 年鑽探計劃建立許可證庫存。事實證明，Berry 能夠成功應對監管環境，這是一種競爭優勢。我們注重回報，並將利用充足的開發庫存所提供的靈活性，將資金分配給回報最高的項目，同時有效管理我們穩定的基礎生產。Berry 擁有堅實的跑道和多種途徑，可在未來幾年推動可持續且有利可圖的價值創造。

I now turn the call over to Jeff.

現在我將電話轉給傑夫。

Thanks, Danny. In my comments this morning, I will highlight our first quarter financial results, as well as our hedging program, operating costs, capital structure, and guidance. For more in-depth information, please refer to our earnings release issued this morning in our Form 10-Q, which we expect to file shortly.

謝謝，丹尼。在今天早上的評論中，我將重點介紹我們的第一季財務業績，以及我們的對沖計劃、營運成本、資本結構和指導。欲了解更深入的信息，請參閱我們今天上午發布的 10-Q 表收益報告，我們預計將很快提交該報告。

First quarter, oil and gas sales were $148 million, excluding derivatives with their realized oil price of 93% of Brent. Risk management is a key aspect to our strategy, and we judiciously hedge our production to protect cash flows, enhance visibility, and mitigate the impact of price fluctuations.

第一季度，石油和天然氣銷售額為 1.48 億美元，不包括衍生性商品，實現油價為布蘭特原油的 93%。風險管理是我們策略的關鍵方面，我們明智地對沖我們的生產以保護現金流，提高知名度，並減輕價格波動的影響。

In early April, we strategically converted several Brent collars and purchased goods into swaps to provide additional protection in the current volatile pricing environment. The net effect of these transactions raised the average floor price by $6 per barrel on 2,300 barrels per day of production in 2026 and 2027.

4 月初，我們策略性地將幾種布倫特領子和購買的商品轉換為掉期合約，以在當前動盪的價格環境中提供額外保護。這些交易的淨效應是，2026 年和 2027 年，日產量 2,300 桶的石油平均底價將提高 6 美元/桶。

Based on our hedge book as of May 2 and using the midpoint of our 2025 guidance, we have 73% of our oil production hedged for 2025 at an average price of $74.69 per barrel of Brent. Assuming our production guidance is held flat for future periods, our oil production is 63% hedged for 2026 at an average price of $69.42.

根據我們截至 5 月 2 日的對沖帳簿，並使用我們 2025 年指引的中點，我們對 2025 年石油產量的 73% 進行了對沖，平均價格為每桶布蘭特原油 74.69 美元。假設我們的生產指引在未來時期保持不變，那麼到 2026 年，我們的石油產量將有 63% 被對沖，平均價格為 69.42 美元。

First quarter adjusted EBITDA was $68 million and operating cash flow was $46 million. We generated $17 million in free cash flow after working capital changes.

第一季調整後的 EBITDA 為 6,800 萬美元，經營現金流為 4,600 萬美元。營運資本變動後，我們產生了 1700 萬美元的自由現金流。

Looking at cost and expenses, first quarter non-energy LOE was $13.91 per BOE and hedged energy LOE was $12.49 per BOE. Total LOE per BOE was lower than our annual guidance as we optimize steam injection volumes while sustaining production. Taxes other than income taxes were $4.15 per BOE and adjusted G&A for E&P and corporate was $7.19 per BOE.

從成本和費用來看，第一季非能源LOE為每桶油當量13.91美元，對沖能源LOE為每桶油當量12.49美元。由於我們在維持產量的同時優化了蒸汽注入量，因此每桶油當量的總 LOE 低於我們的年度指導值。除所得稅外的其他稅費為每桶油當量 4.15 美元，而 E&P 和企業的調整後 G&A 為每桶油當量 7.19 美元。

Turning to our balance sheet, our quarter end total debt was $439 million and we paid down $11 million during the first quarter. Liquidity increased to $120 million, and we reduced our leverage ratio to 1.37 times from year end.

回顧我們的資產負債表，我們季度末的總債務為 4.39 億美元，我們在第一季償還了 1,100 萬美元。流動性增加至 1.2 億美元，並且自年底起我們將槓桿率降低至 1.37 倍。

Lastly, as detailed in our earnings release, the Board declared a dividend of $0.03 per share, payable on the second quarter. At quarter end, we were in full compliance with our financial covenants, and we have sufficient headroom to execute our strategy.

最後，正如我們的收益報告中所詳述的那樣，董事會宣布派發每股 0.03 美元的股息，並將於第二季支付。在季度末，我們完全遵守了財務契約，並且有足夠的空間來執行我們的策略。

And with that, I will now turn the call over to Fernando to wrap up our prepared remarks.

現在，我將把電話交給費爾南多，讓他結束我們準備好的演講。

Thank you, Jeff. In summary, we delivered a strong start to 2025, and we remain confident in our ability to navigate the current volatility. Berry sits at an advantaged position thanks to our strong hedge book and high-quality assets. We recognize the challenges presented in today's markets, but we are confident in our plan. Our focus remains consistent: execute our high rate of return development projects, generate sustainable free cash flow, reduce debt, and evaluate accretive growth opportunities. We are well positioned to advance our goals and generate value for our shareholders, and we look forward to sharing our progress.

謝謝你，傑夫。總而言之，我們在 2025 年取得了強勁開局，我們仍然對自己應對當前波動的能力充滿信心。憑藉強大的對沖帳簿和優質資產，Berry 佔據了有利地位。我們認識到當今市場面臨的挑戰，但我們對我們的計劃充滿信心。我們的重點始終如一：執行高回報率開發項目，產生可持續的自由現金流，減少債務，並評估增值成長機會。我們已做好準備，推進我們的目標，為股東創造價值，並期待分享我們的進步。

With that, I'll turn the call over to the operator for questions.

說完這些，我將把電話轉給接線生來回答問題。

(Operator Instructions) Nate Pendleton, Texas Capital.

（操作員指示）內特·彭德爾頓，德克薩斯首府。

Good morning and congrats on the strong quarter.

早安，恭喜本季業績強勁。

Thank you, Nate.

謝謝你，內特。

Looking at the strong returns from your Thermal Diatomite program on slide 12, can you elaborate on the scalability of that program? And what operational or permitting bottlenecks, if any, do you foresee in ramping that development across over 1,000 locations you highlighted, assuming a supportive commodity environment?

從第 12 張投影片中看到的熱矽藻土計畫的強勁回報來看，您能詳細說明一下該計畫的可擴展性嗎？假設存在一個支持性的商品環境，您預計在您強調的 1,000 多個地點推進這一發展時會遇到哪些運營或許可瓶頸（如果有的話）？

Yeah, that's a very good question, Nate, and we have a lot of running room in the Thermal Diatomite. If you look at our year-end reserve report, you'll see that we have about 125 Thermal Diatomite sidetracks officially categorized as pads. And that's a significant run room, that's a couple of years at least worth of of drilling activity.

是的，這是一個非常好的問題，Nate，我們在 Thermal Diatomite 方面還有很大的發展空間。如果您查看我們的年終儲量報告，您會發現我們有大約 125 個熱矽藻土側線被正式歸類為墊層。這是一個很大的運作空間，至少值得進行幾年的鑽探活動。

On top of that, in our pads, official pads, we have another significant number of new wells in the Thermal Diatomite. And then outside of that, we see about 1,000 pad locations or future locations to be able to drill in the Thermal Diatomite. So significant, significant running room.

除此之外，在我們的平台，官方平台，我們在熱矽藻土中還有大量新井。除此之外，我們還看到大約有 1,000 個平台位置或未來位置可以在熱矽藻土中鑽探。如此重要，如此重要的運行空間。

In terms of the permits to be able to execute this program, as you know, we are getting sidetrack permits. We have been getting sidetrack permits for the last several months. In fact, this year, we've received on the order of 45 sidetrack permits, mostly in the Thermal Diatomite. So that's going well.

就執行該計劃的許可證而言，如您所知，我們正在獲得側線許可證。過去幾個月我們一直在申請側線許可證。事實上，今年我們已經收到了大約 45 張側鑽許可證，大部分位於熱矽藻土礦區。一切進展順利。

And then for new wells, once we have a decision on the current county EIR, we should be able to drill the additional opportunities that we have in this great world-class asset.

對於新井，一旦我們對目前縣的 EIR 做出決定，我們就應該能夠在這個世界級的偉大資產中鑽探額外的機會。

That's great. And as my follow up, I wanted to shift over to Uinta, if I may. With your first operated four-well pad drilled ahead of time and on budget, can you share any specific learnings or design changes from that project, and maybe how should we think about the initial production potential in 3Q?

那太棒了。作為我的後續行動，如果可以的話，我想轉移到 Uinta。您的第一個四井平台提前鑽探並在預算之內，您能否分享該專案的任何具體經驗或設計變更，以及我們應該如何看待第三季的初始生產潛力？

Another good question, Nate. As you mentioned, we completed the drilling phase of our four-well pad in the Thermal Diatomite. We completed -- the Thermal Diatomite, sorry, in the Uinta basin, and we completed that a couple of weeks ago. These are 3-mile laterals, and we're targeting, as you know, the Uteland Butte Reservoir, which is very uniform in our acreage. And we didn't have any surprises on the geology side of the results. In fact, in our drilling operations, we're able to stay within zone 91% of the time, which is really, really excellent as well. The last of the wells that we drilled in the Uinta, the last of the horizontals, we drilled the well in 13 days from spot to rig release, which is as good as what we've seen from our nearby operators as well. So a lot of good things from our drilling activity.

又一個好問題，內特。正如您所說，我們已完成熱矽藻土四井平台的鑽探階段。我們完成了——位於尤因塔盆地的熱矽藻土項目，抱歉，我們是在幾週前完成的。這些是 3 英里長的水平井，正如您所知，我們的目標是 Uteland Butte 水庫，該水庫在我們的土地上分佈非常均勻。我們對地質學的結果並沒有任何意外。事實上，在我們的鑽井作業中，我們能夠有 91% 的時間停留在區域內，這也真的非常出色。我們在尤因塔鑽探的最後一口井，最後一口水平井，從現場到鑽機釋放，我們花了 13 天的時間完成鑽探，這與我們從附近的運營商那裡看到的一樣好。我們的鑽探活動有很多好處。

And the one thing that I do want to highlight is the fact that we're able to prove the use of gas as a fuel source for the rig, and that's saving us on the order of $90,000 per well. So that said, that's really, really good.

我想強調的一點是，我們能夠證明使用天然氣作為鑽孔機的燃料來源，這為我們每口井節省了約 9 萬美元。所以說，這真的非常好。

In terms of what's next, we'll be fracking the well come here in June. So the frac operations is going to take in a few weeks. We expect to put the wells on production later in Q3, most likely in the month of August, so we'll have some numbers at that time.

至於下一步計劃，我們將於六月在這裡對油井進行水力壓裂。因此壓裂作業將需要幾週時間。我們預計這些油井將在第三季稍後投入生產，最有可能是在八月份，所以到時候我們會有一些數據。

In terms of expectations, going back to that question, the six wells, the non-operated wells that we've drilled, they're producing well, they're producing above expectations. And close to that, 60 barrels a foot of EOR range, which is really, really good. So we're really excited about what's going on in the Uinta basin.

就預期而言，回到那個問題，我們鑽探的六口井，即未作業的井，產量很好，超出了預期。接近這個數字的是，每英尺 60 桶的 EOR 範圍，這真的非常好。所以我們對尤因塔盆地發生的事情感到非常興奮。

That's really exciting, and congrats again on the strong quarter.

這確實令人興奮，再次祝賀本季業績強勁。

Thank you, Nate.

謝謝你，內特。

(Operator Instructions) Charles Meade, Johnson Rice.

（操作員指示）Charles Meade、Johnson Rice。

I have questions kind of on the same topics, but first, I want to ask about this slide 7, the graph on the bottom half of this. And Danielle, I think you touched on some of this in your prepared remarks about -- that you guys are successfully navigating the regulatory environment in California. But this chart shows that you've been able to grow California production in the '23 to '24 timeframe while everyone else, or at least everyone else on this slide, declined. So is that just because you're better at navigating the regulatory environment? Or are there other aspects, like perhaps that you guys are are more reliant or more proficient with sidetracks and the Diatomite that other operators don't have that option? Or just what do you view as the drivers behind this relative success here?

我對同樣的主題有一些疑問，但首先，我想問這張投影片 7，也就是下半部的圖表。丹妮爾，我想你在準備好的發言中已經提到了這一點——你們成功地適應了加州的監管環境。但這張圖表顯示，在 23 年至 24 年期間，加州的產量有所增長，而其他所有人（或至少這張投影片上的其他所有人）的產量都在下降。那麼這僅僅是因為你們更擅長應付監管環境嗎？或者還有其他方面，例如也許你們更依賴或更熟練地使用側線和矽藻土，而其他操作員沒有這樣的選擇？或者您認為推動這相對成功的原因是什麼？

Yeah, good question, Charles. And one of the strengths that we have is the quality of our teams, especially in California. As you know, we've been operating in California for well over 100 years, and we know the basin as good as anybody. And we have great teams, they're very innovative.

是的，查爾斯，問得好。我們的優勢之一是我們的團隊素質較高，尤其是在加州。如你所知，我們在加州經營已有 100 多年，我們對這個盆地的了解不亞於任何人。我們擁有優秀的團隊，他們非常有創新精神。

And if you remember years ago, we started with significant work cover activity as part of our plan. And then a couple of years ago, because of the limitations in the -- with the regulatory environment, we started looking at sidetracks. And I think we're the first really to start implementing that strategy of going after sidetracks. And because of that, we've been able to grow our sidetrack inventory.

如果你還記得的話，幾年前，我們就開始將重要的工作保障活動作為我們計畫的一部分。幾年前，由於監管環境的限制，我們開始考慮其他方法。我認為我們是第一個真正開始實施追尋岔路策略的人。正因為如此，我們才能夠增加側線庫存。

Just a minute ago, I mentioned our year-end reserves for 2024. And if you look at our pads year end 2024, about 225 of those pads, of the 500 and change pads, 225 are sidetracks. So that's -- that gives us an advantage. And obviously, the other clear advantage that we have is that in California, California is a low capital intensity development basin, so we see rates of return exceeding 100% in most of the projects that we drill.

剛才我提到了我們 2024 年的年終儲備。如果你看一下我們 2024 年底的停機坪，你會發現其中約有 225 個停機坪（在 500 個更換停機坪中），其中 225 個是側線停機坪。所以這給了我們優勢。顯然，我們的另一個明顯優勢是，加州是一個資本密集度較低的開發盆地，因此我們鑽探的大多數專案的回報率都超過 100%。

Got it. Thank you for that color. And then going back to the Uinta, and I want to ask a question on timing. And I don't intend to, and I don't want to try to box you in on any kind of timeline, but I want to just understand how you guys are thinking about the the news flow -- or the work flow and then the news flow. So you said that you're going to start fracking these four wells in early June. And then, so you'll probably be done with that frac job before the end of June. How long do these wells take to flow back and -- before you hit your initial peak rate? And are you guys -- do you want to see 2 weeks or or 30 days of production data before you make an announcement? Or just kind of give us the timeline and what your preference is for how you want to talk about it.

知道了。謝謝你的那個顏色。然後回到尤因塔，我想問一個關於時間的問題。我無意、也不想試圖將你們限制在任何時間線上，我只是想了解你們是如何看待新聞流——或者工作流程和新聞流的。所以您說您將在六月初開始對這四口井進行水力壓裂。然後，您可能會在六月底之前完成壓裂工作。這些油井需要多長時間才能回流並達到初始峰值速率？你們想在發佈公告之前查看 2 週或 30 天的生產數據嗎？或者只是告訴我們時間表以及您希望如何談論它。

Yeah, no, perfect. And as I mentioned before, we'll be starting our frac operations in June. We were fracking four wells, so it's going to take us most of June to frac those wells. After that, obviously, we need to clean out the the well bore and run the completion. And then once done, we have to connect the wells to our facilities to put them on production. So we expect to have production, initially, probably late July, but once the wells clean up, and it should take a few days to do that, we should have some significant production numbers in August, hopefully in time for the next earnings cycle.

是的，不，完美。正如我之前提到的，我們將在六月開始壓裂作業。我們正在對四口井進行水力壓裂，因此我們需要用整個六月的大部分時間來對這些井進行水力壓裂。之後，顯然我們需要清理井眼並完成完井。一旦完成，我們必須將油井連接到我們的設施以投入生產。因此，我們預計最初可能會在 7 月底開始生產，但一旦油井清理完畢（這需要幾天時間），我們應該會在 8 月獲得一些可觀的產量數字，希望能趕上下一個盈利週期。

Got it. That's helpful. Thank you.

知道了。這很有幫助。謝謝。

And there are no further questions at this time. I will now turn the call back over to Fernando Araujo for closing remarks.

目前沒有其他問題。現在我將把電話轉回給費爾南多·阿勞霍 (Fernando Araujo)，請他作最後發言。

Yes, thank you, everyone. Thank you for your interest in Berry. As I've said before, we are in a good place and we're really excited about where we are and the opportunities that we have. And with that, I look forward to giving you more updates as we get results. Thank you so much.

是的，謝謝大家。感謝您對 Berry 的關注。正如我之前所說，我們處於一個很好的位置，我們對我們所處的位置和我們所擁有的機會感到非常興奮。我希望在取得成果後能提供更多更新資訊給大家。太感謝了。

Ladies and gentlemen, that concludes today's call. Thank you all for joining, you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入，現在可以斷開連線了。