Berry Corporation has completed its semi-annual bank redetermination and reduced its RBL elected commitment to $200 million. This reduction equates to an annual savings of $1 million.

“Berry has responsibly run its operations out of Levered Free Cash Flow since the current management team assumed leadership in mid-2017. We primarily use our RBL credit facility to manage working capital fluctuations and we have no outstanding borrowings on the line today,” stated Cary Baetz, Berry’s EVP and CFO. “Given our free cash flow generation expectations through 2021, we currently don’t expect to use the line except for letters of credit. The reduction in our RBL was purely an economic decision that we believe is in the best interest of our shareholders. It is not a reflection on Berry’s proved oil reserves as the borrowing base would be substantially higher based on current unhedged Brent crude oil strip pricing.”

The Company also announced that it added to its 2021 hedging portfolio, which now has more than 14,300 barrels per day hedged at roughly $46 Brent for the first half of 2021 and more than 11,300 barrels per day hedged at $46 Brent for the second half of 2021. “This pricing is substantially better than we planned earlier this year and improves our visibility and flexibility over the next year and a half.  We continue to plan for a two-year cyclical low-crude price environment, and we have used recent crude price upticks to protect our two-year plan. These hedges, combined with cost improvements and efficiency, demonstrate Berry’s commitment to create value throughout the cycle and continue to position the company to emerge from the current environment in a position of strength,” Cary Baetz expanded.