贝瑞公司（BRY）：基洼岛评论-尤因塔动力与许可进展

Emma Schwartz * | Equity Analyst1 (212) 336-7254 | emma.schwartz@jefferies.comLloyd Byrne * | Equity Analyst(212) 323-7528 | lloyd.byrne@jefferies.comJohn Edelman * | Equity Analyst(212) 336-7412 | jedelman@jefferies.comSam Burwell, CFA * | Equity Analyst+1 (212) 284-2114 | sburwell@jefferies.comTara Bleustein * | Equity Associate+1 (212) 323-7595 | tbleustein@jefferies.com Company DescriptionBerry Corp.Berry Corporation has production in the San Joaquin basin in California and the Uinta in California. The company produced 27kboe/d in 2021 andgenerated an adjusted net income of $21m.Company Valuation/RisksBerry Corp.Our price target applies a EV/2Y forward EBITDA to Berry's '26E EBITDA, which we discount back. We identify five key valuation risks. Berry's operationsin California expose the company to higher-than-average regulatory risk, as evidenced by the moratoriums in recent years. While there is upsidepotential for a long-term resolution of Kern County moratoriums per company comments, we believe regulatory risk remains significant over themedium term. Berry's thermal operations require significant amounts of steam, which puts the company’s operating costs at risk from inflation innatural gas prices. This could have a material impact on FCF generation. Like all E&Ps, Berry is exposed to broader oil & gas market forces that canhave a significant impact on financials. While Berry's realizations have come down in recent quarters, we believe the company is overall well positionedhere due to California's Brent-linked pricing. While Berry sits on the high side of our E&P coverage for leverage metrics, we expect the company toremain below its 2.0x target and believe it could elect to lower this further through its shareholder return framework. We see minimal risks around thecompany's asset base, as Berry's operations in California show stable shallow-decline production, but we remain concerned that the company couldmake non-accretive acquisitions outside its core San Joaquin basin.Analyst Certification:I, Emma Schwartz, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Lloyd Byrne, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, John Edelman, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Sam Burwell, CFA, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.I, Tara Bleustein, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report.As is the case with all Jefferies employees, the analyst(s) responsible for the coverage of the financial instruments discussed in this report receives compensationbased in part on the overall performance of the firm, including investment banking income. We seek to update our research as appropriate, but various regulationsmay prevent us from doing so. Aside from certain industry reports published on a periodic basis, the large majority of reports are published at irregular intervalsas appropriate in the analyst's judgement.Investment Recommendation Record(Article 3(1)e and Article 7 of MAR)Recommendation PublishedRecommendation DistributedCompany Specific DisclosuresJefferies Financial Group Inc., its affiliates or subsidiaries expect to receive or intend to seek compensation for investment banking services from BerryCorporation within the next three months.Within the past 12 months, Jefferies Financial Group Inc., its affiliates or subsidiaries has received compensation from investment banking services from BerryCorporation.Please see important disclosure information on pages 2 - 7 of this report.This report is intended for Jefferies clients only. Unauthorized distribution is prohibited. Jun