What happened
Shares of Berry (BRY 0.52%) were trading 14.3% higher as of 12:22 p.m. ET Wednesday after the company reported fourth-quarter results before the opening bell that trounced analysts' expectations.
The independent upstream energy company, which focuses on the San Joaquin Basin of California and the Uinta Basin of Utah, reported revenue of $194.7 million, handily exceeding Wall Street's consensus estimate of $187.9 million, while adjusted profits of $0.94 per share blew away estimates of only $0.22 per share.
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So what
While Berry beat analysts' expectations, its revenue was actually 4% below its year-ago result of $203.6 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also fell year over year, coming in at $78 million for the quarter compared to $97 million in the prior-year period.
The primary reason for the revenue decline was lower energy costs. Realized oil prices were $73.39 per barrel for the period, down from $76.41 in the third quarter. Excluding hedging effects, the price was $81.66 per barrel. The company's production in California -- which accounts for 82% of its total -- rose 1% during the period to 21,100 million barrels of oil equivalent per day.
Now what
Management said the improved financial picture would allow it to increase the value it returned to shareholders. The energy company said it was increasing its stock buyback authorization to $200 million and doubling its fixed dividend to $0.48 per share starting with the first quarter of 2023.