Berry Updates FY23 Guidance Post Macpherson Acquisition Completion
Portfolio Pulse from Akanksha Bakshi
Berry Corporation has updated its FY23 Guidance following the completion of the Macpherson Energy Corporation acquisition. The company financed the acquisition by cutting its FY23 capital spending. Berry now sees Average Daily Production of 24,800 - 25,400 (prior 24,000 - 25,200); E&P non-production revenues of $1.65 - $1.85 (prior $3.30 - $3.50) and Well Servicing & Abandonment Segment Adjusted EBITDA of ~$25 million (prior ~$27 million).
September 18, 2023 | 1:22 pm
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Berry Corporation's acquisition of Macpherson Energy Corporation is expected to increase production but decrease non-production revenues and EBITDA. The company's shares closed lower by 1.79% at $8.21 on Friday.
The acquisition is expected to increase Berry's production, which could potentially increase revenues. However, the company has also cut its capital spending for FY23 to finance the acquisition, which could impact its financial stability. Additionally, the company's non-production revenues and EBITDA are expected to decrease, which could negatively impact its profitability.
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