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BRY Berry

Cover Page

Cover Page - shares6 Months Ended
Jun. 30, 2020Jul. 31, 2020
Cover [Abstract]
Document Type10-Q
Document Quarterly Reporttrue
Document Period End DateJun. 30,
2020
Document Transition Reportfalse
Entity File Number001-38606
Entity Registrant NameBerry Corporation (bry)
Entity Incorporation, State or Country CodeDE
Entity Tax Identification Number81-5410470
Entity Address, Address Line One16000 Dallas Parkway
Entity Address, Address Line TwoSuite 500
Entity Address, City or TownDallas
Entity Address, State or ProvinceTX
Entity Address, Postal Zip Code75248
City Area Code661
Local Phone Number616-3900
Title of 12(b) SecurityCommon Stock, par value $0.001 per share
Trading SymbolBRY
Security Exchange NameNASDAQ
Entity Current Reporting StatusYes
Entity Interactive Data CurrentYes
Entity Filer CategoryNon-accelerated Filer
Entity Small Businessfalse
Entity Emerging Growth Companytrue
Entity Ex Transition Periodfalse
Entity Shell Companyfalse
Entity Common Stock, Shares Outstanding79,870,874
Entity Central Index Key0001705873
Current Fiscal Year End Date--12-31
Document Fiscal Year Focus2020
Document Fiscal Period FocusQ2
Amendment Flagfalse

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Current assets:
Cash and cash equivalents $ 0 $ 0
Accounts receivable, net of allowance for doubtful accounts of $2,303 at June 30, 2020 and $1,103 at December 31, 201948,880 71,867
Derivative instruments84,681 9,166
Other current assets23,041 19,399
Total current assets156,602 100,432
Noncurrent assets:
Oil and natural gas properties1,383,672 1,675,717
Accumulated depletion and amortization(179,570)(209,105)
Total oil and natural gas properties, net1,204,102 1,466,612
Other property and equipment111,275 135,117
Accumulated depreciation(26,533)(25,462)
Total other property and equipment, net84,742 109,655
Derivative instruments5,268 525
Other noncurrent assets9,788 12,974
Total assets1,460,502 1,690,198
Current liabilities:
Accounts payable and accrued expenses94,687 151,811
Derivative instruments0 4,817
Total current liabilities94,687 156,628
Noncurrent liabilities:
Long-term debt394,262 394,319
Derivative instruments366 141
Deferred income taxes12,208 9,057
Asset retirement obligation137,800 124,019
Other noncurrent liabilities31,664 33,586
Commitments and Contingencies - Note 4
Equity:
Common stock ($0.001 par value; 750,000,000 shares authorized; 84,983,120 and 84,655,222 shares issued; and 79,870,874 and 79,542,976 shares outstanding, at June 30, 2020 and December 31, 2019, respectively)85 85
Additional paid-in-capital908,662 901,830
Treasury stock, at cost, (5,112,246 shares at June 30, 2020 and at December 31, 2019)(49,995)(49,995)
(Deficit) retained earnings(69,237)120,528
Total equity789,515 972,448
Total liabilities and equity $ 1,460,502 $ 1,690,198

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Statement of Financial Position [Abstract]
Allowance for doubtful accounts $ 2,303 $ 1,103
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized (in shares)750,000,000 750,000,000
Common stock, shares issued (in shares)84,983,120 84,655,222
Common stock, shares outstanding (in shares)79,870,874 79,542,976
Treasury stock, at cost (in shares)5,112,246 5,112,246

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Revenues and other:
Revenues and other $ 75,720,000 $ 142,790,000 $ 203,756,000 $ 284,568,000
(Losses) gains on derivatives156,002,000 (45,297,000)
Total revenues and other33,453,000 170,066,000 372,718,000 246,605,000
Expenses and other:
Transportation expenses1,789,000 1,694,000 3,611,000 3,867,000
Marketing expenses280,000 421,000 710,000 1,272,000
General and administrative expenses18,777,000 16,158,000 38,114,000 30,498,000
Depreciation, depletion, and amortization37,512,000 23,654,000 72,841,000 48,240,000
Impairment of oil and gas properties0 0 289,085,000 0
Taxes, other than income taxes10,449,000 11,348,000 14,801,000 19,434,000
Losses (gains) on derivatives(156,002,000)45,297,000
Other operating (income) expenses(1,192,000)3,119,000 1,010,000 4,364,000
Total expenses and other112,295,000 116,886,000 531,585,000 231,740,000
Other (expenses) income:
Interest expense(8,676,000)(8,961,000)(17,596,000)(17,766,000)
Other, net(6,000)0 (12,000)155,000
Total other (expenses) income(8,682,000)(8,961,000)(17,608,000)(17,611,000)
Reorganization items, net0 (26,000)0 (257,000)
(Loss) income before income taxes(87,524,000)44,193,000 (176,475,000)(3,003,000)
Income tax (benefit) expense(22,623,000)12,221,000 3,726,000 (877,000)
Net (loss) income $ (64,901,000) $ 31,972,000 $ (180,201,000) $ (2,126,000)
Net (loss) income per share:
Basic (in dollars per share) $ (0.81) $ 0.39 $ (2.26) $ (0.03)
Diluted (in dollars per share) $ (0.81) $ 0.39 $ (2.26) $ (0.03)
Oil, natural gas and natural gas liquids sales
Revenues and other:
Revenues and other $ 70,515,000 $ 136,908,000 $ 192,613,000 $ 268,010,000
Expenses and other:
Cost of goods sold40,733,000 47,879,000 91,485,000 105,807,000
Electricity sales
Revenues and other:
Revenues and other4,884,000 5,364,000 10,345,000 15,093,000
Expenses and other:
Cost of goods sold3,022,000 3,164,000 6,968,000 10,924,000
(Losses) gains on oil derivatives
Revenues and other:
(Losses) gains on derivatives(42,267,000)27,276,000 168,962,000 (37,963,000)
Expenses and other:
Losses (gains) on derivatives42,267,000 (27,276,000)(168,962,000)37,963,000
Marketing revenues
Revenues and other:
Revenues and other292,000 414,000 745,000 1,244,000
Other revenues
Revenues and other:
Revenues and other29,000 104,000 53,000 221,000
Natural gas sales
Revenues and other:
Revenues and other2,834,000 4,086,000 6,202,000 10,800,000
(Losses) gains on derivatives(925,000)(9,449,000)(12,960,000)(7,334,000)
Expenses and other:
Losses (gains) on derivatives $ 925,000 $ 9,449,000 $ 12,960,000 $ 7,334,000

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in ThousandsTotalCommon stockAdditional Paid-in CapitalTreasury Stock(Deficit) Retained Earnings
Beginning balance at Dec. 31, 2018 $ 1,006,446 $ 82 $ 914,540 $ (24,218) $ 116,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares withheld for payment of taxes on equity awards and other(270)(270)
Stock based compensation1,498 1,498
Purchases of treasury stock(24,375)(24,375)
Purchase of rights to common stock[1]0 (20,265)20,265
Common stock issued to settle unsecured claims0 3 (3)
Dividends declared on common stock, $0.12/share(10,072)(10,072)
Net income (loss)(34,098)(34,098)
Ending balance at Mar. 31, 2019939,129 85 895,500 (28,328)71,872
Beginning balance at Dec. 31, 20181,006,446 82 914,540 (24,218)116,042
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)(2,126)
Ending balance at Jun. 30, 2019952,316 85 897,322 (39,225)94,134
Beginning balance at Mar. 31, 2019939,129 85 895,500 (28,328)71,872
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares withheld for payment of taxes on equity awards and other(675)(675)
Stock based compensation2,497 2,497
Purchases of treasury stock(10,897)(10,897)
Dividends declared on common stock, $0.12/share(9,710)(9,710)
Net income (loss)31,972 31,972
Ending balance at Jun. 30, 2019952,316 85 897,322 (39,225)94,134
Beginning balance at Dec. 31, 2019972,448 85 901,830 (49,995)120,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares withheld for payment of taxes on equity awards and other(794)(794)
Stock based compensation3,036 3,036
Dividends declared on common stock, $0.12/share(9,564)(9,564)
Net income (loss)(115,300)(115,300)
Ending balance at Mar. 31, 2020849,826 85 904,072 (49,995)(4,336)
Beginning balance at Dec. 31, 2019972,448 85 901,830 (49,995)120,528
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)(180,201)
Ending balance at Jun. 30, 2020789,515 85 908,662 (49,995)(69,237)
Beginning balance at Mar. 31, 2020849,826 85 904,072 (49,995)(4,336)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Shares withheld for payment of taxes on equity awards and other(140)(140)
Stock based compensation4,730 4,730
Net income (loss)(64,901)(64,901)
Ending balance at Jun. 30, 2020 $ 789,515 $ 85 $ 908,662 $ (49,995) $ (69,237)
[1]In 2018, we entered into several settlement agreements with general unsecured creditors from our bankruptcy process. We paid approximately $20 million to purchase their claims to our common stock. These claims were settled in February 2019 with no shares issued.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - USD ($) $ in Millions2 Months Ended3 Months Ended
Feb. 28, 2019Mar. 31, 2020Jun. 30, 2019Mar. 31, 2019
Statement of Stockholders' Equity [Abstract]
Common stock, dividends declared (in dollars per share) $ 0.12 $ 0.12 $ 0.12
Purchase of rights to common stock $ 20
Treasury stock reissued (in shares)0

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Cash flows from operating activities:
Net loss $ (180,201,000) $ (2,126,000)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation, depletion and amortization72,841,000 48,240,000
Amortization of debt issuance costs2,681,000 2,517,000
Impairment of oil and gas properties289,085,000 0
Stock-based compensation expense7,501,000 3,918,000
Deferred income taxes2,750,000 (877,000)
Increase in allowance for doubtful accounts1,200,000 427,000
Other operating expenses317,000 395,000
Derivative activities:
Total (gains) losses(156,002,000)45,297,000
Cash settlements on derivatives71,499,000 11,578,000
Changes in assets and liabilities:
Decrease in accounts receivable21,802,000 2,108,000
Increase in other assets(3,642,000)(8,001,000)
Decrease in accounts payable and accrued expenses(32,102,000)(8,319,000)
(Decrease) increase in other liabilities(11,307,000)336,000
Net cash provided by operating activities86,422,000 95,493,000
Capital expenditures:
Development of oil and natural gas properties(52,988,000)(94,966,000)
Purchases of other property and equipment(3,415,000)(9,190,000)
Changes in capital investment accruals(7,256,000)(5,592,000)
Acquisition of properties and equipment and other(2,076,000)(2,689,000)
Proceeds from sale of property and equipment and other217,000 38,000
Net cash used in investing activities(65,518,000)(112,399,000)
Cash flows from financing activities:
Borrowings under RBL credit facility222,550,000 123,400,000
Repayments on RBL credit facility(223,100,000)(118,200,000)
Dividends paid on common stock(19,420,000)(19,662,000)
Purchase of treasury stock0 (36,139,000)
Shares withheld for payment of taxes on equity awards and other(934,000)(946,000)
Net cash used in financing activities(20,904,000)(51,547,000)
Net increase (decrease) in cash and cash equivalents0 (68,453,000)
Cash and cash equivalents:
Beginning0 68,680,000
Ending $ 0 $ 227,000

Basis of Presentation

Basis of Presentation6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of PresentationBasis of Presentation “Berry Corp.” refers to Berry Corporation (bry), a Delaware corporation, which is the sole member of Berry Petroleum Company, LLC ("Berry LLC"). As the context may require, the “Company”, “we”, “our” or similar words refer to (i) Berry Corp. and Berry LLC, its consolidated subsidiary, as a whole or (ii) either Berry Corp. or Berry LLC. Nature of Business Berry Corp. is an independent oil and natural gas company that was incorporated under Delaware law in February 2017 and its common stock began trading on NASDAQ under the symbol "bry" in July 2018. Berry Corp. operates through its wholly-owned subsidiary, Berry LLC. Our properties are located onshore in the United States (the “U.S.”), in California (in the San Joaquin and Ventura basins), Utah (in the Uinta basin), and Colorado (in the Piceance basin). Principles of Consolidation and Reporting The condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In management’s opinion, the accompanying financial statements contain all normal, recurring adjustments that are necessary to fairly present our interim unaudited condensed consolidated financial statements. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements. We prepared this report pursuant to the rules and regulations of the U.S. Security and Exchange Commission (“SEC”) applicable to interim financial information, which permit the omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the disclosed information not misleading. The results reported in these unaudited condensed consolidated financial statements may not accurately forecast results for future periods. This Quarterly Report on Form 10-Q should be read in conjunction with the consolidated financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2019. Reclassification We reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements. New Accounting Standards Issued, But Not Yet Adopted In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers. During the second quarter of 2020, this adoption date was further delayed by FASB until fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently identifying our lease population in accordance with the new lease standard. We expect the adoption of these rules to increase other assets and other liabilities on our balance sheet and we are currently evaluating the impact on our consolidated results of operations. In December 2019, the FASB issued rules which simplify the accounting for income taxes. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of these rules on our consolidated financial statements. In March 2020, the FASB issued rules providing optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the reference rate reform, if certain criteria are met. The optional expedient for contract modifications applies to contract modifications that replace a reference rate affected by the reference rate reform, such as the London Interbank Offered Rate (“LIBOR”). Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are currently evaluating the impact of these rules on our consolidated financial statements.

Debt

Debt6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
DebtDebt The following table summarizes our outstanding debt: June 30, December 31, 2019 Interest Rate Maturity Security (in thousands) RBL Facility $ 1,300 $ 1,850 variable rates 4.0% (2020) and 5.5% (2019), respectively July 29, 2022 Mortgage on 85% of Present Value of proven oil and gas reserves and lien on other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 401,300 401,850 Less: Debt Issuance Costs (7,038) (7,531) Long-Term Debt, net $ 394,262 $ 394,319 Deferred Financing Costs We incurred legal and bank fees related to the issuance of debt. At June 30, 2020 and December 31, 2019, debt issuance costs for the RBL Facility (as defined below) reported in “other noncurrent assets” on the balance sheet were approximately $9 million and $11 million net of amortization, respectively. At June 30, 2020 and December 31, 2019, debt issuance costs, net of amortization, for the unsecured notes due February 2026 (the “2026 Notes”) reported in Long-Term Debt, net were approximately $7 million and $8 million, respectively. For each of the three month periods ended June 30, 2020 and June 30, 2019, the amortization expense for both the RBL Facility and 2026 Notes was approximately $1 million and was included in “interest expense” in the condensed consolidated statements of operations. For each of the six month periods ended June 30, 2020 and June 30, 2019, the amortization expense for both the RBL Facility and 2026 Notes was approximately $3 million. Fair Value Our debt is recorded at the carrying amount on the balance sheets. The carrying amount of the RBL Facility approximates fair value because the interest rates are variable and reflect market rates. The fair value of the 2026 Notes was approximately $320 million and $376 million at June 30, 2020 and December 31, 2019, respectively. The RBL Facility On July 31, 2017, we entered into a credit agreement that provided for a revolving loan with up to $1.5 billion of commitment, subject to a reserve borrowing base (“RBL Facility”). In June 2020, we completed our scheduled semi-annual borrowing base redetermination under our RBL Facility, which resulted in a decrease to the borrowing base to $200 million from $500 million; decrease to the elected commitments to $200 million from $400 million; limitation on the maximum borrowing availability under the RBL Facility to $150 million until the next semi annual borrowing base redetermination (scheduled to occur on or about November 1, 2020); the implementation of certain anti-cash hoarding provisions, including the requirement to repay outstanding loans on a weekly basis in the amount of any cash on the balance sheet (subject to certain exceptions) in excess of $30 million; and further limits dividends and share repurchases. The RBL Facility matures on July 29, 2022, unless terminated earlier in accordance with the RBL Facility terms. Borrowing base redeterminations generally become effective each May and November, although each of us and the administrative agent may make one interim redetermination between scheduled redeterminations. The RBL Facility contains customary events of default and remedies for credit facilities of a similar nature. If we do not comply with the financial and other covenants in the RBL Facility, the lenders may, subject to customary cure rights, require immediate payment of all amounts outstanding under the RBL Facility and exercise all of their other rights and remedies, including foreclosure on all of the collateral. The RBL Facility requires us to maintain on a consolidated basis as of each quarter-end (i) a Leverage Ratio of no more than 4.0 to 1.0 and (ii) a Current Ratio of at least 1.0 to 1.0. The RBL Facility also contains customary restrictions. As of June 30, 2020, our Leverage Ratio and Current Ratio were 1.4 to 1.0 and 2.3 to 1.0, respectively. In addition, the RBL Facility currently provides that to the extent we incur unsecured indebtedness, including any amounts raised in the future, the borrowing base will be reduced by an amount equal to 25% of the amount of such unsecured debt. We were in compliance with all financial covenants under the RBL Facility as of June 30, 2020. As of June 30, 2020, we had approximately $1 million in borrowings outstanding, $7 million in letters of credit outstanding, and approximately $142 million of available borrowings capacity under the RBL Facility. Bond Repurchase Program In February 2020, our Board of Directors adopted a program to spend up to $75 million for the opportunistic repurchase of our 2026 Notes. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase the 2026 Notes during any period or at all. We have not yet repurchased any bonds under this program. Corporate Organization Berry Corp., as Berry LLC’s parent company, has no independent assets or operations. Any guarantees of potential future registered debt securities by Berry Corp. or Berry LLC would be full and unconditional. Berry Corp. and Berry LLC currently do not have any other subsidiaries. In addition, there are no significant restrictions upon the ability of Berry LLC to distribute funds to Berry Corp. by distribution or loan other than under the RBL Facility. None of the assets of Berry Corp. or Berry LLC represent restricted net assets.

Derivatives

Derivatives6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DerivativesDerivatives We utilize derivatives, such as swaps, puts and calls, to hedge a portion of our forecasted oil production and gas purchases to reduce exposure to fluctuations in oil and natural gas prices, which addresses our market risk. We target covering our operating expenses and a majority of our fixed charges, including capital for sustained production levels, interest and dividends, with the oil hedges for a period of up to two years out. Additionally, we target fixing the price for a large portion of our natural gas purchases used in our steam operations for up to two years. We also, from time to time, have entered into agreements to purchase a portion of the natural gas we require for our operations, which we do not record at fair value as derivatives because they qualify for normal purchases and normal sales exclusions. For fixed-price oil swaps, we make settlement payments for prices above the indicated weighted-average price per barrel of Brent and receive settlement payments for prices below the indicated weighted-average price per barrel of Brent. For our purchased oil calls, we would receive settlement payments for prices above the indicated weighted-average price per barrel of Brent. For fixed-price gas purchase swaps, we are the buyer so we make settlement payments for prices below the weighted-average price per MMBtu and receive settlement payments for prices above the weighted-average price per MMBtu. We use oil swaps and puts to protect against decreases in the oil price and natural gas swaps to protect against increases in natural gas prices. We do not enter into derivative contracts for speculative trading purposes and have not accounted for our derivatives as cash-flow or fair-value hedges. The changes in fair value of these instruments are recorded in current earnings. (Gains) losses on oil hedges are classified in the revenues and other section of the statement. As of June 30, 2020, we had the following crude oil production and gas purchases hedges. Q3 2020 Q4 2020 FY 2021 Fixed Price Oil Swaps (Brent): Hedged volume (MBbls) 2,208 2,208 4,678 Weighted-average price ($/Bbl) $ 59.85 $ 59.85 $ 45.99 Purchased Oil Calls Options (Brent): Hedged volume (MBbls) 276 276 — Weighted-average price ($/Bbl) $ 65.00 $ 65.00 $ — Fixed Price Gas Purchase Swaps (Kern, Delivered): Hedged volume (MMBtu) 5,060,000 5,060,000 14,580,000 Weighted-average price ($/MMBtu) $ 2.89 $ 2.76 $ 2.72 Fixed Price Gas Purchase Swaps (SoCal Citygate): Hedged volume (MMBtu) 460,000 155,000 — Weighted-average price ($/MMBtu) $ 3.80 $ 3.80 $ — In July 2020, we added fixed price oil swaps (Brent) of 4,663 Bbls/d at nearly $46 beginning January through June 2021. Our commodity derivatives are measured at fair value using industry-standard models with various inputs including publicly available underlying commodity prices and forward curves, and all are classified as Level 2 in the required fair value hierarchy for the periods presented. These commodity derivatives are subject to counterparty netting. The following tables present the fair values (gross and net) of our outstanding derivatives as of June 30, 2020 and December 31, 2019: June 30, 2020 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 92,943 $ (8,262) $ 84,681 Commodity Contracts Non-current assets 6,341 (1,073) 5,268 Liabilities: Commodity Contracts Current liabilities (8,262) 8,262 — Commodity Contracts Non-current liabilities (1,439) 1,073 (366) Total derivatives $ 89,583 $ — $ 89,583 December 31, 2019 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 17,799 $ (8,633) $ 9,166 Commodity Contracts Non-current assets 773 (248) 525 Liabilities: Commodity Contracts Current liabilities (13,450) 8,633 (4,817) Commodity Contracts Non-current liabilities (389) 248 (141) Total derivatives $ 4,733 $ — $ 4,733 By using derivative instruments to economically hedge exposure to changes in commodity prices, we expose ourselves to credit risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes us, which creates credit risk. We do not receive collateral from our counterparties. We minimize the credit risk in derivative instruments by limiting our exposure to any single counterparty. In addition, our RBL Facility prevents us from entering into hedging arrangements that are secured, except with our lenders and their affiliates that have margin call requirements, that otherwise require us to provide collateral or with a non-lender counterparty that does not have an A- or A3 credit rating or better from Standards & Poor’s or Moody’s, respectively. In accordance with our standard practice, our commodity derivatives are subject to counterparty netting under agreements governing such derivatives which partially mitigates the counterparty nonperformance risk.

Lawsuits, Claims, Commitments a

Lawsuits, Claims, Commitments and Contingencies6 Months Ended
Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Lawsuits, Claims, Commitments and ContingenciesLawsuits, Claims, Commitments and Contingencies In the normal course of business, we, or our subsidiary, are subject to lawsuits, environmental and other claims and other contingencies that seek, or may seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. We have not recorded any reserve balances at June 30, 2020 and December 31, 2019. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. We, or our subsidiary, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with transactions that they have entered into with us. As of June 30, 2020, we are not aware of material indemnity claims pending or threatened against us.

Equity

Equity6 Months Ended
Jun. 30, 2020
Equity [Abstract]
EquityEquity Cash Dividends Our Board of Directors approved a $0.12 per share quarterly cash dividend on our common stock for the first quarter of 2020, which we paid in April 2020. In April 2020, in connection with the current low oil price environment, we temporarily suspended our quarterly dividend until oil prices recover. Stock Repurchase Program In December 2018, our Board of Directors adopted a program for the opportunistic repurchase of up to $100 million of our common stock. Based on the Board’s evaluation of market conditions for our common stock at that time, they authorized initial repurchases of up to $50 million under the program. In February 2020, the Board of Directors authorized the repurchase of the remaining $50 million of our $100 million repurchase program. However, largely due to the uncertainty resulting from the COVID-19 and oil price environment, no such repurchases have yet been made. Repurchases may be made from time to time in the open market, in privately negotiated transactions or by other means, as determined in the Company's sole discretion. The manner, timing and amount of any purchases will be determined based on our evaluation of market conditions, stock price, compliance with outstanding agreements and other factors, may be commenced or suspended at any time without notice and does not obligate Berry Corp. to purchase shares during any period or at all. Any shares acquired will be available for general corporate purposes. The Company repurchased a total of 5,057,682 shares under the stock repurchase program for approximately $50 million as of December 31, 2019. For the three and six months ended June 30, 2020, we did not repurchase any shares under the stock repurchase program. Stock-Based Compensation In March 2020, the Company granted awards of 1,817,656 shares of restricted stock units (“RSUs”), which will vest annually in equal amounts over three years and 1,278,877 performance-based restricted stock units (“PSUs”), which will cliff vest, if at all, at the end of a three year performance period subject to both an absolute total stockholder return (“Absolute TSR”) performance metric and a total stockholder return relative (“Relative TSR”) performance metric, as further discussed and defined below. The fair value of these awards was approximately $32 million. The RSUs awarded are solely time-based awards. The PSUs awarded include a market objective measured against both Absolute TSR and Relative TSR to the Vanguard World Fund - Vanguard Energy ETF index (the “Index”) over the performance period, assuming the reinvestment of dividends. Depending on the results achieved during the three-year performance period, the actual number of shares that a grant recipient receives at the end of the period may range from 0% to 200% of the PSUs granted. The fair value of the PSUs was determined using a Monte Carlo simulation analysis to estimate the total shareholder return ranking of the Company, including a comparison against the Index over the performance periods. The expected volatility of the Company’s common stock at the date of grant was estimated based on blended historical average volatility rates for the Company and selected guideline public companies. The dividend yield assumption was based on the then current annualized declared dividend. The risk-free interest rate assumption was based on observed interest rates consistent with the approximate three-year performance measurement period.

Supplemental Disclosures to the

Supplemental Disclosures to the Financial Statements6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Supplemental Disclosures to the Financial StatementsSupplemental Disclosures to the Financial Statements Other current assets reported on the condensed consolidated balance sheets included the following: June 30, 2020 December 31, 2019 (in thousands) Prepaid expenses $ 7,199 $ 4,577 Materials and supplies 11,807 10,544 Oil inventories 3,189 3,432 Other 846 846 Total other current assets $ 23,041 $ 19,399 Other non-current assets at June 30, 2020 and December 31, 2019, included approximately $9 million and $11 million of deferred financing costs, net of amortization, respectively. Accounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2020 December 31, 2019 (in thousands) Accounts payable-trade $ 8,086 $ 13,986 Accrued expenses 40,211 57,078 Royalties payable 10,647 25,385 Taxes other than income tax liability 9,586 9,150 Accrued interest 10,500 10,500 Dividends payable 32 9,888 Asset retirement obligation - current portion 13,700 25,208 Other 1,925 616 Total accounts payable and accrued expenses $ 94,687 $ 151,811 We reclassified certain accrued expenses to accounts payable trade accounts for the prior period to conform to the current year presentation. These reclassifications had no impact on the financial statements. The increase in the long-term portion of the asset retirement obligation from $124 million at December 31, 2019 to $138 million at June 30, 2020 was due to $5 million of accretion, $6 million of liabilities incurred and reclassification of $12 million from the current to long-term portion due to changes in anticipated spending and regulatory requirements. These increases were partially offset by $9 million of liabilities settled during the period. Other non-current liabilities at June 30, 2020 and December 31, 2019 included approximately $31 million and $33 million of greenhouse gas liability, respectively. Supplemental Information on the Statement of Operations For the three months ended June 30, 2020 and 2019, other operating income was $1 million and other operating expenses were $3 million, respectively. These other operating (income) expenses mainly consist of refunds, partially offset by excess abandonment costs and drilling rig standby charges in 2020 and excess abandonment costs in 2019. For the six months ended June 30, 2020 and 2019 other operating expenses was $1 million and $4 million, respectively. These other operating expenses mainly consist of excess abandonment costs and drilling rig standby charges, partially offset by refunds in 2020 and excess abandonment costs in 2019. Supplemental Cash Flow Information Supplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2020 2019 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 911 $ 5,020 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 15,527 $ 15,272 Income taxes $ 2 $ — Cash and cash equivalents consist primarily of highly liquid investments with original maturities of three months or less and are stated at cost, which approximates fair value. As part of our cash management system, we use a controlled disbursement account to fund cash distribution checks presented for payment by the holder. Checks issued but not yet presented to banks may result in overdraft balances, which amounts are immaterial for these periods, for accounting purposes in the accounts payable and accrued expenses account.

Earnings Per Share

Earnings Per Share6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Earnings Per ShareEarnings Per Share We calculate basic earnings (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding during the three and six months ended June 30, 2020 which is approximately 80 million shares for both. Common shares issuable upon the satisfaction of certain conditions pursuant to a contractual agreement, are considered common shares outstanding and are included in the computation of net income (loss) per share. The RSUs and PSUs are not a participating security as the dividends are forfeitable. For the three months ended June 30, 2020, six months ended June 30, 2020 and six months ended June 30, 2019 no incremental RSUs or PSUs were included in the diluted EPS calculation as their effect was anti-dilutive under the “if converted” method. For the three months ended June 30, 2019, 164,000 incremental RSUs were included in the diluted EPS calculation and no incremental PSUs were included in the EPS calculation due to their contingent nature. Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands except per share amounts) Basic EPS calculation Net (loss) income $ (64,901) $ 31,972 $ (180,201) $ (2,126) Weighted-average shares of common stock outstanding 79,795 81,519 79,702 82,061 Basic (loss) earnings per share $ (0.81) $ 0.39 $ (2.26) $ (0.03) Diluted EPS calculation Net (loss) income $ (64,901) $ 31,972 $ (180,201) $ (2,126) Weighted-average shares of common stock outstanding 79,795 81,519 79,702 82,061 Dilutive effect of potentially dilutive securities (1) — 164 — — Weighted-average common shares outstanding - diluted 79,795 81,683 79,702 82,061 Diluted (loss) earnings per share $ (0.81) $ 0.39 $ (2.26) $ (0.03) __________ (1) No potentially dilutive securities were included in computing diluted (loss) earnings per share for the three and six months ended June 30, 2020 and six months ended June 30, 2019, because the effect of inclusion would have been anti-dilutive.

Revenue Recognition

Revenue Recognition6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Revenue RecognitionRevenue Recognition We account for revenue in accordance with the Accounting Standards Codification 606, Revenue from Contracts with Customers, which we adopted on January 1, 2019, using the modified retrospective method, which was applied to all contracts that were not completed as of that date. Prior period results were not adjusted and continue to be reported under the accounting standards in effect for the prior period. The new standard did not affect the timing of our revenue recognition and did not impact net income; accordingly, we did not record an adjustment to the opening balance of retained earnings. We adopted the practical expedient related to disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of the reporting period. The performance obligations that are unsatisfied at the end of a reporting period relate solely to future volumes that we have yet to sell. As such, these are wholly unsatisfied performance obligations as each unit of product represents a separate performance obligation as well as a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. We derive substantially all of our revenue from sales of oil, natural gas and natural gas liquids (“NGL”), with the remaining revenue generated from sales of electricity and marketing activities. The following is a description of our principal activities from which we generate revenue. Revenues are recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Oil, Natural Gas and NGLs We recognize revenue from the sale of our oil, natural gas and NGLs production when delivery has occurred and control passes to the customer. Our oil and natural gas contracts are short term, typically less than a year and our NGL contracts are both short and long term. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Our commodity sales contracts are indexed to a market price or an average index price. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing. Electricity Sales The electrical output of our cogeneration facilities that is not used in our operations is sold to the California market based on market pricing, which includes capacity payments. The majority of the portion sold from three of our cogeneration facilities is sold under long-term contracts to two California utility companies, based on market pricing. Revenue is recognized over time when obligations under the terms of a contract with our customer are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on average index pricing with payment due the month following delivery. Capacity payments are based on a fixed annual amount per kilowatt hour and monthly rates vary based on seasonality, which is consistent with how we earn the capacity payment. Capacity payments are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. We report electricity revenue as electricity sales on our consolidated statements of operations. Marketing Revenue Marketing revenue primarily includes our activities associated with transporting and marketing third-party volumes. These sales are made under the same agreements with the same purchaser as our natural gas sales discussed above. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Revenues are presented excluding costs incurred prior to transferring control of these volumes to the customer, or the costs to purchase these volumes when we are acting as the principal. The revenues and expenses related to the sale and purchase of third-party volumes are presented separately as marketing revenue and marketing expenses on the condensed consolidated statements of operations. Disaggregated Revenue As a result of adoption of this standard, we are now required to disclose the following information regarding revenue from contracts with customers on a disaggregated basis. Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands) Oil sales $ 67,512 $ 132,165 $ 185,822 $ 255,616 Natural gas sales 2,834 4,086 6,202 10,800 Natural gas liquids sales 169 657 589 1,594 Electricity sales 4,884 5,364 10,345 15,093 Marketing revenues 292 414 745 1,244 Other revenues 29 104 53 221 Revenues from contracts with customers 75,720 142,790 203,756 284,568 (Losses) gains on oil derivatives (42,267) 27,276 168,962 (37,963) Total revenues and other $ 33,453 $ 170,066 $ 372,718 $ 246,605

Oil and Natural Gas Properties

Oil and Natural Gas Properties6 Months Ended
Jun. 30, 2020
Extractive Industries [Abstract]
Oil and Natural Gas PropertiesOil and Natural Gas PropertiesWe evaluate the impairment of our proved and unproved oil and natural gas properties whenever events or changes in circumstance indicate that a property’s carrying value may not be recoverable. If the carrying amount of the proved properties exceeds the estimated undiscounted future cash flows, we record an impairment charge to reduce the carrying values of proved properties to their estimated fair value. We estimate the fair values of proved properties using valuation techniques that consider the market approach for values from the recent sale of similar properties, if applicable, and the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of proved properties include estimates of: (i) reserves; (ii) future operating and development costs; (iii) future commodity prices; and (iv) a risk-adjusted discount rate. These inputs require significant judgments and estimates by our management at the time of the valuation which can change significantly over time. The underlying commodity prices are embedded in our estimated cash flows and are the product of a process that begins with the relevant forward curve pricing, adjusted for estimated location and quality differentials, as well as other factors our management believes will impact realizable prices. The fair value was estimated using inputs characteristic of a Level 3 fair value measurement. We evaluate the impairment of our unproved oil and gas properties whenever events or changes in circumstances indicate the carrying value may not be recoverable. If exploration and development work were to be unsuccessful, or management decided not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of such properties would be expensed. The timing of any write-downs of unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results. As of March 31, 2020, we performed impairment tests with respect to our proved and unproved oil and gas properties as a result of significant declines in oil prices during the latter part of the first quarter. These declines were driven by the uncertainty surrounding the outbreak of novel strain of coronavirus (SARS-Cov-2), which causes COVID-19 (“COVID-19”) and other macroeconomic events such as the geopolitical tensions between OPEC and Russia. The COVID-19 pandemic and related economic repercussions, coupled with OPEC+ actions, created significant volatility, uncertainty, and turmoil in the oil and gas industry, which have negatively affected and are expected to continue to negatively affect our business. Low oil prices are expected to continue for some period as reflected by current futures forward curves for crude. Consequently, we recorded a non-cash pre-tax asset impairment charge of $289 million during the first quarter of 2020 on properties in Utah and certain California locations. We evaluated our proved properties in accordance with accounting guidance and fair value techniques utilizing the period-end forward price curve, as well as assessing projects we determine we would not pursue in the foreseeable future given the current environment. We believe our current plans and exploration and development efforts will allow us to realize the carrying value of our unproved property balance. As of June 30, 2020, we did not record an impairment charge for the second quarter of 2020, as there were no triggering events.

Income Taxes

Income Taxes6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income TaxesIncome TaxesThe COVID-19 pandemic and related economic repercussions, coupled with OPEC+ actions, created significant volatility, uncertainty, and turmoil in the oil and gas industry, which have negatively affected and are expected to continue to negatively affect our business. As a result, after evaluating the positive and negative evidence, we determined that it was more likely than not that a large portion of our interest deduction carryforwards and tax credits would not be realized. Accordingly, we recognized a valuation allowance on our deferred tax assets for the six months ended June 30, 2020 in the amount of $53 million. This was the key contributor in the decrease in our effective tax rate from 29% for the six months ended June 30, 2019 to (2)% for the six months ended June 30, 2020.

Acquisition

Acquisition6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]
AcquisitionAcquisitionIn May 2020, we acquired approximately 740 net acres in the North Midway Sunset Field for approximately $5 million. We paid $2 million at closing and the remaining $3 million is recorded in accrued expenses and is due upon the earlier of either a specified triggering event or December 31, 2021. The specified triggering events are either (i) the daily posted price of West Texas Intermediate is at least $45.00 per barrel for thirty consecutive days or (ii) we first produce and sell oil from the property. This property is adjacent to, and extends, our existing producing area and we have identified numerous future drilling locations. We believe additional opportunities exist in other productive reservoirs of this property. We also acquired all existing idle wells on this property.

Basis of Presentation (Policies

Basis of Presentation (Policies)6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation and ReportingPrinciples of Consolidation and Reporting The condensed consolidated financial statements were prepared in conformity with U.S. generally accepted accounting principles (“GAAP”), which requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. In management’s opinion, the accompanying financial statements contain all normal, recurring adjustments that are necessary to fairly present our interim unaudited condensed consolidated financial statements. We eliminated all significant intercompany transactions and balances upon consolidation. For oil and gas exploration and production joint ventures in which we have a direct working interest, we account for our proportionate share of assets, liabilities, revenue, expense and cash flows within the relevant lines of the financial statements.
ReclassificationReclassificationWe reclassified certain prior year amounts in the cash flow statements to conform to the current year presentation. These reclassifications had no material impact on the financial statements.
New Accounting Standards Issued, But Not Yet AdoptedNew Accounting Standards Issued, But Not Yet Adopted In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers. During the second quarter of 2020, this adoption date was further delayed by FASB until fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently identifying our lease population in accordance with the new lease standard. We expect the adoption of these rules to increase other assets and other liabilities on our balance sheet and we are currently evaluating the impact on our consolidated results of operations. In December 2019, the FASB issued rules which simplify the accounting for income taxes. As an emerging growth company, we have elected to delay the adoption of these rules until they are applicable to non-SEC issuers which is for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. We are currently evaluating the impact of these rules on our consolidated financial statements. In March 2020, the FASB issued rules providing optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by the reference rate reform, if certain criteria are met. The optional expedient for contract modifications applies to contract modifications that replace a reference rate affected by the reference rate reform, such as the London Interbank Offered Rate (“LIBOR”). Entities may elect to apply the amendments for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 through December 31, 2022. We are currently evaluating the impact of these rules on our consolidated financial statements.
Revenue RecognitionRevenue Recognition We account for revenue in accordance with the Accounting Standards Codification 606, Revenue from Contracts with Customers, which we adopted on January 1, 2019, using the modified retrospective method, which was applied to all contracts that were not completed as of that date. Prior period results were not adjusted and continue to be reported under the accounting standards in effect for the prior period. The new standard did not affect the timing of our revenue recognition and did not impact net income; accordingly, we did not record an adjustment to the opening balance of retained earnings. We adopted the practical expedient related to disclosing the aggregate amount of the transaction price allocated to performance obligations that are unsatisfied at the end of the reporting period. The performance obligations that are unsatisfied at the end of a reporting period relate solely to future volumes that we have yet to sell. As such, these are wholly unsatisfied performance obligations as each unit of product represents a separate performance obligation as well as a wholly unsatisfied promise to transfer a distinct good that forms part of a single performance obligation. We derive substantially all of our revenue from sales of oil, natural gas and natural gas liquids (“NGL”), with the remaining revenue generated from sales of electricity and marketing activities. The following is a description of our principal activities from which we generate revenue. Revenues are recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Oil, Natural Gas and NGLs We recognize revenue from the sale of our oil, natural gas and NGLs production when delivery has occurred and control passes to the customer. Our oil and natural gas contracts are short term, typically less than a year and our NGL contracts are both short and long term. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Our commodity sales contracts are indexed to a market price or an average index price. We recognize revenue in the amount that we expect to receive once we are able to adequately estimate the consideration (i.e., when market prices are known). Our contracts with customers typically require payment within 30 days following invoicing. Electricity Sales The electrical output of our cogeneration facilities that is not used in our operations is sold to the California market based on market pricing, which includes capacity payments. The majority of the portion sold from three of our cogeneration facilities is sold under long-term contracts to two California utility companies, based on market pricing. Revenue is recognized over time when obligations under the terms of a contract with our customer are satisfied; generally, this occurs upon delivery of the electricity. Revenue is measured as the amount of consideration we expect to receive based on average index pricing with payment due the month following delivery. Capacity payments are based on a fixed annual amount per kilowatt hour and monthly rates vary based on seasonality, which is consistent with how we earn the capacity payment. Capacity payments are settled monthly. We consider our performance obligations to be satisfied upon delivery of electricity or as the contracted amount of energy is made available to the customer in the case of capacity payments. We report electricity revenue as electricity sales on our consolidated statements of operations. Marketing Revenue Marketing revenue primarily includes our activities associated with transporting and marketing third-party volumes. These sales are made under the same agreements with the same purchaser as our natural gas sales discussed above. We consider our performance obligations to be satisfied upon transfer of control of the commodity. Revenues are presented excluding costs incurred prior to transferring control of these volumes to the customer, or the costs to purchase these volumes when we are acting as the principal. The revenues and expenses related to the sale and purchase of third-party volumes are presented separately as marketing revenue and marketing expenses on the condensed consolidated statements of operations.

Debt (Tables)

Debt (Tables)6 Months Ended
Jun. 30, 2020
Debt Disclosure [Abstract]
Schedule of Outstanding DebtThe following table summarizes our outstanding debt: June 30, December 31, 2019 Interest Rate Maturity Security (in thousands) RBL Facility $ 1,300 $ 1,850 variable rates 4.0% (2020) and 5.5% (2019), respectively July 29, 2022 Mortgage on 85% of Present Value of proven oil and gas reserves and lien on other assets 2026 Notes 400,000 400,000 7.0% February 15, 2026 Unsecured Long-Term Debt - Principal Amount 401,300 401,850 Less: Debt Issuance Costs (7,038) (7,531) Long-Term Debt, net $ 394,262 $ 394,319

Derivatives (Tables)

Derivatives (Tables)6 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Transactions Resulting in Crude Oil Production and Gas Purchases HedgesAs of June 30, 2020, we had the following crude oil production and gas purchases hedges. Q3 2020 Q4 2020 FY 2021 Fixed Price Oil Swaps (Brent): Hedged volume (MBbls) 2,208 2,208 4,678 Weighted-average price ($/Bbl) $ 59.85 $ 59.85 $ 45.99 Purchased Oil Calls Options (Brent): Hedged volume (MBbls) 276 276 — Weighted-average price ($/Bbl) $ 65.00 $ 65.00 $ — Fixed Price Gas Purchase Swaps (Kern, Delivered): Hedged volume (MMBtu) 5,060,000 5,060,000 14,580,000 Weighted-average price ($/MMBtu) $ 2.89 $ 2.76 $ 2.72 Fixed Price Gas Purchase Swaps (SoCal Citygate): Hedged volume (MMBtu) 460,000 155,000 — Weighted-average price ($/MMBtu) $ 3.80 $ 3.80 $ —
Fair Values (Gross and Net) of Outstanding DerivativesThe following tables present the fair values (gross and net) of our outstanding derivatives as of June 30, 2020 and December 31, 2019: June 30, 2020 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 92,943 $ (8,262) $ 84,681 Commodity Contracts Non-current assets 6,341 (1,073) 5,268 Liabilities: Commodity Contracts Current liabilities (8,262) 8,262 — Commodity Contracts Non-current liabilities (1,439) 1,073 (366) Total derivatives $ 89,583 $ — $ 89,583 December 31, 2019 Balance Sheet Gross Amounts Gross Amounts Offset Net Fair Value Presented (in thousands) Assets: Commodity Contracts Current assets $ 17,799 $ (8,633) $ 9,166 Commodity Contracts Non-current assets 773 (248) 525 Liabilities: Commodity Contracts Current liabilities (13,450) 8,633 (4,817) Commodity Contracts Non-current liabilities (389) 248 (141) Total derivatives $ 4,733 $ — $ 4,733

Supplemental Disclosures to t_2

Supplemental Disclosures to the Financial Statements (Tables)6 Months Ended
Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Other Current AssetsOther current assets reported on the condensed consolidated balance sheets included the following: June 30, 2020 December 31, 2019 (in thousands) Prepaid expenses $ 7,199 $ 4,577 Materials and supplies 11,807 10,544 Oil inventories 3,189 3,432 Other 846 846 Total other current assets $ 23,041 $ 19,399
Accounts Payable and Accrued ExpensesAccounts payable and accrued expenses on the condensed consolidated balance sheets included the following: June 30, 2020 December 31, 2019 (in thousands) Accounts payable-trade $ 8,086 $ 13,986 Accrued expenses 40,211 57,078 Royalties payable 10,647 25,385 Taxes other than income tax liability 9,586 9,150 Accrued interest 10,500 10,500 Dividends payable 32 9,888 Asset retirement obligation - current portion 13,700 25,208 Other 1,925 616 Total accounts payable and accrued expenses $ 94,687 $ 151,811
Supplemental Disclosures to the Statements of Cash FlowsSupplemental disclosures to the condensed consolidated statements of cash flows are presented below: Six Months Ended 2020 2019 (in thousands) Supplemental Disclosures of Significant Non-Cash Investing Activities: Material inventory transfers to oil and natural gas properties $ 911 $ 5,020 Supplemental Disclosures of Cash Payments (Receipts): Interest, net of amounts capitalized $ 15,527 $ 15,272 Income taxes $ 2 $ —

Earnings Per Share (Tables)

Earnings Per Share (Tables)6 Months Ended
Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Earnings Per Share Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands except per share amounts) Basic EPS calculation Net (loss) income $ (64,901) $ 31,972 $ (180,201) $ (2,126) Weighted-average shares of common stock outstanding 79,795 81,519 79,702 82,061 Basic (loss) earnings per share $ (0.81) $ 0.39 $ (2.26) $ (0.03) Diluted EPS calculation Net (loss) income $ (64,901) $ 31,972 $ (180,201) $ (2,126) Weighted-average shares of common stock outstanding 79,795 81,519 79,702 82,061 Dilutive effect of potentially dilutive securities (1) — 164 — — Weighted-average common shares outstanding - diluted 79,795 81,683 79,702 82,061 Diluted (loss) earnings per share $ (0.81) $ 0.39 $ (2.26) $ (0.03) __________ (1) No potentially dilutive securities were included in computing diluted (loss) earnings per share for the three and six months ended June 30, 2020 and six months ended June 30, 2019, because the effect of inclusion would have been anti-dilutive.

Revenue Recognition (Tables)

Revenue Recognition (Tables)6 Months Ended
Jun. 30, 2020
Revenue from Contract with Customer [Abstract]
Disaggregation of RevenueAs a result of adoption of this standard, we are now required to disclose the following information regarding revenue from contracts with customers on a disaggregated basis. Three Months Ended Six Months Ended 2020 2019 2020 2019 (in thousands) Oil sales $ 67,512 $ 132,165 $ 185,822 $ 255,616 Natural gas sales 2,834 4,086 6,202 10,800 Natural gas liquids sales 169 657 589 1,594 Electricity sales 4,884 5,364 10,345 15,093 Marketing revenues 292 414 745 1,244 Other revenues 29 104 53 221 Revenues from contracts with customers 75,720 142,790 203,756 284,568 (Losses) gains on oil derivatives (42,267) 27,276 168,962 (37,963) Total revenues and other $ 33,453 $ 170,066 $ 372,718 $ 246,605

Debt - Schedule of Debt (Detail

Debt - Schedule of Debt (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Debt Instrument [Line Items]
Long-Term Debt - Principal Amount $ 401,300 $ 401,850
Less: Debt Issuance Costs(7,038)(7,531)
Long-Term Debt, net394,262 394,319
2026 Notes | Unsecured Debt
Debt Instrument [Line Items]
Long-Term Debt - Principal Amount $ 400,000 400,000
Interest Rate7.00%
Revolving Credit Facility | RBL Facility | Line of credit
Debt Instrument [Line Items]
Long-Term Debt - Principal Amount $ 1,300 $ 1,850
Variable rate4.00%5.50%
Security85.00%

Debt - Narrative (Details)

Debt - Narrative (Details)3 Months Ended6 Months Ended
Jun. 30, 2020USD ($)Jun. 30, 2019USD ($)Jun. 30, 2020USD ($)Jun. 30, 2019USD ($)Feb. 27, 2020USD ($)Dec. 31, 2019USD ($)Jul. 31, 2017USD ($)
Debt Instrument [Line Items]
Debt issuance costs for the 2026 Senior Unsecured Notes $ 7,038,000 $ 7,038,000 $ 7,531,000
Amortization of debt issuance costs2,681,000 $ 2,517,000
Bond repurchase program, authorized amount $ 75,000,000
Interest Expense
Debt Instrument [Line Items]
Amortization of debt issuance costs1,000,000 $ 1,000,000 3,000,000 $ 3,000,000
RBL Facility | Line of credit | Revolving Credit Facility
Debt Instrument [Line Items]
Debt issuance costs for the RBL Facility9,000,000 9,000,000 11,000,000
Maximum borrowing capacity $ 1,500,000,000
Borrowing base200,000,000 200,000,000 500,000,000
Elected commitment feature to borrowing base200,000,000 200,000,000 400,000,000
Maximum borrowing availability150,000,000 150,000,000
Repayment of loans outstanding for amounts exceeding cash reported $ 30,000,000 $ 30,000,000
Leverage ratio (no more than)4
Current ratio (at least)1
Leverage ratio at period end1.4 1.4
Current ratio at period end2.3 2.3
Reduction in borrowing base if unsecured indebtedness is incurred25.00%
Borrowings outstanding $ 1,000,000 $ 1,000,000
Available borrowing capacity $ 142,000,000 $ 142,000,000
Minimum availability of borrowing base required which will permit distributions to parent company20.00%20.00%
Maximum pro forma leverage ratio allowable which will permit distributions to parent company2.5 2.5
RBL Facility | Line of credit | Letter of credit
Debt Instrument [Line Items]
Letters of credit outstanding $ 7,000,000 $ 7,000,000
2026 Notes | Unsecured Debt
Debt Instrument [Line Items]
Fair value of debt $ 320,000,000 $ 320,000,000 $ 376,000,000

Derivatives - Narrative (Detail

Derivatives - Narrative (Details)1 Months Ended6 Months Ended
Jul. 31, 2020$ / bblbblJun. 30, 2020
Derivative [Line Items]
Target period to cover operating expenses and fixed charges (up to)2 years
Target period for fixing the price natural gas purchases used in steam operations (up to)2 years
Subsequent Event | Fixed Price Oil Swaps (Brent)
Derivative [Line Items]
Hedged volume (Bbls) | bbl4,663
Weighted-average price ($/Bbl) | $ / bbl46

Derivatives - Derivative Transa

Derivatives - Derivative Transactions Resulting in Hedged Gas Contracts Outstanding (Details) - Forecast MMBTU in Thousands, MBbls in Thousands3 Months Ended12 Months Ended
Dec. 31, 2020MMBTU$ / bbl$ / MMBtuMBblsSep. 30, 2020MMBTU$ / MMBtu$ / bblMBblsDec. 31, 2021MMBTU$ / MMBtu$ / bblMBbls
Fixed Price Oil Swaps (Brent)
Derivative [Line Items]
Hedged volume (MBbls) | MBbls2,208 2,208 4,678
Weighted-average price ($/Bbl) | $ / bbl59.8559.8545.99
Purchased Oil Calls Options (Brent)
Derivative [Line Items]
Hedged volume (MBbls) | MBbls276 276 0
Weighted-average price ($/Bbl) | $ / bbl65 65 0
Fixed Price Gas Purchase Swaps (Kern, Delivered)
Derivative [Line Items]
Hedged volume (MMBtu) | MMBTU5,060 5,060 14,580
Weighted-average price ($/MMBtu) | $ / MMBtu2.762.892.72
Fixed Price Gas Purchase Swaps (SoCal Citygate)
Derivative [Line Items]
Hedged volume (MMBtu) | MMBTU155 460 0
Weighted-average price ($/MMBtu) | $ / MMBtu3.803.800

Derivatives - Fair Values (Gros

Derivatives - Fair Values (Gross and Net) of Outstanding Derivatives (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Liabilities:
Total derivatives $ 89,583 $ 4,733
Commodity Contracts | Current assets
Assets:
Gross Amounts Recognized at Fair Value92,943 17,799
Gross Amounts Offset in the Balance Sheet(8,262)(8,633)
Net Fair Value Presented  on the Balance Sheet84,681 9,166
Commodity Contracts | Non-current assets
Assets:
Gross Amounts Recognized at Fair Value6,341 773
Gross Amounts Offset in the Balance Sheet(1,073)(248)
Net Fair Value Presented  on the Balance Sheet5,268 525
Commodity Contracts | Current liabilities
Liabilities:
Gross Amounts Recognized at Fair Value(8,262)(13,450)
Gross Amounts Offset in the Balance Sheet8,262 8,633
Net Fair Value Presented  on the Balance Sheet0 (4,817)
Commodity Contracts | Non-current liabilities
Liabilities:
Gross Amounts Recognized at Fair Value(1,439)(389)
Gross Amounts Offset in the Balance Sheet1,073 248
Net Fair Value Presented  on the Balance Sheet $ (366) $ (141)

Lawsuits, Claims, Commitments_2

Lawsuits, Claims, Commitments and Contingencies - Narrative (Details) $ in MillionsJun. 30, 2020USD ($)
Commitments and Contingencies Disclosure [Abstract]
Commitments under contracts $ 6

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($)1 Months Ended3 Months Ended6 Months Ended13 Months Ended
Apr. 30, 2020Mar. 31, 2020Feb. 27, 2020Jun. 30, 2020Jun. 30, 2019Mar. 31, 2019Jun. 30, 2020Dec. 31, 2019Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, dividends paid (in dollars per share) $ 0.12
Number of shares repurchased (in shares)0 0 5,057,682
Price of shares repurchased $ 10,897,000 $ 24,375,000 $ 50,000,000
Fair value of grants $ 32,000,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)1,817,656
Vesting period3 years
Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period (in shares)1,278,877
Vesting period3 years
Minimum | Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage0.00%
Maximum | Performance-based Restricted Stock Units (PSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting rights percentage200.00%
Stock Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount of repurchases $ 100,000,000 $ 100,000,000
Authorized current repurchases $ 50,000,000
Stock Repurchase Program, Current Repurchases Authorized
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Authorized amount of repurchases $ 50,000,000

Supplemental Disclosures to t_3

Supplemental Disclosures to the Financial Statements - Other Current Assets (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepaid expenses $ 7,199 $ 4,577
Materials and supplies11,807 10,544
Oil inventories3,189 3,432
Other846 846
Total other current assets $ 23,041 $ 19,399

Supplemental Disclosures to t_4

Supplemental Disclosures to the Financial Statements - Narrative (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred financing costs, net of amortization $ 9,000 $ 9,000 $ 11,000
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Asset retirement obligation, noncurrent137,800 137,800 124,019
Asset retirement obligation, accretion expense5,000
Asset retirement obligation, liabilities incurred6,000
Asset retirement obligation, current13,700 13,700 25,208
Asset retirement obligation, liabilities settled(9,000)
Greenhouse gas liabilities, non-current31,000 31,000 $ 33,000
Other operating income (expense)1,192 $ (3,119)(1,010) $ (4,364)
Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Asset retirement obligation, noncurrent12,000 12,000
Asset retirement obligation, current $ (12,000) $ (12,000)

Supplemental Disclosures to t_5

Supplemental Disclosures to the Financial Statements - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in ThousandsJun. 30, 2020Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accounts payable-trade $ 8,086 $ 13,986
Accrued expenses40,211 57,078
Royalties payable10,647 25,385
Taxes other than income tax liability9,586 9,150
Accrued interest10,500 10,500
Dividends payable32 9,888
Asset retirement obligation - current portion13,700 25,208
Other1,925 616
Total accounts payable and accrued expenses $ 94,687 $ 151,811

Supplemental Disclosures to t_6

Supplemental Disclosures to the Financial Statements - Supplemental Disclosures to the Statements of Cash Flows (Details) - USD ($) $ in Thousands6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Supplemental Disclosures of Significant Non-Cash Investing Activities:
Material inventory transfers to oil and natural gas properties $ 911 $ 5,020
Supplemental Disclosures of Cash Payments (Receipts):
Interest, net of amounts capitalized15,527 15,272
Income taxes $ 2 $ 0

Earnings Per Share - Narrative

Earnings Per Share - Narrative (Details) - shares3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted-average shares of common stock outstanding (in shares)79,795,000 81,519,000 79,702,000 82,061,000
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)0 0 0
Dilutive effect of potentially dilutive securities (in shares)0 164,000 0 0
Performance-based Restricted Stock Units (PSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)0

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Mar. 31, 2020Jun. 30, 2019Mar. 31, 2019Jun. 30, 2020Jun. 30, 2019
Basic EPS calculation
Net income (loss) $ (64,901) $ (115,300) $ 31,972 $ (34,098) $ (180,201) $ (2,126)
Weighted-average shares of common stock outstanding (in shares)79,795,000 81,519,000 79,702,000 82,061,000
Basic (loss) earnings loss per share (in dollars per share) $ (0.81) $ 0.39 $ (2.26) $ (0.03)
Diluted EPS calculation
Net income (loss) $ (64,901) $ (115,300) $ 31,972 $ (34,098) $ (180,201) $ (2,126)
Weighted-average shares of common stock outstanding (in shares)79,795,000 81,519,000 79,702,000 82,061,000
Dilutive effect of potentially dilutive securities (in shares)0 164,000 0 0
Weighted-average common shares outstanding - diluted (in shares)79,795,000 81,683,000 79,702,000 82,061,000
Diluted (loss) earnings per share (in dollars per share) $ (0.81) $ 0.39 $ (2.26) $ (0.03)
Potentially dilutive securities (in shares)0 0 0

Revenue Recognition - Narrative

Revenue Recognition - Narrative (Details)6 Months Ended
Jun. 30, 2020cogeneration_facilityutlity_company
Revenue from Contract with Customer [Abstract]
Payment term (within)30 days
Number of cogeneration facilities selling majority of electric output not used in operations | cogeneration_facility3
Number of utility companies under long term contract to buy electrical output | utlity_company2

Revenue Recognition - Disaggreg

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Disaggregation of Revenue [Line Items]
Revenues and other $ 75,720 $ 142,790 $ 203,756 $ 284,568
(Losses) gains on oil derivatives156,002 (45,297)
Total revenues and other33,453 170,066 372,718 246,605
Oil sales
Disaggregation of Revenue [Line Items]
Revenues and other67,512 132,165 185,822 255,616
Natural gas sales
Disaggregation of Revenue [Line Items]
Revenues and other2,834 4,086 6,202 10,800
(Losses) gains on oil derivatives(925)(9,449)(12,960)(7,334)
Natural gas liquids sales
Disaggregation of Revenue [Line Items]
Revenues and other169 657 589 1,594
Electricity sales
Disaggregation of Revenue [Line Items]
Revenues and other4,884 5,364 10,345 15,093
Marketing revenues
Disaggregation of Revenue [Line Items]
Revenues and other292 414 745 1,244
Other revenues
Disaggregation of Revenue [Line Items]
Revenues and other29 104 53 221
(Losses) gains on oil derivatives
Disaggregation of Revenue [Line Items]
(Losses) gains on oil derivatives $ (42,267) $ 27,276 $ 168,962 $ (37,963)

Oil and Natural Gas Properties

Oil and Natural Gas Properties (Details) - USD ($)3 Months Ended6 Months Ended
Jun. 30, 2020Jun. 30, 2019Jun. 30, 2020Jun. 30, 2019
Extractive Industries [Abstract]
Impairment of oil and gas properties $ 0 $ 0 $ 289,085,000 $ 0

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions6 Months Ended
Jun. 30, 2020Jun. 30, 2019
Income Tax Disclosure [Abstract]
Recognition of valuation allowance $ 53
Effective income tax rate(2.00%)29.00%

Acquisition (Details)

Acquisition (Details) - Chevron North Midway-Sunset Acquisition $ / shares in Units, $ in MillionsMay 31, 2020USD ($)day$ / sharesMay 31, 2020USD ($)a
Business Acquisition [Line Items]
Area of land acquired (in acres) | a740
Consideration transferred in acquisition $ 5
Payments to acquire business2
Contingent consideration liability $ 3 $ 3
Contingent consideration liability triggering event, minimum price (in dollars per share) | $ / shares $ 45
Threshold consecutive days for contingent consideration liability triggering event | day30