DALLAS, Aug. 17, 2021 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ: BRY) (“bry” or the “Company”) today announced that it has entered into an asset purchase agreement (“APA”) as a “stalking horse” bidder to acquire substantially all the assets comprising Basic Energy Services’ (“Basic”) California business lines in connection with Basic’s bankruptcy proceeding filed today. Specifically, under the terms of the APA, bry would acquire Basic’s well servicing, specialized completion and remedial services, and water logistics services businesses in California. Much of Basic’s California business today is known as C&J Well Services and was originally established in San Angelo, Texas, in 1948 by Frank Pool as Pool Well Services.
“This is a unique opportunity to expand our role in California’s energy transition while growing bry’s business in a way that enhances our current operations and contributes a diversified revenue stream. This investment in profitable business lines at an accretive valuation for our shareholders demonstrates our commitment to grow opportunistically while endeavoring to be the best operator and support the state’s high-priority environmental goals. Having these capabilities in-house will also enable us to optimize bry’s accelerated well plugging and abandonment program, as well as our growing well workover efforts, in keeping with our environmental commitments,” said Trem Smith, bry’s board chair and CEO.
Smith continued, “We are excited to partner with Jack Renshaw, an industry veteran with over 35 years’ experience providing these services in California and Basic’s current senior vice president of the Western Division, who will continue to lead this business as a separate division from bry’s E&P operations. With Jack’s leadership of the experienced workforce, we expect a seamless transition with no interruption of best-in-class services to their customers.”
“The California assets that bry is bidding on represent only a portion of Basic’s business and our bid price for these business lines is not a financially material investment for bry. However, given the public nature of the bankruptcy process and robust disclosures that are required, we wanted to inform bry’s shareholders of the strategic merits of this deal to bry,” concluded Smith.
The potential acquisition, if closed, would be accretive to the existing bry portfolio, provide additional, cost-effective in-house capabilities for well servicing, including workovers and plugging and abandonment, and create a growth opportunity through helping the state properly plug and decommission the significant portfolio of orphan and idle wells in California, estimated to be a $6 billion dollar market, as well as the idle wells of other operators. Pursuant to the APA, Basic has agreed to seek approval of bry as the “stalking horse” bidder for these assets from the U.S. Bankruptcy Court for the Southern District of Texas. The APA is subject to Court approval and any higher or better offers pursuant to the bidding procedures and deadlines approved by the Court. Bry intends to fund the $27 million purchase price with cash on hand upon completion of a successful bid process.
About Berry Corporation (bry)
Bry is a publicly traded (NASDAQ: BRY) western United States independent upstream energy company with a focus on the conventional, long-lived oil reserves in the San Joaquin basin of California. More information can be found at the Company’s website at bry.com.
Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address plans, activities, events, objectives, goals, strategies, or developments that the Company expects, believes or anticipates will or may occur in the future. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. Therefore, such forward-looking statements involve significant risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects, including those risks described under the heading “Item 1A. Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. You can typically identify forward-looking statements by words such as aim, anticipate, achievable, believe, budget, continue, could, effort, estimate, expect, forecast, goal, guidance, intend, likely, may, might, objective, outlook, plan, potential, predict, project, seek, should, target, will or would and other similar words that reflect the prospective nature of events or outcomes. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise except as required by applicable law. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at via our website or via the Investor Relations contact below, or from the SEC’s website at www.sec.gov.
