10 Best Dividend Penny Stocks to Buy Now

2. Berry Corporation (NASDAQ:BRY)

Number of Hedge Funds: 23 (2024Q2)

Share Price as of the Close of September 25: $4.99

Berry Corporation (NASDAQ:BRY) is an independent upstream energy company primarily engaged in hydrocarbon exploration in California, the Uintah Basin, and the Piceance Basin. It operates through two segments, namely exploration and production (E&P) as well as servicing and abandonment (CJWS).

The company has had a strong second quarter, generating an adjusted EBITDA of $74 million and producing 25,300 barrels of oil equivalent per day. This achievement not only reflects the company’s operational efficiency but also highlights its commitment to delivering results consistent with earlier guidance. Their total commodity revenue is $169 million. This is considered commendable considering the realized crude prices of $78.18 per barrel of oil equivalent (boe) reflect a robust alignment with 92% of Brent prices during the quarter. Berry Corporation (NASDAQ:BRY) has also drilled 19 wells, with the production from these new wells exceeding expectations. The success of drilling activities, particularly in the Uinta Basin, is vital for production and directly contributes to profitability.

The company also maintains a strong liquidity position with $94 million in available borrowing capacity under its reserve-based lending (RBL) facility and $11 million in cash, expecting significant free cash flow generation in the second half of 2024. Moreover, the management is committed to strengthening its balance sheet, prioritizing debt reduction, invest prudently, all while considering shareholder returns.

The Board has also approved a total dividend of $0.17 per share, including their $0.12 per share fixed dividend. Based on the adjusted free cash flow generated in the second quarter, there has also been a declaration of a variable dividend of $0.05 per share. According to Insider Monkey’s database, at the end of the second quarter, 23 hedge funds had stakes in Berry Corporation (NASDAQ:BRY), up from 19 in the previous quarter.