12 Best Oil and Gas Penny Stocks to Invest in Now

2. Berry Corporation (NASDAQ:BRY)

Number of Hedge Fund Holders: 28

Share Price as of April 16: $2.35

Berry Corporation (NASDAQ:BRY) works as an independent energy company mainly in California and Utah. It develops stable, low-risk oil and gas reserves while having a separate segment offering well services and abandonment services. The company’s major focus is on mature basins with existing infrastructure, helping it produce cost-effectively despite tough regulations and environmental challenges, making it one of the best oil and gas stocks.

For the year ended December 31, 2024, Berry Corporation (NASDAQ:BRY) posted $292 million in adjusted EBITDA, up 9% from last year. Free cash flow hit $108 million total for the year, with $24 million made in Q4. Although the company kept production steady at 25,400 BOE/day, California saw an overall decline. While Berry cut operating costs by 12% and admin expenses by 6%, by year-end, it showed $450 million in debt, a 1.5x leverage ratio, and $110 million in liquidity.

Berry Corporation (NASDAQ:BRY) drilled 56 wells in 2024, including 10 in Utah’s Uinta Basin, where new horizontal wells yielded 1,900-2,000 BOE/day. Its reserves totaled 107 million BOE worth a PV-10 value of $2.3 billion, with a 147% replacement ratio. Additionally, the company’s California thermal projects exceeded 100% returns and spotted over 200 potential horizontal well sites in the Uinta Basin. Furthermore, a methane emission reduction project achieved an 80% cut ahead of schedule.

For 2025, Berry Corporation (NASDAQ:BRY) plans around 50 new wells, with 40% of spending in Utah, up from 25% last year. About 75% of expected oil production is hedged at a $74.24 per barrel average strike price. Despite permit concerns in Kern County, Berry remains confident about maintaining production and executing drilling plans.