Berry Petroleum Company Still Trading At A Discount

Berry Petroleum Company (BRY) shares have been in a very smooth up trend for most of the year. The movement higher has been supported by strong fundamentals and higher earnings projections.

Berry Petroleum Company is a domestic oil and natural gas explorer. The company owns and operates numerous fields and wells across the country. Berry was founded in 1909, carries a market cap. of $2.55 billion and is headquartered in Bakersfield, California.

First-Quarter Results

Berry is yet another domestic oil exploration company that is booking record profits and revenue in light of higher energy prices. The company reported first-quarter results on Apr 29 that were exceptional.

Revenue was up big, to $185.4 million from $117.5 million in the same period last year. Net income came in at $43 million, a 128% increase form last year, This produced earnings of 95 cents per share, outpacing analyst expectations of 77 cents.

This is the third time in the last three quarters that Berry has surprised and beaten analyst estimates, having done so by an average of seven cents, or 10.66%.

Estimates Continue To Rise

Like many other energy companies, analysts have had a hard time keeping up with sky-rocketing energy prices. Berry’s current-year estimate currently stands at $4.42 per share, a substantial gain from the projection 90 days ago of $3.32 per share.

Valuations

Based upon this earnings projection, Berry’s stock is trading at a discount to the overall market, carrying a forward P/E multiple of 12.8X.

The Chart

Berry’s ascent over the last six months has been as smooth as any investor could hope for, with no major pull-backs or volatility along the way. In the process, this stock consistently established new 52-week and all-time highs. Moving forward, Berry’s share price will carry a strong correlation to the crude market, which has already had one heck of a run-up. Take a look at the chart below.

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