A strategic shift to move beyond California and only heavy oil production to a diverse geographic mix that included light oil and natural gas output boosted Berry Petroleum Co.’s 2004 production 24% in 2004, the company said Monday. Quarterly and year-end earnings also set records, with 4Q2004 net income up 169% to $25.3 million ($1.13/share), from 4Q2003’s $9.4 million (42 cents). Annual income rose 114% to $69.2 million ($3.08/share), compared with $32.4 million ($1.47) in 2003.

“The transformation of Berry Petroleum from a company focused only on California heavy oil operations, to a geographically diverse enterprise with a higher percentage of light oil and natural gas, was significant in 2004,” said CEO Robert Heinemann. “In 2004 and through February 2005, we added approximately 735,000 acres to our asset portfolio.”

Heinemann said that “2005 will be exciting” as the company begins exploiting its new acreage, and even without any new exploration success this year, “we are targeting record production in 2005 of at least 23,000 boe/d, which represents a 12% increase over our record 2004 production of 20,537 boe/d.”

Total production in 4Q2004 averaged 21,410 boe/d, a 15% increase from an average of 18,550 boe/d in 4Q2003. California production averaged a new high in the fourth quarter of 16,243 boe/d, while the Rockies assets contributed a record of 5,167 boe/d, or 24% of the company’s total 4Q output. Of the 21,410 boe/d produced, 76% (16,174) was heavy crude, 17% (3,722) was light crude and 7% (1,514) was natural gas.

The average realized sales price for 4Q2004 was $34.62/boe, a 53% gain over the $22.68/boe a year earlier. Net cash provided by operating activities increased to a record $46.1 million, up 89% from $24.8 million in 4Q2003.

Excluding the purchase price of acquisitions, in 2004 Berry, headquartered in Bakersfield, CA, spent approximately $73 million in capital expenditures, which included the drilling of 115 net wells and completing 101 workovers.

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