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The Transformation of Berry Petroleum Company

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1 The Transformation of Berry Petroleum Company
IPAA CEO Roundtable Presented by Bob Heinemann - President & Chief Executive Officer June 17, 2005 San Francisco, California Safe Harbor Statement Safe Harbor under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the matters in this presentation are forward-looking statements that involve risks and uncertainties. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements herein include, but are not limited to: the timing and extent of changes in commodity prices for oil, gas and electricity; development, exploration, drilling and operating risks; a limited marketplace for electricity sales within California, counterparty risk; acquisition risks; competition, environmental risks, litigation uncertainties; the availability of drilling rigs and other support services, pipeline capacity, legislative and/or judicial decisions and other government or Tribal regulations.

2 Snapshots of Berry Petroleum Company
Berry Petroleum in 2003 Perennially profitable heavy oil producer Highly concentrated operations in San Joaquin Valley, CA Solid portfolio of stable reserves (100 MMBOE) “Good at what they do” Very strong financially as evidenced by Dividend = $0.40/share Debt to Capitalization = 8% ROCE = 17% Total Shareholder Return = 11% Share Price = $17 - $20/share

3 Snapshots of Berry Petroleum Company
Berry Petroleum Today Demonstrated production, reserves and earnings growth Operations in California, Rockies and Mid-Continent More diversified portfolio of reserves Significant land position with considerable upside Seeking additional acquisitions Even stronger financially in 2004 as evidenced by Dividend = $0.52/share Debt to Capitalization = 10% (34% at Q1) ROCE = 26% Total Shareholder Return = 138% Share Price = $47 - $50/share

4 Per capita oil consumption (bbl/yr)
Energy Consumption Indicates the Wealth of Nations Per capita income $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 5 10 15 20 25 30 Per capita oil consumption (bbl/yr) Saudi Arabia India China Indonesia Russia Brazil Mexico Europe Japan Canada United States The world’s 15 largest economies Copyright: "The Color Of Oil," by Economides and Oligney

5 Can Supply Keep Up With Demand?
Global production, MMbopd 100 Current demand = 82 MMbopd New fields outside M.E. 80 60 Existing fields outside Middle-East IOR 40 20 Middle-East fields Source: EIA 2002

6 Strength of the Dollar Impacts Oil Prices
Oil Prices, $/bbl WTI Currency Exchange, $US/Euro Source:

7 Significant Differences in Price Outlook
WTI Actual, May ’04-’05 Oil Futures Today Oil Prices, $/bbl WTI Oil Futures from May, 2004

8 Strategies for Transforming Berry
Growing production and reserves from existing assets while controlling expenses Acquiring light oil and gas assets with significant growth potential outside of California Entering new hydrocarbon basins, utilizing joint ventures to complement our skill base Investing the Company’s capital in an efficient, disciplined manner

9 Solid Acquisitions Beginning In 2003
Utah BLM Lease Sale Yuma Co Niobrara Acquisition Lake Canyon Joint Venture Coyote Flats Joint Venture Brundage Canyon Acquisition Tri-State Joint Venture Q3 Q4 Q1 Q2 Q3 Q4 Q1 2003 2004 2005

10 Growth and Diversification of Proved Reserves
Proved reserves have grown by the development and acquisition of light oil and gas while maintaining heavy oil reserves. Berry Jan. 2003 Berry Today 100% Heavy oil 26% Increase 77% Heavy oil 8% Light 15% Gas 98 MMBOE 124 MMBOE

11 More Balanced, Increasing Capital Program
2005 Wells Capital Program, $MM 2002 Wells Other Mid-Continent 43 Rockies California

12 Consistent Production Growth
Total average daily production (BOE) Gas 13% Light oil 15% Heavy oil 72% 2003 2004 2005

13 Consistent Earnings Growth
Quarterly Net Income, $MM 2003 2004 2005

14 Significant Upside Potential for Producing Acquisitions
Berry has added interests in over 750,000 of gross acres since Q3 2003 Rockies: Brundage Canyon Lake Canyon Utah BLM Lease Sale Coyote Flats Mid-Continent: Yuma County Niobrara Tri-State Niobrara Acreage 45,000 169,000 17,000 69,000 127,000 345,000 Mid-Continent Rockies

15 Primary Producing Asset Locations
Poso Creek Uinta Basin Midway-Sunset Montalvo Niobrara Gas Placerita

16 Berry’s Legacy Asset: Midway-Sunset Field
Total average daily production (BOE) Reserves – 69.3 MMBOE 63% of total Midway Sunset

17 Major S. Midway-Sunset Capital Projects
Nine (9) infill horizontals in 2004 Eight (8) infill horizontals in 2005 Complete development at 100' spacing with an additional 10 wells in 2006 Will move a significant number of reserve barrels to proved over the next several years Horizontal wells are projected to produce over 60% of total S. Midway Sunset production within the next 5 years South Midway-Sunset Properties Infill Horizontals

18 South Midway Ethel D Redevelopment
First property acquired by CJ Berry in 1909 Averaged 150 BOPD over the past 20 yrs from cyclic steam stimulation New steamflood pilot initiated in mid-2004 Expansion to full-scale project planned for 2006 Production target in excess of 1,000 BOPD Main formation with remaining oil saturation > 50%

19 Uinta Basin: A Central Area of Activity for Berry
Gas Oil Greater Green River Trend Altamont/Bluebell Greater Wasatch/Mesaverde Trend Altamont/Bluebell Dakota/Entrada/Wasatch Trend Lake Canyon Prospect (7/04) Roosevelt Greater Monument Greater Butte Monument Greater Butte Natural Greater Natural Butte Butte Brundage Canyon (8/03) BLM Lease Sale Acreage (9/04) UTAH UTAH COLORADO Coyote Flats Prospect (12/04)

20 Production Growth from Brundage Canyon
Total average daily production (BOE) First light oil acquisition 42 degree API gravity waxy crude Large drilling inventory Producing from Green River formation at depths above 6,000 feet Reserves: 13.2 MMBOE (12% of total) Brundage Canyon

21 2005 Brundage Program Contains More Variability
Brundage Canyon Field, Uinta Basin, UT (45,000 acres) 87 existing wells at purchase H 80 wells in ‘03-’04 drilling program 59 wells planned for ‘05 based on 40-acre infill Extensions to the north and south New gas plant and compression (Hz) 100’s of potential locations remaining Berry Leasehold 1 mile

22 Lake Canyon Activity in 2005
UTAH Area enlarged 1 mile Proposed 3D Survey Area Green River wells Lake Canyon Brundage Canyon Berry Leasehold Two Green River wells permitted for May/June spud 50 sq. mi. 3D seismic program proposed for acquisition in summer Deep Mesaverde test well will be located using the 3D seismic Mesaverde well will be spud in late 2005

23 Coyote Flats Activity in 2005
UTAH Ferron discovery well (Scofield-Thorpe 22-41) tested for 30 days in Dec with a peak rate of 1.1 MMcf/day Berry will offset the discovery well with the Scofield-Thorpe in mid-’05 to a depth of 6,800 feet The Emery CBM test pilot will also be drilled mid-year, consisting of 5 Emery coal wells (TD – 3,200’) and a water disposal well Coyote Flats First Ferron test Discovery well Scofield-Thorpe 22-41 Scofield-Thorpe 23-31 Emery CBM pilot Berry Leasehold miles

24 Niobrara Natural Gas First mid-continent acquisition
Total average daily production (BOE) First mid-continent acquisition Acquired late Jan. 2005 Significant additional development: 700 locations 40-acre infill approved Reserves: 15 MMBOE 12% of total Niobrara

25 Yuma County Niobrara Gas Production
Purchased for $105 MM Total resource of 140 Bcf Net production of 9.1 MMcf/d 88 Bcf of proved reserves 672 producing wells Drilled 12 wells to-date, permitting 80-plus wells, drilling 60 wells in 2005 Northern Yuma acreage largely covered by 3D seismic Berry Fields

26 Tri-State Joint Venture
Partnered with Bill Barrett Corp. 50% working interest in over 345,000 acres of prospective acreage Large footprint, adjacent to Yuma County gas assets Evaluating the first joint venture Niobrara well in Sherman Co, KS First horizontal Niobrara well to be drilled in May Acquiring 530 miles of 2D seismic data beginning in April Berry will operate the asset development Tri-State Project Boundary

27 View of 2005 12% growth in production before acquisitions
Over $100 million of capital investment Integration of new Niobrara gas properties Initial appraisal of prospective Utah and Tri-State acreage Continued excellent earnings and cash flow

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