Today’s Berry Petroleum Company

DEAR SHAREHOLDERS,

As you review our performance for 2007 and look at our expectations for 2008, we want to share at the outset some key principles that we believe define Berry and provide an understanding of how we are managing the Company for increased performance.
In summary:

• We are a growing company, focused on the execution of our asset development plans.
• We work to maximize returns for our shareholders.
• We are accountable for our performance.
• We value people who want to drive the
• Company’s success.
• We utilize integrated teams that encourage contributions from each person.

Using these principles as our foundation, the management team — with the oversight of the Board of Directors and through the hard work of our employees — has positioned Berry to excel in the current commodity price environment by emphasizing the near-term development of our oil assets, without sacrificing the longer-term goal of adding natural gas reserves and production to provide asset diversification. We anticipate our current assets can provide several more years of double-digit production and reserve growth funded entirely from internally generated cash flows.