California Resources Corporation (CRC) and Berry Corporation (Berry) have announced their entry into a definitive agreement to combine in an all-stock transaction valuing Berry at approximately $717 million, inclusive of Berry’s net debt.
On a pro forma basis, the combined company is expected to have produced approximately 161 thousand barrels of oil equivalent per day (mboe/d) in the second quarter of 2025, with 81% oil production. The combined company would have held approximately 652 million barrels of oil equivalent (mmboe) proved reserves, with 87% proved developed as of year-end 2024.
The combination is expected to be accretive to net cash provided by operating activities and free cash flow, with projected second half 2025 per share accretion to both net cash provided by operating activities and free cash flow of more than 10% before estimated synergies.
CRC expects to achieve annual synergies of $80 – 90 million within 12 months post-closing, representing approximately 12% of the transaction value. Approximately 50% of the run-rate synergies are expected to be implemented within six months of closing.
Post-closing, CRC will retain its strong balance sheet with estimated pro forma leverage ratio of less than 1.0x and approximately 70% of its expected second half 2025 pro forma oil production hedged at $68/bbl brent floor price.
Berry’s large, contiguous Uinta Basin position, approximately 100,000 net acres with significant identified inventory, provides additional operational and financial optionality. Second quarter 2025 production was 4.2 mboe/d, with a pv-10 of total proved reserves of approximately $110 million as of year-end 2024.
Berry shareholders will receive a fixed exchange ratio of 0.0718 shares of CRC common stock for each share of Berry common stock owned, representing a premium of 15% based on the closing prices of the stocks on Friday, September 12, 2025.
The transaction is expected to close in the first quarter of 2026 and has been unanimously approved by the board of directors of both companies. Closing is subject to customary closing conditions, including receipt of required regulatory approvals and receipt of Berry shareholder approval. As a result of these announcements, the company's shares have moved 6.87% on the market, and are now trading at a price of $56.65. If you want to know more, read the company's complete 8-K report here.
