California Resources Corp & Berry Corp merge in $717M deal

By Hao Liu • Monday, September 15 12:03 • Permanent Link

California Resources Corporation (CRC) and Berry Corporation (BRY) have announced a definitive agreement to combine in an all-stock transaction valued at approximately $717 million, inclusive of Berry’s net debt. After the merger, existing CRC shareholders are expected to own approximately 94% of the combined company.

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% of it being oil. The proved reserves would have been approximately 652 million barrels of oil equivalent (mmboe) as of year-end 2024.

The transaction is projected to be accretive to net cash provided by operating activities and free cash flow. It is priced at approximately 2.9x enterprise value / 2025 EBITDA, 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, approximately 12% of the transaction value. The company also anticipates maintaining a strong balance sheet with a leverage ratio of less than 1.0x post-closing.

Berry’s large, contiguous Uinta Basin position (~100,000 net acres) is expected to provide additional operational and financial optionality for the combined company, with second quarter 2025 production at 4.2 mboe/d and peak production expected in late September to early October.

Upon closing in the first quarter of 2026, CRC will provide additional financial and operating guidance for the combined company. The transaction has been unanimously approved by the board of directors of both companies and is subject to customary closing conditions, including regulatory approvals and receipt of Berry shareholder approval.

Financial advisors for the transaction include RBC Capital Markets, Petrie Partners, and Guggenheim Securities, LLC, while legal advisors include Sullivan & Cromwell LLP and Vinson & Elkins LLP. As a result of these announcements, the company's shares have moved 1.13% on the market, and are now trading at a price of $53.01. For more information, read the company's full 8-K submission here.

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