California Resources Corporation (NYSE:CRC) announced Monday that it plans to acquire Berry Corporation (NASDAQ:BRY) in an all-stock deal that values the oil producer at roughly $717 million, including net debt.
Following the news, Berry’s shares jumped 14.2% in premarket trading.
Under the terms of the agreement, Berry shareholders will receive 0.0718 CRC shares for each Berry share they own, reflecting a 15% premium based on closing prices from September 12. Once the deal closes, anticipated in the first quarter of 2026, CRC shareholders are expected to hold approximately 94% of the combined entity.
CRC President and CEO Francisco Leon said the acquisition will result in “a stronger, more efficient California energy leader.” He added, “By realizing substantial corporate and operating synergies, we expect to significantly lower costs and generate higher free cash flow.”
Berry Board Chair Renée Hornbaker noted that the merger “presents a compelling value proposition for our shareholders,” highlighting operational synergies and “strong tailwinds … on the regulatory front.”
The merged company would have produced around 161,000 barrels of oil equivalent per day in Q2 2025 and held roughly 652 million barrels of proven reserves at the end of 2024. CRC projects $80 million to $90 million in annual synergies within the first year after closing.
CRC plans to refinance Berry’s debt using available cash and credit lines and may issue additional debt to optimize its capital structure. The combined company will be based in Long Beach, California, and led by CRC’s current executive team.
California Resources Corporation
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