California Resources Corporation (CRC) will acquire Berry Corporation in an all-stock merger worth $717 million, including Berry's net debt, the companies said on Sept. 15.
Berry shareholders will receive 0.0718 shares in CRC stock for each Berry share under the transaction, which represents a 15% premium to Sept. 12 closing shares. CRC shareholders will hold around 94% of the combined group following completion. The boards of both companies have voted unanimously in favor of the transaction and anticipate the transaction completing during the first quarter of 2026, conditional on regulatory and shareholder approvals.
CRC President and Chief Executive Francisco Leon said the union will enhance the company's California-centric portfolio. "The union of CRC and Berry will create a more formidable, more efficient California energy powerhouse. This transaction is well-valued and accretive on day one on all key financial metrics, improving our ability to drive sustainable value for shareholders," Leon said.
Berry Chair Renée Hornbaker called the merger a timely opportunity: "The industrial logic of this merger will allow Berry shareholders to benefit from the creation of an enlarged and more robust business, with a superior capital structure and significant operational synergies."
The merged entity would have produced some 161,000 barrels of oil equivalent per day in the second quarter of 2025, with 87% in place reserves. CRC stated it expects to generate $80–90 million of annual synergies in the first year following closing and a leverage ratio of less than 1.0x.
The transaction also gives CRC Berry's Uinta Basin assets in Utah that the companies stated represented further operational and financial flexibility. CRC will assume Berry's debt and has the right to refinance it using available cash and credit facilities.