California Resources, Energy Company Berry To Merge In An All-Stock Deal

California Resources Corp (CRC) and Berry Corp (BRY) announced on Monday that they have agreed to combine in an all-stock transaction valuing Berry at about $717 million, inclusive of its net debt.

The companies said that under the terms of the merger agreement, existing CRC shareholders are expected to own about 94% of the combined company upon closing.

Berry shareholders will receive a fixed exchange ratio of 0.0718 shares of CRC common stock for each share of BRY common stock owned, representing a premium of 15% based on the closing prices of the stocks on Friday. Based on the closing stock prices for CRC and Berry on September 12, the exchange ratio implies an enterprise value for the combined entity of more than $6 billion, the companies said.

Retail sentiment on CRC remained unchanged in the ‘bullish’ territory, with chatter at ‘normal’ levels, according to data from Stocktwits. Shares of CRC were down 3.3% in premarket trading.

The transaction, which is expected to close in the first quarter of 2026, has been unanimously approved by the board of directors of both companies. Retail sentiment on Berry also remained unchanged in the ‘bearish’ territory, with message volumes at ‘high’ levels, according to Stocktwits data. Shares of Berry were up 12% before the bell.

The companies stated that, on a pro forma basis, the combined company would have produced approximately 161,000 barrels of oil equivalent per day (81% oil) in the second quarter of 2025 and would have held approximately 652 million barrels of oil equivalent proved reserves as of year-end 2024.

As a result of this combination, CRC will also own C&J Well Services, a California-focused oilfield services subsidiary of Berry. The combination is expected to be accretive to net cash provided by operating activities and free cash flow.

The companies stated that within 12 months post-closing, CRC expects to achieve annual synergies of $80 million to $90 million, representing approximately 12% of the transaction value.

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