California Resources Corporation (CRC) will acquire Berry Corporation in an all-stock transaction valued at about $717 million, including Berry’s net debt, the companies announced on Sept. 15.
Image: California Resources Corporation
Under the agreement, Berry shareholders will receive 0.0718 shares of CRC stock for each Berry share, representing a 15% premium based on Sept. 12 closing prices. Once completed, CRC shareholders will own roughly 94% of the combined company. The transaction has been unanimously approved by both boards and is expected to close in the first quarter of 2026, pending regulatory and shareholder approvals.
CRC President and CEO Francisco Leon said the combination will strengthen the company’s California-focused portfolio. “The combination of CRC and Berry will create a stronger, more efficient California energy leader. This transaction is attractively valued and immediately accretive across key financial metrics, strengthening our ability to deliver sustainable value to 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 a larger and more sustainable business, with an improved capital structure and significant operational synergies.”
The combined company would have produced about 161,000 barrels of oil equivalent per day in the second quarter of 2025, with 87% of reserves already developed. CRC said it expects to generate $80–90 million in annual synergies within a year of closing and maintain a leverage ratio below 1.0x.
The merger also gives CRC access to Berry’s Uinta Basin acreage in Utah, providing what the companies described as additional operational and financial optionality. CRC will assume Berry’s debt and may refinance it through existing cash and credit lines.
