California Resources to acquire Berry Corp in $717M all-stock deal

[Oil pumps and wind mill during sunset.]
Torsten Asmus

Shares of Berry Corporation (NASDAQ:BRY [https://seekingalpha.com/symbol/BRY]) jumped on Monday after the company announced it will merge with California Resources (NYSE:CRC [https://seekingalpha.com/symbol/CRC]) in an all-stock deal valuing Berry at approximately $717 million, including debt.

Berry (NASDAQ:BRY [https://seekingalpha.com/symbol/BRY]) shareholders will receive 0.0718 CRC shares for each BRY share, a 15% premium based on September 12 closing prices, valuing the combined company at over $6 billion. Berry Corporation (BRY [https://seekingalpha.com/symbol/BRY]) shares are up +12.39% pre-market at $3.72. California Resources down marginally.

Under the terms of the merger agreement, existing CRC shareholders (NYSE:CRC [https://seekingalpha.com/symbol/CRC]) are expected to own approximately 94% of the combined company upon closing.

The transaction is expected to add high-quality, oil-weighted, mostly conventional proved developed reserves and sustainable cash flow to California Resources (NYSE:CRC [https://seekingalpha.com/symbol/CRC]).

On a pro forma basis, the combined company would have produced about 161 thousand barrels of oil equivalent per day (Mboe/d) (81% oil) in the second quarter of 2025 and would have held approximately 652 million barrels of oil equivalent (MMboe) proved reserves (87% proved developed) 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 oil and gas giant also anticipates substantial synergies from the deal, expecting to realize $80–90 million in annual savings within 12 months of closing—about 12% of the transaction’s total value.

The synergies are expected to primarily come through corporate synergies, lower interest costs through debt refinancing, operating improvements, and supply chain efficiencies.

MORE ON BERRY, CALIFORNIA RESOURCES

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* Berry Corporation 2025 Q2 - Results - Earnings Call Presentation [https://seekingalpha.com/article/4811228-berry-corporation-2025-q2-results-earnings-call-presentation]
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