New Delhi (Patrika English News): California Resources Corporation (CRC) has announced an all-stock merger agreement with Berry Corporation, valuing Berry at about $717 million including net debt. The deal, approved by both companies’ boards, is expected to close in the first quarter of 2026, subject to regulatory and shareholder approvals.
Under the terms, Berry shareholders will receive 0.0718 shares of CRC stock for each Berry share, representing a 15% premium based on closing prices as of 12 September. The exchange ratio reflects a combined enterprise value of more than $6 billion.
Post-merger, CRC shareholders will own 94% of the combined entity, which will continue to be led by CRC’s executive team from its Long Beach, California headquarters. CRC also plans to refinance Berry’s debt using cash reserves, credit facilities, and potentially new debt issuances.
CRC President and CEO Francisco Leon said the merger will create a stronger and more efficient California energy leader, immediately accretive across key financial metrics. The company expects annual cost savings of $80–90 million within the first year, driven by corporate efficiencies, lower interest costs, and improved operations.
Together, CRC and Berry would have produced around 161,000 barrels of oil equivalent per day in Q2 2025, backed by substantial proved reserves. Berry’s assets, including holdings in the Uinta Basin, are seen as adding strategic growth opportunities.
Berry’s Board Chair Renée Hornbaker said the merger enhances shareholder value through synergies, an improved capital structure, and favourable regulatory conditions, while ensuring responsible in-state energy production.
RBC Capital Markets and Petrie Partners advised CRC, while Guggenheim Securities advised Berry.