California Resources Corporation to Merge in Deal Valued at $717 Million

Long Beach-based California Resources Corp. (CRC) and Berry Corp. jointly announced a merger in an all-stock transaction valuing Berry at approximately $717 million, inclusive of Berry’s net debt. Under the terms of the agreement, existing California Resource Corp. shareholders are expected to own approximately 94% of the combined company upon closing.

“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,” said Francisco Leon., California Resources Corp. chief executive. “By realizing substantial corporate and operating synergies, we expect to significantly lower costs and generate higher free cash flow. Equally important, the combined company will maintain a strong balance sheet with low leverage, a robust hedge book and liquidity, providing the flexibility to pursue new development opportunities amid an improving permitting backdrop in Kern County.”

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. California Resources Corp.’s executive management team will lead the combined company from its headquarters in Long Beach.

RBC Capital Markets and Petrie Partners are serving as financial advisors, and Sullivan & Cromwell LLP is serving as a legal advisor to California Resources Corp. Guggenheim Securities LLC is serving as financial advisor, and Vinson & Elkins LLP is serving as legal advisor to Berry.

Information for this article was sourced from Berry Corp.