California Resources And Berry To Combine In All-stock Transaction

Berry Petroleum

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(RTTNews) - Energy and carbon management company California Resources Corp. (CRC) and independent upstream energy company Berry Corp. (BRY) jointly announced Monday that they have inked a definitive agreement to combine in an all-stock transaction valuing Berry at approximately $717 million, inclusive of Berry's net debt.

Under the terms of the merger agreement, existing CRC shareholders are expected to own approximately 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, September 12, 2025.

Based on the closing stock prices for CRC and Berry on September 12, 2025, the exchange ratio implies an enterprise value for the combined entity of more than $6 billion.

CRC plans to refinance Berry's outstanding debt with cash on hand and borrowings under its Credit Agreement and may also pursue a new debt issuance, subject to market conditions, to further optimize its balance sheet and support long-term capital allocation priorities.

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. Closing is subject to customary conditions, including receipt of required regulatory approvals and receipt of Berry shareholder approval.

CRC's executive management team will lead the combined company from its headquarters in Long Beach, California. Following the close of the transaction, CRC will provide additional financial and operating guidance for the combined company.