FOLLOW US

CRC to acquire Berry in a blockbuster all-stock merger that will reshape California’s oil and gas sector. The combined company, valued at more than $6 billion, is set to become a heavyweight in the state’s energy market, bringing together complementary assets, balance sheet strength, and operational synergies.

The deal, unveiled Monday, gives Berry shareholders 0.0718 shares of California Resources Corp. (CRC) for each Berry share they hold—a 15% premium based on last Friday’s closing prices. The transaction values Berry at $717 million, according to the companies’ joint statement.

Leadership Sees Strategic Growth

Francisco Leon, president and CEO of California Resources, said the merger positions the company to expand aggressively.

“The combination of CRC and Berry will create a stronger, more efficient California energy leader,” Leon said. “We expect to lower costs, boost free cash flow, and maintain a strong balance sheet with low leverage—while unlocking our deep asset inventory in Kern County.”

CRC emphasized that Berry’s Uinta Basin footprint will add both operational flexibility and financial optionality.

Berry’s Board Sees “Industrial Logic”

Berry’s board chair Renée Hornbaker echoed the optimism, stressing that the timing is right.

“The industrial logic of this merger will allow Berry shareholders to benefit from a larger, more sustainable business with meaningful operational synergies,” Hornbaker said. “Strong regulatory tailwinds make this the right moment, ensuring safe, reliable, and affordable energy for communities while delivering long-term shareholder value.”

Financial Structure and Next Steps

CRC plans to refinance Berry’s outstanding debt using cash reserves and borrowings under its existing credit agreement, with the option of issuing new debt to further optimize the balance sheet.

When the deal closes, CRC shareholders will own about 94% of the combined company, which will be led by California Resources’ current management team out of Long Beach, California.

The merger is expected to close in the first quarter of 2026, pending regulatory approval and other customary conditions.

Legal Powerhouses Behind the Deal

• CRC is advised by Sullivan & Cromwell LLP, with a legal team including partners Alison Ressler, Bradley King, Heather Coleman, Isaac Wheeler, John Estes, R. Courtland Morrice, Mark Schenkel, Tia Barancik, and Steven Holley.

• Berry is represented by Vinson & Elkins LLP, led by partner Lande Spottswood.