California Resources Corporation (NYSE: CRC) and Berry Corporation (NASDAQ: BRY) announced today that they will merge in an all-stock transaction valued at approximately $717 million, including Berry’s net debt. The deal, unanimously approved by both companies’ boards, is set to create a more efficient, financially robust leader in California’s energy sector.
Under the agreement, Berry shareholders will receive 0.0718 shares of CRC common stock for each Berry share owned, representing a 15% premium based on the companies’ closing stock prices on September 12, 2025. Once completed, CRC shareholders will own roughly 94% of the combined company, while Berry investors will hold about 6%.
The merger values the combined entity at more than $6 billion and is expected to close in the first quarter of 2026, subject to shareholder and regulatory approvals. CRC’s executive management team will lead the unified company from its headquarters in Long Beach, California.
CRC President and CEO Francisco Leon emphasized that the merger strengthens the company’s portfolio by adding high-quality, oil-weighted reserves, while positioning it to generate higher free cash flow. The combined company expects to produce approximately 161,000 barrels of oil equivalent per day (81% oil) based on second-quarter 2025 figures and hold nearly 652 million barrels of proved reserves.
Berry brings with it not only valuable oil and gas assets in California and Utah but also ownership of C&J Well Services, an oilfield services subsidiary. This unit is expected to enhance CRC’s operational efficiency, support well maintenance, and help mitigate future cost pressures.
The deal is priced at about 2.9x enterprise value to 2025 estimated adjusted EBITDAX and is expected to be immediately accretive to free cash flow and net cash from operations. CRC anticipates generating annual synergies of $80–90 million within 12 months of closing, with half of those savings expected to be realized in the first six months.
Both companies stressed that the transaction maintains financial strength, with the combined entity projected to carry less than 1.0x leverage. Approximately 70% of expected second-half 2025 oil production will be hedged at a Brent floor price of $68 per barrel, providing a layer of stability amid commodity market volatility.
Beyond California, Berry’s large position in Utah’s Uinta Basin — about 100,000 net acres — adds strategic optionality and development potential for CRC. Four recently drilled horizontal wells in the basin are already producing significant volumes, with peak output expected in the coming weeks.
Berry’s Board Chair Renée Hornbaker highlighted that the merger strengthens both companies’ ability to deliver reliable, affordable energy to California while creating long-term shareholder value.
The transaction underscores a trend of consolidation within the energy sector as companies look to scale up, cut costs, and position themselves for a changing regulatory and market environment.
