California Resources Corporation (CRC) and Berry Corporation (Berry) have entered into a definitive agreement to combine in an all-stock transaction valued at approximately $717 million.
CRC shareholders are expected to own approximately 94% of the combined company upon closing.
The merger will create a stronger, more efficient California energy leader with significant operational synergies and improved capital structure.
Compelling Fit with CRC's Assets
The transaction adds high-quality, oil-weighted reserves to CRC, enhancing its production capabilities and operational efficiency.
Accretive to Key Financial Metrics
The combination is expected to be accretive to net cash provided by operating activities and free cash flow, with projected per share accretion of more than 10%.
Significant Synergies Identified
CRC anticipates achieving annual synergies of $80 - 90 million within 12 months post-closing, primarily through corporate and operating improvements.
Financial Strength Post-Closing
CRC will maintain a strong balance sheet with a low leverage ratio and majority of expected oil production hedged at a floor price.
- The combination will enhance CRC's portfolio by adding sustainable cash flow and proved reserves, strengthening its position in the California energy market.
- The merger is expected to yield substantial synergies through cost reductions, operational efficiencies, and supply chain optimizations, leading to improved financial performance.
The merger between CRC and Berry represents a strategic move to create a more resilient and efficient energy player in California, poised for long-term value creation and growth in a dynamic market environment.