California Resources Corporation (CRC) and Berry Corporation 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 combination is expected to create a stronger, more efficient leader in California energy.
Compelling Acquisition
The merger is highly accretive across key financial metrics and enhances CRC's portfolio.
Operational Advantages
The transaction adds high-quality, oil-weighted assets to CRC and provides sustainable cash flow.
Financial Performance
The combination is expected to be accretive to net cash provided by operating activities and free cash flow.
Synergy Expectations
CRC anticipates achieving annual synergies of $80 - 90 million within 12 months post-closing, primarily through corporate and operating improvements.
Maintaining Strength
Post-closing, CRC will maintain a strong balance sheet with low leverage and hedged oil production.
- The combination enhances CRC's asset inventory and drives long-term cash flow per share growth.
- The merger creates a larger and more sustainable business with improved capital structure and operational synergies.
- CRC expects to achieve significant cost savings and generate higher free cash flow through operational efficiencies and synergies.
The merger between CRC and Berry Corporation is positioned to deliver value to shareholders through enhanced operational efficiency, significant synergies, and improved financial performance.