California Resources Corporation (CRC) has agreed to merge with Berry Corporation in a $717m all-stock deal, including net debt. Berry shareholders will receive 0.0718 shares of CRC stock for each Berry share, a 15% premium. The merger creates a combined enterprise value of over $6bn, expected to close in Q1 2026.

CRC will hold 94% of the combined entity post-merger, aiming to optimise financial structure by refinancing Berry’s debt. The deal is projected to bring corporate and operational synergies, reducing costs and increasing free cash flow. CRC and Berry’s assets aim to create a more efficient energy company in California.

Operational synergies post-merger will lead to annual cost savings of $80m–90m, primarily from corporate efficiencies and improved operational practices. CRC’s leverage ratio is expected to remain below 1.0x, with significant oil production hedged. Berry’s holdings in Uinta Basin offer strategic opportunities for development.

Financial advisors RBC Capital Markets, Petrie Partners, legal advisor Sullivan & Cromwell for CRC, Guggenheim Securities, Vinson & Elkins for Berry. Berry’s board chair believes the merger will create a larger, sustainable business benefiting shareholders with improved capital structure and operational synergies. The combined company aims to deliver safe, reliable, affordable energy.

Read more at Yahoo Finance: California Resources to merge with Berry in $717m deal