Berry Corp. to be acquired by California Resources for $717 Million

California Resources, an oil and gas producer, announced on Monday that it would purchase Berry Corp. The deal would be valued at $717 million including debt. Its goal was to create a larger, more efficient energy company in the U.S. State.

Berry shareholders will receive 0.0718 California Resources Shares for every Berry share they own as part of this all-stock transaction.

Calculations show that the exchange ratio gives Berry a value of $3.806 per share. This means that the equity value is about $295 millions. Berry shares rose 14.8% in early trading to $3.80.

Renee Hornbaker, Berry's Board Chair said: "The regulatory environment is favorable and this merger can be completed now."

California Resources will benefit from the deal by gaining more scale, cashflow and cost savings to help them navigate through tough regulations and mature oilfields.

Francisco Leon, the chief executive of the company, said that it would "significantly reduce costs and generate a higher free cashflow".

California Resources will own Berry's C&J Well Services division as part of this transaction. The business will improve its operational efficiency and help manage wells.

Pro forma, the combined company produced 161,000 barrels equivalent to oil per day during the second quarter of the year and had approximately 652 million boe in proved reserves at the end of 2024.

California Resources shareholders will hold approximately 94% of the combined business. Berry's debt was $364.6 millions as of June 30, 2010.

Both boards have unanimously approved the transaction. It is expected to be completed in the first quarter 2026. Reporting by Pooja menon in Bengaluru, editing by Shilpa Majumdar

(source: Reuters)