September 16, 2025 [Yahoo Finance]- California Resources Corporation said Monday it will acquire Berry Corporation in an all-stock transaction valuing the oil producer at about $717 million, including net debt.

Shares of Berry surged 14.2% in premarket trading following the announcement.

Under the agreement, Berry shareholders will receive 0.0718 shares of CRC stock for each Berry share, representing a 15% premium based on the companies’ September 12 closing prices.

Upon completion, expected in the first quarter of 2026, CRC shareholders will own around 94% of the combined company.

CRC President and CEO Francisco Leon said the deal will create “a stronger, more efficient California energy leader.” He added: “By realizing substantial corporate and operating synergies, we expect to significantly lower costs and generate higher free cash flow.”

Berry Board Chair Renee Hornbaker said the merger “presents a compelling value proposition for our shareholders,” pointing to operational synergies and “strong tailwinds … on the regulatory front.”

The combined company would have produced about 161,000 barrels of oil equivalent per day in the second quarter of 2025 and held roughly 652 million barrels of proved reserves at year-end 2024.

CRC also expects to achieve $80 million to $90 million in annual synergies within 12 months of closing.

CRC will refinance Berry’s debt using cash and credit facilities and may issue new debt to optimise its balance sheet. The merged company will be headquartered in Long Beach, California, led by CRC’s existing executive team.