California Resources Corporation (CRC) closed its all‑stock combination with Berry Corporation (BRY) on December 18, 2025. Under the definitive agreement, Berry’s former equity holders received approximately 5.6 million CRC shares, a value of about $253 million based on CRC’s closing share price on December 17, 2025. The combined company will be headquartered in Long Beach, California, and will be led by CRC’s existing executive team, including President and CEO Francisco Leon.
The merger adds high‑quality, low‑decline conventional assets in the San Joaquin Basin to CRC’s portfolio, expanding its production base and enhancing cash‑flow durability. CRC anticipates annual corporate and operating synergies of $80–$90 million within a year of closing, and the combined balance sheet is expected to maintain low leverage (below 1.0×) and robust liquidity. The transaction also gives CRC access to Berry’s assets in the Uinta Basin, providing strategic optionality as the company pursues a broader California upstream footprint.
Berry’s recent financial performance underscores the strategic fit. In Q4 2024 Berry reported a net loss of $2 million and an adjusted net income of $17 million, while Q3 2025 saw a net loss of $26 million versus a $70 million profit in Q3 2024. The company’s negative net margin and declining revenue per share suggest operational challenges that CRC aims to address through integration and cost discipline. CRC’s own financials, while not detailed in the fact‑check, are characterized by a strong balance sheet and a history of disciplined capital allocation, positioning the company to absorb Berry’s assets and realize the projected synergies.
Francisco Leon emphasized that the deal positions CRC to “build on our operational momentum and deliver meaningful synergies for our shareholders.” He added that the transaction “adds high‑quality assets in our core San Joaquin Basin and enhances cash‑flow durability and operating efficiencies as we build a stronger, more durable platform aimed to deliver sustainable shareholder value.” Leon’s comments highlight CRC’s confidence in its execution capabilities and its focus on long‑term value creation.
Investors reacted positively to the confirmation of the merger, with market sentiment reflecting confidence in the strategic rationale and expected synergies. The transaction consolidates two of California’s largest upstream operators, strengthening CRC’s competitive position in a regulatory environment that favors permitting and carbon initiatives. The deal also aligns with CRC’s broader strategy of expanding its asset base while maintaining a low‑leverage balance sheet, positioning the company for future growth in the California energy market.
The merger represents a significant consolidation in the California upstream sector, creating a more dominant player that can leverage scale for operational efficiencies and investment in carbon‑capture and storage projects. By integrating Berry’s assets, CRC is better positioned to meet evolving regulatory requirements and capitalize on opportunities in the state’s energy transition, reinforcing its long‑term strategic trajectory.
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