California Resources Corporation is set to acquire Berry Corporation in a $717 million all-stock deal, aimed at expanding production and operational efficiencies while providing substantial synergies.

Information on the Target

California Resources Corporation (CRC) has announced its intention to acquire Berry Corporation in a significant $717 million all-stock transaction. This acquisition is particularly appealing to Berry shareholders, as it offers a 15% premium, and values the merged entity at over $6 billion. CRC has been demonstrating robust performance across its upstream and carbon management platforms, and this acquisition is set to enhance that trajectory by expanding operational scale and reserve base while increasing operational synergies.

As of the second quarter of 2025, CRC reported an impressive return of $287 million to shareholders, executed a $228 million discounted share buyback, and achieved $235 million in synergies from the recently completed ARA merger, which occurred ahead of schedule. As legislative changes are anticipated in California alongside CRC's preparations for Class VI carbon capture and storage (CCS) injections by early 2026, the acquisition of Berry Corp may provide a considerable boost in strategic and financial momentum.

Industry Overview in California

The oil and gas industry in California is characterized by its stringent environmental regulations and unique geological formations that necessitate specialized extraction techniques. California is one of the largest oil-producing states in the U.S., but its produc