California Resources, Berry agree to merge

California Resources Corp. (CRC) and Berry Corp. have agreed to merge in an all-stock deal valued at $717 million, inclusive of net debt, the companies said in a joint release Sept. 15.

Berry brings about 20,000 b/d of California oil production and about 20,000 acres anchored in San Joaquin basin. 

On a pro forma basis, the combine would have produced about 161,000 boe/d in second-quarter 2025 and would have held about 652 MMboe proved reserves (87% proved developed) as of yearend 2024, the companies noted.

CRC also would own C&J Well Services, an oilfield services subsidiary of Berry.

Berry also holds about 100,000 net Uinta basin acres wth second-quarter production of 4,200 boe/d.

Overall, said Francisco Leon, CRC president and chief executive officer, the companies expect $80-90 million in annual synergies within 12 months after closing, and that a strong balance sheet will provide the company flexibility “to pursue new development opportunities amid an improving permitting backdrop in Kern County [California].”

State lawmakers Sept. 13 passed Senate Bill 237, “which codifies Kern County's ability to issue 2,000 new drill permits annually reversing years of persistent permitting challenges,” Jefferies analysts said in a Sept. 14 note. SB237, which includes oil and gas drilling permitting reform, is expected to be signed by Gov. Newsom by mid-October.

Jefferies analysts, citing CRC management, say "permits are ready to be filled or are being filled in preparation for SB 237 being effective on Jan. 1," and that CRC expects "about 1-2 quarters post SB 237 for activity to ramp up." 

The deal is expected to close in first-quarter 2026. CRC’s executive management team is expected to lead the merged company from its headquarters in Long Beach, Calif.