Berry brings about 20,000 b/d of California oil production and about 20,000 acres anchored in the San Joaquin basin. Berry’s producing areas in California include North and South Midway-Sunset, McKittrick, South Belridge, Poso Creek, and Round Mountain. The fields are known for their mature, heavy oil reservoirs and require specialized recovery techniques such as cyclic steam injection, continuous steamflooding, and thermal diatomite development, Berry notes on its website.
Berry currently holds permits to execute a one-rig drilling program in California through 2026.
On a pro forma basis, the combine would have produced about 161,000 boe/d (81% oil) in second-quarter 2025 and would have held about 652 MMboe proved reserves (87% proved developed) as of yearend 2024, the companies noted in the joint statement.
Oilfield service, Uinta basin assets
Through the proposed deal, CRC also will own C&J Well Services, a California-focused oilfield services subsidiary of Berry.
Berry also holds about 100,000 net acres in Uinta basin in Utah and Colorado. Second-quarter 2025 production from the assets hit 4,200 boe/d (65% oil/liquids, 79% net revenue interest). The operator recently brought online four horizontal wells which together are producing about 3,800 boe/d gross (~93% oil) with peak production expected late this month or early October.
Those assets provide options for the combine, the companies said, “but given CRC's focus on California,” Jefferies analysts said in a Sept. 15 investor note, “we believe CRC could look to divest the asset.”
TD Cowen analysts, in their own note Sept. 15, said they also expect monetization, noting the Uinta assets could generate "at least $400-500 million."
Overall, said Francisco Leon, CRC president and chief executive officer, the companies expect $80-90 million in annual synergies within 12 months after the deal closes, and that a strong balance sheet will provide the combined company flexibility “to pursue new development opportunities amid an improving permitting backdrop in Kern County.”
California permitting
That improved permitting backdrop comes as part of the newly passed Senate Bill 237 (SB237).
California lawmakers Sept. 13 passed SB237, “which codifies Kern County's ability to issue 2,000 new drill permits annually reversing years of persistent permitting challenges,” Jefferies analysts outlined in a Sept. 14 note. SB237, which includes oil and gas drilling permitting reform, aims to address high energy costs in the state and 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."
Under the terms of the merger agreement, existing CRC shareholders are expected to own about 94% of the combine upon closing, which is expected in first-quarter 2026, subject to customary closing conditions, including regulatory approvals, and approval by Berry shareholders.
CRC’s executive management team is expected to lead the merged company from its headquarters in Long Beach, Calif.
