California Resources Corporation CRC has completed its all-stock combination with Berry Corporation, making Berry a wholly owned subsidiary of California Resources.
Announced just over three months ago, the roughly $717 million transaction closed shortly after Berry shareholders approved the deal by a wide margin. Following the merger, Berry shares have ceased trading and were delisted, formally bringing the two companies together under the California Resources platform.
Portfolio Expansion & Operational Upside
The merger significantly strengthens CRC’s California-focused portfolio by adding high-quality, long-lived, low-decline conventional assets, particularly in the core San Joaquin Basin.
The deal also provides strategic optionality in the Uinta Basin and adds about 20,000 net acres along with 20,000 barrels of oil equivalent per day of production. Together, these assets expand California Resources’ development runway while supporting more stable and durable cash flows.
Synergies & Financial Flexibility
California Resources expects the combination to deliver $80-$90 million in annual synergies within 12 months of closing, with nearly half expected in the first six months.
Importantly, pro forma leverage is projected to remain below 1X, preserving balance sheet strength and financial flexibility. Management believes the scale benefits and efficiency gains will enhance free cash flow per share and support stronger shareholder returns over time.
Looking Ahead to 2026
The combined company will be headquartered in Long Beach, CA, and led by CRC’s existing executive team.
The company plans to share full-year 2026 guidance with its year-end and fourth-quarter 2025 earnings release, offering investors a clearer view of how the enlarged platform translates into operational performance. With added scale, a broader asset base and a focus on efficiency, CRC enters 2026 positioned for long-term growth and resilience.
CRC’s Zacks Rank & Key Picks
California Resources is an independent energy and carbon management company focused exclusively on California. Currently, CRC has a Zacks Rank #4 (Sell).
Investors interested in the energy sector may consider some top-ranked stocks like Cenovus Energy Inc. CVE, Natural Gas Services Group, Inc. NGS and Canadian Natural Resources Limited CNQ. While Cenovus Energy and Natural Gas Services currently sport a Zacks Rank #1 (Strong Buy) each, Canadian Natural Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. The company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2025 earnings indicates 26.2% year-over-year growth.
Natural Gas Services manufactures, fabricates, sells, rents and services natural gas compressors that enhance the production of natural gas wells. The Zacks Consensus Estimate for NGS’ 2025 earnings indicates 13.3% year-over-year growth.
Calgary-based Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The Zacks Consensus Estimate for CNQ’s 2025 revenues indicates 6% year-over-year growth.
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Cenovus Energy Inc (CVE): Free Stock Analysis Report Canadian Natural Resources Limited (CNQ): Free Stock Analysis Report Natural Gas Services Group, Inc. (NGS): Free Stock Analysis Report California Resources Corporation (CRC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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