California Resources Corporation and berry Corporation Announce All-Stock Combination, Pending Shareholder Approval
BAKERSFIELD, CA – May 15, 2024 – California Resources Corporation (CRC) and Berry Corporation (berry) today announced a definitive agreement to combine in an all-stock transaction. The deal aims to create a leading self-reliant energy company focused on sustainable production in California.
Under the terms of the agreement, Berry shareholders will receive 0.82 shares of CRC common stock for each share of Berry common stock they own. The transaction values Berry at approximately $1.63 billion,based on CRC’s closing share price on May 14,2024. Upon completion, existing CRC and Berry shareholders will own approximately 62% and 38% of the combined company, respectively.
The combined company will retain the California Resources Corporation name and will be headquartered in Bakersfield, California. It will be led by Mac McFarland,currently CRC’s President and CEO. The companies anticipate the transaction will generate meaningful synergies through operational efficiencies and a strengthened financial profile.
The combination is subject to customary closing conditions, including the approval of both CRC and Berry shareholders, as well as regulatory approvals. The companies expect the transaction to close in the second half of 2024.
Forward-Looking Statements & Risks
Both CRC and Berry cautioned that the transaction is subject to a number of risks and uncertainties, including the possibility that the deal may not be completed. These include risks related to regulatory approvals, shareholder approval, the possibility of competing offers, and potential disruptions to business operations. Further details regarding these risks are outlined in filings with the Securities and Exchange Commission (SEC), including CRC’s registration statement on Form S-4, which will contain a proxy statement/prospectus. Investors are directed to review these filings, available at https://ir.bry.com/ and