California Resources Corporation Closes Combination with Berry Corporation

Rhea-AI Summary

California Resources Corporation (NYSE: CRC) closed its all-stock combination with Berry Corporation (NASDAQ: BRY) on December 18, 2025, creating a combined company headquartered in Long Beach and led by CRC’s executive team.

Under the deal, Berry equity holders received ~5.6 million CRC shares with an approximate aggregate value of $253 million based on CRC’s Dec 17, 2025 close. CRC said the transaction adds long-lived, low-decline San Joaquin assets, development upside, and strategic optionality in the Uinta basin, and expects to issue full-year 2026 guidance with its year-end and Q4 2025 results.

Positive

• Berry holders received ~5.6 million CRC shares
• Aggregate transaction value ~$253 million (based on Dec 17, 2025 close)
• Adds long-lived, low-decline assets in San Joaquin Basin
• Provides strategic optionality in the Uinta basin
• Combined company led by CRC executive team and HQ in Long Beach

Negative

• Integration risk for operations, systems, and personnel
• Issued ~5.6 million new shares could dilute existing shareholders
• Preliminary 2026 guidance accuracy and production estimates are uncertain
• Regulatory and permitting uncertainty in California could affect operations

Key Figures

CRC shares issued 5.6 million shares CRC common stock issued to Berry’s former equity holders at closing

Equity consideration $253 million Aggregate value based on CRC’s Dec 17, 2025 closing share price

Market Reality Check

$43.60 Last Close

Volume Volume 1,004,292 vs 20-day average 806,805 shows elevated trading interest into the deal close. normal

Technical Shares at $45.49 are trading slightly below the 200-day MA of $46 and about 22% under the 52-week high.

Peers on Argus

CRC gained 1.9% with the Berry combination closing. Peers showed mixed but mostly positive moves: CRK +1.85%, MGY +1.01%, CNX +1.72%, CHRD +1.14%, while VIST -4.1%, suggesting today’s action is more company-specific than a broad sector surge.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 16	Decarbonization MOU	Positive	-4.6%	MOU to evaluate carbon capture and sequestration for two California power plants.
Dec 15	Investor conferences	Neutral	-3.2%	Planned participation in January 2026 energy and infrastructure investor conferences.
Nov 20	Community donation	Positive	-3.0%	$200,000 contribution to food security initiatives across key California operating regions.
Nov 18	ESG certification	Positive	+0.4%	MiQ ‘Grade A’ methane performance certification for Ventura Basin production assets.
Nov 04	Q3 2025 earnings	Positive	-1.1%	Q3 2025 results, dividend increase and announcement of definitive all‑stock Berry merger.

Pattern Detected

Recent CRC news, including positive strategic and ESG updates, has often been followed by modest share price declines, with only the MiQ certification seeing a small gain.

Recent Company History

Over the last two months, CRC has reported Q3 2025 results with $64M net income and announced the definitive all‑stock Berry merger, later securing key regulatory milestones via an 8-K. It also achieved MiQ ‘Grade A’ certification in the Ventura Basin, made a $200,000 food security donation, and advanced decarbonized power MOUs. Despite generally constructive news, price reactions were frequently negative, providing context as the Berry combination now formally closes.

Market Pulse Summary

This announcement confirms closing of CRC’s all-stock combination with Berry, issuing about 5.6 million CRC shares valued at roughly $253 million. The deal adds long-lived California conventional assets and Uinta Basin exposure while management highlights expected synergies and operating efficiencies. In light of prior news on decarbonization projects and MiQ certification, investors may watch upcoming 2026 guidance, integration progress, and regulatory developments in California to evaluate the combined platform.

Key Terms

all-stock combination financial

"today closed its all-stock combination with Berry Corporation (bry)"

An all-stock combination is a deal where one company buys or merges with another using only its own shares as payment instead of cash. For investors it matters because their ownership stake and the total number of shares can change—like swapping part of a pie for extra slices—affecting each share’s claim on future profits and creating incentives for both companies to grow the combined business rather than immediately extract cash value.

carbon management technical

"California Resources Corporation (CRC) is an independent energy and carbon management company"

Carbon management is the set of actions a company takes to measure, reduce and account for its greenhouse gas emissions, including changing operations, improving energy use, and purchasing offsets or credits. Investors care because these practices affect regulatory compliance, operating costs, and a company’s reputation—similar to how maintaining a house’s insulation and heating can lower bills and avoid fines, good carbon management can protect value and reduce future financial risk.

decarbonization technical

"energy expertise for decarbonization by developing CCS and other emissions reducing projects"

Decarbonization is the process of cutting a company’s greenhouse gas emissions across its operations, supply chain and products by switching to cleaner energy, improving efficiency and changing materials or processes. For investors it matters because lower emissions can reduce regulatory and energy costs, limit legal and reputational risks, and signal long-term competitiveness—like a business replacing a gas-guzzling fleet with fuel-efficient or electric vehicles to save money and stay compliant.

CCS technical

"for decarbonization by developing CCS and other emissions reducing projects"

Carbon capture and storage (CCS) is a set of technologies that trap carbon dioxide produced by power plants, factories or industrial processes, then transport and store it deep underground or turn it into usable products. Think of it like catching smoke from a chimney and burying or repurposing it so it doesn't warm the atmosphere. Investors watch CCS because it can lower regulatory and carbon costs, create new revenue from credits or products, and influence the long-term value of energy and industrial companies.

greenhouse gas emissions technical

"relating to climate change, air quality, greenhouse gas emissions, or permitting in California"

Greenhouse gas emissions are the gases a company releases into the air—like carbon dioxide or methane—that trap heat in the atmosphere and contribute to global warming. For investors, these emissions matter because they can lead to higher regulatory costs, fines, shifting consumer preferences, and physical risks (like supply-chain disruptions), or create opportunities in low-carbon products; think of emissions as a company’s climate footprint that can affect future profits and value.

forward-looking statements regulatory

"This document contains statements that CRC believes to be “forward-looking statements”"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

LONG BEACH, Calif., Dec. 18, 2025 (GLOBE NEWSWIRE) -- California Resources Corporation (NYSE: CRC) (“CRC”) today closed its all-stock combination with Berry Corporation (bry) (NASDAQ: BRY) (“Berry”). The transaction enhances CRC’s premier California portfolio of long-lived, low-decline conventional assets with significant development upside and adds strategic optionality in the Uinta basin.

“CRC is entering 2026 stronger than ever, ready to build on our operational momentum and deliver meaningful synergies for our shareholders,” said Francisco Leon, CRC’s President and Chief Executive Officer. “This transaction adds high-quality assets in our core San Joaquin Basin and enhances cash flow durability and operating efficiencies as we build a stronger, more durable platform aimed to deliver sustainable shareholder value.”

Mr. Leon continued, “I would like to thank the CRC, Berry and C&J employees for all their hard work in getting this deal across the finish line. Together, I am confident we can continue to improve our impressive operational track record and position CRC for even greater long-term success.”

Under the terms of the definitive agreement, Berry’s former equity holders received approximately 5.6 million shares of CRC common stock, having an approximate aggregate value of $253 million based on CRC’s closing share price on December 17, 2025.

CRC expects to provide full-year 2026 guidance in conjunction with its year-end and fourth quarter 2025 earnings release. The combined company will be headquartered in Long Beach, California and led by CRC’s executive team.

About California Resources Corporation

California Resources Corporation (CRC) is an independent energy and carbon management company committed to energy transition. CRC is committed to environmental stewardship while safely providing local, responsibly sourced energy. CRC is also focused on maximizing the value of its land, mineral ownership, and energy expertise for decarbonization by developing CCS and other emissions reducing projects. For more information about CRC, please visit www.crc.com.

Forward-Looking Statements

This document contains statements that CRC believes to be “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than historical facts are forward-looking statements, and include statements regarding CRC's future financial position, business strategy, projected revenues, earnings, costs, capital expenditures and plans and objectives of management for the future. Words such as “expect,” “could,” “may,” “anticipate,” “intend,” “plan,” “ability,” “believe,” “seek,” “see,” “will,” “would,” “estimate,” “forecast,” “target,” “guidance,” “outlook,” “opportunity” or “strategy” or similar expressions are generally intended to identify forward-looking statements. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, such statements.

Although CRC believes the expectations and forecasts reflected in its forward-looking statements are reasonable, they are inherently subject to numerous risks and uncertainties, most of which are difficult to predict and many of which are beyond CRC’s control. No assurance can be given that such forward-looking statements will be correct or achieved or that the assumptions are accurate or will not change over time. Particular uncertainties that could cause CRC’s actual results to be materially different from those described in the forward-looking statements include: (i) the ability to successfully integrate Berry’s operations, systems, and personnel and to realize anticipated synergies, efficiencies, and cost savings on the expected timeline or at all; (ii) risks associated with the alignment of accounting, reporting, and operational processes following the transaction; (iii) the accuracy of preliminary 2026 production and capital guidance and the company’s ability to achieve expected operational performance or cost targets; (iv) fluctuations in commodity prices and differences between realized and benchmark pricing; (v) the availability of capital and CRC’s ability to manage leverage, liquidity, and financing costs; (vi) the impact of state and federal legislative, regulatory, or policy developments—particularly those relating to climate change, air quality, greenhouse gas emissions, or permitting in California; (vii) operational risks, including those related to drilling, completions, workover activity, infrastructure reliability, and supply chain disruptions; (viii) general economic, market, and business conditions affecting demand for energy in California and the western United States; and (ix) those expressed in CRC’s other forward-looking statements including those factors discussed in Part I, Item 1A – Risk Factors in CRC’s Annual Report on Form 10-K and its other filings with the U.S. Securities and Exchange Commission (the “SEC”) available at www.crc.com (“CRC’s SEC Filings”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in CRC’s SEC Filings.

CRC cautions you not to place undue reliance on forward-looking statements contained in this document, which speak only as of the filing date, and the company undertakes no obligation to update this information. This document may also contain information from third party sources. This data may involve a number of assumptions and limitations, and CRC has not independently verified them and does not warrant the accuracy or completeness of such third-party information.

Contacts:

Joanna Park (Investor Relations) 818-661-3731 Joanna.Park@crc.com

Daniel Juck (Investor Relations) 818-661-6045 Daniel.Juck@crc.com

Hailey Bonus (Media) 714-874-7732 Hailey.Bonus@crc.com

FAQ

What did CRC (NYSE: CRC) announce on December 18, 2025 about Berry (BRY)?

CRC closed an all-stock combination with Berry, creating a combined company led by CRC and headquartered in Long Beach.

How many CRC shares did Berry shareholders receive in the deal announced Dec 18, 2025?

Berry equity holders received approximately 5.6 million CRC shares under the transaction.

What is the reported aggregate value of the CRC-Berry combination as of Dec 17, 2025?

The combined equity paid to Berry holders had an approximate aggregate value of $253 million based on CRC’s Dec 17, 2025 close.

Will CRC provide 2026 guidance after the Dec 18, 2025 combination with Berry (BRY)?

Yes. CRC expects to provide full-year 2026 guidance with its year-end and Q4 2025 earnings release.

What operational benefits did CRC cite from closing the Berry transaction?

CRC said the deal adds high-quality San Joaquin assets, development upside, enhanced cash-flow durability, and operational efficiencies.

What are the main risks CRC disclosed after closing the Berry transaction on Dec 18, 2025?

CRC highlighted integration risks, guidance accuracy uncertainty, commodity price exposure, financing and regulatory risks in California.