Berry (bry)(US:BRY) ZACKS·2025-12-19 16:46Core Insights - California Resources Corporation (CRC) has successfully completed its all-stock merger with Berry Corporation, making Berry a wholly owned subsidiary of CRC in a transaction valued at approximately $717 million [1][8] Portfolio Expansion & Operational Upside - The merger enhances CRC's California-focused portfolio by incorporating high-quality, long-lived, low-decline conventional assets, particularly in the San Joaquin Basin [2] - The deal adds about 20,000 net acres and 20,000 barrels of oil equivalent per day of production, providing strategic optionality in the Uinta Basin and expanding CRC's development runway [2] Synergies & Financial Flexibility - CRC anticipates annual synergies of $80-$90 million within 12 months post-merger, with nearly half expected in the first six months [3] - Pro forma leverage is projected to remain below 1X, which will help maintain balance sheet strength and financial flexibility, enhancing free cash flow per share and supporting shareholder returns [3] Looking Ahead to 2026 - The combined company will be headquartered in Long Beach, CA, and will be led by CRC's existing executive team [4] - CRC plans to provide full-year 2026 guidance with its year-end and fourth-quarter 2025 earnings release, aiming to clarify operational performance expectations [4]