08:56 AM EDT, 09/15/2025 (MT Newswires) -- California Resources ( CRC ) and Berry (BRY) have signed a definitive agreement to combine in an all-stock merger valuing Berry at about $717 million, inclusive of net debt, the companies said Monday.

Under the terms of their agreement, Berry shareholders will receive 0.0718 California Resources ( CRC ) shares per Berry share, implying a 15% premium to the Sept. 12 close, and California Resources ( CRC ) shareholders are expected to own roughly 94% of the combined company, according to a joint statement.

The transaction is expected to be accretive to operating cash and free cash flow, and California Resources ( CRC ) forecasts $80 million to $90 million of annual synergies within 12 months, the companies said.

The deal is expected to close in Q1 of 2026, with California Resources' ( CRC ) executive management team leading the combined company from Long Beach, the companies said, adding that California Resources ( CRC ) will also own Berry subsidiary C&J Well Services.

Shares of Berry were up over 12% in recent Monday premarket activity, while California Resources ( CRC ) shares were slipping past 3%.