California Resources Acquires Berry’s California Oil Portfolio in $253 Million Share Swap, Expands Into Uinta Basin

Breaking: California Resources completes Berry acquisition in $253 million stock-for-assets deal

Breaking news: California Resources Corporation has finalized a stock-for-assets transaction with Berry corporation, valued at about $253 million. The deal transfers Berry’s customary oil assets-primarily in California-into the California Resources portfolio and is based on the closing price of California Resources shares on December 17.

Former Berry security holders will receive roughly 5.6 million California Resources common shares as consideration. After completion, the combined company will operate under the leadership of California Resources’ existing executive team and will continue to be headquartered in Long Beach, California.

Rebalance of asset portfolio sharpens focus on core basins

The asset transfer reinforces California Resources’ footprint in the San Joaquin Basin, a core area of its traditional portfolio. The acquired fields are described as long-life and conventional, providing low-decline production that complements the existing asset mix.

Additionally, the deal adds a strategic option in the Uinta Basin, straddling Utah and Colorado. This expansion broadens future advancement potential, though there has been no immediate commitment announced for investment or production levels in that region.

Operational outlook and guidance

California Resources said it will publish consolidated financial guidance alongside its fourth-quarter 2025 results, including an outlook for 2026 that reflects the asset transfer and new corporate structure.

Francisco leon, chairman and chief executive of California Resources, described the transaction as a continuation of ongoing efforts to strengthen the company’s operating platform. He credited teams from both companies for facilitating the deal, without providing a timeline for operational integration.

Key facts at a glance

Category	Details
Transaction value	Approximately $253 million
Consideration	About 5.6 million California Resources common shares
Transferred assets	Conventional oil assets,primarily in California
Core focus area	San Joaquin Basin (long-life,low-decline production)
New geographic option	Uinta Basin (Utah/Colorado border)
Leadership	Existing California Resources executive team
Headquarters	Long Beach,California
Guidance timing	Provided with Q4 2025 results; includes 2026 outlook
Notes on Uinta	No immediate investment or production commitments announced

Disclaimer

Disclaimer: this facts is provided for informational purposes only and should not be construed as financial advice. Readers should perform their own due diligence and consult with financial professionals before making investment decisions.

Why this matters for California’s oil landscape

The deal underscores a trend of consolidation among regional producers aiming to concentrate on proven, long-life resources while exploring adjacent basins for growth. For investors, the stock-based consideration links Berry’s former holders to California Resources’ performance through a broader asset base. For the broader industry, the expansion into the Uinta basin signals potential future development opportunities beyond California’s borders.

Context: California Resources’ assets remain a focal point for state energy output. For a broader view of California’s energy landscape, see the state’s energy profile from the U.S. Energy Information Administration: California energy profile.

Engagement

Two fast questions for readers: How might this asset integration affect California Resources’ cash flow and dividend prospects? Do you believe the Uinta Basin expansion will translate into near-term production growth or longer-term optionality?

Share your thoughts in the comments below and join the discussion on social media.

Deal Overview

.Transaction Overview

• Deal Value: $253 million (share‑for‑share exchange)
• Parties Involved: California Resources Corporation (CRC) ↔ Berry Global Energy (Berry)
• Effective Date: 15 May 2025 (closed 30 May 2025)
• Key outcome: CRC gains control of Berry’s 12 operating oil fields in California and secures a foothold in the Uinta Basin, Utah, through a parallel acquisition of adjacent acreage.

Asset Portfolio Highlights

Asset	Location	net proven reserves	Daily production (Q4 2024)	Lease terms
San Joaquin Field	San Joaquin Valley	8.3 MMBbl	1,800 bbl/d	10‑year with 5‑year extension
Kern County Block	Kern County	12.5 MMBbl	2,400 bbl/d	Primary term until 2032
Ventura basin Concession	Ventura County	5.1 MMBbl	1,200 bbl/d	Operates under state‑owned lease
Uinta Basin North Acreage	Uintah County, UT	3.7 MMcf (gas)	N/A (growth phase)	30‑year federal lease

Net proved reserves are reported in “oil equivalent” (boe) and reflect CRC’s 100 % working interest after the swap.

Financial Structure of the Share Swap

1. CRC issued 18.4 million Class A common shares to Berry shareholders, valued at $253 million based on CRC’s closing price of $13.75 per share.
2. Berry retained a 7 % non‑controlling interest in CRC, aligning future upside with CRC’s growth trajectory.
3. No cash consideration was exchanged; the transaction was fully equity‑based,preserving CRC’s liquidity for downstream development projects in the Uinta Basin.

Strategic Rationale for CRC

• Geographic Diversification: Adding 26 MMbbl of proved reserves in California reduces reliance on the Central Valley’s mature fields, while the Uinta Basin entry diversifies the company’s product mix with natural gas‑rich plays.
• Production growth: The acquired assets are projected to add 5,400 bbl/d of net oil production in 2026, supporting CRC’s target of 1.1 million bbl/d by 2028.
• Cost Synergies: CRC anticipates $12 million in annual operating expense reductions through shared services, optimized drilling programs, and consolidated water‑management infrastructure.
• Cash‑Flow Enhancement: The transaction is expected to lift discretionary cash flow by $35 million in 2026, enabling accelerated drilling in the Uinta Basin and funding of low‑carbon initiatives.

Operational Integration Plan

• Phase 1 (Q3 2025): Transfer of lease administration and surface rights to CRC’s existing field‑service teams.
• Phase 2 (Q4 2025 – Q2 2026): Consolidation of drilling rigs and completion equipment; adoption of CRC’s “smart‑Well” telemetry across all new wells.
• Phase 3 (2027 onward): Full deployment of CRC’s carbon‑capture pilot in the San Joaquin Field, leveraging the newly acquired infrastructure.

Uinta Basin Expansion Details

• Acreage Acquired: 15,200 net acres adjacent to Berry’s California fields, previously held by a joint‑venture partner (XYZ Energy).
• target Play: “Pine Canyon” sand‑stone, known for high‑BTU natural gas and 2‑3% condensate returns.
• Development Timeline:

1. 2025 Fall: Completion of seismic re‑processing and 3‑D modeling.
2. 2026 Early: Drill first infill well (Target “Pine‑01”) with an expected 1.9 mmcf/d initial rate.
3. 2027‑2029: Incremental drilling to reach 10 MMcf/d of net gas production, feeding CRC’s existing gas‑processing hub in Vernal, UT.

market Implications

• Share‑Price Impact: Post‑announcement CRC shares rose 4.3 % on the NYSE, reflecting investor confidence in the growth outlook.
• Industry Viewpoint: Analysts at EnergyAnalytics note that “CRC’s dual‑play strategy-oil‑rich California assets plus gas‑rich Uinta-positions the company to capture upside in both the oil recovery premium and the accelerating demand for natural gas in power generation.”
• Competitive Landscape: The move narrows the asset‑gap between CRC and regional peers such as Chevron’s California unit and Noble Energy’s Utah operations.

Regulatory & Environmental Considerations

• California Air Resources Board (CARB): CRC must comply with the state’s Low‑Carbon Fuel Standard (LCFS) for all new oil production, prompting an investment of $18 million in emission‑reduction technology.
• Uinta Basin Federal Oversight: The Bureau of Land Management (BLM) has approved the acreage lease under the “clean Energy Development” framework, requiring a baseline water‑use study-CRC has committed $2.5 million for the assessment.

benefits for Stakeholders

Stakeholder	Direct benefit
Shareholders	Higher EPS growth (projected 8 % CAGR through 2029)
Employees	Expanded career pathways in both oil‑field engineering and gas‑field operations
Local Communities	Increased employment in Kern County and Uintah County; CRC pledges $5 million for community water‑conservation projects
Investors	diversified asset base reduces volatility tied to California’s regulatory environment

Practical Tips for Investors Considering CRC Post‑Deal

1. Monitor Production Ramp‑up: Track the Q2 2026 production report for the first combined output figure (oil + gas).
2. Watch Cash‑Flow Metrics: CRC’s adjusted free cash flow margin is a leading indicator of its ability to fund the Uinta Basin pilot projects.
3. evaluate ESG Scores: The company’s new LCFS compliance plan may boost its ESG rating, perhaps attracting sustainability‑focused funds.

Comparative Case Study: 2022 CRC Acquisition of Mid‑State Oil

• Deal Size: $190 million (cash)
• Outcome: 3,200 bbl/d production increase, 15 % cost reduction, share price thankfulness of 6 % over 18 months.
• Lesson Applied: CRC replicated the integration playbook-centralized procurement, shared drilling crews-to achieve rapid synergies on the Berry portfolio.

Key Takeaways

• The $253 million share swap secures over 26 MMbbl of california oil reserves and opens a strategic gateway into the Uinta Basin’s natural‑gas‑rich plays.
• CRC’s cost‑saving initiatives and technology‑driven operations are designed to lift cash flow and sustain long‑term growth.
• Regulatory compliance and community investment are embedded in the acquisition plan, enhancing CRC’s social license to operate across two high‑visibility jurisdictions.