Highly Accretive Transaction Across Key Financial Metrics Enhances CRC’s Portfolio Combination to Create a Stronger, More Efficient Leader in California Energy

LONG BEACH, Calif. and DALLAS, Sept. 15, 2025 (GLOBE NEWSWIRE) –– California Resources Corporation (NYSE: CRC) (“CRC”) and Berry Corporation (NASDAQ: BRY) (“Berry”) jointly announced today their entry into a definitive agreement to combine in an all-stock transaction valuing Berry at approximately $717 million, inclusive of Berry’s net debt. Under the terms of the merger agreement, existing CRC shareholders are expected to own approximately 94% of the combined company upon closing. Supplemental slides have been posted to CRC’s website at crc.com and Berry’s website at bry.com. CRC and Berry are hosting a conference call and webcast at 9 a.m. ET (6 a.m. PT) on Monday, September 15, 2025. Conference call details can be found within this release.

“The combination of CRC and Berry will create a stronger, more efficient California energy leader. This transaction is attractively valued and immediately accretive across key financial metrics, strengthening our ability to deliver sustainable value to shareholders,” said CRC President and CEO Francisco Leon. “This announcement presents a compelling value proposition for our shareholders,” said Renée Hornbaker, Berry’s Board Chair. “The industrial logic of this merger will allow Berry shareholders to benefit from the creation of a larger and more sustainable business, with an improved capital structure and significant operational synergies.”

Highlights

• Compelling fit with CRC’s assets: Adds oil-weighted, conventional proved developed reserves and sustainable cash flow. On a pro forma basis, the combined company would have produced ~161 Mboe/d in Q2 2025 and held ~652 MMboe proved reserves as of year-end 2024.
• Accretive to key financial metrics: Expected to be accretive to net cash provided by operating activities and free cash flow, with >10% per share accretion projected in 2H 2025 before synergies.
• Significant synergies: $80–90 million annual synergies expected within 12 months post-closing, primarily from corporate savings, debt refinancing, and operational efficiencies.
• Maintains financial strength: Post-closing leverage ratio of less than 1.0x with ~70% of 2H 2025 oil production hedged at $68/Bbl Brent floor price.
• Uinta Basin optionality: Berry’s ~100,000 net acres provide strategic upside, with recent wells delivering ~3.8 MBoe/d gross (~93% oil).

Transaction Details

Berry shareholders will receive 0.0718 shares of CRC common stock for each share of BRY stock, representing a 15% premium based on September 12, 2025 closing prices. The combined entity is valued at more than $6 billion. CRC plans to refinance Berry’s outstanding debt with cash, credit facilities, and potentially new debt issuance. The transaction, expected to close in Q1 2026, has been unanimously approved by both boards. CRC’s executive management team will lead the combined company from Long Beach, California.

Advisors

CRC: RBC Capital Markets, Petrie Partners (financial), Sullivan & Cromwell LLP (legal). Berry: Guggenheim Securities, LLC (financial), Vinson & Elkins LLP (legal).

Conference Call Details

A conference call and webcast is planned for 9 a.m. ET (6 a.m. PT) on Monday, September 15, 2025. Dial-in: (877) 328-5505 (Intl: +1 (412) 317-5421) Webcast: www.crc.com Pre-register: Click here A replay will be available for ~90 days.

About California Resources Corporation

California Resources Corporation (NYSE: CRC) is an independent energy and carbon management company committed to responsible energy and decarbonization. More at www.crc.com.

About Berry Corporation

Berry (NASDAQ: BRY) is a western U.S. independent upstream energy company with a focus on oil and gas reserves in California and Utah. More at www.bry.com.

Contacts

CRC Investor Relations: Joanna Park – 818-661-3731 – Joanna.Park@crc.com Daniel Juck – 818-661-6045 – Daniel.Juck@crc.com CRC Media: Hailey Bonus – 714-874-7732 – Hailey.Bonus@crc.com Berry Investor Relations: Christopher Denison – 661-616-3811 – CDenison@bry.com