California Resources Corporation (CRC) has finalized its $1.13 billion all-stock merger with Aera Energy, a deal first announced in February 2024. The merger brings the total valuation to $2.1 billion, inclusive of debt. CRC shareholders approved the issuance of stocks necessary to complete the merger at a special meeting on June 26, 2024. As part of the agreement, 21.3 million CRC shares were issued to the owners of Aera Energy, a joint venture originally sold to IKAV for $4 billion. Following that acquisition, CPP purchased a 49% stake and Oaktree Capital also holds equity. The pro forma net daily production during April and May 2024 averaged 146 thousand barrels of oil equivalent per day, 79% of which was oil. CRC expects substantial financial benefits, projecting $150 million in annual synergies within 15 months. The company’s borrowing base and credit facility commitments have also increased significantly. The executive board of CRC will continue to run the combined entity, with key personnel from IKAV Energy and CPP participating on the board. CRC holds a Zacks Rank of #3 (Hold), with other notable energy sector stocks such as Sunoco LP, SM Energy, and Hess Midstream showing stronger rankings.

Energy, Private Equity, Mergers & Acquisitions,United States, Germany, Canada

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