After California Resources (CRC) announced a roughly $717M all-stock acquisition of Berry Corp (BRY) following the passing of SB 237 over the weekend, Jefferies argued that combining the two California producers has “undeniable industrial logic.” The deal is priced at “a reasonable valuation and management highlighted that it is greater than 10% accretive to cash flow per share and free cash flow per share before synergies, adds the analyst, who has a Buy rating on California Resources and a Hold rating on Berry shares.
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