Transaction Details: 

California Resources said it will acquire Aera Energy, LLC in an all-stock transaction. The transaction values Aera at approximately $2.1 billion, inclusive of Aera’s net debt.

The asset which is low decline, conventional produced an average of 76 mboe/d as of the third quarter with 95% oil and estimated proved reserves of approximately 262 MMboe at year-end 2024. Aera Energy has interest in ~ 220,000 net mineral acres.

This strategic transaction will create scale in our operations, generate significant free cash flow, accelerate cash returns to shareholders and expand our energy transition platform,” said Francisco Leon, CRC’s President and Chief Executive Officer. “We remain committed to reducing emissions and this combination will advance our goal to permanently sequester 5 million metric tons per year of CO2in our underground storage vaults.We are highly confident in our ability to drive sustainable savings that will enhance shareholder returns and deliver meaningful long-term value for our stakeholders. On behalf of CRC, we look forward to working with our new colleagues at Aera. Together, this combination will create an unquestioned leader in energy transition, producing low carbon intensity fuels that California needs while accelerating the decarbonization of the State’s industrial and energy industries.”

Erik Bartsch, Aera’s President and Chief Executive Officer, added: “Aera and CRC are two great companies with decades of experience and track records that will serve as a foundation for a strong combination. We are committed to continuing to deliver the energy Californians need today and working to deploy carbon capture at-scale.”

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