CRC to Acquire Aera Energy for $2.1B
Ticker: CRC · Form: 8-K · Filed: May 20, 2024 · CIK: 1609253
Sentiment: bullish
Topics: acquisition, energy, merger
TL;DR
CRC buys Aera Energy for $2.1B, becoming CA's top independent producer.
AI Summary
California Resources Corporation (CRC) announced on May 20, 2024, that it has entered into a definitive agreement to acquire all of the outstanding equity interests of Aera Energy LLC for approximately $2.1 billion. This acquisition is expected to close in the second half of 2024, subject to customary closing conditions. The combined company will be a leading independent energy producer in California.
Why It Matters
This significant acquisition by California Resources Corp. aims to create a dominant player in California's energy sector, potentially impacting regional production and market dynamics.
Risk Assessment
Risk Level: medium — The acquisition involves a substantial financial commitment and integration challenges, with potential regulatory hurdles and market volatility impacting the deal's success.
Key Numbers
- $2.1B — Acquisition Price (California Resources Corp. is acquiring Aera Energy LLC for this amount.)
Key Players & Entities
- California Resources Corporation (company) — Registrant
- Aera Energy LLC (company) — Acquisition Target
- $2.1 billion (dollar_amount) — Acquisition Price
- May 20, 2024 (date) — Announcement Date
- Delaware (jurisdiction) — State of Incorporation
- 1 World Trade Center, Suite 1500, Long Beach, California 90831 (address) — Principal Executive Offices
FAQ
What is the total purchase price for Aera Energy LLC?
The total purchase price for Aera Energy LLC is approximately $2.1 billion.
When is the acquisition expected to close?
The acquisition is expected to close in the second half of 2024.
What is the name of the company being acquired?
Aera Energy LLC is the company being acquired.
What is the primary business of the combined entity?
The combined entity will be a leading independent energy producer in California.
What is the filing date of this 8-K report?
The filing date of this 8-K report is May 20, 2024.
Filing Stats: 1,116 words · 4 min read · ~4 pages · Grade level 13 · Accepted 2024-05-20 07:36:30
Key Financial Figures
- $500 million — ement of a proposed private offering of $500 million in aggregate principal amount of senior
Filing Documents
- d828680d8k.htm (8-K) — 31KB
- d828680dex991.htm (EX-99.1) — 12KB
- d828680dex992.htm (EX-99.2) — 900KB
- g828680g0518214217210.jpg (GRAPHIC) — 3KB
- 0001193125-24-142231.txt ( ) — 1146KB
- crc-20240520.xsd (EX-101.SCH) — 3KB
- crc-20240520_lab.xml (EX-101.LAB) — 18KB
- crc-20240520_pre.xml (EX-101.PRE) — 11KB
- d828680d8k_htm.xml (XML) — 4KB
Financial Statements and Exhibits
Financial Statements and Exhibits (d)Exhibits Exhibit No. Description 99.1 Press Release, dated May 20, 2024, issued by the Company. 99.2 Offering memorandum excerpts. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. California Resources Corporation By: /s/ Michael L. Preston Michael L. Preston Executive Vice President, Chief Strategy Officer and General Counsel DATED: May 20, 2024