A pump jack in San Joaquin Basin, California. (Source: Shutterstock)
California-focused oil producer Berry Corp. closed its acquisition of Macpherson Energy Corp., expanding the E&P’s footprint in the Golden State.
Dallas-based Berry Corp.’s acquisition of Macpherson Energy included a $70 million all-cash payment—$50 million of which was paid at closing. Under terms of the agreement, the remaining $20 million cash portion will be paid in July 2024, Berry said.
Macpherson is a privately held E&P in Kern County, California. The company’s oil-producing properties are located near Berry’s assets in Kern County, the company said in regulatory filings.
“Macpherson’s high-quality, low decline oil-producing properties are a complementary fit with Berry’s existing portfolio and demonstrates Berry’s disciplined approach to consolidation with a focus on value creation and accretion,” Berry CEO Fernando Araujo said in a Sept. 18 news release.
“This transaction is immediately accretive to Berry in both production and cash flows, supports our overall strategic plan to efficiently maintain our California production, and is expected to enhance our cash flows and shareholder returns,” he said.
Berry financed the initial $50 million payment through a combination of cash on hand and funds drawn under its credit facility. The company expects the final cash payment to be funded similarly.
Berry raised its full-year 2023 guidance in conjunction with the Macpherson deal: the company expects average daily production to range between 24,800 boe/d and 25,400 boe/d (93% oil) this year. That’s up 500 boe/d at the midpoint from Berry’s previous production guidance of between 24,000 boe/d and 25,200 boe/d for 2023.
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