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CRC-BRY Merger Tops the Weekly Oil & Gas Stock Roundup Story
Read MoreHide Full Article
Key Takeaways
CRC to merge with BRY in a $717M all-stock deal to expand oil assets and services.
CHRD to acquire Williston Basin assets from XOM's unit XTO Energy for $550M.
PBA secured CER approval on Alliance Pipeline deal; PBR advanced Brazil's first CCS pilot.
It was a week when oil prices remained nearly the same, while natural gas fell.
Headlines centered on the merger of energy explorers California Resources Corporation ((CRC - Free Report) ) and Berry Corporation ((BRY - Free Report) ), alongside Chord Energy’s ((CHRD - Free Report) ) latest acquisition. Developments associated with Pembina Pipeline Corporation ((PBA - Free Report) ) and Petrobras ((PBR - Free Report) ) also grabbed attention.
Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures remained essentially unchanged to close at $62.68 per barrel, but natural gas prices fell some 1.8% to end at $2.888 per million British thermal units (MMBtu).
Oil prices were nearly flat this week. Early gains from Ukrainian strikes on Russian refineries were canceled out by OPEC+ supply increases and markets shrugging off new EU sanctions.
Meanwhile, the natural gas prices fell due to a large weekly build, combined with softer seasonal demand and weaker LNG exports.
Recap of the Week’s Most Important Stories
1. Upstream company California Resources announced that it has entered into a merger agreement with fellow operator Berry Corporation to combine the two firms in an all-stock deal valued at approximately $717 million. The valuation includes Berry’s net debt. CRC has stated that the combination of the two companies will unlock operational synergies, lower costs, and improve cash flow generation for the combined entity.
Per the terms of the agreement, California Resources shareholders will own approximately 94% of the combined firm following the closing of the deal. The merger is expected to strengthen Zacks Rank #1 (Strong Buy) CRC’s asset portfolio by adding high-quality, conventional assets, primarily with oil-weighted production, which complement the company’s existing low-decline, conventional oil assets in California.
California Resources will also gain access to C&J Well Services, a subsidiary of BRY, as part of this transaction. C&J Well Services is an oilfield services firm, and the combination should help CRC improve the maintenance of its active wells and support long-term operational efficiency. It should also enable CRC to enhance its well abandonment capabilities and manage cost inflation in the long run. (CRC to Acquire BRY in All-Stock Merger Strengthening Asset Portfolio)
2. Chord Energy, a leading exploration and production firm in the United States, stated that it will acquire Williston Basin assets from a subsidiary of Exxon Mobil Corporation, XTO Energy. The acquisition will take place through an all-cash transaction of $550 million. According to Chord Energy, which operates extensively in the Williston Basin of the United States, the acquisition will further strengthen its presence in the premier shale basin.
The transaction involves 48,000 net acres in the Williston Basin, where CHRD has an 86% operated working interest. Furthermore, the acreage is 100% held by production, which implies that it is already producing oil and gas. The acquired assets are expected to enhance Chord’s inventory position with 90 net drilling sites, many of which overlap with its existing operations. This offers a contiguous acreage position, which allows for long-lateral drilling, a strategy that drives efficiency, improves well productivity and lowers the cost of production. The assets have a forecasted decline rate of approximately 23%.
The acquired assets are also expected to contribute 9,000 barrels of oil equivalent per day to the company’s production, consisting of 78% oil. The company noted that the acquired assets have breakeven costs in the $40-per-barrel range. This implies that these assets can sustain operations even during periods of low commodity prices, making them immediately compete for capital. The transaction will also reduce the overall breakeven cost for the company’s asset portfolio. (Chord Energy to Acquire Williston Basin Assets From XTO Energy)
3. Pembina Pipeline, a Canada-based oil and gas storage and transportation company, recently made an important announcement regarding the approval of a negotiated settlement between Alliance Pipeline Limited Partnership (Alliance) and a Shipper Committee, which involves shippers and other interested parties. This approval, granted by the Canada Energy Regulator (“CER”), has significant implications for the future of the Canadian portion of Alliance Pipeline.
The approval of this settlement marks a major milestone for Pembina as it continues to play a crucial role in North America’s energy infrastructure. Pembina’s president and CEO, Scott Burrows, expressed his satisfaction with the outcome, emphasizing that it establishes a fair and reasonable tolling structure for Alliance Pipeline for the next decade.
Alliance Pipeline is a major natural gas transmission system that serves as a crucial link between Canada and the United States. The pipeline, spanning thousands of miles, facilitates the movement of natural gas from western Canada to markets in the United States. This settlement, approved by the Canada Energy Regulator, ensures that this vital pipeline will continue to operate smoothly and efficiently for the foreseeable future. (Pembina Secures CER Approval for Alliance Pipeline Settlement)
4. Petrobras, Brazil’s state-owned integrated oil and gas company, has officially approved the construction of the São Tomé CCS Pilot Project in Macaé, Rio de Janeiro. This initiative represents the first Carbon Capture and Storage (“CCS”) pilot project in the country, setting a transformative precedent in Latin America’s transition to a low-carbon economy. With operations slated to begin in 2028, this project aims to capture and permanently store up to 100,000 tons of carbon dioxide (CO2) per year for a period of three years, advancing Brazil’s commitment to carbon neutrality by 2050.
The São Tomé CCS Pilot Project is more than a symbolic move. It is a cornerstone in Petrobras’ long-term decarbonization roadmap. This strategic project directly supports Brazil’s national climate agenda and Petrobras’ ambitious target of achieving net-zero emissions by 2050. It leverages decades of Petrobras' expertise in offshore technologies to enable cutting-edge CO2 capture, transportation and geological storage in deep saline formations.
The project will take place in Barra do Furado, located in the municipality of Quissamã, a region strategically selected for its geological suitability. This site offers optimal characteristics for the safe and permanent storage of CO2 in saline aquifers, a method globally recognized for its long-term stability and minimal environmental impact. (Petrobras Approves Brazil's First CCS Pilot Project in Macae)
Price Performance
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM +0.6% -2.3%
CVX -0.6% -5.1%
COP -0.6% -8.8%
OXY +0.9% -5.3%
SLB -3.2% -18.5%
RIG +0.6% +12.7%
VLO +3.8% +29.1%
MPC +2.9% +28%
With oil unchanged and gas moving down for the week, stocks were mixed. The Energy Select Sector SPDR — a popular benchmark for energy companies — slipped 0.1% last week. Over the past six months, the sector fund has declined about 4%.
What’s Next in the Energy World?
Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored. Tariff-related developments will also be a key factor in determining price trends.
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CRC-BRY Merger Tops the Weekly Oil & Gas Stock Roundup Story
Key Takeaways
It was a week when oil prices remained nearly the same, while natural gas fell.
Headlines centered on the merger of energy explorers California Resources Corporation ((CRC - Free Report) ) and Berry Corporation ((BRY - Free Report) ), alongside Chord Energy’s ((CHRD - Free Report) ) latest acquisition. Developments associated with Pembina Pipeline Corporation ((PBA - Free Report) ) and Petrobras ((PBR - Free Report) ) also grabbed attention.
Overall, it was a mixed seven-day period for the sector. West Texas Intermediate (WTI) crude futures remained essentially unchanged to close at $62.68 per barrel, but natural gas prices fell some 1.8% to end at $2.888 per million British thermal units (MMBtu).
Oil prices were nearly flat this week. Early gains from Ukrainian strikes on Russian refineries were canceled out by OPEC+ supply increases and markets shrugging off new EU sanctions.
Meanwhile, the natural gas prices fell due to a large weekly build, combined with softer seasonal demand and weaker LNG exports.
Recap of the Week’s Most Important Stories
1. Upstream company California Resources announced that it has entered into a merger agreement with fellow operator Berry Corporation to combine the two firms in an all-stock deal valued at approximately $717 million. The valuation includes Berry’s net debt. CRC has stated that the combination of the two companies will unlock operational synergies, lower costs, and improve cash flow generation for the combined entity.
Per the terms of the agreement, California Resources shareholders will own approximately 94% of the combined firm following the closing of the deal. The merger is expected to strengthen Zacks Rank #1 (Strong Buy) CRC’s asset portfolio by adding high-quality, conventional assets, primarily with oil-weighted production, which complement the company’s existing low-decline, conventional oil assets in California.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
California Resources will also gain access to C&J Well Services, a subsidiary of BRY, as part of this transaction. C&J Well Services is an oilfield services firm, and the combination should help CRC improve the maintenance of its active wells and support long-term operational efficiency. It should also enable CRC to enhance its well abandonment capabilities and manage cost inflation in the long run. (CRC to Acquire BRY in All-Stock Merger Strengthening Asset Portfolio)
2. Chord Energy, a leading exploration and production firm in the United States, stated that it will acquire Williston Basin assets from a subsidiary of Exxon Mobil Corporation, XTO Energy. The acquisition will take place through an all-cash transaction of $550 million. According to Chord Energy, which operates extensively in the Williston Basin of the United States, the acquisition will further strengthen its presence in the premier shale basin.
The transaction involves 48,000 net acres in the Williston Basin, where CHRD has an 86% operated working interest. Furthermore, the acreage is 100% held by production, which implies that it is already producing oil and gas. The acquired assets are expected to enhance Chord’s inventory position with 90 net drilling sites, many of which overlap with its existing operations. This offers a contiguous acreage position, which allows for long-lateral drilling, a strategy that drives efficiency, improves well productivity and lowers the cost of production. The assets have a forecasted decline rate of approximately 23%.
The acquired assets are also expected to contribute 9,000 barrels of oil equivalent per day to the company’s production, consisting of 78% oil. The company noted that the acquired assets have breakeven costs in the $40-per-barrel range. This implies that these assets can sustain operations even during periods of low commodity prices, making them immediately compete for capital. The transaction will also reduce the overall breakeven cost for the company’s asset portfolio. (Chord Energy to Acquire Williston Basin Assets From XTO Energy)
3. Pembina Pipeline, a Canada-based oil and gas storage and transportation company, recently made an important announcement regarding the approval of a negotiated settlement between Alliance Pipeline Limited Partnership (Alliance) and a Shipper Committee, which involves shippers and other interested parties. This approval, granted by the Canada Energy Regulator (“CER”), has significant implications for the future of the Canadian portion of Alliance Pipeline.
The approval of this settlement marks a major milestone for Pembina as it continues to play a crucial role in North America’s energy infrastructure. Pembina’s president and CEO, Scott Burrows, expressed his satisfaction with the outcome, emphasizing that it establishes a fair and reasonable tolling structure for Alliance Pipeline for the next decade.
Alliance Pipeline is a major natural gas transmission system that serves as a crucial link between Canada and the United States. The pipeline, spanning thousands of miles, facilitates the movement of natural gas from western Canada to markets in the United States. This settlement, approved by the Canada Energy Regulator, ensures that this vital pipeline will continue to operate smoothly and efficiently for the foreseeable future. (Pembina Secures CER Approval for Alliance Pipeline Settlement)
4. Petrobras, Brazil’s state-owned integrated oil and gas company, has officially approved the construction of the São Tomé CCS Pilot Project in Macaé, Rio de Janeiro. This initiative represents the first Carbon Capture and Storage (“CCS”) pilot project in the country, setting a transformative precedent in Latin America’s transition to a low-carbon economy. With operations slated to begin in 2028, this project aims to capture and permanently store up to 100,000 tons of carbon dioxide (CO2) per year for a period of three years, advancing Brazil’s commitment to carbon neutrality by 2050.
The São Tomé CCS Pilot Project is more than a symbolic move. It is a cornerstone in Petrobras’ long-term decarbonization roadmap. This strategic project directly supports Brazil’s national climate agenda and Petrobras’ ambitious target of achieving net-zero emissions by 2050. It leverages decades of Petrobras' expertise in offshore technologies to enable cutting-edge CO2 capture, transportation and geological storage in deep saline formations.
The project will take place in Barra do Furado, located in the municipality of Quissamã, a region strategically selected for its geological suitability. This site offers optimal characteristics for the safe and permanent storage of CO2 in saline aquifers, a method globally recognized for its long-term stability and minimal environmental impact. (Petrobras Approves Brazil's First CCS Pilot Project in Macae)
Price Performance
The following table shows the price movement of some major oil and gas players over the past week and during the last six months.
Company Last Week Last 6 Months
XOM +0.6% -2.3%
CVX -0.6% -5.1%
COP -0.6% -8.8%
OXY +0.9% -5.3%
SLB -3.2% -18.5%
RIG +0.6% +12.7%
VLO +3.8% +29.1%
MPC +2.9% +28%
With oil unchanged and gas moving down for the week, stocks were mixed. The Energy Select Sector SPDR — a popular benchmark for energy companies — slipped 0.1% last week. Over the past six months, the sector fund has declined about 4%.
What’s Next in the Energy World?
Market participants will keep a close eye on regular data releases to gauge the direction of commodities. U.S. government statistics on oil and natural gas, one of the most reliable indicators, will be a key focus for energy traders. Fuel demand and stock drawdowns in the coming weeks will shape commodity price trends. Additionally, Baker Hughes' rig count data, a critical indicator of U.S. crude and natural gas production trends, is also closely monitored. Tariff-related developments will also be a key factor in determining price trends.