California Resources Corporation (CRC), an independent energy and carbon management company committed to energy transition and decarbonization efforts, agreed to combine with Aera Energy in an all-stock transaction that values Aera at approximately $2.1 billion.
The combination will allow CRC to expand its carbon management business through the addition of surface acreage and rights, and significant new carbon dioxide pore space that will enable future carbon capture and sequestration development.
CRC is a producer of some of the lowest carbon intensity oil in the United States and focuses on maximizing the value of its land, mineral and technical resources to further its decarbonization efforts.
Aera operates in one of the largest oil producing regions in the nation, Bakersfield, California, and is known for its safety and environmental performance.
In 2022, S&C advised CRC in the formation of a joint venture with Brookfield Renewable to create a carbon management partnership dedicated to carbon capture and sequestration. The Firm’s work on the deal was shortlisted for the category of “Innovative Lawyers in Energy Transition” at the Financial Times’ Innovative Lawyers North America Awards. S&C’s prior work advising CRC includes guiding the company through its Chapter 11 restructuring, which it was able to exit just three months after filing.
The S&C team advising CRC includes Alison Ressler, Brad King and Tia Barancik. Isaac Wheeler and Stephen Profeta are advising on tax matters. John Estes and Courtland Morrice are advising on financing matters. Mark Schenkel and Elizabeth Levin are advising on intellectual property matters. Jeannette Bander and Rebecca Rabinowitz are advising on executive compensation matters. Matthew Brennan is advising on environmental matters. Steven Holley and Daniel Richardson are advising on antitrust matters.