Dallas-based, Bakersfield-founded Berry Corp. has announced its plans to acquire Santa Monica-based Macpherson Energy Corp. in a $70 million cash deal. The acquisition is expected to be completed in the third quarter of this year.
By applying its existing technologies, Berry aims to increase its daily production by approximately 10 percent, or roughly 2,400 barrels of oil per day. The purchase of Macpherson will allow Berry to expand its operations and enhance its oil field capabilities.
Driving the news: Berry produces oil in the Midway-Sunset Oil Field, rural Kern County, and Utah’s Uinta Basin, while Macpherson focuses on the Round Mountain and Mount Poso areas. By unlocking value from mature assets and utilizing existing well bores, Berry believes it can achieve significant production upside and generate synergies.
- All of Macpherson’s approximately 40 non-executive employees will be offered jobs at the combined company.
- The acquisition of Macpherson is Berry’s first since purchasing C&J Well Services in 2021.
- Both companies intend to work together to ensure the success of the acquired assets by leveraging the operational and technical knowledge of the Macpherson team.
- Berry expects the purchase to generate additional financial flexibility and pay for itself by the middle of next year.
- Half of the acquisition cost will be covered by Berry’s 2023 capital budget, with the remaining amount secured through expected cash flow and a final $20 million payment to Macpherson scheduled for July 2024.