DALLAS, Oct. 04, 2021 (GLOBE NEWSWIRE) -- Berry Corporation (bry) (NASDAQ:BRY) ("bry" or the "Company") today announced the acquisition of Basic Energy Services' ("Basic") California operations, which includes the legacy C&J Well Services ("C&J") operations acquired by Basic in March 2020. The acquisition officially closed on October 1, 2021. The acquired businesses will operate as C&J Well Services, LLC, a wholly owned subsidiary of bry.
The acquisition creates a strategic growth opportunity for bry. It is a synergistic fit with the Company's strategy to work with the State of California's energy transition goals to reduce fugitive emissions from orphan and idle wells, including methane and CO2. The market potential for these services is currently estimated at approximately $6 billion.
Bry's chairman and chief executive officer Trem Smith stated, "bry recognizes the oil and gas industry's role in the energy transition and is determined to be part of the solution. Basic and C&J's collective 74-year history of profitable operations now constitutes one of the largest rig servicing and well abandonment providers in California with one of the best safety records in the service industry. We are proud to add these services and this group of talented people, which will operate as C&J Well Services, to our portfolio. Our winning bid of approximately $43 million, subject to certain closing adjustments, equates to approximately 1.2 times legacy C&J's three-year average EBITDA, as well as management's projected 2021 EBITDA.
"We are excited to have C&J Well Services as part of the bry portfolio and will avail their capabilities to support California's goals for the energy transition. Together, we believe the new team is well positioned to be a leader in these efforts," Smith concluded.
Bry is committed to supporting C&J Well Services' customers and workforce and ensuring a seamless transition. Jack Renshaw will continue to lead this business as President of C&J Well Services, LLC, a newly formed company established as an independent entity from bry's E&P operations.
Bry is a publicly traded (NASDAQ:BRY) western United States independent upstream energy company with a focus on the conventional, long-lived oil reserves in the San Joaquin basin of California. More information can be found at the Company's website at bry.com.
The information in this press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address plans, activities, events, objectives, goals, strategies, or developments that the Company expects, believes or anticipates will or may occur in the future. The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions. Although we believe that these assumptions were reasonable when made, these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control. Therefore, such forward-looking statements involve significant risks and uncertainties that could materially affect our expected results of operations, liquidity, cash flows and business prospects, including those risks described under the heading "Item 1A. Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2020. You can typically identify forward-looking statements by words such as aim, anticipate, achievable, believe, budget, continue, could, effort, estimate, expect, forecast, goal, guidance, intend, likely, may, might, objective, outlook, plan, potential, predict, project, seek, should, target, will or would and other similar words that reflect the prospective nature of events or outcomes. Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise except as required by applicable law. Investors are urged to consider carefully the disclosure in our filings with the Securities and Exchange Commission, available from us at via our website or via the Investor Relations contact below, or from the SEC's website at www.sec.gov.
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