LONG BEACH, CA – Shareholders of California Resources Corp (NYSE:CRC), an oil and natural gas exploration and production company, have given the green light to a significant acquisition. In a special meeting held on Wednesday, the company's stockholders approved the issuance of shares for the acquisition of Aera Energy LLC and its operating affiliate Aera Energy Services Company.
The approval is a key step in complying with the New York Stock Exchange's regulatory requirements, specifically Section 312.03 of the NYSE Listed Company Manual. The special meeting, which took place on June 26, 2024, saw a quorum with 64,284,719 shares represented in person or by proxy.
The proposal to issue shares as part of the terms set forth in the Merger Agreement received overwhelming support from the shareholders, with 63,972,219 votes in favor, 225,808 against, and 86,692 abstentions. The strong affirmative vote avoided the need for any adjournment for further consideration or voting.
This strategic move follows the announcement made on February 9, 2024, when California Resources Corporation initially reported the pending acquisition in a Current Report on Form 8-K. The acquisition is expected to enhance CRC's portfolio and presence in the energy sector.
The company, headquartered at 1 World Trade Center in Long Beach, California, is incorporated in Delaware and operates under the IRS Employer Identification No. 46-5670947. As of May 6, 2024, the record date for determining stockholders entitled to vote at the Special Meeting, CRC had 68,265,507 shares of common stock outstanding.
The successful vote marks a pivotal moment for California Resources Corp as it moves forward with its expansion plans. The acquisition is anticipated to be a significant addition to CRC's operations and assets.
In other recent news, California Resources Corporation (CRC) has been making strategic moves that have caught the attention of Wall Street. RBC Capital maintained an Outperform rating on the company, highlighting the potential of its carbon management business and the exploration into powering California data centers with carbon-free solutions. CRC's planned merger with Aera Energy, expected to close in mid-2024, is seen as a significant improvement to its financial standing and free cash flow profile.
CRC also recently announced its intention to offer $500 million in senior unsecured notes due 2029, the proceeds of which are earmarked for the repayment of existing debts of Aera Energy, LLC and its operating affiliate Aera Energy Services Company. On the financial front, CRC reported solid Q1 2024 results, with $149 million in adjusted EBITDAX and $33 million in free cash flow. These are recent developments that underline CRC's strategic moves and financial health.
InvestingPro Insights
As California Resources Corp (NYSE:CRC) shareholders endorse the acquisition of Aera Energy LLC, the company's financial health and market outlook offer additional insights for investors. According to InvestingPro data, CRC's market capitalization stands at $3.53 billion, reflecting its substantial presence in the oil and natural gas sector. The company's P/E ratio, a metric used to gauge the value of a company's shares relative to its earnings, is currently at 13.99, suggesting that investors may find the shares reasonably valued compared to industry peers.
InvestingPro Tips highlight that CRC has demonstrated a commitment to shareholder returns, having increased its dividend for three consecutive years, with a current dividend yield of 2.41%. Additionally, the company's liquid assets surpass short term obligations, indicating a solid liquidity position. Moreover, with 4 analysts having revised their earnings estimates upwards for the upcoming period, there is a positive sentiment regarding CRC's future profitability, which has been echoed by an analyst consensus that the company will be profitable this year.
For investors seeking more in-depth analysis and additional tips, InvestingPro offers a comprehensive suite of tools and metrics. There are 7 more InvestingPro Tips available for CRC, which can be accessed by visiting https://www.investing.com/pro/CRC. Interested individuals can take advantage of a special offer using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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