California Resources to Buy Aera Energy in $2.1 Billion Deal (1)

Oil producer California Resources Corp. will buy Aera Energy LLC in a deal that values the company at about $2.1 billion, including debt, building its drilling portfolio in the Western state.

The combined company will be the largest oil and gas company in California by production, according to a statement announcing the all-stock deal. California Resources rose as much as 8.4% on the news, the biggest intraday spike in nearly a year.

Read more: California Resources to Merge With Aera Energy in $2.1B Deal

The Golden State has fallen out of favor with many international oil giants as the strictest ...