California Resources Corp. has entered into a joint venture with a portfolio company of Los Angeles-based investment firm Ares Management to own the Elk Hills power plant near Bakersfield.

The Ares-led group has invested $750 million in the joint venture. About $297 million of the proceeds will repay Chatsworth-based CRC’s outstanding bank revolver balance.

The Ares group also purchased $50 million worth of CRC stock at a value of $21.33 a share.

Under a long-term commercial agreement, CRC will purchase power and gas processing services from the joint venture. In a statement, CRC said joint ventures provide an opportunity for the company “to prudently build on its solid track record of performance and accelerate sustainably profitable initiatives.”

“We are proud to have Ares as a strategic partner in our midstream joint venture at Elk Hills, and believe their equity investment validates the strong positioning of our world-class assets and flexible business model,” Todd Stevens, chief executive at CRC, said in a statement.

Shares of California Resources Corp. (CRC) closed Wednesday down $1.56, or 7.5 percent, to $19.24 on the New York Stock Exchange.