Investorideas.com

Get great ideas from our AI, cannabis, cleantech, crypto, esports and mining podcasts - be a guest or sponsor : 800 665 0411


Share on StockTwits

Liberty Oilfield Shares Climb 35% on Combination with Schlumberger's Pressure Pumping Business

Source: Streetwise Reports

 

September 3, 2020 (Investorideas.com Newswire) Liberty Oilfield Services shares traded higher after the firm reported that Schlumberger will contribute its North American pressure pumping business to Liberty in exchange for 37% equity ownership in the company.


Hydraulic fracturing company Liberty Oilfield Services Inc. (LBRT:NYSE) and global oilfield services firm Schlumberger Ltd. (SLB:NYSE) today announced an agreement for the "contribution of Schlumberger's onshore hydraulic fracturing business in the U.S. and Canada (OneStim®), including its pressure pumping, pumpdown perforating, and Permian frac sand businesses to Liberty in exchange for a 37% equity interest in the combined company." The firms advised that the combined company will focus its efforts on providing sustainable development and best-in-class completion services for unconventional resource plays in Canadian and U.S. land markets.

The companies indicated that that the transaction is anticipated to close in Q4/20, but remains subject to Liberty shareholder and regulatory approvals along with certain other customary closing conditions. It is expected that Liberty Oilfield Services will continue to be led by its current management team after the transaction is completed.

Chris Wright, chairman and CEO of Liberty Oilfield Services, commented, "From day one, the Liberty team has been laser focused on delivering superior returns for our customers and stockholders...This transaction will be a transformative step forward in our journey as a company. Our expanded technology portfolio and breadth of operations will enable Liberty to further raise our already high bar for safe, innovative, efficient and ESG-conscious frac operations. I look forward to the OneStim team joining Liberty on our mission to help customers provide low-cost clean oil & gas to our country and the world."

Schlumberger's CEO Olivier Le Peuch remarked, "I'm very proud we have reached this agreement to combine our OneStim business with a leader in North American hydraulic fracturing who shares a like-minded focus on customers, technology, people and our safety culture. This partnership provides an ideal home for our OneStim business and its employees and is in line with our capital stewardship strategy while benefiting from future market upside through our equity stake. Alongside the comprehensive suite of services and products that Schlumberger continues to offer in North America land, this partnership with Liberty will uniquely position us to leverage our technology and scale to significantly improve our customers' performance."

Liberty Oilfield Services is an independent hydraulic fracturing services provider headquartered in Denver, Colo. The company delivers onshore oil and natural gas services to exploration and production companies in North America. The firm stated that "it focuses on improving tight-oil completions, and an emphasis on customer partnerships and technology to find innovative answers to frac optimization."

Schlumberger Ltd. is based in Houston, Tex., and was described in the report as "the world's leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry." The company employs more than 85,000 people and provide services in over 120 countries. Schlumberger reported that it achieved revenues of $32.9 billion in 2019.

Liberty Oilfield Services started the day with a market capitalization of around $728.4 million with approximately 112.9 million shares outstanding and a short interest of about 4.5%. LBRT shares opened 13% higher today at $7.31 (+$0.86, +13.33%) over yesterday's $6.45 closing price. The stock has traded today between $7.31 and $9.19 per share and is currently trading at $8.72 (+$2.27, +35.19%).

Disclosure:

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

More Info:

Investorideas.com Newswire

This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders


Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investing involves risk and possible losses. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. Contact management and IR of each company directly regarding specific questions.

More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release and our other news services on the Investorideas.com newswire https://www.investorideas.com/News-Upload/ and tickertagstocknews.com

Global investors must adhere to regulations of each country. Please read Investorideas.com privacy policy: https://www.investorideas.com/About/Private_Policy.asp


Follow Us on StockTwits






Get more Oil and Gas - news, articles, and stock directories

Buy a energy guest post on Investorideas.com