- Barron's cover story is positive about oil-services giant Schlumberger (NYSE:SLB), whose recent acquisitions have catapulted SLB into a position of leadership in extracting liquids from shale basins, part of the booming business in hydraulic fracturing that's reshaping the industry.
- The acquisitions fix one of the company's few week spots, and should put it further ahead of smaller rivals like Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI).
- CEO Paal Kibsgaard believes SLB can achieve a 10x increase in operational reliability, reduce inventory levels by 25%, boost asset utilization by 100%, raise productivity by 20%, and lower unit support costs by 10%. By 2017, he expects to boost EPS to $9-10 (from $5.70 this year).
- Despite an 18% gain this year, shares looks cheap at about 9x estimated 2015 EV/Ebitda and eight times estimated 2016 EV/Ebitda vs. a historical multiple of 10 to 11.
From other sites
at Zacks.com (Thu, 2:00PM)
The Wall Street Journal: Schlumberger unit expected to plead guilty to violating Iran, Sudan sanctionsat MarketWatch.com (Wed, 3:26PM)
at 4-traders.com (Wed, 2:11AM)
at 4-traders.com (Tue, 10:27AM)
The Zacks Analyst Blog Highlights: Baker Hughes, Halliburton, Unit Corp and Schlumberger - Press Releasesat Zacks.com (Tue, 9:30AM)
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