- The timing for Schlumberger’s (SLB -0.7%) acquisition of 45.6% in Russia’s largest drilling company is considered unusual, given the sanctions imposed on Russia, but Eurasia's shares have fallen by more than 60% over the past year after top customers Lukoil and Gazprom came under sanctions.
- The move signals that SLB is “taking an opportunity to strengthen its presence in the regional market,” the Otrkitie brokerage says, adding that it views the $22/share valuation of the deal as fair.
- SLB stock price targets are cut at several firms, including Argus and Jefferies, to reflect expectations for reduced spending by E&P customers, although the company generally is seen as well positioned in 2015 despite current industry headwinds.