Schlumberger LimitedNYSE
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  • Yesterday, 3:26 PM
    • The combination of General Electric's (GE +0.8%) oil and gas business with Baker Hughes (BHI +0.4%) has the potential to challenge Schlumberger (SLB +0.2%), but "it's a long-term game," Bernstein analysts say.
    • Following yesterday’s investor meeting, the Bernstein boys say they are more convinced by the merger's long-term potential but remain cautious on delivery timing; while the long-term potential and revenue enhancement concepts dominated the meeting, the firm says little information was revealed on timing beyond the already published synergy estimates.
    • Bernstein agrees conceptually with management that GE-BHI will challenge SLB for large-scale, integrated, at-risk projects and leadership of new commercial models in E&P, but expects implementation will prove more challenging than conveyed at the investor meeting.
    | Yesterday, 3:26 PM | 17 Comments
  • Mon, Dec. 5, 6:41 AM
    | Mon, Dec. 5, 6:41 AM
  • Wed, Nov. 30, 3:28 PM
    • Stephens analysts say “structurally oversupplied crude markets will take more time to balance” even with an OPEC production cut, which makes them reiterate support for their top six picks among oil services stocks: Baker Hughes (BHI +6.4%), Nabors Industries (NBR +22.8%), Schlumberger (SLB +5.2%), Oceaneering International (OII +6.8%), Superior Energy Services (SPN +17.8%) and Flotek Industries (FTK +13.6%).
    • The firm says the companies "tend to have market leadership, stable balance sheets and/or cash flows, differentiated/diverse products or services or product line leadership.”
    • Stephens says a production cut and follow-through could justify its base case to high case range for oil averaging $52/bbl in 2017 and $54/bbl in 2018, with low and high cases ~$10/bbl higher or lower in each year.
    | Wed, Nov. 30, 3:28 PM
  • Wed, Nov. 30, 9:50 AM
    | Wed, Nov. 30, 9:50 AM | 29 Comments
  • Tue, Nov. 29, 10:20 AM
    | Tue, Nov. 29, 10:20 AM | 50 Comments
  • Mon, Nov. 28, 7:49 AM
    • Schlumberger (NYSE:SLB) says it has signed a preliminary agreement with Iran's government to technically evaluate an Iranian oil field, despite Pres.-elect Trump's vow to undo the nuclear pact with the country.
    • SLB says the deal does not involve the execution of oilfield services operations and that it intends to comply with the laws and regulations of the countries where it operates.
    • If completed, the deal would be SLB's first in Iran since European sanctions for the company to leave the country in 2010.
    | Mon, Nov. 28, 7:49 AM | 2 Comments
  • Thu, Nov. 10, 8:38 AM
    • British oil and gas explorer Ophir Energy (OTCPK:OPGYF) says it signed an agreement with OneLNGSM, a joint venture between units Schlumberger (NYSE:SLB) and Golar LNG (NASDAQ:GLNG), to develop the Fortuna project in Equatorial Guinea.
    • Ophir had said it could move forward without new partners for the Fortuna floating liquefied natural gas project as cost estimates had been cut by half to ~$450M and after SLB had walked away from the deal in June, but analysts say SLB's return to the project would be viewed positively by the market.
    • Ophir says it will own a 33.8% stake in the JV, while OneLNG will own the rest; a final investment decision is expected in H1 2017 with first gas in H1 2020.
    | Thu, Nov. 10, 8:38 AM | 1 Comment
  • Tue, Nov. 8, 2:48 PM
    • It's time to buy Baker Hughes (BHI -0.2%) now that the dust has settled regarding the company's merger with General Electric's (GE +0.6%) oil and gas business, Guggenheim analysts say.
    • Guggenheim estimates the new company will generate $4.9B in EBITDA in 2018 - a bit less than the $5.2B-$5.5B forecast by the companies - and should trade at a peer average 10.6x EBITDA, implying a fair value for BHI of ~$63, but the firm believes synergies provide another ~$4 of upside if GE is able to realize greater cost savings.
    • The firm also finds the industrial logic is sound: As Schlumberger (SLB -0.1%) has shown, regional and product line diversity enhance through-cycle returns and cash flow, which are benefits that the new BHI should be able to realize as a result of its pro forma portfolio.
    | Tue, Nov. 8, 2:48 PM | 3 Comments
  • Wed, Nov. 2, 3:56 PM
    | Wed, Nov. 2, 3:56 PM | 90 Comments
  • Mon, Oct. 31, 10:30 AM
    • Baker Hughes (BHI -1%) erases opening gains to trade in the red, while General Electric (GE +0.9%) is higher amid plans to combine their oil and gas operations.
    • The new company will be 62.5% owned by GE, with GE Oil & Gas CEO Lorenzo Simonelli serving as President and CEO; GE will fund a special one-time cash dividend of $17.50/share, or $7.4B, to existing BHI shareholders, who will own 37.5% of the new company.
    • The deal creates a company with more than $32B in FY 2015 revenue that could cut costs to better compete with rivals such as Schlumberger (SLB -0.9%) to provide equipment and services to oil rigs and wells; the $32B combined revenue places the new company only 8%-9% behind SLB.
    • The combined companies expect to generate $1.6B of synergies by 2020, primarily driven by cost savings; GE expects the deal to be accretive to 2018 EPS by $0.04 and 2020 EPS by $0.08.
    • Analysts see a high likelihood of the deal's completion given little product overlap outside of the Artificial Lift business and the relatively smaller size of the deal vs. the rejected Halliburton-Baker Hughes (HAL -0.5%) tie-up.
    • Moody’s, Fitch and S&P all affirmed GE’s credit ratings with stable outlooks following the announcement.
    | Mon, Oct. 31, 10:30 AM | 28 Comments
  • Mon, Oct. 31, 6:25 AM
    • Banking on a recovery in crude prices, General Electric (NYSE:GE) is merging its oil and gas business with Baker Hughes (NYSE:BHI), creating a large, listed player, that could compete with rivals like Schlumberger (NYSE:SLB).
    • GE will own 62.5% of the new company, which will have combined revenue of $32B, while Baker Hughes shareholders will own 37.5% and get a special one-time cash dividend of $17.50 per share after the deal closes (expected in mid-2017).
    • GE +1%; BHI +6.6% premarket
    | Mon, Oct. 31, 6:25 AM | 32 Comments
  • Sun, Oct. 30, 10:50 PM
    • The roughly $30B deal would see the creation of a new publicly-traded entity comprised of Baker Hughes (NYSE:BHI), GE's oil and gas business, and some cash from GE, reports the WSJ.
    • The new company would have more than $25B in annual revenue and thus be of large enough scale to better compete with rivals like Schlumberger (NYSE:SLB).
    • The structure of the deal also gives GE control of Baker Hughes without having to shell out for an outright acquisition.
    • Previously: WSJ: GE, Baker Hughes could reach deal as soon as next week (Oct. 28)
    | Sun, Oct. 30, 10:50 PM | 26 Comments
  • Fri, Oct. 21, 10:58 AM
    • Schlumberger (SLB -2.7%) says it sees early signs of recovery in the oil drilling industry activity in most parts of the world, after reporting mixed Q3 results that were helped by improved North American activity.
    • "The only place where we don't see any signs of recovery at this stage is in Asia", CEO Paal Kibsgaard said in today's earnings conference call, adding that he expects solid growth in the Middle East and Russia in 2017, and that he has seen a slight uptick in investment and activity in Latin America, Europe and Africa.
    • "It is critical for us to recover the large pricing concessions we have made over the past two years," Kibsgaard said on the call, and recent oil price gains had strengthened its negotiations with customers, but there were no "material movements" on pricing during Q3.
    • SLB said it is looking to gain market share in onshore North America, as demand for its high-end drilling technologies was rising with more oil companies looking to drill longer laterals; at the same time, it warns that the fracking market continued to be oversupplied with a "large number of very hungry players."
    | Fri, Oct. 21, 10:58 AM
  • Thu, Oct. 20, 6:36 PM
    • Schlumberger (NYSE:SLB) -0.4% AH after Q3 earnings beat expectations but fell 82% Y/Y on 17% less revenue and increased expenses related to the Cameron acquisition earlier this year.
    • Excluding results from Cameron, SLB says its Q3 land revenue in North America rose 14% Q/Q, attributed to higher drilling and fracturing activity, although pricing improvements were limited as much of the increase in activity was driven by small companies.
    • CEO Paul Kibsgaard says SLB foresees improved activity in onshore North American, Middle Eastern and Russian markets next year, but visibility remains limited since customer spending for 2017 is still in the planning process.
    • SLB's results come a day after rival Halliburton (NYSE:HAL) posted a small Q3 profit that it attributed to U.S. energy company customers starting to return to drilling this summer.
    | Thu, Oct. 20, 6:36 PM
  • Thu, Oct. 20, 4:18 PM
    • Schlumberger (NYSE:SLB): Q3 EPS of $0.25 beats by $0.03.
    • Revenue of $7.02B (-17.1% Y/Y) misses by $60M.
    • Shares -0.3%.
    • Press Release
    | Thu, Oct. 20, 4:18 PM
  • Wed, Oct. 19, 5:35 PM
    | Wed, Oct. 19, 5:35 PM | 28 Comments