Weatherford scraps JV plan, sells fracking unit to Schlumberger

|About: Schlumberger Limited (SLB)|By:, SA News Editor

Weatherford (NYSE:WFT) -11% premarket after selling its U.S. hydraulic fracturing business to Schlumberger (NYSE:SLB) for $430M, abandoning a planned joint venture.

WFT announced in March an agreement to place its North American pressure pumping and well completions operations into a JV with SLB in exchange for $535M in cash and a 30% stake in the resulting business, called OneStim.

RBC analyst Kurt Hallead says the deal doubles SLB’s hydraulic fracturing fleet and allows it to avoid a potential payout to acquire the rest of OneStim; WFT gets most of the cash it would have received under the original deal but gives up recurring income from the JV.

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