Liberty Oilfield Closes $448 Million Deal Buying Schlumberger’s OneStim Fracking Business
[Click image to enlarge]
[Click image to enlarge]
The Mile High City’s Liberty Oilfield Services and international oilfield powerhouse Schlumberger Limited announced an agreement in early September for the contribution of Schlumberger’s onshore hydraulic fracturing business in both the U.S. and Canada, called OneStim, in exchange for a 37 percent equity interest in the combined company.
The $448 million deal, expected to close in the fourth quarter of 2020 subject to Liberty stockholder and regulatory approvals as well as other closing conditions, makes the Denver fracking company the third largest in the U.S. oilfield services game, now with locations including Farmington, New Mexico; Williston, North Dakota; Odessa, Cibolo, Houston and Midland, Texas; and in Gillette, Wyoming.
The acquisition includes Liberty assuming Schlumberger’s OneStim pressure pumping, pumpdown perforating and Permian frac sand businesses. As a part of the agreement, Liberty’s board will include two directors appointed by Schlumberger but keep its current management team in place.
Together, the companies boasted pro forma revenues of $5.2 billion last year alone, and with no debt and significant available liquidity, according to a Sept. 1 press release from Liberty.
“From day one, the Liberty team has been laser focused on delivering superior returns for our customers and stockholders,” said Liberty Chairman and Chief Executive Officer Chris Wright in the release, acknowledging that the last several months have been extremely challenging for both the industry and the Liberty family.
“These times also bring opportunity,” Wright added. “This transaction will be a transformative step forward in our journey as a company,” added Wright.
“This partnership with Liberty will uniquely position us to leverage our technology and scale to significantly improve our customers’ performance,” Schlumberger Chief Executive Officer Olivier Le Peuch said in the release.
Source: County 17
About Liberty Oilfield Services
Liberty is an independent provider of hydraulic fracturing services to onshore oil and natural gas exploration and production companies in North America. Liberty was founded in 2011 with a relentless focus on improving tight-oil completions, and an emphasis on customer partnerships and technology to find innovative answers to frac optimization. Liberty is headquartered in Denver, Colorado.
To stop by Liberty’s website, CLICK HERE
About Schlumberger
Schlumberger is the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the oil and gas industry. With product sales and services in more than 120 countries and employing approximately 85,000 people as of the end of second quarter of 2020 who represent over 170 nationalities, Schlumberger supplies the industry’s most comprehensive range of products and services, from exploration through production, and integrated pore-to-pipeline solutions that optimize hydrocarbon recovery to deliver reservoir performance sustainably.
To stop by Schlumberger’s website, CLICK HERE
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
