Supercharging Technology and Scale in North American Pressure
Pumping
Liberty Oilfield Services Inc. (NYSE: LBRT) and Schlumberger
(NYSE: SLB) announced today an agreement for the contribution of
Schlumberger’s onshore hydraulic fracturing business in the United
States and Canada (“OneStim®”), including its pressure pumping,
pumpdown perforating, and Permian frac sand businesses to Liberty
in exchange for a 37% equity interest in the combined company. The
combined company will deliver best-in-class completion services for
the sustainable development of unconventional resource plays in the
United States and Canada land markets.
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The transaction is expected to close in the fourth quarter of
2020 and is subject to Liberty stockholder approval, regulatory
approvals and other customary closing conditions. Following the
closing of the transaction, Liberty will offer one of the most
innovative suites of completion services and technologies to
operators in onshore North America. Liberty will continue to be led
by its current management team.
Liberty Chairman and Chief Executive Officer Chris Wright
stated, “From day one, the Liberty team has been laser focused on
delivering superior returns for our customers and stockholders. The
last several months have been extremely challenging for the world,
the industry and the Liberty family. These times also bring
opportunity. This transaction will be a transformative step forward
in our journey as a company. Our expanded technology portfolio and
breadth of operations will enable Liberty to further raise our
already high bar for safe, innovative, efficient and ESG-conscious
frac operations. I look forward to the OneStim team joining Liberty
on our mission to help customers provide low-cost clean oil &
gas to our country and the world.”
Schlumberger Chief Executive Officer Olivier Le Peuch commented,
“I’m very proud we have reached this agreement to combine our
OneStim business with a leader in North American hydraulic
fracturing who shares a like-minded focus on customers, technology,
people and our safety culture. This partnership provides an ideal
home for our OneStim business and its employees and is in line with
our capital stewardship strategy while benefiting from future
market upside through our equity stake. Alongside the comprehensive
suite of services and products that Schlumberger continues to offer
in North America land, this partnership with Liberty will uniquely
position us to leverage our technology and scale to significantly
improve our customers’ performance.”
Some key transaction features, and strategic rationale, are:
- Combination of Liberty, the most innovative and efficient frac
company, with the technology and scale of Schlumberger OneStim, a
significant division of the world’s leading oilfield services
company
- Financially compelling transaction with strong benefits for
Liberty and Schlumberger shareholders, creating one of the largest
pressure pumping companies in North America
- 2019 combined pro-forma revenue of $5.2 billion and substantial
earnings power
- Combined pro-forma market capitalization of $1.2 billion and a
robust pro forma balance sheet with no net debt and significant
available liquidity
- Expanded technology and operating capabilities will further
increase E&P operator efficiencies, enhance shale asset
economics and raise the bar for sustainable and environmentally
conscious frac operations
- World-class completions data and technology portfolio including
the most comprehensive production and completions database, Big
Data analytics, advanced software for reservoir modeling and
designing optimal completions, and frac fleet automation and
electrification
- Alliance agreement will provide for future collaboration and
access to the companies’ technology portfolios beyond the scope of
this transaction, such as Schlumberger’s digital platform,
subsurface expertise, downhole completions equipment, frac trees
and flowback technology
Liberty will host an investor call on Tuesday September 1, 2020
at 8.00 am Mountain Time (10.00 am Eastern Time). Individuals
wishing to participate in the conference call should dial (833)
255-2827, or for international callers (412) 902-6704. Participants
should ask to join Liberty's call. A live webcast will be available
at http://investors.libertyfrac.com. The webcast can be accessed
for 90 days following the call. A telephone replay will be
available shortly after the call and can be accessed by dialing
(877) 344-7529, or for international callers (412) 317-0088. The
passcode for the replay is 10147680. The replay will be available
until September 8, 2020.
A presentation summarizing the transaction is available on
Liberty’s investor website at
https://investors.libertyfrac.com/
About Liberty
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. For more information about Liberty, please contact
Investor Relations at IR@libertyfrac.com
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.
Schlumberger Limited has executive offices in Paris, Houston,
London and The Hague, and reported revenues of $32.92 billion in
2019. For more information, visit www.slb.com.
This press release contains “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. The opinions, forecasts and projections regarding the
expected benefits of the proposed transaction; the expected timing
of the completion of the transaction; the parties’ ability to
complete the transaction considering the various regulatory
approvals and other closing conditions; future opportunities for
the combined company and its products and services; and any other
statements regarding the parties’ or the combined company’s future
expectations, beliefs, plans, objectives, financial conditions,
assumptions or future events or performance, are forward-looking
statements within the meaning of the federal securities laws. These
statements are subject to risks and uncertainties, including, but
not limited to, satisfaction of the closing conditions to the
proposed transaction, the timing to consummate the proposed
transaction, the risk that the proposed transaction does not occur,
negative effects from the pendency of the proposed transaction, the
ability to realize expected synergies and other benefits from the
proposed transaction, and other risks and uncertainties contained
in Schlumberger’s and Liberty’s most recent Annual Reports on Form
10-K as well as each party’s other filings with the Securities and
Exchange Commission (“SEC”), which are available at the SEC’s
website (http://www.sec.gov). Actual results may differ materially
from those expected, estimated or projected. Forward-looking
statements speak only as of the date they are made, and the parties
undertake no obligation to publicly update or revise any of them in
light of new information, future events or otherwise.
Additional Information and Where to Find it
In connection with the proposed transaction Liberty Oilfield
Services Inc. (“Liberty”) will file a proxy statement and other
materials with the SEC. In addition, Liberty may also file other
relevant documents with the SEC regarding the proposed transaction.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY
STATEMENT WHEN IT BECOMES AVAILABLE AND ANY OTHER RELEVANT
DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and
stockholders may obtain a free copy of the proxy statement (when
available) and other documents filed by Liberty at its website,
www.libertyfrac.com, or at the SEC’s website, www.sec.gov. The
proxy statement and other relevant documents may also be obtained
for free from Liberty by directing such request to Liberty, to the
attention of Investor Relations, 950 17th Street, Suite 2400
Denver, Colorado 80202.
Participants in the Solicitation
Liberty and its respective directors, executive officers and
certain other employees may be deemed to be participants in the
solicitation of proxies from Liberty’s stockholders in connection
with the proposed transaction. Investors and security holders may
obtain more detailed information regarding the names, affiliations
and interests of Liberty’s directors and executive officers by
reading Liberty’s definitive proxy statement on Schedule 14A, which
was filed with the SEC on March 10, 2020. Additional information
regarding potential participants in such proxy solicitation and a
description of their direct and indirect interests, by security
holdings or otherwise, will be included in the proxy statement and
other relevant materials filed with the SEC in connection with the
proposed transaction when they become available.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200901005582/en/
Investors Michael Stock – Liberty Oilfield Services, Chief
Financial Officer Tel: +1 303 515 2851 IR@libertyfrac.com
Ndubuisi Maduemezia– Schlumberger Limited, Vice President of
Investor Relations Joy V. Domingo – Schlumberger Limited, Director
of Investor Relations Tel: +1 713 375 3535
investor-relations@slb.com
Media Michael Stock – Liberty Oilfield Services,
Chief Financial Officer Tel: +1 303 515 2851 IR@libertyfrac.com
Moira Duff, Corporate
Communication Manager, Schlumberger Limited Tel: +1 713 375 3494 communication@slb.com
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