Liberty Oilfield Services provides hydraulic fracturing services to onshore oil and natural gas exploration and production firms across North America
Liberty Oilfield Services is a provider of hydraulic fracturing services. (Credit: Liberty Oilfield Services)
Schlumberger has agreed to merge OneStim, its onshore hydraulic fracturing business in the US and Canada, with Colorado-based Liberty Oilfield Services, in a move to create one of the largest pressure pumping firms in North America.
As part of the deal, Schlumberger is offloading its pressure pumping, pumpdown perforating, and Permian frac sand businesses in the two countries in return of a 37% stake in the combined pressure pumping company.
According to the US oilfield services provider, the combined company will provide best-in-class completion services for developing unconventional resource plays in the onshore US and Canada markets in a sustainable manner.
Founded in 2011, Liberty Oilfield Services provides hydraulic fracturing services to onshore oil and natural gas exploration and production firms across North America.
Liberty Oilfield Services chairman CEO comments on the transaction
Liberty Oilfield Services chairman and CEO Chris Wright said: “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.”
Schlumberger said that the enlarged pressure pumping company has a 2019 combined pro-forma revenue of $5.2bn and has significant earnings power. Besides, the new combined firm is said to have a combined pro-forma market capitalisation of $1.2bn and a strong pro forma balance sheet with zero net debt and considerable available liquidity, said the oilfield services provider.
The company said that the enlarged firm will have expanded technology and operating capabilities, which are expected to further boost the operator efficiencies of exploration and production operators. Furthermore, it will also help in enhancing shale asset economics besides increasing the standards for sustainable and environmentally conscious frac operations.
Schlumberger CEO Olivier Le Peuch said: “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.”