Liberty Oilfield Services and Schlumberger have announced an agreement for the contribution of OneStim, Schlumberger’s onshore hydraulic fracturing business in the US and Canada to Liberty, in exchange for a 37% equity interest in the combined company. The transaction is expected to close in Q4 2020 and is subject to Liberty stockholder approval, regulatory approvals and other customary closing conditions. The company will continue to be led by its current management team.
“The last several months have been extremely challenging for the world, the industry and the Liberty family,” Chris Wright, Liberty Chairman and CEO, said. “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 and gas to our country and the world.”
Olivier Le Peuch, Schlumberger CEO, 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.”
Some key transaction features are:
- The combination of Liberty with the technology and scale of Schlumberger OneStim;
- Financially compelling transaction with strong benefits for Liberty and Schlumberger shareholders;
- 2019 combined pro-forma revenue of $5.2 billion;
- Combined pro-forma market capitalization of $1.2 billion and a pro forma balance sheet with no net debt and significant available liquidity;
- Expanded technology and operating capabilities, which will further increase E&P operator efficiencies, enhance shale asset economics and increase sustainable and environmentally conscious frac operations;
- Big Data analytics, advanced software for reservoir modeling and designing optimal completions, and frac fleet automation and electrification; and
- An alliance agreement that 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.