Liberty Oilfield Services Inc. (LBRT) Surged After Agreement With Schlumberger

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Liberty Oilfield Services Inc. (LBRT) was up 35.66% in Tuesday trading. Liberty Oilfield and Schlumberger on the day announced that they came to an agreement of contributing businesses to form a joint entity. Schlumberger principally agreed to merge its OneStim unit with Liberty. OneStim is an onshore hydraulic fracturing business of Schlumberger in the United States and Canada. Schlumberger’s businesses of Permian frac sand, pumpdown perforating and pressure pumping will also be merged into the Liberty. Schlumberger will get ownership of 37% equity in the combined entity as an exchange for its businesses. The combined firm will become able to provide best services for continuous development of alternate resources. It will benefit onshore markets of the United States and Canada as well.

The transaction is likely to be concluding before end of this year. But it has to get consent of Liberty’s stakeholder before execution. Further it is subject to approvals from regulatory authorities and other closing processes. The transaction will provide Liberty with better position to offer most advanced solution of completion services and technology in North America. Liberty’s current management will remain leading the combined entity.


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Providing its stakeholders with better and higher returns remained the top priority of Liberty team, Liberty Chairman and Chief Executive Officer Chris Wright said. Last few months were the most challenging, not only for the world but also for the oil industry. And Liberty family was no exception to those challenges. But that also brought opportunity for the company which it accepted. The transaction will result in transformation of the company moving forward, Wright added.

Liberty Oilfield commenced Wednesday trading a bit higher than previous close and was up 2.40% in early trading. Stock’s is showing strong weekly, monthly, quarterly and half yearly performances. But its yearly and year to date performances are on the weaker side.

Liberty might get the benefit of the transaction till its closing, but actual performance will become clear after creation of the combines entity.