Oil & Gas

SCHLUMBERGER (SLB), the leading oilfield services provider globally, announced a definitive agreement on Tuesday to acquire smaller competitor ChampionX Corporation in an all-stock transaction valued at $7.75 billion, as consolidation in the energy sector extends to oilfield services.

In the agreement, SLB and ChampionX stated that ChampionX shareholders would receive 0.735 shares of SLB common stock for each ChampionX share. Following the transaction's closure, ChampionX shareholders will hold approximately 9% of SLB's outstanding common stock.

After the announcement, ChampionX's shares surged by 10% in pre-market trading on the NASDAQ.

The deal, subject to approval by ChampionX shareholders, regulatory approvals, and other customary closing conditions, is expected to close before the end of 2024.

SLB's CEO, Olivier Le Peuch, commented on the deal, noting that customers are seeking to optimize their assets and improve efficiency in production and reservoir recovery. He emphasized the opportunity for service providers to partner with customers throughout the production lifecycle, offering integrated solutions and delivering differentiated value.

Le Peuch reiterated SLB's core strategy of meeting growing energy demand while accelerating decarbonization and emissions reduction through innovation, scale, and digitalization in the core oil and gas business.

SLB also announced plans to return $7 billion to shareholders over the next two years, with a target of $3 billion for 2024 and a target of $4 billion for 2025.

The acquisition by the world's largest oilfield services provider follows a series of merger agreements in the upstream and midstream sectors in the United States, totaling over $100 billion in recent months. Analysts anticipate continued consolidation in the industry.