Schlumberger aims to boost U.S. fracking fleet
recovery. “If these guys would pay attention, they’d have a better long-term industry, ” Wicklund said
James West, an analyst at investment bank Evercore ISI in New York, called it the “shell game of shale.”
The two-year oil bust sent crude prices plummeting from $100 oil down to a low of $26.21 a barrel in early 2016. Prices have since rebounded, but after rising to nearly $55 a barrel in February, prices have fallen over concerns that there is still too much oil on the market.
Crude settled Friday at $45.77 a barrel, down $1.15.
‘Incredibly strong’
Schlumberger, the first major energy services company to report its earnings, touted second-quarter revenue of $7.46 billion that represent an 8 percent gain from the first quarter and a 4 percent improvement over the same time period last year. Its rival, Halliburton of Houston, reports Monday.
Schlumberger posted a net loss of $74 million because of a one-time charges totalling $510 million. The charges are primarily from Venezuela’s inability to pay Schlumberger what it owes the company.
Bill Herbert, a senior energy analyst at Piper Jaffray & Co. in Houston, described Schlumberger’s results as “incredibly strong,” including betterthan-anticipated gains internationally.
Schlumberger announced late Thursday it’s doubling down on its Russian investments by acquiring a majority ownership stake in the Eurasia Drilling Co. Schlumberger started a strategic alliance with the Russian oilfield services giant in 2011, and planned in 2015 to buy a 45.6 percent stake in Eurasia for $1.7 billion. But that deal fell through amid Russian regulatory concerns.
Joint venture
The Eurasia management then took the company private. Schlumberger plans to acquire a 51 percent stake in Eurasia now but isn’t releasing details, including an acquisition price.
Schlumberger also is hoping to boost its U.S. fracking fleet before the end of the year by finalizing the deal for its planned joint venture with smaller services rival Weatherford International. Schlumberger would own 70 percent of the joint venture.