SLB and ChampionX Corporation have entered a definitive agreement for SLB to purchase ChampionX in an all-stock transaction, SLB said in a release. The agreement was unanimously approved by the ChampionX board of directors.
Under the terms of the agreement, ChampionX shareholders will receive 0.735 shares of SLB common stock in exchange for each ChampionX share. At the closing of the transaction, ChampionX shareholders will own approximately 9% of SLB’s outstanding shares of common stock.
SLB, Aker Carbon Capture to join forces to pursue decarbonization | OilNOW
“Our customers are seeking to maximize their assets while improving efficiency in the production and reservoir recovery phase of their operations,” Olivier Le Peuch, SLB’s chief executive officer, said. “This presents a significant opportunity for service providers who can partner with customers throughout the entire production lifecycle, offering integrated solutions and delivering differentiated value. The combination of ChampionX’s strong production-focused leadership throughout North America and beyond with our own international presence, unmatched technology portfolio, and history of innovation will drive tremendous value for our customers and stakeholders.”
“This acquisition will expand SLB’s presence in the less cyclical and growing production and recovery space that is closely aligned with our returns-focused, capital-light strategy,“ Le Peuch said.
Soma Somasundaram, president and CEO of ChampionX, said, “Becoming part of SLB will give us a much broader portfolio and the resources and reach to continue to lead the industry in providing energy to the world in an economically and environmentally sustainable way.”
Somasundaram said the companies share a vision for the future of energy that leverages technology and innovation to solve customers’ most complex problems and better serve communities.
Schlumberger reports record year for Middle East operations with US$33 billion in revenue | OilNOW
SLB expects to realize annual pretax synergies of approximately US$400 million within the first three years post-closing through revenue growth and cost savings. The transaction is subject to ChampionX shareholders’ approval, regulatory approvals and other customary closing conditions. It is anticipated that the closing of the transaction will occur before the end of 2024.
SLB also said it will return US$7 billion to shareholders over the next two years. SLB will increase its 2024 shareholder returns to a target of US$3 billion as well as set a target for 2025 shareholder returns of US$4 billion. “This commitment to our shareholders for 2024 and 2025 highlights our confidence in the value this transaction will create and, in our ability, to continue generating strong cash flow from our broader portfolio this year and next,” Le Peuch said.
