We recently took advantage of the pronounced weakness in Schlumberger’s stock price in order to increase our portfolio position in the company. International earnings and profit margins for the major services companies have been slower to rebound than in North America. That’s largely because international projects tend to be long-cycle in nature – these projects … Read more
We recently added to our existing albeit small portfolio position in Schlumberger, the premiere oilfield service company, long distinguished by both its strong management team and inherent competitive advantages that generate solid economic profits. The outlook for oil prices is certainly more bullish than in late 2016, when US production response surprised to the upside … Read more
Schlumberger is the leading innovator of the oilfield services sector. The company’s engineering and technology expertise coupled with management’s proven ability to wisely allocate capital allow it to maintain leading market shares in the most profitable areas of the oilfield service sector. Despite its undisputed quality, Schlumberger’s stock price is currently pricing in a longer-term … Read more
On Wednesday, August 26, Schlumberger announced it would acquire Cameron International for $66.36 per share, consisting of 0.716 Schlumberger share and $14.44 per share in cash. The offer represents a 56% premium to Cameron’s latest closing share price. Schlumberger believes that the transaction will increase earnings in the first year after closing the deal and expects to … Read more
We recently sold our position in Apache and reallocated that capital to an investment in Schlumberger. The recent drop in price for both companies makes each a compelling investment at current levels; however, we firmly believe that Schlumberger carries far less risk yet offers more potential upside. Although Apache currently offers a substantial margin of safety to … Read more
Schlumberger supplies technology, integrated project management and information solutions to oil and gas exploration and production industries worldwide. The company operates through three groups: Reservoir Characterization, Drilling, and Production. Schlumberger was founded in 1926 and is based in Houston, Texas. The recent volatility in the energy sector has driven down shares of Schlumberger such that the company’s valuation is … Read more