The Mile High City’s Liberty Oilfield Services Inc. and international oilfield powerhouse Schlumberger Limited announced an agreement in early September for the contribution of Schlumberger’s onshore hydraulic fracturing business in both the U.S. and Canada, called OneStim, in exchange for a 37% equity interest in the combined company.
The $448 million deal, expected to close in the fourth quarter of 2020 subject to Liberty stockholder and regulatory approvals as well as other closing conditions, makes the Denver fracking company the third largest in the U.S. oilfield services game, now with locations including Farmington, New Mexico; Williston, North Dakota; Odessa, Cibolo, Houston and Midland, Texas; and here in Gillette.
The acquisition includes Liberty assuming Schlumberger’s OneStim pressure pumping, pumpdown perforating and Permian frac sand businesses. As a part of the agreement, Liberty’s board will include two directors appointed by Schlumberger but keep its current management team in place.
Together, the companies boasted pro forma revenues of $5.2 billion last year alone, and with no debt and significant available liquidity, according to a Sept. 1 press release from Liberty.
“From day one, the Liberty team has been laser focused on delivering superior returns for our customers and stockholders,” said Liberty Chairman and Chief Executive Officer Chris Wright in the release, acknowledging that the last several months have been extremely challenging for both the industry and the Liberty family.
“These times also bring opportunity,” Wright added. “This transaction will be a transformative step forward in our journey as a company.”
Schlumberger Chief Executive Officer Olivier Le Peuch agreed.
“This partnership with Liberty will uniquely position us to leverage our technology and scale to significantly improve our customers’ performance,” Le Peuch said in the release.
The local office could not be reached for comment Tuesday.