Energy Industry Intel & Commentary
Schlumberger’s bid for Cameron Int’l is big news in a flinching industry. The vision behind the deal is ambitious — even a bit brash. It’s more than just the consolidation of two large oilfield suppliers. The technical aspects of the plan could unleash industry ripples for decades to come. Cameron’s long-time focus has been on …
Changes in the outlook for the upstream oil and gas industry have led Schlumberger to launch a convincing bid for Houston-based oilfield equipment supplier and current joint-venture partner Cameron Int’l. The richly valued deal implies a price for Cameron’s stock of just over $66 per share, a 56% premium over its pre-announcement close. With the …
Continue reading “Schlumberger Angles for Growth with Bid for Cameron”
When it comes to M&A, understanding the differences between a buyer’s and seller’s customer satisfaction can help predict risk and opportunity. This, in turn, can impact the deal’s success.
This post was updated on June 24, 2019. Imagine a contest between two horses. History suggests one of the animals, having lost most of its races to the competitor, is the slower of the two. You are given even odds. Would you bet on the reliably slower horse? The answer, of course, is no. …
This post was updated on June 26, 2019. Oil prices have rebounded from their 2014 collapse. Yet for upstream suppliers, it’s hard to tell. It’s going to take more than crude in the $60s to rebalance the oilfield. The problem remains structural. In short, there are too many players chasing too little demand.
It is said what CEOs most enjoy is a challenge with outsize reward. If so, Mark McCollum should be ecstatic. As the incoming CEO of Weatherford International, he is tasked with resurrecting one of the more perennially promising, yet frustratingly underachieving, companies in the oil patch. McCollum’s predecessor, long-time CEO Bernard Duroc-Danner, built an organization with …
As the oil and gas sector stirs with a hopeful sense of purpose, several of its largest and most influential suppliers are pursuing distinctly different strategies. It’s not just about which products and services will propel the industry forward. To some extent, the balance of power between providers and customers is at stake. On one end of the …
Continue reading “Integrated Oilfield Suppliers Plot Divergent Paths”
GE Oil & Gas and Baker Hughes shocked the oil and gas world with the announcement they will come together to create the industry’s number two supplier. From a financial standpoint, the transaction is effectively an acquisition of Baker Hughes by GE. In practical terms, it’s more like a merger. Both companies will contribute their …
Continue reading “GE Deal Offers Baker Hughes a New Beginning”
In the 1980s and 1990s, the oilfield equipment sector, for all intents and purposes, neglected the customer. Since then, a select group of companies have successfully kept the focus of their efforts on satisfying customers with dependable products. They have coupled this with responsive service. The results are impressive. In fact, they’ve played critical roles …
Continue reading “Oilfield Equipment: Let Gaps Guide Investment”
If the devil lies in the details when it comes to Halliburton making its acquisition of Baker Hughes work for stakeholders, so might the opportunity. We’ve pointed out in the past the convergence of performance as seen by customers among the industry’s largest suppliers. We see elements of this same effect in the latest customer …
Continue reading “Halliburton & Baker Hughes: The Devil’s in the Details”