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Schlumberger (SLB) to Redeem $664M of Senior Notes Due 2021

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Schlumberger Limited SLB announced that its indirect wholly-owned subsidiary Schlumberger Investment SA (“SISA”) will redeem all $664,776,000 principal amount outstanding of its 3.300% senior notes, which are scheduled to get matured by 2021.

Notably, the company will repay the above-mentioned senior notes on Jun 28, 2021, as part of its continued efforts to reduce debt.

The outstanding notes will be redeemed at a redemption price of 100% of the aggregate principal amount along with accrued and unpaid interest on the notes if there is one. The company concluded that the senior notes will cease to be outstanding and the interest on the notes will cease to accrue on and after the redemption date.

Notably, the oilfield service player expects its cashflow to continue to grow, which will allow it to further lower its debt load. The company anticipates higher cashflow to stem from increased activities in more profitable international markets. This is being backed by a brightening fuel demand outlook.

Schlumberger’s debt-reduction initiatives are highly appreciable since the company’s debt exposure is significantly higher than the composite stocks belonging to the industry. In fact, its debt-to-capitalization ratio is consistently higher than the industry over the past two years.

Company Profile & Price Performance

Headquartered in Houston, TX, Schlumberger is a leading oilfield service provider.

Shares of the company have outperformed the industry in the past six months. Its stock has gained 44.8% compared with the industry’s 23% growth.

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Zacks Rank & Stocks to Consider

The company currently carries has a Zacks Rank #3 (Hold).

Some better-ranked players in the energy space are PDC Energy, Inc. PDCE, Oasis Petroleum Inc. OAS and Sasol Ltd. SSL, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, the Zacks Consensus Estimate for PDC Energy’s 2021 earnings has been raised by 46.9%.

Oasis’ earnings for 2021 are expected to increase 11.7% year over year.

Sasol’s earnings for 2021 are expected to surge 81.5% year over year.

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Schlumberger Limited (SLB) : Free Stock Analysis Report

Sasol Ltd. (SSL) : Free Stock Analysis Report

PDC Energy, Inc. (PDCE) : Free Stock Analysis Report

Oasis Petroleum Inc. (OAS) : Free Stock Analysis Report

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