SLB Joins Forces With Aker and Subsea7 in Offshore Tech Venture
SLB (SLB), the world's largest oil field services firm, formed a joint venture with Subsea7, an engineering firm, and Aker Solutions, a prominent Norwegian energy services company, per a Houston Chronicle report.
SLB, Aker Solutions and Subsea7 have combined their resources to establish OneSubsea, a venture that will spearhead advancements in offshore technology. This collaboration combines the offshore capabilities of these industry leaders. While SLB holds the majority stake at 70%, Aker Solutions and Subsea7 contribute 20% and 10%, respectively.
The joint venture (JV) brings together more than 11,000 skilled professionals, with dual headquarters in Houston and Oslo. The complementary strengths of these entities create a synergy that is poised to drive innovation and efficiency in offshore operations.
According to the report, SLB's CEO Olivier Le Peuch stated that this venture comes at a critical juncture for the offshore industry. With global operators keen on accelerating development cycles and maximizing the potential of their offshore assets, OneSubsea is poised to play a pivotal role in this resurgence. He added that by providing innovative solutions tailored to the unique challenges of offshore operations, the JV will work as a catalyst in an evolving market.
As part of the deal, Aker was issued $306.5 million in SLB stock. Meanwhile, Subsea7 acquired a 10% stake from Aker at the same valuation. OneSubsea is poised to lead the industry by deploying innovative technologies, including all-electric equipment and offshore gas compression systems. These advancements are set to be pivotal in enhancing operations, particularly in the Gulf of Mexico and South America.
Zacks Rank & Key Picks
Currently, SLB carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are Matador Resources Company MTDR and Range Resources Corporation RRC, each currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc CLB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR has witnessed an upward earnings estimate revision for 2024 over the past 30 days.
Range Resources is among the top 10 natural gas producers in the United States with a diversified asset portfolio spread between low-risk and long reserve-life Appalachian assets.
The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. RRC has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward.
CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from new and existing fields. It has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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