SLB Announces Definitive Agreement to Sell Its Interests in Palliser Block

Rhea-AI Summary

SLB (NYSE: SLB), a global energy technology company, has announced a definitive agreement to sell its interests in the Palliser Block in Alberta, Canada. The Palliser Block includes oil and gas wells, surface facilities, a pipeline network, and certain oil and gas development rights. The transaction is subject to regulatory approval and other customary closing conditions. It is expected to close late in the fourth quarter of 2024.

Positive

• Potential for improved financial position through asset divestiture
• Strategic realignment of portfolio to focus on core business areas

Negative

• Reduction in oil and gas assets and potential future revenue streams

Insights

Energy Industry Analyst

This divestiture of SLB's interests in the Palliser Block represents a strategic move to streamline its portfolio and potentially reallocate capital to core technology and services businesses. The sale aligns with the industry trend of major oilfield services companies focusing on their strengths in technology and efficiency improvements rather than direct asset ownership.

While the financial terms are not disclosed, this transaction could have several implications:

• Improved balance sheet flexibility for SLB
• Potential for reinvestment in higher-margin technology segments
• Reduced exposure to commodity price fluctuations

The late 2024 closing timeline suggests a complex transaction, possibly involving regulatory scrutiny or intricate asset transfer processes. Investors should monitor for updates on the sale price and SLB's plans for the proceeds, as these factors will determine the true impact on the company's financial position and future strategy.

HOUSTON--(BUSINESS WIRE)-- Global energy technology company SLB (NYSE: SLB) today announced that it has entered into a definitive agreement to sell its interests in the Palliser Block located in Alberta, Canada.

The Palliser Block consists of oil and gas wells, surface facilities, a pipeline network and certain oil and gas development rights. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close late in the fourth quarter of 2024.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as “expect,” “may,” “can,” “estimate,” “intend,” “anticipate,” “will,” “potential,” “projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241017034315/en/

Media

Josh Byerly – SVP of Communications

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com

Investors

James R. McDonald – SVP of Investor Relations & Industry Affairs

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

Source: SLB

FAQ

What assets is SLB selling in the Palliser Block transaction?

SLB is selling its interests in the Palliser Block, which includes oil and gas wells, surface facilities, a pipeline network, and certain oil and gas development rights located in Alberta, Canada.

When is the Palliser Block sale by SLB expected to close?

The sale of SLB's interests in the Palliser Block is expected to close late in the fourth quarter of 2024, subject to regulatory approval and other customary closing conditions.

What is the stock symbol for SLB mentioned in the Palliser Block sale announcement?

The stock symbol for SLB, as mentioned in the press release, is NYSE: SLB.

Where is the Palliser Block that SLB is selling located?

The Palliser Block that SLB is selling is located in Alberta, Canada.