Markets
SOL

Schlumberger, BAUER Form JV to Develop Land Drilling Rigs

Schlumberger Ltd.SLB has inked a joint venture (JV) agreement with BAUER Maschinen GmbH, an affiliated company of BAUER AG, to manufacture land drilling rigs and related products.

In the JV, Schlumberger and BAUER have an ownership of 49% and 51%, respectively. The JV will be responsible for the development and manufacture of land drilling rigs as well as related rig equipment for use in the oil, gas and geothermal sectors by Schlumberger and other third parties.

Schlumberger's latest agreement is in sync with its strategy of providing state-of-the-art land rigs that will further enhance the company's drilling technology portfolio. These will also facilitate Schlumberger's customers to boost their drilling performance and lower well cost.

BAUER is a leading manufacturer of high quality foundation drilling equipment as well as provider of global rig manufacturing capabilities with facilities in Germany, the U.S., China, Far East and Russia.

Schlumberger is a premier oilfield services company that provides technology, project management and information services to the global oil and gas industry.

Schlumberger's strong balance sheet, technological leadership and efficient management are expected to prove beneficial for it in the long term. Moreover, the company's efforts to increase its capacity in pressure pumping and strengthening deepwater activity in the Gulf of Mexico are likely to add to revenues going forward. While hydraulic fracturing pricing and land drilling activity remained depressed throughout North America, this was more than offset by the company's superior technology, internal efficiency gains and size.

Currently, Schlumberger carries a Zacks Rank #3 (Hold). Some better-ranked players from the energy sector are Energy Transfer Equity, L.P. ETE , ReneSola Ltd. SOL and Boardwalk Pipeline Partners, LP BWP . Each of these stocks sports a Zacks Rank #1 (Strong Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

SCHLUMBERGER LT (SLB): Free Stock Analysis Report

RENESOLA LT-ADR (SOL): Free Stock Analysis Report

ENERGY TRAN EQT (ETE): Free Stock Analysis Report

BOARDWALK PIPLN (BWP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

SOL SLB

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More