- Revenue of $9.14 billion increased 5% sequentially and 13% year
on year
- GAAP EPS of $0.77 increased 4% sequentially and 7% year on
year
- EPS, excluding charges and credits, of $0.85 increased 13%
sequentially and 18% year on year
- Net income attributable to SLB of $1.11 billion increased 4%
sequentially and 8% year on year
- Adjusted EBITDA of $2.29 billion increased 11% sequentially and
17% year on year
- Cash flow from operations was $1.44 billion and free cash flow
was $776 million
- Board approved quarterly cash dividend of $0.275 per share
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The exterior of the SLB headquarters in
Houston, Texas. (Photo: Business Wire)
SLB (NYSE: SLB) today announced results for the second-quarter
2024.
Second-Quarter Results
(Stated in millions, except per
share amounts)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue
$9,139
$8,707
$8,099
5%
13%
Income before taxes - GAAP basis
$1,421
$1,357
$1,293
5%
10%
Income before taxes margin - GAAP basis
15.5%
15.6%
16.0%
-4 bps
-42 bps
Net income attributable to SLB - GAAP basis
$1,112
$1,068
$1,033
4%
8%
Diluted EPS - GAAP basis
$0.77
$0.74
$0.72
4%
7%
Adjusted EBITDA*
$2,288
$2,057
$1,962
11%
17%
Adjusted EBITDA margin*
25.0%
23.6%
24.2%
142 bps
81 bps
Pretax segment operating income*
$1,854
$1,649
$1,581
12%
17%
Pretax segment operating margin*
20.3%
18.9%
19.5%
135 bps
76 bps
Net income attributable to SLB, excluding charges & credits*
$1,224
$1,082
$1,033
13%
19%
Diluted EPS, excluding charges & credits*
$0.85
$0.75
$0.72
13%
18%
Revenue by Geography
International
$7,452
$7,056
$6,297
6%
18%
North America
1,644
1,598
1,746
3%
-6%
Other
43
53
56
n/m
n/m
$9,139
$8,707
$8,099
5%
13%
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue by Division Digital & Integration
$1,050
$953
$947
10%
11%
Reservoir Performance
1,819
1,725
1,643
5%
11%
Well Construction
3,411
3,368
3,362
1%
1%
Production Systems
3,025
2,818
2,313
7%
31%
Other
(166)
(157)
(166)
n/m
n/m
$9,139
$8,707
$8,099
5%
13%
Pretax Operating Income by Division
Digital & Integration
$325
$254
$322
28%
1%
Reservoir Performance
376
339
306
11%
23%
Well Construction
742
690
731
7%
1%
Production Systems
473
400
278
18%
70%
Other
(62)
(34)
(56)
n/m
n/m
$1,854
$1,649
$1,581
12%
17%
Pretax Operating Margin by Division
Digital & Integration
31.0%
26.6%
34.0%
435 bps
-304 bps
Reservoir Performance
20.6%
19.7%
18.6%
98 bps
205 bps
Well Construction
21.7%
20.5%
21.7%
125 bps
0 bps
Production Systems
15.6%
14.2%
12.0%
146 bps
361 bps
Other
n/m
n/m
n/m
n/m
n/m
20.3%
18.9%
19.5%
135 bps
76 bps
SLB acquired the Aker subsea business
during the fourth quarter of 2023 in connection with the formation
of the OneSubsea joint venture. The acquired business generated
revenue of $485 million during the second quarter of 2024.
Excluding the impact of this accquisition, SLB's global
second-quarter 2024 revenue increased 7% year on year;
international second-quarter 2024 revenue increased 11% year on
year; and Production Systems second-quarter 2024 revenue increased
10% year on year.
*These are non-GAAP financial measures.
See sections titled "Divisions" and Supplementary Information" for
details.
n/m = not meaningful
Broad-Based Growth Driven by the International
Markets
SLB CEO Olivier Le Peuch commented, “We achieved solid
second-quarter results, with broad-based international revenue
growth and margin expansion across all Divisions. Our Core business
continued to build on its positive momentum and our digital
business accelerated, resulting in our highest quarterly
international revenue since 2014. These results demonstrate SLB’s
strong position in key, resilient markets, as we continue to
benefit from elevated activity in the Middle East & Asia,
particularly in gas, and our clients’ increased investments in
deepwater basins, exploration, and digital.
“Sequentially, revenue grew 5%, led by the Middle East &
Asia, which increased 6%. The increase in this area was driven by
capacity expansions, gas development projects, and production and
recovery, with a majority of GeoUnits in the area achieving record
revenue. We also continued to benefit from our enhanced offshore
exposure, particularly in deepwater basins across Latin America,
Europe & Africa, and in the US Gulf of Mexico.
Production Systems, Reservoir Performance, and Digital Lead
the Way
“Our Core Divisions—Reservoir Performance, Well Construction,
and Production Systems—grew combined revenue by 4% sequentially and
expanded pretax segment operating margin by 120 basis points (bps).
This strong performance was driven by the international markets,
where revenue once again reached a new cycle high.
“Sequentially, Production Systems grew by 7% and Reservoir
Performance increased by 5%, with growth led by subsea production
systems and with artificial lift, valves, surface production
systems, intervention, and stimulation each posting their highest
quarterly revenue of the cycle. This was the result of strong
activity in Europe & Africa, Latin America, and the Middle East
& Asia, stemming from the combination of long-cycle development
activity and the acceleration of production and recovery
investments. Meanwhile, Well Construction also grew sequentially
with measurements and fluids each posting cycle-high quarterly
revenue. This was supported by land activity and offshore
developments in the Middle East & Asia and Latin America,
partially offset by lower drilling in US land.
“Our Digital & Integration Division also performed well,
with revenue increasing 10% sequentially. This was entirely driven
by high-margin growth in digital, where revenue reached a new
quarterly high and remains on track to achieve our high-teens
growth ambition for the full year. Our strong results were fueled
by exploration data license sales and the increased adoption of our
Cloud, AI, and Edge technology platforms.
“Overall, our financial performance in the second quarter was
strong as our adjusted EBITDA margin expanded 142 bps sequentially,
cash flow from operations was $1.44 billion, and free cash flow was
$776 million.
“Additionally, during the first half of the year, we returned
$1.49 billion to shareholders through stock repurchases and
dividends, and we are on track to return $3.0 billion to
shareholders in 2024.
“Thank you to the SLB team for delivering such a strong
performance this quarter. I look forward to building on these
positive results throughout the rest of the year.”
Enhancing Margins with Further Opportunities Ahead
“Throughout the cycle, SLB has consistently achieved
industry-leading financial results by leveraging our differentiated
operating footprint and leading technical and digital offerings. As
we continue to navigate this cycle, we are poised to capture
quality revenue growth and unlock further margin expansion through
increased technology deployment and digital adoption, as well as a
heightened focus on operating efficiency and the optimization of
our support structure.
“Looking ahead to the second half of the year, we expect ongoing
momentum in the international markets, strong digital sales, and
our cost efficiency programs will enable us to expand margins and
deliver our ambition to grow full-year adjusted EBITDA in the
mid-teens.
“Beyond 2024, the fundamentals of this cycle remain in place,
and there is a long tailwind of growth opportunities, including
long-cycle gas and deepwater projects, production and recovery
activity, and the secular trends of digital and decarbonization.
This represents a strong backdrop to continue our margin expansion
and cash generation journey.
“Our strategy across our three engines of growth—Core, Digital,
and New Energy—is built to harness each of these opportunities, and
we are only becoming stronger through our elevated digital
offerings, the additional capabilities of OneSubsea, and the
announced pending acquisition of ChampionX.
“This business environment favors SLB’s strengths. With our
continued performance and ongoing emphasis on capital discipline
and cost efficiency, we remain well positioned to outperform the
market and deliver on our commitment to returns to
shareholders.”
Other Events
During the quarter, SLB repurchased 9.9 million shares of its
common stock for a total purchase price of $465 million. For the
first half of the year, SLB repurchased a total of 15.3 million
shares of its common stock for a total purchase price of $735
million.
On May 29, 2024, SLB issued $500 million of 5.000% Senior Notes
due 2027, $500 million of 5.000% Senior Notes due 2029, and $500
million of 5.000% Senior Notes due 2034.
On June 14, 2024, SLB and Aker Carbon Capture (ACC) announced
the closing of their previously announced joint venture. The new
company combines technology portfolios, expertise, and operations
platforms to support accelerated carbon capture adoption for
industrial decarbonization at scale. Following the transaction, SLB
owns 80% of the combined business and ACC owns 20%.
On July 18, 2024, SLB’s Board of Directors approved a quarterly
cash dividend of $0.275 per share of outstanding common stock,
payable on October 10, 2024, to stockholders of record on September
4, 2024.
Second-Quarter Revenue by Geographical Area
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
North America
$1,644
$1,598
$1,746
3%
-6%
Latin America
1,742
1,654
1,624
5%
7%
Europe & Africa*
2,442
2,322
2,031
5%
20%
Middle East & Asia
3,268
3,080
2,642
6%
24%
Eliminations & other
43
53
56
n/m
n/m
$9,139
$8,707
$8,099
5%
13%
International
$7,452
$7,056
$6,297
6%
18%
North America
$1,644
$1,598
$1,746
3%
-6%
SLB acquired the Aker subsea business
during the fourth quarter of 2023 in connection with the formation
of the OneSubsea joint venture. The acquired business generated
revenue of $485 million during the second quarter of 2024.
Excluding the impact of this accquisition, SLB's global
second-quarter 2024 revenue increased 7% year on year and
international second-quarter 2024 revenue increased 11% year on
year.
*Includes Russia and the Caspian
region
n/m = not meaningful
International
Revenue in Latin America of $1.74 billion increased 5%
sequentially due to higher sales of production systems in Brazil
and robust stimulation and intervention activity in Argentina.
Digital revenue grew in the double digits, offset by lower Asset
Performance Solutions (APS) revenue. Year on year, revenue
increased 7% due to higher sales of production systems in Brazil
and robust drilling activity in Argentina, partially offset by
lower drilling revenue in Mexico.
Europe & Africa revenue of $2.44 billion increased 5%
sequentially due to higher sales of production systems in
Scandinavia and West Africa and increased artificial lift revenue
in North Africa from new projects. Sequential growth was boosted by
a more than 20% increase in digital revenue. Year on year, revenue
increased 20% driven by the acquired Aker subsea business,
primarily in Scandinavia, and increased offshore exploration,
drilling, and production activity in Angola, Central and East
Africa. Double-digit growth in digital revenue also contributed to
the year-on-year growth.
Revenue in the Middle East & Asia of $3.27 billion
increased 6% sequentially due to increased sales of production
systems and increased intervention and evaluation activity in Saudi
Arabia. Higher digital revenue across the area and increased
drilling in Iraq, United Arab Emirates, China, and East Asia also
contributed to the sequential growth. Year on year, revenue
increased 24% due to higher drilling, intervention, and evaluation
activity as well as increased sales of production systems in Saudi
Arabia. Higher drilling in United Arab Emirates, Egypt, East Asia,
Indonesia, and China, as well as the acquired Aker subsea business
in Australia, also contributed to the year-on-year growth.
North America
North America revenue of $1.64 billion increased 3%
sequentially due to higher revenue in North America offshore driven
by higher digital revenue, mainly sales of exploration data
licenses and increased drilling. The sequential growth was
partially offset by lower drilling revenue in US land and lower
sales of production systems in the US Gulf of Mexico. Year on year,
revenue declined 6% due to lower drilling in US land and reduced
sales of production systems in the US Gulf of Mexico.
Second-Quarter Results by Division
Digital & Integration
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue
International
$757
$717
$712
6%
6%
North America
291
236
234
23%
24%
Other
2
-
1
n/m
n/m
$1,050
$953
$947
10%
11%
Pretax operating income
$325
$254
$322
28%
1%
Pretax operating margin
31.0%
26.6%
34.0%
435 bps
-304 bps
n/m = not meaningful
Digital & Integration revenue of $1.05 billion increased 10%
sequentially due to higher digital revenue while APS revenue was
flat. Growth in digital revenue was driven by the increased
adoption of our Cloud, AI, and Edge technology platforms and higher
exploration data license sales. Year on year, revenue increased 11%
due to digital growing in line with our ambition of full-year
growth in the high-teens while APS revenue was flat.
Digital & Integration pretax operating margin of 31%
expanded 435 bps sequentially, mostly due to improved profitability
in digital following strong exploration data license sales and
higher uptake of digital solutions. Year on year, pretax operating
margin contracted 304 bps due to lower profitability in APS from
the effects of higher APS amortization expense and lower gas
prices.
Reservoir Performance
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue
International
$1,684
$1,592
$1,512
6%
11%
North America
134
130
130
3%
4%
Other
1
3
1
n/m
n/m
$1,819
$1,725
$1,643
5%
11%
Pretax operating income
$376
$339
$306
11%
23%
Pretax operating margin
20.6%
19.7%
18.6%
98 bps
205 bps
n/m = not meaningful
Reservoir Performance revenue of $1.82 billion grew 5%
sequentially due to increased intervention and stimulation activity
across all geographic areas. While approximately 70% of the revenue
growth came from the Middle East & Asia, this growth was
widespread across land and offshore and generally from production
activity. Year on year, revenue increased 11% due to increased
stimulation and intervention activity, with approximately 80% of
the revenue growth coming from the Middle East & Asia.
Reservoir Performance pretax operating margin of 21% expanded 98
bps sequentially with profitability improving across the
international markets driven by higher activity. Year on year,
pretax operating margin expanded 205 bps on improved profitability
in the international markets driven by higher activity and improved
pricing from increased technology intensity.
Well Construction
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue
International
$2,768
$2,707
$2,582
2%
7%
North America
592
604
721
-2%
-18%
Other
51
57
59
n/m
n/m
$3,411
$3,368
$3,362
1%
1%
Pretax operating income
$742
$690
$731
7%
1%
Pretax operating margin
21.7%
20.5%
21.7%
125 bps
0 bps
n/m = not meaningful
Well Construction revenue of $3.41 billion increased 1%
sequentially and year on year with record quarterly revenue in
measurements and fluids. This was supported by ongoing land
activity and offshore developments in the Middle East & Asia
and Latin America, partially offset by lower drilling in US
land.
Well Construction pretax operating margin of 22% expanded 125
bps sequentially due to international activity increases in
measurements and fluids. Year on year, pretax operating margin was
flat as improved profitability internationally was offset by margin
contraction in North America as a result of lower drilling
activity.
Production Systems
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue International
$2,378
$2,164
$1,628
10%
46%
North America
640
647
679
-1%
-6%
Other
7
7
6
n/m
n/m
$3,025
$2,818
$2,313
7%
31%
Pretax operating income
$473
$400
$278
18%
70%
Pretax operating margin
15.6%
14.2%
12.0%
146 bps
361 bps
SLB acquired the Aker subsea business
during the fourth quarter of 2023 in connection with the formation
of the OneSubsea joint venture. The acquired business generated
revenue of $485 million during the second quarter of 2024.
Excluding the impact of this accquisition, SLB's global
second-quarter 2024 revenue increased 7% year on year and
Production Systems second-quarter 2024 revenue increased 10% year
on year.
n/m = not meaningful
Production Systems revenue of $3.03 billion increased 7%
sequentially with growth led by subsea production systems and with
artificial lift, valves, and surface production systems posting
record quarterly revenue in this cycle. Sequential growth was
driven by the international markets with strong activity in Europe
& Africa, followed by Latin America and the Middle East &
Asia. Year on year, revenue grew 31%, mainly due to the acquisition
of the Aker subsea business. Excluding the effects of the Aker
subsea acquisition, revenue grew 10% year on year driven by a 16%
increase in international sales. Organic year-on-year growth was
led by strong international sales of artificial lift, surface
production systems, completions, and valves, partially offset by
reduced sales of midstream production systems.
Production Systems pretax operating margin of 16% expanded 146
bps sequentially with improved profitability in subsea production
systems and artificial lift. Year on year, pretax operating margin
expanded 361 bps due to improved profitability in subsea production
systems, artificial lift, and surface production systems. The
margin expansions were driven by activity mix, execution
efficiency, and conversion of improved-price backlog.
Quarterly Highlights
CORE
Contract Awards
SLB continues to win new contract awards that align with SLB’s
core strengths, particularly in the international and offshore
basins. Notable highlights include the following:
- In the Kingdom of Saudi Arabia, Saudi Aramco awarded SLB a
long-term contract for unconventional gas directional drilling
services and drilling bits, in support of Aramco’s strategic goal
to increase gas production by more than 60% by 2030, compared to
2021 levels. SLB will provide innovative fit-for-basin
technologies, services, and best-in-class practices developed in
collaboration with Aramco. Cutting edge technologies, including the
NeoSteer™ at-bit-rotary-steerable system and unique drilling bits
developed and manufactured in Saudi Arabia, complemented with
Performance Live™ and advanced drilling automation will continue to
deliver record-breaking performances and mitigate operation
risks.
- In Qatar, a customer awarded SLB a five-year contract for
directional drilling, measurement-while-drilling, and
logging-while-drilling services. The contract will extend the
deployment of the GeoSphere HD™ high-definition reservoir
mapping-while-drilling service and the GeoSphere 360™ 3D reservoir
mapping-while-drilling service for proactive steering, waterfront
identification, and acquisition of valuable information for
subsurface modeling.
- In Egypt, SLB received a contract to integrate well
construction solutions and technologies for the exploration and
appraisal of five wells targeting the eastern Mediterranean hub
with opportunity to expand the contract to include more wells. SLB
will provide leading shoe-to-shoe solutions, which include the use
of the AxeBlade™ ridged diamond element bit cutter technology,
Rhino™ multicycle hydraulic underreamers, SonicScope™ multipole
sonic-while-drilling service, StethoScope™ formation
pressure-while-drilling service, and Orbit™ rising stem ball
valves.
- Offshore Norway, Equinor awarded SLB OneSubsea a contract for
the front-end engineering design of a 12-well, all-electric subsea
production systems project in the Fram Sør Field. The project will
fast-track wide-scale global adoption of electric subsea
technology, setting new standards for increased operator control,
subsea operational efficiency, and reduced offshore emissions. As
part of the agreement, future engineering, procurement, and
construction will be directly awarded to SLB OneSubsea conditional
on a final investment decision.
- Also offshore Norway, Equinor awarded SLB OneSubsea a contract
for the execution of the second stage of Phase 3 for Equinor’s
Troll project in the North Sea. To accelerate field delivery of the
subsea tieback to existing infrastructure, SLB OneSubsea will
leverage configurable solutions compliant with NCS2017+ for
standardized subsea production systems for application in the
Norwegian Continental Shelf. The objective for Troll Phase 3, Stage
2 is to accelerate production from the reservoir of approximately
55 billion standard cubic meters of gas.
- Also offshore Norway, OKEA awarded SLB OneSubsea and Subsea7 an
integrated engineering, procurement, construction, and installation
contract. The alliance will develop the Bestla (formerly known as
Brasse) Project in the North Sea, offshore Norway, specifically to
accelerate the subsea tieback delivery to aging platforms for
profitable and sustainable marginal field development.
- Offshore Angola, TotalEnergies awarded SLB OneSubsea a contract
for a 13-well subsea production system scope, including associated
equipment and services, in the development of the Kaminho project.
The project will be developed by TotalEnergies and its Block 20/11
partners in two phases for the Cameia and Golfinho discoveries.
During the Kaminho project’s first phase of development for the
Cameia field, SLB OneSubsea will collaborate with TotalEnergies to
deploy a highly configurable subsea production platform with
standardized vertical monobore subsea tree, wellhead, and controls
system.
Technology and Performance
Notable technology introductions and deployment in the quarter
include the following:
- In the US Gulf of Mexico (GOM), SLB and Shell Offshore Inc.
deployed Wellbore Insights on Delfi™ digital platform to enable
record-setting formation flowback volumes for deep reading pressure
transients on wireline. The solution enables cloud-based, wellbore
dynamics modeling workflows and prejob planning in addition to
real-time updates from the wellsite. Shell was able to
significantly increase the volume of reservoir fluid that could be
safely introduced during the sampling and testing operation,
improving accuracy and enhancing the radius of investigation. Shell
received a better forecast of reservoir production and avoided a
costly wiper trip, which eliminated more than 400 metric tons of
CO2e and saved 72 hours of rig-time costs.
- In Mexico, SLB and Pemex deployed OpenPath Flex™ customizable
acid stimulation service for the first time in its strategic fields
that target deep, hot, and heterogeneous carbonate reservoirs. The
initial implementation of the technology, in a well with
365-degrees-Fahrenheit bottomhole static temperature, resulted in a
3.6-fold production increase. Based on these results and additional
successful treatments, Pemex has transitioned to OpenPath Flex
service as the preferred stimulation system in its strategic
fields.
Decarbonization
SLB is focused on developing and implementing technologies that
can reduce emissions and environmental impact with practical,
quantifiably proven solutions. Highlights include the
following:
- In Morocco, Eni used SLB aqueous fluid solutions to positively
impact both performance and sustainability goals for a recent
challenging exploration well. Deploying HydraGlyde™
high-performance water-based drilling fluid system, SLB ensured 18
days of well stability in a high-temperature 12.25-inch section,
which saved time in operations and enabled 100% of the fluid to be
recycled between sections.
- In United Arab Emirates, SLB and Abu Dhabi National Oil Company
(ADNOC) Onshore successfully deployed the EcoShield™ low-carbon
geopolymer cement-free system, paving the way to decarbonize
cementing operations. This first deployment in Abu Dhabi eliminated
conventional Class G cement and used sustainable, locally sourced
materials during the cementing of conductor casing. This operation
achieved an estimated 85% reduction in CO2 emissions compared with
conventional conductor casing cement and represents a major
milestone on the oil and gas industry’s path to net zero. Because
of this success, ADNOC and SLB are looking to expand technology
application in surface casing jobs and beyond.
DIGITAL
SLB is deploying digital technology at scale, partnering with
customers to migrate their technology and workflows into the cloud,
embrace new AI-enabled capabilities, and leverage insights to
elevate their performance. Notable highlights include the
following:
Contract Awards
- SLB and TotalEnergies announced a 10-year partnership to
codevelop scalable digital solutions for enabling access to energy
resources, with improved performance and efficiency. The
partnership establishes a flexible framework for the companies to
work together on addressing key challenges across the energy value
chain, including carbon capture, utilization, and sequestration
(CCUS). The companies will integrate advanced digital capabilities,
including AI, with new and existing applications on SLB’s
extensible Delfi digital platform, adhering to the Open Group’s
OSDU® Technical Standard, and will initially focus on subsurface
digital solutions for reservoir engineering and geoscience modeling
and interpretation, leveraging Delfi on-demand reservoir
simulation.
- In Norway, Aker BP has awarded SLB a digital transformation
contract to codevelop a digital platform. This long-term
partnership aims to digitally transform Aker BP’s subsurface
workflows, reducing costs, shortening planning cycles, and
increasing production. The Delfi digital platform and Open Group’s
OSDU® Technical Standard will be used as key enablers for the
transformation of the company’s subsurface workflows.
- In Azerbaijan, an operator awarded SLB a contract for 3D and 4D
ocean-bottom node seismic processing over one of the production
assets in the Caspian Sea. The scope includes the seismic
processing of baseline and monitoring surveys that will be acquired
from 2024 to 2028. The Omega™ geophysical data processing software,
supported by cloud-compute scalability, will be used to deliver
high-quality 4D insights in short turnaround times to allow bp to
monitor asset production.
- Offshore Eastern Canada, Hibernia Management and Development
Company Ltd. (HMDC) and ExxonMobil Canada awarded SLB contracts for
the Hibernia and Hebron 3D and 4D seismic processing projects. The
results from this project are anticipated to maximize value from
both fields. In these projects, SLB’s innovative and collaborative
science-based solutions will help progress the energy sector.
- In Oman, ARA Petroleum Exploration and Production (ARA), part
of the wider Zubair Corporation, awarded SLB a five-year contract
to enhance ARA's reservoir engineering capabilities. Aligning with
its strategic goals to boost efficiency and productivity, SLB will
help to maximize production from small fields with future discovery
technologies. The partnership will integrate technologies to
support business growth, provide insights on field development
plans, and evaluate new discoveries. Advanced wellbore imaging in
the Techlog™ wellbore software will increase subsurface
understanding, Petrel™ subsurface software machine learning will
improve modeling, and Intersect™ high-resolution reservoir
simulator will deliver precise forecasting.
NEW ENERGY
SLB continues to participate in the global transition to
low-carbon energy systems through innovative technology and
strategic partnerships, including the following:
- In Indonesia, SLB has secured a contract from INPEX Masela,
Ltd., a subsidiary of INPEX Corporation, to support the national
strategic project for carbon capture and sequestration in Abadi
Field. SLB will deploy a suite of its subsurface and production
software—including Olga™ dynamic multiphase flow simulator,
Intersect high-resolution reservoir simulator, and Visage™
finite-element geomechanics simulator—to help identify the
reservoir’s compaction, caprock integrity, and surface subsidence
risks.
- In Australia, SLB was awarded a contract by Chevron Australia
for wireline evaluation services to support a project to optimize
the Gorgon Carbon Capture and Storage (CCS) system on Barrow
Island. The project aims to expand the system’s capacity to manage
water found within the reservoir where carbon dioxide is stored,
reducing reservoir pressure and enabling increased carbon dioxide
injection rates. Gorgon CCS is one of the world’s largest
operational CCS projects and, as of July 2024, has safely stored
more than 9.7 million tons of CO2e.
- In Pakistan, Oil and Gas Development Company Limited (OGDCL)
has partnered with SLB to develop a strategy for utilizing
geothermal resources in hydrocarbon fields across Pakistan. As part
of the collaboration, SLB will help OGDCL develop a plan for
evaluation of the geothermal potential of 25 fields in the
northern, southern, and central fields in Pakistan. SLB experts
together with the OGDCL team will assess surface, subsurface, and
well data of the fields to identify focus areas. The scope of the
initial OGDCL pilot project includes screening, evaluation, and
selection of nine fields for detailed analysis, estimation of
geothermal potential, wellbore modeling, and determination of next
steps.
- In Indonesia, a geothermal operator has awarded SLB a four-year
integrated drilling well services contract for geothermal
development. SLB will provide integrated project management, well
construction, and third-party services, including air drilling,
fishing, and liner adapters.
- In the United States, SLB and Ormat Technologies, Inc. have
partnered to develop and deliver integrated geothermal projects
that offer operators a comprehensive suite of solutions, from
exploration and resource assessment to power plant commissioning
and operation. This strategic collaboration combines the SLB
industry-leading expertise in reservoir characterization, well
completion, and production technologies with Ormat's
industry-leading expertise in geothermal fields and project
development; power plant design; manufacturing; operations; and
engineering, procurement, and construction capabilities. The focus
will be on both traditional geothermal systems and enhanced
geothermal systems.
- Also in the United States, SLB New Energy launched a new
commercially available 3D basin model report of the Smackover
lithium formation in Arkansas and Texas, covering an area of more
than 17 million-acres and focusing on the Smackover carbonate ramp
for lithium sweet spots of close to six million acres. The
Smackover report was created reviewing more than 6,800 well logs.
This is the first lithium basin report developed through a
combination of SLB subsurface expertise and lithium-brine knowledge
using advanced digital technology for modeling and simulation, such
as Petromod basin modeling software and Petrel™ subsurface
software, and innovative proprietary workflows for lithium
resources characterization. This multiclient report combines public
data—well logs, porosity data, temperature, geochemistry—to
generate models of the estimated lithium resources in place to
accelerate, optimize, and derisk the exploration workflow and
Smackover projects development.
- Also in the United States, SLB and Pantera Minerals partnered
to advance the previously identified leads and multiple reentry
wells into drill-ready prospects in the Smackover lithium asset in
Arkansas. Using industry-leading subsurface expertise and digital
technology, SLB will combine 2D seismic, gravity, and magnetic data
to create a 3D static model that defines the extent of the Upper
Smackover Formation and the location of faults. The model will
identify optimal well locations for future well planning and
designs, as well as provide resource estimation in the Arkansas
Smackover formation.
FINANCIAL TABLES
Condensed Consolidated Statement of Income
(Stated in millions, except per
share amounts)
Second Quarter
Six Months
Periods Ended June 30,
2024
2023
2024
2023
Revenue
$9,139
$8,099
$17,846
$15,835
Interest & other income (1)
85
82
169
174
Expenses
Cost of revenue (1)
7,262
6,502
14,270
12,787
Research & engineering
188
163
369
337
General & administrative
94
96
215
187
Merger & integration (1)
16
-
27
-
Restructuring (1)
111
-
111
-
Interest
132
127
245
244
Income before taxes (1)
$1,421
$1,293
$2,778
$2,454
Tax expense (1)
276
246
535
464
Net income (1)
$1,145
$1,047
$2,243
$1,990
Net income attributable to noncontrolling interests (1)
33
14
63
23
Net income attributable to SLB (1)
$1,112
$1,033
$2,180
$1,967
Diluted earnings per share of SLB (1)
$0.77
$0.72
$1.51
$1.36
Average shares outstanding
1,428
1,423
1,429
1,425
Average shares outstanding assuming dilution
1,443
1,442
1,445
1,444
Depreciation & amortization included in expenses (2)
$631
$561
$1,231
$1,124
(1)
See section entitled “Charges &
Credits” for details.
(2)
Includes depreciation of fixed assets and
amortization of intangible assets, exploration data costs, and APS
investments.
Condensed Consolidated Balance Sheet
(Stated in millions)
Jun. 30,
Dec. 31,
Assets
2024
2023
Current Assets
Cash and short-term investments
$4,003
$3,989
Receivables
8,605
7,812
Inventories
4,504
4,387
Other current assets
1,405
1,530
18,517
17,718
Investment in affiliated companies
1,678
1,624
Fixed assets
7,335
7,240
Goodwill
14,530
14,084
Intangible assets
3,198
3,239
Other assets
4,115
4,052
$49,373
$47,957
Liabilities and Equity
Current Liabilities
Accounts payable and accrued liabilities
$10,099
$10,904
Estimated liability for taxes on income
867
994
Short-term borrowings and current portion
of long-term debt
1,033
1,123
Dividends payable
410
374
12,409
13,395
Long-term debt
12,156
10,842
Other liabilities
2,528
2,361
27,093
26,598
Equity
22,280
21,359
$49,373
$47,957
Liquidity
(Stated in millions)
Components of Liquidity
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Dec. 31, 2023
Cash and short-term investments
$4,003
$3,491
$3,194
$3,989
Short-term borrowings and current portion of long-term debt
(1,033)
(1,430)
(1,993)
(1,123)
Long-term debt
(12,156)
(10,740)
(11,342)
(10,842)
Net Debt (1)
$(9,186)
$(8,679)
$(10,141)
$(7,976)
Details of changes in liquidity follow:
Six
Second
Six
Months
Quarter
Months
Periods Ended June 30,
2024
2024
2023
Net income
$2,243
$1,145
$1,990
Charges and credits, net of tax (2)
139
120
(28)
2,382
1,265
1,962
Depreciation and amortization (3)
1,231
631
1,124
Stock-based compensation expense
173
73
160
Change in working capital
(2,044)
(558)
(1,286)
Other
21
25
(22)
Cash flow from operations
1,763
1,436
1,938
Capital expenditures
(862)
(463)
(881)
APS investments
(256)
(135)
(253)
Exploration data capitalized
(91)
(62)
(83)
Free cash flow (4)
554
776
721
Dividends paid
(751)
(394)
(605)
Stock repurchase program
(735)
(465)
(443)
Proceeds from employee stock plans
120
5
124
Business acquisitions and investments, net of cash acquired
(505)
(478)
(262)
Purchases of Blue Chip Swap securities
(76)
(24)
(100)
Proceeds from sale of Blue Chip Swap securities
51
17
61
Proceeds from sale of Liberty shares
-
-
137
Taxes paid on net settled stock-based compensation awards
(78)
-
(144)
Other
39
(19)
(128)
Increase in net debt before impact of changes in foreign
exchange rates
(1,381)
(582)
(639)
Impact of changes in foreign exchange rates on net debt
171
75
(170)
Increase in Net Debt
(1,210)
(507)
(809)
Net Debt, beginning of period
(7,976)
(8,679)
(9,332)
Net Debt, end of period
$(9,186)
$(9,186)
$(10,141)
(1)
“Net Debt” represents gross debt less cash
and short-term investments. Management believes that Net Debt
provides useful information to investors and management regarding
the level of SLB’s indebtedness by reflecting cash and investments
that could be used to repay debt. Net Debt is a non-GAAP financial
measure that should be considered in addition to, not as a
substitute for or superior to, total debt.
(2)
See section entitled “Charges &
Credits” for details.
(3)
Includes depreciation of fixed assets and
amortization of intangible assets, exploration data costs, and APS
investments.
(4)
“Free cash flow” represents cash flow from
operations less capital expenditures, APS investments, and
exploration data costs capitalized. Management believes that free
cash flow is an important liquidity measure for the company and
that it is useful to investors and management as a measure of SLB’s
ability to generate cash. Once business needs and obligations are
met, this cash can be used to reinvest in the company for future
growth or to return to shareholders through dividend payments or
share repurchases. Free cash flow does not represent the residual
cash flow available for discretionary expenditures. Free cash flow
is a non-GAAP financial measure that should be considered in
addition to, not as a substitute for or superior to, cash flow from
operations.
Charges & Credits
In addition to financial results determined in accordance with
US generally accepted accounting principles (GAAP), this
second-quarter 2024 earnings release also includes non-GAAP
financial measures (as defined under the SEC’s Regulation G). In
addition to the non-GAAP financial measures discussed under
“Liquidity”, SLB net income, excluding charges & credits, as
well as measures derived from it (including diluted EPS, excluding
charges & credits; effective tax rate, excluding charges &
credits; adjusted EBITDA and adjusted EBITDA margin) are non-GAAP
financial measures. Management believes that the exclusion of
charges & credits from these financial measures provide useful
perspective on SLB’s underlying business results and operating
trends, and a means to evaluate SLB’s operations period over
period. These measures are also used by management as performance
measures in determining certain incentive compensation. The
foregoing non-GAAP financial measures should be considered in
addition to, not as a substitute for or superior to, other measures
of financial performance prepared in accordance with GAAP. The
following is a reconciliation of certain of these non-GAAP measures
to the comparable GAAP measures. For a reconciliation of adjusted
EBITDA to the comparable GAAP measure, please refer to the section
titled “Supplementary Information” (Question 9).
(Stated in millions, except per share amounts)
Second
Quarter 2024 Pretax Tax Noncont.Interests Net DilutedEPS SLB
net income (GAAP basis)
$1,421
$276
$33
$1,112
$0.77
Cost-out program (1)
111
17
-
94
0.07
Merger & integration (2)
31
5
8
18
0.01
SLB net income, excluding charges & credits
$1,563
$298
$41
$1,224
$0.85
First Quarter 2024 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$1,357
$259
$30
$1,068
$0.74
Merger & integration (1)
25
6
5
14
0.01
SLB net income, excluding charges & credits
$1,382
$265
$35
$1,082
$0.75
Six Months 2024 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$2,778
$535
$63
$2,180
$1.51
Cost-out program (1)
111
17
-
$94
$0.07
Merger & integration (3)
56
11
13
32
0.02
SLB net income, excluding charges & credits
$2,945
$563
$76
$2,306
$1.60
Six Months 2023 Pretax Tax Noncont.Interests Net
DilutedEPS SLB net income (GAAP basis)
$2,454
$464
$23
$1,967
$1.36
Gain on sale of Liberty shares (4)
(36)
(8)
-
(28)
(0.02)
SLB net income, excluding charges & credits
$2,418
$456
$23
$1,939
$1.34
(1)
Classified in Restructuring in the
Condensed Consolidated Statement of Income.
(2)
$15 million of these charges were
classified in Cost of revenue in the Condensed Consolidation
Statement of Income with the remaining $16 million classified in
Merger & integration.
(3)
$29 million of these charges were
classified in Cost of revenue in the Condensed Consolidation
Statement of Income with the remaining $27 million classified in
Merger & integration.
(4)
Classified in Interest & other income
in the Condensed Consolidated Statement of Income.
There were no charges or credits during the second quarter of
2023.
Divisions
(Stated in millions)
Three Months Ended
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Revenue
Income Before Taxes
Revenue
Income Before Taxes
Revenue
Income Before Taxes
Digital & Integration
$1,050
$325
$953
$254
$947
$322
Reservoir Performance
1,819
376
1,725
339
1,643
306
Well Construction
3,411
742
3,368
690
3,362
731
Production Systems
3,025
473
2,818
400
2,313
278
Eliminations & other
(166)
(62)
(157)
(34)
(166)
(56)
Pretax segment operating income
1,854
1,649
1,581
Corporate & other
(191)
(191)
(183)
Interest income(1)
29
34
19
Interest expense(1)
(129)
(110)
(124)
Charges & credits(2)
(142)
(25)
-
$9,139
$1,421
$8,707
$1,357
$8,099
$1,293
(Stated in millions)
Six Months Ended
Jun. 30, 2024
Jun. 30, 2023
Revenue
Income Before Taxes
Revenue
Income Before Taxes
Digital & Integration
$2,003
$579
$1,840
$587
Reservoir Performance
3,544
715
3,146
548
Well Construction
6,779
1,432
6,623
1,403
Production Systems
5,843
873
4,520
483
Eliminations & other
(323)
(97)
(294)
(49)
Pretax segment operating income
3,502
2,972
Corporate & other
(382)
(353)
Interest income(1)
63
36
Interest expense(1)
(238)
(237)
Charges & credits(2)
(167)
36
$17,846
$2,778
$15,835
$2,454
(1)
Excludes amounts which are included in the
segments’ results.
(2)
See section entitled “Charges &
Credits” for details.
Supplementary Information
Frequently Asked Questions
1)
What is the capital investment guidance
for the full-year 2024?
Capital investment (consisting of capex,
exploration data costs, and APS investments) for the full-year 2024
is expected to be approximately $2.6 billion, which is the same
level as full-year 2023.
2)
What were cash flow from operations and
free cash flow for the second quarter of 2024?
Cash flow from operations for the second
quarter of 2024 was $1.4 billion and free cash flow was $776
million.
3)
What was included in “Interest &
other income” for the second quarter of 2024?
“Interest & other income” for the
second quarter of 2024 was $85 million. This consisted of interest
income of $38 million and earnings of equity method investments of
$47 million.
4)
How did interest income and interest
expense change during the second quarter of 2024?
Interest income of $38 million for the
second quarter of 2024 was flat sequentially. Interest expense of
$132 million increased $19 million sequentially.
5)
What is the difference between SLB’s
consolidated income before taxes and pretax segment operating
income?
The difference consists of corporate
items, charges and credits, and interest income and interest
expense not allocated to the segments, as well as stock-based
compensation expense, amortization expense associated with certain
intangible assets, certain centrally managed initiatives, and other
nonoperating items.
6)
What was the effective tax rate (ETR)
for the second quarter of 2024?
The ETR for the second quarter of 2024,
calculated in accordance with GAAP, was 19.4% as compared to 19.1%
for the first quarter of 2024. Excluding charges and credits, the
ETR for both the second quarter of 2024 and for the first quarter
of 2024 was 19.1%.
7)
How many shares of common stock were
outstanding as of June 30, 2024, and how did this change from the
end of the previous quarter?
There were 1.420 billion shares of common
stock outstanding as of June 30, 2024, and 1.429 billion shares
outstanding as of March 31, 2024.
(Stated in millions) Shares outstanding at March 31, 2024
1,429
Vesting of restricted stock
1
Stock repurchase program
(10)
Shares outstanding at June 30, 2024
1,420
8)
What was the weighted average
number of shares outstanding during the second quarter of 2024 and
first quarter of 2024? How does this reconcile to the average
number of shares outstanding, assuming dilution, used in the
calculation of diluted earnings per share?
The weighted average number of shares
outstanding was 1.428 billion during the second quarter of 2024 and
1.431 billion during the first quarter of 2024. The following is a
reconciliation of the weighted average shares outstanding to the
average number of shares outstanding, assuming dilution, used in
the calculation of diluted earnings per share.
(Stated in millions)
Second Quarter2024 First Quarter2024
Weighted average shares outstanding
1,428
1,431
Unvested restricted stock
14
15
Assumed exercise of stock options
1
1
Average shares outstanding, assuming dilution
1,443
1,447
9)
What was SLB’s adjusted EBITDA
in the second quarter of 2024, the first quarter of 2024, the
second quarter of 2023, the first six months of 2024, and the first
six months of 2023?
SLB’s adjusted EBITDA was $2.288 billion
in the second quarter of 2024, $2.057 billion in the first quarter
of 2024, and $1.962 billion in the second quarter of 2023, and was
calculated as follows:
(Stated in millions)
Second Quarter 2024
First Quarter 2024
Second Quarter 2023
Net income attributable to SLB
$1,112
$1,068
$1,033
Net income attributable to noncontrolling interests
33
30
14
Tax expense
276
259
246
Income before taxes
$1,421
$1,357
$1,293
Charges & credits
142
25
0
Depreciation and amortization
631
600
561
Interest expense
132
113
127
Interest income
(38)
(38)
(19)
Adjusted EBITDA
$2,288
$2,057
$1,962
SLB’s adjusted EBITDA was $4.344 billion
for the six months ended June 30, 2024, and $3.749 billion for the
six months ended June 30, 2023, calculated as follows:
(Stated in millions)
Six Months 2024
Six Months 2023
Change
Net income attributable to SLB
$2,180
$1,967
Net income attributable to noncontrolling interests
63
23
Tax expense
535
464
Income before taxes
$2,778
$2,454
Charges & credits
167
(36)
Depreciation and amortization
1,231
1,124
Interest expense
245
244
Interest income
(77)
(37)
Adjusted EBITDA
$4,344
$3,749
16%
Adjusted EBITDA represents income before
taxes, excluding charges & credits, depreciation and
amortization, interest expense, and interest income. Management
believes that adjusted EBITDA is an important profitability measure
for SLB and that it provides useful perspective on SLB’s underlying
business results and operating trends, and a means to evaluate
SLB’s operations period over period. Adjusted EBITDA is also used
by management as a performance measure in determining certain
incentive compensation. Adjusted EBITDA should be considered in
addition to, not as a substitute for or superior to, other measures
of financial performance prepared in accordance with GAAP.
10)
What were the components of
depreciation and amortization expense for the second quarter of
2024, the first quarter of 2024, and the second quarter of
2023?
The components of depreciation and
amortization expense for the second quarter of 2024, the first
quarter of 2024, and the second quarter of 2023 were as
follows:
(Stated in millions)
Second Quarter 2024
First Quarter 2024
Second Quarter 2023
Depreciation of fixed assets
$384
$377
$353
Amortization of intangible assets
82
81
77
Amortization of APS investments
118
113
101
Amortization of exploration data costs capitalized
47
29
30
$631
$600
$561
11)
What Divisions comprise SLB’s Core
business and what were their revenue and pretax operating income
for the second quarter of 2024, the first quarter of 2024, and the
second quarter of 2023?
SLB’s Core business comprises the
Reservoir Performance, Well Construction, and Production Systems
Divisions. SLB’s Core business revenue and pretax operating income
for the second quarter of 2024, first quarter of 2024, and the
second quarter of 2023 are calculated as follows:
(Stated in millions)
Three Months Ended
Change
Jun. 30, 2024
Mar. 31, 2024
Jun. 30, 2023
Sequential
Year-on-year
Revenue Reservoir Performance
$1,819
$1,725
$1,643
Well Construction
3,411
3,368
3,362
Production Systems
3,025
2,818
2,313
$8,255
$7,911
$7,318
4%
13%
Pretax Operating Income
Reservoir Performance
$376
$339
$306
Well Construction
742
690
731
Production Systems
473
400
278
$1,591
$1,429
$1,315
11%
21%
Pretax Operating Margin
Reservoir Performance
20.6%
19.7%
18.6%
Well Construction
21.7%
20.5%
21.7%
Production Systems
15.6%
14.2%
12.0%
19.3%
18.1%
18.0%
120 bps
130 bps
About SLB
SLB (NYSE: SLB) is a global technology company driving energy
innovation for a balanced planet. With a global presence 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.
Conference Call Information
SLB will hold a conference call to discuss the earnings press
release and business outlook on Friday, July 19, 2024. The call is
scheduled to begin at 9:30 a.m. US Eastern time. To access the
call, which is open to the public, please contact the conference
call operator at +1 (844) 721-7241 within North America, or +1
(409) 207-6955 outside North America, approximately 10 minutes
prior to the call’s scheduled start time, and provide the access
code 8858313. At the conclusion of the conference call, an audio
replay will be available until August 19, 2024, by dialing +1 (866)
207-1041 within North America, or +1 (402) 970-0847 outside North
America, and providing the access code 1906897. The conference call
will be webcast simultaneously at www.slb.com/irwebcast on a
listen-only basis. A replay of the webcast will also be available
at the same website until August 19, 2024.
Forward-Looking Statements
This second-quarter 2024 earnings press release, as well as
other statements we make, contain “forward-looking statements”
within the meaning of the federal securities laws, which include
any statements that are not historical facts. Such statements often
contain words such as “expect,” “may,” “can,” “believe,” “predict,”
“plan,” “potential,” “projected,” “projections,” “precursor,”
“forecast,” “outlook,” “expectations,” “estimate,” “intend,”
“anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,”
“should,” “could,” “would,” “will,” “see,” “likely,” and other
similar words. Forward-looking statements address matters that are,
to varying degrees, uncertain, such as statements about our
financial and performance targets and other forecasts or
expectations regarding, or dependent on, our business outlook;
growth for SLB as a whole and for each of its Divisions (and for
specified business lines, geographic areas, or technologies within
each Division); oil and natural gas demand and production growth;
oil and natural gas prices; forecasts or expectations regarding
energy transition and global climate change; improvements in
operating procedures and technology; capital expenditures by SLB
and the oil and gas industry; our business strategies, including
digital and “fit for basin,” as well as the strategies of our
customers; our capital allocation plans, including dividend plans
and share repurchase programs; our APS projects, joint ventures,
and other alliances; the impact of the ongoing conflict in Ukraine
on global energy supply; access to raw materials; future global
economic and geopolitical conditions; future liquidity, including
free cash flow; and future results of operations, such as margin
levels. These statements are subject to risks and uncertainties,
including, but not limited to, changing global economic and
geopolitical conditions; changes in exploration and production
spending by our customers, and changes in the level of oil and
natural gas exploration and development; the results of operations
and financial condition of our customers and suppliers; the
inability to achieve our financial and performance targets and
other forecasts and expectations; the inability to achieve our
net-zero carbon emissions goals or interim emissions reduction
goals; general economic, geopolitical, and business conditions in
key regions of the world; the ongoing conflict in Ukraine; foreign
currency risk; inflation; changes in monetary policy by
governments; pricing pressure; weather and seasonal factors;
unfavorable effects of health pandemics; availability and cost of
raw materials; operational modifications, delays, or cancellations;
challenges in our supply chain; production declines; the extent of
future charges; the inability to recognize efficiencies and other
intended benefits from our business strategies and initiatives,
such as digital or new energy, as well as our cost reduction
strategies; changes in government regulations and regulatory
requirements, including those related to offshore oil and gas
exploration, radioactive sources, explosives, chemicals, and
climate-related initiatives; the inability of technology to meet
new challenges in exploration; the competitiveness of alternative
energy sources or product substitutes; and other risks and
uncertainties detailed in this press release and our most recent
Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities
and Exchange Commission (the “SEC”).
This press release also includes forward-looking statements
relating to the proposed transaction between SLB and ChampionX,
including statements regarding the benefits of the transaction and
the anticipated timing of the transaction. Factors and risks that
may impact future results and performance include, but are not
limited to, and in each case as a possible result of the proposed
transaction on each of SLB and ChampionX: the ultimate outcome of
the proposed transaction between SLB and ChampionX; the effect of
the announcement of the proposed transaction; the ability to
operate the SLB and ChampionX respective businesses, including
business disruptions; difficulties in retaining and hiring key
personnel and employees; the ability to maintain favorable business
relationships with customers, suppliers, and other business
partners; the terms and timing of the proposed transaction; the
occurrence of any event, change, or other circumstance that could
give rise to the termination of the proposed transaction; the
anticipated or actual tax treatment of the proposed transaction;
the ability to satisfy closing conditions to the completion of the
proposed transaction; other risks related to the completion of the
proposed transaction and actions related thereto; the ability of
SLB and ChampionX to integrate the business successfully and to
achieve anticipated synergies and value creation from the proposed
transaction; the ability to secure government regulatory approvals
on the terms expected, at all or in a timely manner; litigation and
regulatory proceedings, including any proceedings that may be
instituted against SLB or ChampionX related to the proposed
transaction, as well as the risk factors discussed in SLB’s and
ChampionX’s most recent Forms 10-K, 10-Q, and 8-K filed with or
furnished to the SEC.
If one or more of these or other risks or uncertainties
materialize (or the consequences of any such development changes),
or should our underlying assumptions prove incorrect, actual
results or outcomes may vary materially from those reflected in our
forward-looking statements. Forward-looking and other statements in
this press release regarding our environmental, social, and other
sustainability plans and goals are not an indication that these
statements are necessarily material to investors or required to be
disclosed in our filings with the SEC. In addition, historical,
current, and forward-looking environmental, social, and
sustainability-related statements may be based on standards for
measuring progress that are still developing, internal controls and
processes that continue to evolve, and assumptions that are subject
to change in the future. Statements in this press release are made
as of the date of this 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.
Additional Information about the Transaction with ChampionX
and Where to Find It
In connection with the proposed transaction with ChampionX, SLB
filed with the SEC a registration statement on Form S-4 on April
29, 2024 (as amended, the “Form S-4”) that includes a proxy
statement of ChampionX and that also constitutes a prospectus of
SLB with respect to the shares of SLB to be issued in the proposed
transaction (the “proxy statement/prospectus”). The Form S-4 was
declared effective by the SEC on May 15, 2024. SLB and ChampionX
filed the definitive proxy statement/prospectus with the SEC on May
15, 2024
(https://www.sec.gov/Archives/edgar/data/87347/000119312524139403/d818663d424b3.htm),
and it was first mailed to ChampionX stockholders on or about May
15, 2024. Each of SLB and ChampionX may also file other relevant
documents with the SEC regarding the proposed transaction. This
document is not a substitute for the Form S-4 or proxy
statement/prospectus or any other document that SLB or ChampionX
may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO
READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND
ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS
WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY
AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE
THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION. Investors and security holders will be able
to obtain free copies of the Form S-4 and the proxy
statement/prospectus (if and when available) and other documents
containing important information about SLB, ChampionX and the
proposed transaction, through the website maintained by the SEC at
http://www.sec.gov. Copies of the documents filed with, or
furnished to, the SEC by SLB will be available free of charge on
SLB’s website at https://investorcenter.slb.com. Copies of the
documents filed with, or furnished to, the SEC by ChampionX will be
available free of charge on ChampionX’s website at
https://investors.championx.com. The information included on, or
accessible through, SLB’s or ChampionX’s website is not
incorporated by reference into this communication.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240717947903/en/
Investors James R. McDonald – SVP, Investor Relations
& Industry Affairs, SLB Joy V. Domingo – Director of Investor
Relations, SLB Tel: +1 (713) 375-3535 Email:
investor-relations@slb.com
Media Josh Byerly – Vice President of Communications, SLB
Moira Duff – Director of External Communications, SLB Tel: +1 (713)
375-3407 Email: media@slb.com
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