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Schlumberger Boosts Portfolio with Peak Well Systems Buyout

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Schlumberger Limited (SLB - Free Report) has acquired Scotland-based Peak Well Systems, a specialist in the design and development of advanced downhole tools for flow control and well integrity, for an undisclosed sum.

The addition of Peak’s mechanical and remedial solutions for cased-hole well intervention will enhance Schlumberger’s production services portfolio with an extensive offering of mechanical services to its global customers.

Peak’s current portfolio of flow control technologies has made its products leaders in the industry, mainly due to their simplicity, performance and reliability.

Last year, Schlumberger agreed to purchase drilling services units managed by Canadian company Xtreme Drilling and Coil Services Corp. It also closed a merger with industry counterpart, Cameron International.

Schlumberger has lagged the broader market indices over the last one year. The company’s stock price increased 28.9%, while the Zacks categorized Oil & Gas-Field Services industry gained 41%, in the same time span. However, these events are expected to change the scenario.



Schlumberger is a leading oilfield services company, providing technology, project management and information services to the global oil and gas industry.   

The company’s reporting segments can be categorized under four segments: Reservoir Characterization, Drilling, Production and Cameron.

Schlumberger's combination of a strong balance sheet, technological leadership and efficient management is expected to prove beneficial in the long term. Moreover, the company’s efforts to increase its capacity in pressure pumping and strengthening deepwater activity in the GoM are likely to add to the 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.

Schlumberger currently has a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Braskem S.A. (BAK - Free Report) , Suncor Energy, Inc. (SU - Free Report) and Noble Midstream Partners L.P. . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Braskem posted a positive earnings surprise of 107.79% in the last reported quarter.

Suncor Energy posted a positive earnings surprise of 300.00% in the preceding quarter. It reported an average earnings surprise of 40.55% for the four trailing quarters.

Noble Midstream Partners posted a negative earnings surprise of 77.78% in the last reported quarter.

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