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SLB and ACC Join Forces to Accelerate Decarbonization Efforts

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SLB (SLB - Free Report) has announced its plans to merge its carbon capture segment with Aker Carbon Capture (“ACC”). The partnership aims to expedite the global transition toward net-zero emissions by scaling up carbon capture technologies.

Per the terms of the agreement, SLB will acquire an 80% stake in Aker Carbon Capture Holding AS (“ACCH”), which encapsulates ACC’s operations, for NOK 4.12 billion.

The collaboration is not just a financial transaction but a strategic alliance to enhance the carbon capture, utilization, and sequestration (“CCUS”) landscape. SLB has committed to make additional payments of up to NOK 1.36 billion over the forthcoming three years, contingent on the joint venture’s performance.

The International Energy Agency underscores the pivotal role of CCUS in the journey toward net-zero emissions, projecting the need to capture more than one gigaton of CO2 annually by 2030 and escalating to more than six gigatons by 2050. This ambitious goal underscores the urgent need for scalable and efficient carbon capture solutions.

The merger of SLB and ACC is poised to create a powerhouse in the carbon capture domain. The combined enterprise aims to revolutionize the market by leveraging ACC’s established commercial carbon capture product suite, and SLB’s innovative technology and industrialization prowess.

The integration of complementary technologies, process design expertise and a robust project delivery platform is expected to catalyze the commercialization and global adoption of cutting-edge carbon capture solutions.

In essence, the union of SLB and ACC represents a strategic advance in the fight against climate change. By amalgamating their strengths, the companies are set to accelerate the deployment of carbon capture technologies, thereby contributing significantly to global decarbonization efforts and the pursuit of a sustainable future.

The closing of the transaction is anticipated by the end of the second quarter of 2024.

Zacks Ranks & Stocks to Consider

SLB currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked companies mentioned below. Each of these three companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Partners (GLP - Free Report) is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 earnings per share (EPS) is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 and 2025 EPS is pegged at $25.58 and $25.36, respectively. The company has a Zacks Style Score of B for Value, Growth and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.

Sunoco LP (SUN - Free Report) is among the biggest motor fuel distributors in the U.S. wholesale market, in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate a stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 and 2025 EPS is pegged at $4.96 and $4.40, respectively. The stock has witnessed upward earnings estimate revisions for 2024 and 2025 in the past seven days.

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Murphy USA Inc. (MUSA) - free report >>

Global Partners LP (GLP) - free report >>

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