We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
SLB to Sell Palliser Block Assets in Alberta by Late Q4 2024
Read MoreHide Full Article
SLB (SLB - Free Report) , an American oilfield services company, announced a definitive agreement to sell its interests in the Palliser Block in Alberta, Canada. The deal marks another strategic move by SLB to streamline its portfolio and sharpen its focus on technology-driven energy solutions.
Details of SLB’s Palliser Block Assets
The Palliser Block comprises oil and gas wells, surface facilities, a pipeline network, and oil and gas development rights across approximately 800,000 acres. In 2017, SLB acquired these assets from Cenovus Energy (CVE - Free Report) in partnership with Torxen Energy for roughly $1 billion CAD. At the time of acquisition, the assets had a daily production rate of 54,000 barrels of oil equivalent per day (boepd). SLB, a majority non-operating partner, provided exclusive services to the project, while Torxen operated the wells and infrastructure.
The sale, subject to regulatory approval and customary closing conditions, is expected to be finalized in the fourth quarter of 2024. While financial terms have not been disclosed, this transaction marks SLB’s continued efforts to realign its operations and potentially free up capital for future investments in its core areas.
SLB's Broader Strategy
The company has been pivoting toward a more technology-centric role in the energy industry, with a particular focus on digitalization, decarbonization and sustainable energy solutions. The divestment of Palliser Block aligns with its strategy of moving away from legacy oilfield assets to concentrate on energy innovation and decarbonization efforts. The decision has come at a time when global energy markets are undergoing rapid transformation, with a shift toward cleaner and more sustainable energy production methods.
The sale of Palliser Block may offer insight into SLB’s long-term financial planning, signaling its readiness to divest non-core assets while capitalizing on higher-margin technology and service offerings.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations.
The Zacks Consensus Estimate for PED’s 2024 EPS is pegged at $0.08. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.04. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
SLB to Sell Palliser Block Assets in Alberta by Late Q4 2024
SLB (SLB - Free Report) , an American oilfield services company, announced a definitive agreement to sell its interests in the Palliser Block in Alberta, Canada. The deal marks another strategic move by SLB to streamline its portfolio and sharpen its focus on technology-driven energy solutions.
Details of SLB’s Palliser Block Assets
The Palliser Block comprises oil and gas wells, surface facilities, a pipeline network, and oil and gas development rights across approximately 800,000 acres. In 2017, SLB acquired these assets from Cenovus Energy (CVE - Free Report) in partnership with Torxen Energy for roughly $1 billion CAD. At the time of acquisition, the assets had a daily production rate of 54,000 barrels of oil equivalent per day (boepd). SLB, a majority non-operating partner, provided exclusive services to the project, while Torxen operated the wells and infrastructure.
The sale, subject to regulatory approval and customary closing conditions, is expected to be finalized in the fourth quarter of 2024. While financial terms have not been disclosed, this transaction marks SLB’s continued efforts to realign its operations and potentially free up capital for future investments in its core areas.
SLB's Broader Strategy
The company has been pivoting toward a more technology-centric role in the energy industry, with a particular focus on digitalization, decarbonization and sustainable energy solutions. The divestment of Palliser Block aligns with its strategy of moving away from legacy oilfield assets to concentrate on energy innovation and decarbonization efforts. The decision has come at a time when global energy markets are undergoing rapid transformation, with a shift toward cleaner and more sustainable energy production methods.
The sale of Palliser Block may offer insight into SLB’s long-term financial planning, signaling its readiness to divest non-core assets while capitalizing on higher-margin technology and service offerings.
SLB’s Zacks Rank & Key Picks
Currently, SLB carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at a couple of better-ranked stocks like PEDEVCO Corp. (PED - Free Report) and Archrock Inc. (AROC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
PEDEVCO is engaged in the acquisition and development of energy assets in the United States and Pacific Rim countries. PED stands to benefit significantly from its holdings in the Permian Basin, one of the most prolific oil-producing regions in the United States, as well as in the D-J Basin in Colorado, which includes more than 150 high-quality drilling locations.
The Zacks Consensus Estimate for PED’s 2024 EPS is pegged at $0.08. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.04. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.