SLB
Schlumberger Limited
Energy
04/11/2013
Presented
| Date | 04/09/2013 |
| Price | $74.96 |
| Market Cap | $99.80B |
| Ent Value | $105.23B |
| P/E Ratio | 20.06x |
| Book Value | $29.68 |
| Div Yield | 2.4% |
| Shares O/S | 1,331.02M |
| Ave Daily Vol | 6,350,000 |
| Short Int | 0.91% |
Current
| Price | $42.95 |
| Market Cap | $60.98B |
| Schlumberger Limited supplies technology, integrated project management, and information solutions to the oil and gas exploration and production industries worldwide. The company operates through Reservoir Characterization Group, Drilling Group, and Production Group segments. The Reservoir Characterization Group segment provides reservoir imaging, monitoring, and development services; wireline technology that offers open-hole and cased-hole services; exploration and production pressure and flow-rate measurement services; information solutions, such as software, consulting, information management, and IT infrastructure services that support oil and gas industry operational processes; interpretation and integration of exploration and production data types, as well as consulting services for reservoir characterization, field development planning production enhancement, and multi-disciplinary reservoir and production solutions; and multi client data library and industry petro-technical training solutions. The Drilling Group segment designs, manufactures, and markets roller cone and fixed cutter drill bits, as well as provides drilling fluid systems, and environmental services and products; offers geo services, drilling and measurement services, and land drilling and related support services; and provides bottom hole assembly drilling tools, borehole enlargement technologies, impact tools, and tubular and tubular services. The Production Group segment provides well services comprising pressure pumping, well cementing, stimulation, and intervention; well completion services and equipment, such as packers, safety valves, and sand control technology, as well as well completions technology and equipment; artificial lifts; and coiled tubing equipment and services, and slickline services, as well as engages in the development, management, and environmental protection of water resources. The company was founded in 1926 and is based in Paris, France. |
Highlights
The presenter is drawn to SLB because “it is not often investors have the chance to invest in a $100 billion company with a misunderstood growth opportunity.” The growth opportunity relates to SLB’s exposure to international deepwater drilling, which is where the majority of important oil discoveries will come from. Also, offshore drilling represents 10x the revenue opportunity for the company compared to land-based drilling operations. He believes SLB can grow its top line at a faster pace than the Street is currently modeling, and its bottom line at 20%+; however, SLB shares are trading at just 13x the 2014 consensus estimate of ~$5.75 per share.
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