Replies to post #156 on Schlumberger Ltd. (SLB)

[Timothy Smith]

JPM rates Halliburton (HAL +0.6%) and Schlumberger (SLB +0.4%) at Overweight with respective price targets of $56 and $101; the firm praises HAL's pending merger with Baker Hughes, which it thinks will create “create a powerhouse North American competitor," and says SLB is positioned to come out of the downturn strong, thanks to its presence in attractive markets and initiatives it began before oil prices fell.

[Timothy Smith]

Revenue from North America fell 27% sequentially in Q2; this was consistent with competitors who experienced revenue declines in the region from 25% to 30%. However, revenue outside North America was relatively stable, declining only 5%.

The international rig count has not fallen as fast as that in North America and it has helped anchor the company. Currently Schlumberger's derives about 75% of its revenue outside North America.

[Timothy Smith]

Russia’s Federal Security Service is holding up Schlumberger’s (NYSE:SLB) acquisition of a 46% stake in Eurasia Drilling, concerned that the company would have too much influence in Russia’s oil services market, according to a Bloomberg report.

[Timothy Smith]

Schlumberger (SLB +0.3%) says it will not extend its pending agreement to acquire a minority equity interest in Eurasia Drilling once the current extension expires on Sept. 30.

SLB had wanted to buy a 45.65% stake in Eurasia for ~$1.7B, potentially paving the way for it to become the sole owner of Russia's most active oilfield services company.

The deal initially was endorsed by Russia's anti-monopoly body but it has since been postponed several times