20 Questions
What is the main reason for the planned acquisition of Cameron by Schlumberger?
broad opportunity for technology-led growth
What is the main factor supporting the cost synergy that can be achieved through the acquisition of Cameron?
efficiency improvements in operating costs, supply chain performance, and engineering and manufacturing processes
What are the four pillars driving the operational and financial outperformance of Schlumberger?
technology, integration, efficiency, reliability
What is expected to launch a new era of complete drilling and production system performance?
combination of Schlumberger’s and Cameron’s technologies
What was announced at the Investor Conference in June 2014?
transformation of Schlumberger
What are the areas in which the transaction is expected to create value for customers?
technology system innovation, improved operational performance, higher levels of cost efficiency, and much closer commercial alignment through new and more risk-based business models
How will the transaction contribute towards improving production, recovery, and cost per barrel?
by improving production, increasing recovery, and lowering cost per barrel
What are the expected benefits for shareholders from the transaction?
profitable technology-driven growth in complementary businesses, with virtually no product line overlap between Schlumberger and Cameron
How will the transaction expand the revenue base and achieve synergies?
by expanding the revenue base by more than 20%, achieving $300 million in synergies in the first year, and $600 million in the second year after the transaction closes
What are some key strengths and market positions of Cameron?
Cameron has a proud 90-year history, premier engineering and manufacturing, well-balanced portfolio of surface drilling and production-related products, and well-established market leadership positions in each of its product lines
What is the merger agreement between Schlumberger and Cameron in terms of stock and cash deal?
Cameron stockholders will receive 0.716 shares of Schlumberger Limited plus $14.44 in cash.
How will the cash portion of the purchase price be funded?
The cash portion of the purchase price will be funded by cash on hand.
What percentage of Schlumberger’s outstanding shares will Cameron shareholders own upon closing?
Cameron shareholders will own approximately 10% of Schlumberger’s outstanding shares.
What is the transaction valued at based on the Schlumberger closing stock price on August 25, 2015?
The transaction is valued at approximately $14.8 billion.
What premium does the transaction represent over the 20-day volume weighted average?
The transaction represents a 37% premium over the 20-day volume weighted average.
When is the transaction expected to close?
First quarter of 2016
What is the estimated pre-tax synergies in the first 12 months of closing?
$300 million
What are the priorities with respect to how the cash flow will be managed?
Reinvest in the business, review dividend, take advantage of M&A opportunities, and stock buyback program
What is the expected incremental after-tax depreciation and amortization as a result of fair value adjustments to the net assets of Cameron?
Approximately 11 cents per share
What did the two companies buy back during the first six months of 2015?
$1.4 billion of their stock
Learn about the transformation of Schlumberger at the Investor Conference in June 2014, focusing on technology, integration, efficiency, and reliability. Understand how these factors have contributed to operational and financial outperformance in a challenging market environment.
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