oilfield services

The company said it will avoid the pumping business's “structurally disadvantaged position” and instead focus on well servicing and water logistics.

The company also secured $2.6 billion in exit financing facilities, including a $450-million revolving credit facility, as well as a $195-million letter of credit facility and more than $900 million of liquidity.

Service firms are diversifying their portfolios, in part driven by large-scale budget cuts among operators since the industrywide downturn.

Expected to close 31 October, the deal will create one of the largest pressure pumpers in the US.

The two largest oilfield services firms grapple with a worsening North American land market.

The company, which filed for Chapter 11 protection in June, revised downward its revenue projections amid lower expectations for the US oilfield services market and oil prices.

Lower equipment utilization and prices have worsened the pain for oilfield service companies in Texas, New Mexico, and Louisiana, while operators continue to grapple with the industry’s shifting business climate.

Still recovering from the oil price downturn, oilfield service companies are facing more headwinds.

In his first public appearance, Schlumberger’s new CEO said the company would focus on digitalization and restructure some operations.

The E&P sector has maintained a strong focus on capital discipline during its recovery from the 2014 oil price downturn, as investors look for companies to generate free cash flow to help pay down debt. How will this focus affect sector growth in the near term?