Liberty Oilfield Services (LBRT) Update - Jan 7

[dan_s]

This one is high on my Watch List

From Stifel's Energy Sector Research Team
Liberty Oilfield Services Inc. (LBRT, $12.12, Buy; Target $15.00)
Liberty Strengthens Position with Closing of OneStim Deal; Reiterate Buy by Stephen Gengaro

Effective December 31, 2020, Liberty completed the acquisition of SLB's OneStim® business in exchange for a 37% equity stake in the combined entity. The combination boosts LBRT's U.S. market share to about 22-23% from roughly 9%, and we believe creates the leading pure-play U.S. pressure pumper. We expect this transaction to be immediately accretive to Liberty's earnings with about $125 million in day-one synergies. We are updating our 2021-22 estimates to reflect the closing, and we reiterate our Buy rating on LBRT with a $15 target price.