The oilfield services company is fully committed towards the merger, which is likely to generate over $2 billion in cost synergies, and consequently, has directed most of its time and efforts in obtaining the regulatory approvals for completing the merger, particularly in the last three months. Yet, the company has not lost sight of the difficult times ahead and has been working towards reducing its costs and improving its operating efficiency to weather the current commodity down cycle. Although these efforts may not be able to prevent the meaningful decline that the company is likely to witness in its third quarter earnings, we expect to see a more resilient performance from the company in the next couple of quarters even with a bleak outlook for crude oil prices.
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