Form 4: ChampionX Director's Equity Converted to Schlumberger Shares Following Merger Completion

A ChampionX Corp director's common stock and deferred stock units were converted into Schlumberger Limited shares following the completion of the merger agreement.

Summary

• ChampionX Corp Director Mamatha Chamarthi reported changes in beneficial ownership of ChampionX common stock.
• On July 16, 2025, 2,771 shares of ChampionX common stock were acquired by the reporting person, issued under the company's 2018 Equity and Cash Incentive Plan and the Merger Agreement.
• Simultaneously, 36,696 shares of ChampionX common stock were disposed of by the reporting person.
• These transactions resulted in the reporting person holding 0 shares of ChampionX common stock following the reported transactions.
• The disposal was pursuant to the Agreement and Plan of Merger dated April 2, 2024, where ChampionX Corp merged with and into Sodium Merger Sub, Inc., making ChampionX an indirect wholly-owned subsidiary of Schlumberger Limited (SLB).
• Under the merger terms, each outstanding ChampionX common stock share was cancelled and converted into the right to receive 0.735 shares of SLB common stock, plus cash for fractional shares.
• Each deferred stock unit (DSU) of ChampionX was also cancelled and converted into SLB common stock based on the number of underlying shares multiplied by the 0.735 exchange ratio.

Sentiment

Score: 7

Explanation: The filing reports the expected completion of a significant corporate merger, which is generally a positive strategic development for the companies involved, even if it means the acquired entity's stock is delisted. The individual transaction is a routine consequence of this event.

Positives

• Completion of the merger with Schlumberger Limited (SLB) provides ChampionX shareholders with shares in a larger, diversified energy services company.
• The merger allows ChampionX to operate as an indirect wholly-owned subsidiary of SLB, potentially leveraging SLB's resources and market reach.

Negatives

• ChampionX common stock has been cancelled, meaning it no longer trades independently.
• Shareholders no longer have direct equity ownership in ChampionX as a standalone entity.

Risks

• The value of the converted SLB shares is subject to the market performance of Schlumberger Limited.
• Integration risks associated with ChampionX becoming an indirect wholly-owned subsidiary of SLB.

Future Outlook

ChampionX Corp will operate as an indirect wholly-owned subsidiary of Schlumberger Limited, with its former common stock converted into SLB common stock. The future performance of the former ChampionX equity holders is now tied to SLB's performance.

Industry Context

This transaction represents a significant consolidation within the energy services industry, with Schlumberger, a major global player, integrating ChampionX's assets and operations. This trend often aims to achieve synergies, expand market share, and enhance service offerings in a competitive landscape.

Comparison to Industry Standards

• The merger and subsequent share conversion are standard procedures for corporate acquisitions.
• The exchange ratio of 0.735 SLB shares for each ChampionX share reflects the agreed-upon valuation in the merger agreement.

Corporate Governance

Stakeholder Impact

• Shareholders: ChampionX shareholders had their common stock converted into Schlumberger Limited common stock, shifting their investment to the acquiring entity.
• Employees: ChampionX employees are now part of the larger Schlumberger organization, potentially impacting their roles, benefits, and career paths.

Next Steps

• ChampionX Corp will continue to operate as an indirect wholly-owned subsidiary of Schlumberger Limited.
• Former ChampionX shareholders will hold shares of Schlumberger Limited.

Key Dates

Keywords

ChampionX, CHX, Schlumberger, SLB, Merger, Form 4, Director, Stock Conversion, Equity, Beneficial Ownership, Corporate Action, Energy Services