Investment Recommendation - Stephanie initiated a new buy position in SLB, citing a compelling valuation at 138 times earnings and a 3% yield [1][2] - The analyst prefers owning rather than renting in the energy space, suggesting a long-term investment approach [4] SLB's Competitive Advantages and Growth Drivers - SLB is the number one oil field services company globally, poised to benefit from customer spending, with top 10 customers' capex expected to reach $28 billion this year [2] - SLB is a technology leader in its sector, experiencing margin expansion and strong customer retention, further boosted by a synergistic and accretive deal [3] Broader Energy Sector Dynamics - The energy sector has shown positive performance despite a 16% year-to-date decrease in crude oil prices, driven by natural gas [6] - Natural gas prices have risen from below $2 to $5, fueled by a cold winter and global demand for liquified natural gas from the United States [6] - Major diversified companies like Exxon Mobile, involved in natural gas, refining, chemicals, transportation, and distribution, are well-positioned in the energy sector [7] Investment Strategies in Oil and Gas - Stabilizing oil prices in the $60s could make EMP players attractive, suggesting a dollar-cost averaging strategy [5] - Pipelines and mineral rights with high distribution yields, such as Viper Energy and Energy Transfer, are viable investment options [5]

Core Viewpoint - The investment community is showing interest in SLB, a leading oil field services company, due to its compelling valuation and potential benefits from customer spending and capital expenditures [1][2]. Company Insights - SLB is currently valued at 13.8 times earnings and offers a 3% yield, despite being down 3% year-to-date [1][2]. - The company is expected to benefit from $28 billion in capital expenditures from its top 10 customers this year, providing a favorable tailwind [2]. - SLB is recognized as a technology leader in the oil field services sector, experiencing margin expansion and strong customer retention [3]. Market Context - The energy sector is facing challenges, with crude oil prices down 16% year-to-date, but natural gas prices have increased significantly from below $2 to $5, indicating a shift in market dynamics [6]. - There is a growing demand for liquefied natural gas globally, particularly from the United States, which is positively impacting diversified energy companies like Exxon Mobil [6].

Market Performance - The Dow Jones Industrial Average rose by 185.13 points, closing at 47,474.46, an increase of 0.39% [1] - The Nasdaq Composite gained 137.75 points, ending at 23,413.67, up by 0.59% [1] - The S&P 500 index increased by 16.74 points, closing at 6,829.37, a rise of 0.25% [1] Sector Performance - Major technology stocks mostly increased, with Apple up over 1%, Facebook nearly 1%, Nvidia up 0.86%, Microsoft up 0.67%, Google up 0.29%, Amazon up 0.223%, while Tesla fell by 0.21% [1] - Energy stocks declined across the board, with ExxonMobil down over 1%, Chevron down more than 1%, ConocoPhillips down over 1%, Schlumberger down 0.7%, and Western Oil down nearly 1% [1] - Airline stocks collectively rose, with Boeing up over 10%, American Airlines up more than 2%, Delta Airlines up over 1%, Southwest Airlines up nearly 2%, and United Airlines up over 3% [1] - Semiconductor stocks mostly increased, with the Philadelphia Semiconductor Index rising by 1.83%, Intel up over 8%, NXP Semiconductors up more than 7%, Microchip Technology up over 6%, and Texas Instruments up over 4% [1] Chinese Stocks - The Nasdaq Golden Dragon China Index fell by 0.65%, with individual stocks like Xpeng Motors down nearly 8%, and Artis Solar down nearly 6% [2] - Some Chinese stocks saw gains, such as Wanwu Xingsheng up over 6%, Atour up more than 5%, and Tiger Brokers up nearly 2% [2] Economic Indicators - Recent data indicates a gradual cooling of the economy, with policymakers urging caution on interest rate cuts and warning of potential inflationary pressures [2] - The probability of a 25 basis point rate cut by the Federal Reserve in December has surged to 89.2% according to the Chicago Mercantile Exchange [2] European Market Performance - European stock indices showed mixed results, with the FTSE 100 in London down 0.01%, the CAC 40 in Paris down 0.28%, and the DAX in Frankfurt up 0.51% [2] Commodity Prices - International oil prices fell, with light crude oil futures for January 2026 down by $0.68, closing at $58.64 per barrel, a decrease of 1.15% [3] - Brent crude oil futures for February fell by $0.72, closing at $62.45 per barrel, a decline of 1.14% [3] Currency Exchange Rates - The US dollar index decreased by 0.06%, closing at 99.357 [3] - The euro traded at 1.1622 against the dollar, the pound at 1.3211, and the yen at 155.88 [3]

Core Viewpoint - SLB is set to hold a conference call on January 23, 2026, to discuss its fourth-quarter and full-year results for 2025, with a press release scheduled for earlier that day [1][2]. Company Overview - SLB (NYSE: SLB) is a global technology company focused on energy innovation, operating in over 100 countries and employing a diverse workforce [3][5]. - The company reported revenues of $36.29 billion and a net income of $4.46 billion for the year 2024 [5][10]. Conference Call Details - The conference call will begin at 9:30 am US Eastern time, with listeners needing to dial in approximately 10 minutes prior to the start [1][2]. - A webcast will also be available for listeners, who are encouraged to log in 15 minutes early to ensure connectivity [2]. Recent Developments - SLB has launched Tela™, an agentic AI technology aimed at transforming the upstream energy sector by automating processes and enhancing workflows [6]. - The company secured two significant engineering, procurement, and construction (EPC) contracts from PTT Exploration and Production Public Company Limited (PTTEP) for deepwater projects offshore Malaysia [7]. - SLB has partnered with Ormat Technologies to accelerate the development of integrated geothermal assets, including enhanced geothermal systems [8].

Summary of the Conference Call on the Oil Services Industry Industry Overview - The report focuses on the oil services industry, specifically the period from 2000 to 2050, highlighting the evolution and future outlook of the sector [6][11]. Key Periods in the Oil Services Journey - The journey is divided into five periods: 1. The Golden Age (2000-2014) 2. The Great Disruption (2015-2024) 3. Drill, Baby Drill (2025-2029) 4. The Age of Sustainability (2030-2035) 5. The Age of Circularity (2036-2050) [11]. Core Insights and Arguments - The oil market is currently perceived as oversupplied, with a short-term supply increase peaking in early 2025, but a rapid rebalancing is anticipated in 2026 [7][9]. - A significant IEA report indicates that 90% of current oil and gas capital expenditures (capex) are for maintaining production rather than increasing it, suggesting a structural under-supply in the long term [10]. - The need for new drilling is underscored by projected decline rates of oil production, estimated at approximately 8% CAGR post-2025, necessitating new investments [15]. Investment and Capex Plans - Aramco's CFO highlighted the importance of massive investments in subsurface data acquisition and computing power, indicating a shift towards more data-driven operations [18]. - ADNOC announced a $150 billion capex plan for 2026-2030, aimed at maintaining operations and meeting growing global energy demand [25]. - Argentina's Vaca Muerta shale play is experiencing rising oil production, with production surpassing 447,000 barrels per day in March 2025, although rig counts remain historically low [20][23]. Market Dynamics and Future Projections - The report suggests that the current "Drill, Baby Drill" cycle may peak around 2028, driven by various factors including new offshore basins with low break-even prices and increasing global oil demand [29][38]. - SLB, Saipem, and Tenaris have forecasted a rebound in upstream spending in Saudi Arabia, indicating improved prospects for the oil services industry [39]. Company-Specific Insights - SLB is positioned as a key beneficiary of the improved market outlook, particularly in the Middle East, with a market share of nearly 10% in the region [39]. - Subsea 7 and Saipem are expected to create a new entity, "Saipem7," which will enhance their competitive positioning in the subsea market [44]. - Technip Energies is projected to have a record year for order intake in 2026, with several significant projects likely to be sanctioned [45]. Pricing Power and Market Conditions - The pricing power thesis for Tenaris and Vallourec remains intact, supported by tight capacity for premium tubes and rising costs [33]. - The report anticipates a gradual recovery in pricing conditions starting from the second half of 2026 as inventories clear [33]. Conclusion - The oil services industry is undergoing significant changes, with a focus on innovation, investment in technology, and a shift towards sustainability. The upcoming years are expected to bring both challenges and opportunities as companies adapt to evolving market dynamics and increasing global energy demands [11][39].

Core Insights - SLB N.V. is a global technology company in the energy sector with a market cap of $54.1 billion, focusing on digital solutions, reservoir performance, well construction, and production systems [1] - The company is classified as a large-cap stock, offering a wide range of services from drilling to production optimization [2] Stock Performance - SLB shares have decreased 18.9% from their 52-week high of $44.66, underperforming the Dow Jones Industrials Average, which rose 4.6% over the same period [3] - Year-to-date, SLB stock is down 5.5%, while the Dow Jones has gained 12.2%; over the past 52 weeks, SLB shares have dropped 17% compared to a 6.7% increase in the Dow Jones [4] - The stock has been trading below its 200-day moving average since last year but has recently moved above its 50-day moving average [4] Financial Performance - In Q3 2025, SLB reported an adjusted EPS of $0.69, which was better than expected; however, shares fell due to management's indication of no significant increase in North American drilling activity [5] - International revenue declined by 7% to $6.92 billion, and global revenue dropped by 9% when excluding the ChampionX acquisition [5] Competitive Position - SLB has underperformed compared to Exxon Mobil Corporation, which has seen a YTD increase of 7.8% and a 1.5% decline over the past 52 weeks [6] - Despite the stock's underperformance, analysts maintain a bullish outlook, with a consensus rating of "Strong Buy" and a mean price target of $47.08, representing a 29.9% premium to current levels [6]

Core Insights - Fluidsdoc is a seasoned expert in the oil industry with 40 years of experience across six continents and over twenty countries, specializing in the upstream oil sector [1] Group 1: Company Overview - Fluidsdoc leads The Daily Drilling Report, an investment group that provides analysis for the oil and gas industry [1] - The group features a model portfolio that encompasses all segments of upstream oilfield activity, offering weekly updates [1] - Investment ideas are provided for both U.S. and international energy companies, covering a range from shale to deepwater drillers [1] Group 2: Analytical Approach - The group employs technical analysis to identify catalysts within the oil and gas sector [1]

Core Insights - The article highlights the investment strategies and achievements of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular stock market outperformance [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing significant upward momentum reversals [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance and Recognition - Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest in 2008 and 2009 out of over 60,000 portfolios [1] - As of September 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1] Group 3: Risk Management - Franke suggests investors implement stop-loss levels of 10% or 20% on individual stock choices to manage risk effectively [1]

Core Insights - The three major international oil service companies, Baker Hughes, Halliburton, and Schlumberger, reported significant declines in net profits for the third quarter due to oversupply in the global oil market and persistently low international oil prices. However, the CEOs of these companies provided positive evaluations of their third-quarter performance [1]. Baker Hughes - Baker Hughes reported a net profit of $609 million for Q3, a 20% decrease year-over-year from $766 million, and a 13% decrease from Q2's $701 million [2]. - The adjusted EBITDA for Q3 was $1.238 billion, showing a 2% increase both year-over-year and quarter-over-quarter [2]. - The company’s total revenue for Q3 was $7.01 billion, a slight increase of 1% from both Q2 and the same quarter last year [3]. - Baker Hughes' order intake reached $8.207 billion in Q3, marking a 23% increase year-over-year and a 17% increase from Q2 [2]. Halliburton - Halliburton's net profit for Q3 was $18 million, a staggering 97% decline from $571 million year-over-year and a decrease from $472 million in Q2 [4]. - The total revenue for Q3 was $5.6 billion, remaining relatively stable compared to Q2 but down from $5.697 billion in the same quarter last year [7]. - The company’s operating income for Q3 was $356 million, a significant drop from $871 million year-over-year [8]. Schlumberger - Schlumberger reported a net profit of $739 million for Q3, down 38% from $1.186 billion year-over-year and a 27% decrease from Q2's $1.014 billion [9]. - The total revenue for Q3 was $8.928 billion, reflecting a 4% increase from Q2 but a 3% decrease from the same quarter last year [9]. - The company’s adjusted EBITDA for Q3 was $2.061 billion, a 12% decrease year-over-year [9].

Core Viewpoint - SLB is experiencing a mixed performance in the stock market, with upcoming earnings expected to show a decline in EPS but a slight increase in revenue compared to the previous year [1][2][3]. Group 1: Stock Performance - SLB's stock closed at $35.71, down 1.33%, underperforming the S&P 500's gain of 1.55% [1]. - Over the last month, SLB's shares increased by 1%, outperforming the Business Services sector's loss of 4.49% and the S&P 500's loss of 1.8% [1]. Group 2: Earnings Estimates - SLB is projected to report an EPS of $0.74, reflecting a 19.57% decline year-over-year [2]. - The Zacks Consensus Estimate for revenue is $9.53 billion, indicating a 2.64% increase from the same quarter last year [2]. Group 3: Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $2.89 per share, down 15.25% from the prior year, with revenue projected at $35.78 billion, a decrease of 1.4% [3]. - Recent adjustments to analyst estimates for SLB may indicate changing business trends, with positive revisions suggesting a favorable business outlook [3]. Group 4: Zacks Rank and Valuation - The Zacks Rank system, which assesses estimate changes, currently ranks SLB at 3 (Hold), with a recent 0.03% decline in the consensus EPS estimate [5]. - SLB's Forward P/E ratio is 12.52, which is a discount compared to the industry average of 19.17 [6]. Group 5: Industry Context - The Technology Services industry, part of the Business Services sector, has a Zacks Industry Rank of 75, placing it in the top 31% of over 250 industries [6]. - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7].