Core Insights - Schlumberger is experiencing significant macroeconomic uncertainty with oil prices expected to remain in the mid-to-low $60 per barrel range [1] - Despite the challenging oil market, Schlumberger may see incremental improvements due to the completion of the ChampionX acquisition [1] Company Analysis - Schlumberger's performance is closely tied to oil price fluctuations, which are projected to remain stable but low [1] - The acquisition of ChampionX is anticipated to provide a boost to Schlumberger's operations and financial performance [1] Industry Context - The oil and gas industry is currently facing a challenging environment, impacting companies like Schlumberger [1] - The overall investment ecosystem is crucial for making informed investment recommendations, rather than evaluating companies in isolation [1]

Group 1 - The focus is on growth and dividend income as a strategy for retirement planning [1] - The portfolio is structured to generate monthly dividend income that grows through reinvestment and annual increases [1] Group 2 - The article expresses personal opinions and is not intended as investment advice [2][3] - It emphasizes the importance of conducting individual research before making investment decisions [2]

Market Overview - The US stock market opened the week with declines, with the Dow Jones falling by 200.52 points (0.45%) to close at 43,975.09 points, the Nasdaq down by 64.62 points (0.30%) at 21,385.40 points, and the S&P 500 decreasing by 16.00 points (0.25%) to 6,373.45 points [2] - A record proportion of fund managers, approximately 91%, believe that US stocks are currently overvalued, marking the highest level since 2001 [4] - Hedge funds net sold $1 billion in US stocks last week, while institutional investors focused on long positions bought $4 billion [4] Technology Sector - Nvidia and AMD have reached an agreement with the Trump administration to pay 15% of their revenue from chips sold to China to the US government in exchange for export licenses [5][7] - Nvidia will pay 15% of its revenue from H20 chips sold in China, while AMD will do the same for MI308 chips [7] - Major tech stocks mostly declined, with Apple down 0.83%, Amazon down 0.62%, and Nvidia down 0.3% [5] Energy Sector - Energy stocks experienced a broad decline, with ExxonMobil down 0.87%, Chevron down nearly 1%, and ConocoPhillips down 0.39% [8][9] - WTI crude oil prices remained stable, closing at $63.99 per barrel [8] Gold Market - Gold prices fell significantly, with spot gold dropping 1.6% to a low of $3,341.25 per ounce, marking a new low in over a week, while December futures fell 2.5% to settle at $3,404.70 per ounce [10] - The decline in gold prices is attributed to multiple negative factors, including Trump's exemption on gold tariffs, the extension of the US-China trade truce, and market anxiety over upcoming US inflation data [10]

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Group 1 - Laura Starks is the founder and CEO of Starks Energy Economics, LLC, established in 2007, with expertise in energy investments [1] - Starks holds a degree in chemical engineering and an MBA focused on finance, which she utilizes for personal investments and insights on energy companies [1] - The coverage of Starks includes various sectors such as utilities, independent power producers, energy service companies, petrochemical companies, and all segments of oil and natural gas: upstream, midstream, and downstream [1]

Market Overview - The market capitalization of major US stocks shows varied performance, with Oracle at 762.30 billion, Mastercard at 321.36 billion, and Visa at 770.15 billion, reflecting increases of +0.66%, +0.86%, and +0.68% respectively [3] - Exxon Mobil's market cap is 679.53 billion, with a slight decrease of -0.98%, while Johnson & Johnson and Netflix show minor changes of -0.08% and -0.05% respectively [3] - Companies like Wells Fargo and Cisco have market caps of 270.15 billion and 279.59 billion, with respective increases of +0.98% and -0.58% [3] Notable Stock Movements - T-Mobile US Inc experienced a significant increase of +6.20%, reaching a market cap of 272.19 billion [3] - General Electric and Coca-Cola saw market caps of 285.05 billion and 298.76 billion, with increases of +0.37% and +0.91% respectively [3] - Companies like Disney and Goldman Sachs have market caps of 229.06 billion and 221.80 billion, with slight changes of +0.01% and -0.60% [3] Sector Performance - The technology sector shows mixed results, with Intel at 991.05 billion, down -3.28%, while AMD increased by +2.46% to 254.92 billion [5] - The consumer goods sector is represented by companies like Procter & Gamble and Coca-Cola, with market caps of 371.68 billion and 298.76 billion, showing slight increases [3][4] - The energy sector, represented by Exxon Mobil and Chevron, shows varied performance, with Exxon down -0.98% and Chevron up +0.66% [3] Summary of Key Companies - Oracle's market cap stands at 762.30 billion, reflecting a positive trend [3] - Mastercard and Visa show strong performance with market caps of 321.36 billion and 770.15 billion, both increasing [3] - Companies like Pfizer and Comcast have market caps of 1579.81 billion and 1332.00 billion, with Pfizer showing minimal change and Comcast down -3.16% [4][5]

PART I [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents SLB's unaudited consolidated financial statements for Q2 and H1 2025, detailing financial performance and significant events [Consolidated Statement of Income](index=3&type=section&id=Consolidated%20Statement%20of%20Income) SLB reported Q2 2025 total revenue of $8.55 billion and net income of $1.01 billion, both decreasing year-over-year from Q2 2024 Q2 and Six Months 2025 vs 2024 Performance | Metric | Q2 2025 | Q2 2024 | YoY Change | Six Months 2025 | Six Months 2024 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Total Revenue** | $8,546 M | $9,139 M | -6.5% | $17,035 M | $17,846 M | -4.5% | | **Net Income (attributable to SLB)** | $1,014 M | $1,112 M | -8.8% | $1,811 M | $2,180 M | -16.9% | | **Diluted EPS** | $0.74 | $0.77 | -3.9% | $1.32 | $1.51 | -12.6% | [Consolidated Balance Sheet](index=5&type=section&id=Consolidated%20Balance%20Sheet) As of June 30, 2025, SLB's total assets slightly decreased to $48.77 billion, while total liabilities increased and stockholders' equity declined due to stock purchases Balance Sheet Summary (in millions) | Account | Jun. 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $18,453 | $18,570 | | **Total Assets** | $48,769 | $48,935 | | **Total Current Liabilities** | $14,035 | $12,811 | | **Long-term Debt** | $10,891 | $11,023 | | **Total Liabilities** | $27,218 | $26,585 | | **SLB Stockholders' Equity** | $20,302 | $21,130 | [Consolidated Statement of Cash Flows](index=6&type=section&id=Consolidated%20Statement%20of%20Cash%20Flows) For H1 2025, operating cash flow slightly increased to $1.80 billion, investing cash flow decreased, and financing cash flow significantly increased due to a $2.3 billion stock repurchase program Six Months Cash Flow Summary (in millions) | Cash Flow Activity | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | | **Net Cash from Operating Activities** | $1,802 | $1,763 | | **Net Cash Used in Investing Activities** | $(186) | $(1,644) | | **Net Cash Used in Financing Activities** | $(1,989) | $(46) | | **Net (Decrease) Increase in Cash** | $(373) | $73 | - The stock repurchase program significantly impacted financing cash flows, with **$2.3 billion** used in the first six months of 2025 compared to **$735 million** in the same period of 2024[17](index=17&type=chunk) [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes detail key accounting policies, significant events like the ChampionX acquisition, restructuring charges, asset sales, and segment performance by geographic area - On July 16, 2025, SLB completed the acquisition of ChampionX Corporation in an all-stock transaction valued at **$4.9 billion**, issuing approximately **141 million shares**[26](index=26&type=chunk) - In Q2 2025, SLB recorded pre-tax charges of **$170 million** for impairments, workforce reductions, and merger costs, partially offset by a **$149 million** pre-tax gain from the sale of its Palliser APS project[27](index=27&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) Revenue by Geographic Area (Six Months Ended June 30, in millions) | Region | 2025 | 2024 | YoY Change | | :--- | :--- | :--- | :--- | | North America | $3,373 | $3,242 | +4.0% | | Latin America | $2,986 | $3,395 | -12.0% | | Europe & Africa | $4,604 | $4,764 | -3.4% | | Middle East & Asia | $5,983 | $6,348 | -5.8% | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=21&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the 5% H1 2025 revenue decline, sequential Q2 growth, and a constructive outlook for H2, highlighting strong free cash flow and capital returns - Management highlights that despite regional slowdowns, international revenue increased **2%** sequentially in Q2 2025, while North America revenue decreased **4%**[83](index=83&type=chunk) - The company remains constructive for the second half of the year, supported by its position in key markets and the acquisition of ChampionX, assuming commodity prices remain range-bound[85](index=85&type=chunk) - For the first six months of 2025, SLB generated **$725 million** in free cash flow, an increase from **$554 million** in the same period of 2024[109](index=109&type=chunk) - SLB executed a **$2.3 billion** accelerated share repurchase (ASR) program, completed on April 7, 2025, repurchasing **56.8 million shares** at an average price of **$40.51**[109](index=109&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) Q2 2025 revenue increased 1% sequentially to $8.5 billion, while H1 2025 revenue decreased 5% year-over-year to $17.0 billion, with varied segment performance Segment Revenue - Q2 2025 vs Q1 2025 (in millions) | Segment | Q2 2025 Revenue | Q1 2025 Revenue | QoQ Change | | :--- | :--- | :--- | :--- | | Digital & Integration | $995 | $1,006 | -1.1% | | Reservoir Performance | $1,691 | $1,700 | -0.5% | | Well Construction | $2,963 | $2,977 | -0.5% | | Production Systems | $3,036 | $2,938 | +3.3% | Segment Revenue - Six Months 2025 vs 2024 (in millions) | Segment | Six Months 2025 Revenue | Six Months 2024 Revenue | YoY Change | | :--- | :--- | :--- | :--- | | Digital & Integration | $2,001 | $2,003 | -0.1% | | Reservoir Performance | $3,391 | $3,544 | -4.3% | | Well Construction | $5,940 | $6,779 | -12.4% | | Production Systems | $5,974 | $5,843 | +2.2% | [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, SLB's net debt increased to $9.95 billion due to share repurchases, while maintaining strong liquidity and forecasting $2.4 billion in full-year capital investments Components of Liquidity (in millions) | Component | Jun. 30, 2025 | Dec. 31, 2024 | | :--- | :--- | :--- | | Cash | $3,236 | $3,544 | | Short-term investments | $511 | $1,125 | | Total Debt | $(13,698) | $(12,074) | | **Net Debt** | **$(9,951)** | **$(7,405)** | - Capital investments are expected to be approximately **$2.4 billion** for the full year 2025, including the impact of the ChampionX acquisition[109](index=109&type=chunk) - SLB increased its quarterly cash dividend by **3.6%** to **$0.285 per share**, beginning in April 2025[109](index=109&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) SLB's market risk exposure has not materially changed since its December 31, 2024, Annual Report on Form 10-K - SLB's exposure to market risk has not materially changed since December 31, 2024[114](index=114&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - The CEO and CFO concluded that SLB's disclosure controls and procedures were effective as of the end of the period covered by the report[116](index=116&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, these controls[116](index=116&type=chunk) PART II [Item 1. Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) SLB refers to Note 9 for legal proceedings, where management assesses the probability of a material loss as remote - Management believes that the probability of a material loss with respect to any currently pending legal proceeding is remote[64](index=64&type=chunk)[117](index=117&type=chunk) [Item 1A. Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors from the 2024 Form 10-K are reported, except for the elimination of ChampionX acquisition-related risks - There have been no material changes from the risk factors disclosed in the 2024 Form 10-K, other than the elimination of risks related to the completion of the ChampionX acquisition, which is now finalized[118](index=118&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details SLB's stock repurchase activities, including approximately $5.8 billion repurchased under a $10 billion program and the finalization of a $2.3 billion ASR in Q2 2025 - As of June 30, 2025, SLB has repurchased approximately **$5.8 billion** of its common stock under the **$10 billion** share repurchase program approved in 2016[120](index=120&type=chunk) - The **$2.3 billion** Accelerated Share Repurchase (ASR) was completed on April 7, 2025. SLB received a total of **56.8 million shares**, with the final **9.2 million shares** delivered in April[121](index=121&type=chunk) [Item 5. Other Information](index=30&type=section&id=Item%205.%20Other%20Information) SLB discloses residual transactions with Iran in Q2 2025, primarily payments for taxes and governmental charges, with non-US subsidiaries maintaining local bank accounts - SLB's residual dealings with Iran in Q2 2025 were limited to payments of taxes and other governmental charges[125](index=125&type=chunk) [Item 6. Exhibits](index=33&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and other required reports - The report includes CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002[127](index=127&type=chunk)

Market Performance - The US stock market saw significant gains on July 23, with the Dow Jones Industrial Average rising by 507.85 points, or 1.14%, closing at 45010.29 points. The Nasdaq Composite increased by 127.33 points, or 0.61%, closing at 21020.02 points, marking its first close above the 21000-point threshold. The S&P 500 index rose by 49.29 points, or 0.78%, closing at 6358.91 points [1][3][4]. Trade Agreements - President Trump announced a trade agreement between the US and Japan, which has heightened market expectations for further trade agreements before the August 1 tariff deadline. The agreement includes a reduction of the reciprocal tariff rate from 25% to 15% and Japan's commitment to invest $550 billion in the US [2][6][7]. Sector Performance - In the S&P 500, nine out of eleven sectors experienced gains, with the healthcare and industrial sectors leading with increases of 2.03% and 1.75%, respectively. The utilities and consumer staples sectors saw declines of 0.79% and 0.07% [8]. - Major technology stocks mostly rose, with AMD increasing over 3%, and other companies like NVIDIA, Boeing, and TSMC rising over 2%. Financial stocks also saw gains, with Mizuho Financial up over 6% and UBS Group up over 3% [8]. Chinese Stocks - The Nasdaq Golden Dragon China Index rose by 0.75%, with notable increases in stocks such as iQIYI, which rose over 4%, and Tiger Brokers, which increased over 3%. However, some stocks like NIO and Li Auto saw declines of over 1% [9].

Core Viewpoint - Schlumberger is a leading company in the oilfield services industry, offering a diverse range of services including well construction, reservoir performance, digital services, and well management. The company has experienced a decline in oil prices and stock value in recent months, which may present strategic buying opportunities for investors [1]. Group 1: Company Overview - Schlumberger (NYSE: SLB) is recognized as a world leader in the oilfield services sector [1]. - The company provides a wide array of services that cater to various aspects of oilfield operations [1]. Group 2: Market Performance - Recent trends indicate that both oil prices and Schlumberger's stock have drifted lower in recent months [1]. - The company has recently reported its earnings, which could influence investor sentiment and market positioning [1].

Financial Performance - SLB earnings demonstrate resilience in the market, international growth, and margin expansion [2] - The company is well-positioned for the year [2] Market Dynamics - Oil and gas fundamentals are intact [4] - OPEC+ decision to release more supply coincides with summer demand, China stock refilling, and low global inventory [4][5] - The effect of added supply has not significantly impacted the community [5] - Optimism remains that the resilience of the oil market will stay in place [5] - Short cycle market adjustments are expected, possibly in North America [6] - Long duration and long cycle markets, such as capacity expansion in the Middle East and deepwater assets, will continue to see investment [6] ChampionX Deal & Recovery Market - ChampionX has a best-in-class portfolio [7] - Customers prioritize getting more barrels with existing assets by increasing operating and capital efficiency while lowering emissions [7] - ChampionX portfolio complements SLB's portfolio with full technology solutions [7] - The recovery market is a growing and exciting market opportunity [8] - SLB can transform the recovery market by adding integration, digital capability, and subsurface expertise [8] - Unlocking recovery of existing assets adds more reserves, barrels, and sustained production [8] - Champex portfolio complements SLB's portfolio both internationally and in North America [9]