A few months ago, I sold SLB ( SLB ) (formerly known as Schlumberger) stock after the oil price decline, subsequent notices of drilling cutbacks, tariff effect uncertainty, and when a fellow Seeking Alpha member mentioned, in response to myLaura Starks is the founder and CEO of Starks Energy Economics, LLC (since 2007). She has a degree in chemical engineering and an MBA with a concentration in finance which she has used for many years to invest personally and to share her ideas about energy companies. Her ...

Company Performance - Schlumberger's stock closed at $33.93, with a slight increase of +0.8% from the previous trading session, underperforming the S&P 500 which gained 2.05% [1] - Over the past month, Schlumberger's shares have decreased by 1.29%, while the Oils-Energy sector and the S&P 500 have increased by 1.87% and 5.21% respectively [1] Earnings Forecast - The upcoming earnings report is expected to show an EPS of $0.77, reflecting a decline of 9.41% compared to the same quarter last year [2] - Revenue is projected at $8.49 billion, indicating a decrease of 7.08% from the equivalent quarter last year [2] - For the entire fiscal year, earnings are estimated at $3.18 per share and revenue at $35.98 billion, representing declines of 6.74% and 0.84% respectively from the previous year [3] Analyst Estimates and Valuation - Recent adjustments to analyst estimates for Schlumberger are being monitored, as positive revisions may indicate an optimistic business outlook [4] - The Zacks Rank system currently rates Schlumberger as 4 (Sell), with the consensus EPS estimate having decreased by 5.5% in the past month [6] - Schlumberger's Forward P/E ratio is 10.59, which is lower than the industry average of 14.47 [7] - The company has a PEG ratio of 8.47, significantly higher than the industry average PEG ratio of 2.4 [8] Industry Context - The Oil and Gas - Field Services industry, which includes Schlumberger, has a Zacks Industry Rank of 172, placing it in the bottom 31% of over 250 industries [9]

SLB (SLB) , an American oilfield services company, has launched Electris, a new portfolio of digitally enabled electric well completion technologies designed to enhance hydrocarbon recovery and lower operational costs. The global energy technology firm stated that the Electris suite provides real-time production intelligence across the reservoir, enabling operators to maximize output and minimize costly well interventions.SLB’s Electris Enhances Reservoir ManagementAccording to SLB, Electris completions dig ...

Group 1 - Schlumberger may encounter challenges due to a softening production environment as new barrels enter the market through OPEC+ [1] - Despite potential market challenges, Schlumberger is finding strength in its operations [1] Group 2 - The article highlights the importance of considering the entire investment ecosystem rather than evaluating a company in isolation [1]

Financial Performance - ChampionX Corporation reported first quarter 2025 revenue of $864.5 million, a decrease of 5% sequentially, primarily due to seasonal declines in international operations [3][4] - Net income attributable to ChampionX was $85.8 million, with an income before income taxes margin of 12.1% and adjusted EBITDA of $190.9 million, reflecting a 22.1% adjusted EBITDA margin, the second-highest level for the company [3][4][29] - Cash from operating activities was $66.8 million, representing 78% of net income, and free cash flow was $38.6 million, marking the 12th consecutive quarter of positive free cash flow [4][37] Segment Performance - Production Chemical Technologies revenue was $523.4 million, down 8% sequentially, with segment operating profit of $82.2 million and an adjusted segment EBITDA margin of 20.8% [9][10][29] - Production & Automation Technologies revenue was $264.4 million, a decrease of 2% sequentially, with segment operating profit of $37.6 million and an adjusted segment EBITDA margin of 26.6% [11][12][29] - Drilling Technologies revenue was $50.5 million, down 3% sequentially, with segment operating profit of $8.2 million and an adjusted segment EBITDA margin of 20.3% [13][29] - Reservoir Chemical Technologies revenue increased by 23% sequentially to $26.9 million, with segment operating profit margin rising to 20.5% [14][15][29] Business Highlights - ChampionX secured several contracts in the Middle East and North America, including a major capital project in the Gulf of America and a significant volume of hydrate inhibitor for an Australian operator [16] - The company continues to expand its digital technologies, with strong market adoption of new solutions such as XSPOC production optimization software and SMARTEN™ Lite rod pump controllers [19] - ChampionX's Integrated Production Optimization (IPO) business is expanding, delivering measurable production uplift and optimizing chemical spend for operators [19] Acquisition Update - On April 2, 2024, SLB and ChampionX announced a definitive Agreement and Plan of Merger for SLB to acquire ChampionX in an all-stock transaction, which has received board and stockholder approval [7][8]

A promise to continue returning billions of dollars to shareholders couldn't make up for a lackluster first quarter from Schlumberger (SLB -1.23%) on Friday. After the company unveiled those results, investors generally traded out of the stock and left it with a nearly 2% loss on the day. Meanwhile, the S&P 500 index landed in positive territory with a 0.6% increase.Drops in headline fundamentalsBoth revenue and profitability declined for Schlumberger on a year-over-year basis during the quarter. The former ...

Financial Data and Key Metrics Changes - First quarter revenue decreased by 3% year on year, totaling $8.5 billion, primarily due to lower international revenue offsetting strong North American results [9][24] - Earnings per share excluding charges and credits was $0.72, a decrease of $0.03 compared to the same quarter last year [23] - Adjusted EBITDA margin for the first quarter was 23.8%, up 18 basis points year on year [24] Business Line Data and Key Metrics Changes - Digital and Integration revenue increased by 6% year on year, driven by a 17% growth in digital revenue [28] - Reservoir Performance revenue decreased by 1% year on year, with margins declining due to less favorable activity mix and project startup costs [29] - Well Construction revenue declined by 12% year on year, primarily due to lower drilling activity in North America and international markets [29] - Production Systems revenue increased by 4%, with margins growing by 197 basis points year on year, supported by strong demand in production and recovery activities [30] Market Data and Key Metrics Changes - International revenue decreased by 5% year on year, largely driven by reduced activity in Mexico, Saudi Arabia, and Russia [24] - North America revenue increased by 8% year on year, attributed to higher digital and subsea production system sales [24] - Double-digit growth was achieved in several markets, including the UAE, North Africa, Kuwait, Argentina, and China [10] Company Strategy and Development Direction - The company remains focused on executing its strategy, managing costs, and delivering differentiated performance for customers amid global economic uncertainty [16] - There is an increased emphasis on production recovery and technology deployment to unlock new growth potential [17] - The company is capitalizing on low carbon markets and expanding its Data Center Infrastructure Solutions business [19][63] Management's Comments on Operating Environment and Future Outlook - The management expects global upstream investment to decline compared to 2024, with more resilient customer spending in the Middle East and Asia [15] - The company anticipates flat to mid-single-digit revenue growth in the second half of the year, assuming stable oil prices [20] - Management expressed confidence in the company's ability to generate strong margins and cash flows despite market uncertainties [21] Other Important Information - The company is committed to returning at least $4 billion to shareholders in 2025 [20] - The pending acquisition of ChampionX is progressing, with confidence in closing by the end of the second quarter or early third quarter of 2025 [33][75] Q&A Session Summary Question: Outlook for international and North American markets - Management clarified that upstream spending is expected to decline year on year, with North America facing more downside exposure than international markets [38] Question: Activity in Saudi Arabia - Management indicated that while there are many moving parts, they expect an uptick in activity in Saudi Arabia driven by gas ambitions and OPEC production stabilization [44][46] Question: EBITDA margin expectations - Management aims to maintain an EBITDA margin around 25% for the full year, but tariffs could impact this goal [52] Question: Digital growth resilience - Management believes that the secular trend of digital adoption is accelerating, with mid to high teens growth expected in the digital business [55] Question: Diversification strategy beyond oil and gas - Management outlined steps taken to diversify into low carbon markets, including carbon capture and geothermal projects, with revenue expected to exceed $1 billion in 2025 [60][65] Question: Confidence in free cash flow generation - Management expressed confidence in strong free cash flow generation throughout the year, supporting their commitment to return capital to shareholders [103]

SLB (SLB) reported first-quarter 2025 earnings of 72 cents per share (excluding charges and credits), which missed the Zacks Consensus Estimate of 74 cents. The bottom line also decreased from the year-ago quarter’s level of 75 cents. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)The oilfield service giant recorded total quarterly revenues of $8.49 billion, which missed the Zacks Consensus Estimate of $8.59 billion. The top line declined from the year-ago quarter’s figure of $8.71 ...

Revenue Performance - First-quarter 2025 revenue of $8.5 billion decreased 3% year on year, with North America revenue growing by 8% to $1.7 billion, while international revenue declined 5% to $6.7 billion[64]. - Digital & Integration revenue increased 6% year on year to $1.0 billion, driven by a 17% growth in digital revenue, despite lower APS revenue due to a temporary disruption[68]. - Reservoir Performance revenue of $1.7 billion declined 1% year on year, with a pretax operating margin of 17% decreasing by 311 basis points due to lower evaluation activity[70]. - Well Construction revenue of $3.0 billion declined 12% year on year, with a pretax operating margin of 20% decreasing by 71 basis points due to reduced drilling activity[72]. - Production Systems revenue of $2.9 billion increased 4% year on year, with a pretax operating margin of 16% increasing by 197 basis points due to improved profitability[73]. - Internationally, Latin America revenue of $1.5 billion declined 10% year on year, primarily due to reduced drilling activity in Mexico[66]. Financial Metrics - The effective tax rate for Q1 2025 was 22%, up from 19% in Q1 2024, primarily due to charges and credits that did not result in a tax benefit[85]. - Net income for the first three months of 2025 was $829 million, down from $1,098 million in the same period of 2024, representing a decrease of approximately 24.5%[92]. - Cash flow from operations increased to $660 million in Q1 2025, compared to $327 million in Q1 2024, marking a growth of approximately 102%[92]. - Free cash flow for Q1 2025 was $103 million, a significant improvement from a negative $222 million in Q1 2024[92]. - SLB's net debt increased to $10.105 billion by the end of Q1 2025, up from $8.679 billion at the end of Q1 2024[92]. Capital Investments and Shareholder Returns - Capital investments totaled $600 million in Q1 2025, up from $500 million in Q1 2024, with full-year 2025 capital investments expected to be around $2.3 billion[94]. - SLB announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, with dividends paid in Q1 2025 amounting to $386 million compared to $357 million in Q1 2024[94]. - SLB entered into accelerated share repurchase agreements to buy back $2.3 billion of its common stock, completing the repurchase of 56.8 million shares at an average price of $40.51[94]. Cash and Liquidity - Cash as of March 31, 2025, was $2.936 billion, an increase from $2.788 billion year on year, while net debt increased to $(10.105) billion[91]. - As of March 31, 2025, SLB had $3.9 billion in cash and short-term investments, along with $5.0 billion in committed debt facilities, sufficient to meet business requirements for at least the next 12 months[93]. Other Notable Items - Charges and credits for Q1 2025 totaled $206 million, with workforce reductions accounting for $158 million of this amount[89]. - SLB recorded revenue of approximately $100 million related to the Palliser APS project in Q1 2025, with a planned cash proceeds of about $430 million from its sale expected to close in Q2 2025[96]. - Only three countries accounted for more than 5% of SLB's net receivable balance, with the United States representing over 10% and Mexico at 7%[95].

Schlumberger (SLB) came out with quarterly earnings of $0.72 per share, missing the Zacks Consensus Estimate of $0.74 per share. This compares to earnings of $0.75 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.70%. A quarter ago, it was expected that this world's largest oilfield services company would post earnings of $0.90 per share when it actually produced earnings of $0.92, delivering a surprise of 2.22%.Over the las ...