Group 1 - iREIT+HOYA Capital focuses on income-producing asset classes that provide sustainable portfolio income, diversification, and inflation hedging [1] - The strategy emphasizes the importance of investing in 'pick and shovel' plays, which are companies that provide essential tools or services to other industries, particularly in the AI sector [2] Group 2 - NVIDIA is identified as a key player in the AI space, but its current valuation is considered too high for investment [2] - The article suggests a defensive investment approach with a medium- to long-term horizon [2]

Core Insights - Ormat Technologies and SLB have formed a partnership to accelerate the development and commercialization of integrated geothermal assets, particularly enhanced geothermal systems (EGS) [1][4] - The collaboration aims to streamline project deployment from concept to power generation, focusing on the design and construction of an EGS pilot project at an Ormat site [2][6] Company Overview - Ormat Technologies is a leading geothermal company with over six decades of experience, specializing in geothermal and recovered energy generation [6] - The company operates a total generating portfolio of 1,618 MW, which includes 1,268 MW from geothermal and solar generation across various countries [7] - SLB is a global technology company focused on energy innovation, with a presence in over 100 countries and a commitment to developing new energy systems [8] Project Details - The first joint demonstration project will develop new technologies and techniques for EGS, optimizing integration with surface facilities to enhance production and sustainability [4][5] - The U.S. Department of Energy estimates that next-generation geothermal could provide up to 90 GW by 2050, with a potential of 300 GW in the U.S. alone [5] Strategic Goals - The partnership aims to make both traditional hydrothermal and EGS technologies commercially viable and scalable to meet the growing global energy demand [5] - Following the pilot project, Ormat and SLB plan to pursue large-scale EGS commercialization for various customers, including independent power producers and data center operators [6]

Summary of Global Oil Services Conference Call Industry Overview - The report discusses the **Global Oil Services** industry, focusing on the outlook for 2H25 and FY26, highlighting both positive and negative signals in the market [1][2]. Key Insights 1. **Financial Strength**: The industry is currently in a strong financial position, although it is trading at historically low multiples. Many investors have not capitalized on the O&G capex recovery from 2022-24 [1][2]. 2. **Conflicting Signals**: There are concerns regarding oil supply and price stability, with questions about whether oil will remain oversupplied and if prices might decline. Additionally, there are indications of weakening International/Offshore activity, which could be exacerbated by high consensus expectations [1][2]. 3. **US Market Activity**: The Dallas Fed survey indicates a rapid deterioration in US activity expected in 4Q25, despite a stabilizing rig count. Current consensus expectations for the US market are low [1][2]. 4. **Optimism from Key Players**: Companies like GTT and Viridien express optimism ahead of 3Q25, contrasting with the overall cautious sentiment [1][2]. Regional Activity Recovery 1. **Diverging Opinions**: There are differing views on whether North America or international markets will lead the recovery. SLB suggests North America will remain constrained due to economic challenges, while Halliburton believes it is positioned for recovery [3][4]. 2. **Investment Implications**: The outlook for 2026-27 is more positive than generally perceived, with potential catalysts for the sector. The report suggests that 4Q25 may represent a low point for North America, and given the sector's low valuation (approximately 1.3x EV/Revenue), there is significant upside potential for various stocks [4][6]. Preferred Investment Calls - **Next 6 Months**: GTT (Target Price €193), Viridien (Target Price €94), SLB (Target Price $47.60) - **Next 12 Months**: SBM (Target Price €24), Rubis (Target Price €38.7), Vallourec (Target Price €22.6), Tenaris (Target Price €21) - **Next 18 Months**: Adnoc Drilling (Target Price AED6.76), Saipem (Target Price €3.54), Subsea (Target Price NOK240) - Notably, GTT, SBM, and Rubis are largely de-correlated from oil prices [6]. Conclusion - The Global Oil Services industry is at a critical juncture with mixed signals regarding future activity and investment opportunities. The financial strength of the sector, combined with low valuations, presents potential upside for select stocks, while regional disparities in recovery expectations highlight the complexity of the market landscape [1][4][6].

Market Overview - U.S. equities saw significant gains in Q3, driven by the Federal Reserve's first rate cut of the year, strong corporate earnings growth, and increased market participation [2] - Investor enthusiasm for artificial intelligence contributed to substantial gains in technology stocks, particularly among the "Magnificent Seven" [2] - Small-cap stocks outperformed as capital shifted into undervalued market segments, despite ongoing concerns about tariffs, inflation, and labor market softness [2] Company Highlights - Resideo Technologies, Inc. (REZI) was the top contributor in Q3, with organic revenue, EBITDA, and adjusted EPS exceeding expectations, and a positive outlook supported by demand for smart home solutions [3] - Barrick Mining Corporation (B) experienced a rise in shares due to strong financial results and rising gold prices, alongside a strategic divestiture of its Hemlo Gold Mine for $1.09 billion [4] - ZimVie, Inc. (ZIMV) advanced following an announcement of its acquisition by ARCHIMED, expected to close by year-end [5] - Mosaic Co. (MOS) was the biggest detractor from performance due to an earnings miss, with pressures from lower volumes and rising production costs, although phosphate markets are expected to remain tight through 2025 [6] - Prestige Consumer Healthcare Inc. (PBH) declined after mixed earnings results and a downward revision to guidance, but plans to strengthen supply through an acquisition of Pillar5 [7] - Schlumberger Limited (SLB) traded lower due to a challenging macroeconomic environment, with pressures from OPEC+ supply increases and geopolitical uncertainty impacting oil prices [8] New Positions and Exits - New positions included Arthur J. Gallagher & Co. (AJG), which faced pressure due to a delay in closing its $13.4 billion acquisition of AssuredPartners, but is expected to benefit from stronger synergies [10] - Fiserv, Inc. (FI) was also purchased, seen as a leading provider of payment processing and financial services technology, with a recent stock pullback providing an attractive entry point [11] - Exited positions included ZimVie, Inc., Core Laboratories, Inc. (CLB), and Bio-Rad Laboratories Inc. (BIO) to pursue more compelling opportunities [12] Economic Outlook - As Q4 approaches, U.S. markets are balancing elevated valuations against emerging macroeconomic headwinds, with the Federal Reserve's rate cut providing some support [13] - Investor sentiment remains positive, driven by AI momentum, although risks related to market concentration and policy uncertainty may lead to increased volatility [14] - There is a belief that small-cap equities may outperform large caps over the next two years, with small caps trading at historically attractive levels [14]

Core Viewpoint - SLB has been gaining attention as one of the most searched stocks, with its performance influenced by various fundamental factors [1][2]. Earnings Estimates - SLB is expected to report earnings of $0.74 per share for the current quarter, reflecting a year-over-year decline of -19.6% [5]. - The consensus earnings estimate for the current fiscal year is $2.89, indicating a year-over-year change of -15.3% [5]. - For the next fiscal year, the consensus estimate is $2.95, showing a slight increase of +1.9% compared to the previous year [6]. - The Zacks Rank for SLB is 3 (Hold), indicating a neutral outlook based on earnings estimate revisions [7]. Revenue Growth Forecast - The consensus sales estimate for SLB is $9.53 billion for the current quarter, representing a year-over-year increase of +2.7% [11]. - Revenue estimates for the current and next fiscal years are $35.53 billion (a decrease of -2.1%) and $37.44 billion (an increase of +5.4%), respectively [11]. Last Reported Results and Surprise History - In the last reported quarter, SLB generated revenues of $8.93 billion, down -2.5% year-over-year, with an EPS of $0.69 compared to $0.89 a year ago [12]. - The company surpassed consensus EPS estimates three times and revenue estimates two times over the last four quarters [13]. Valuation - SLB is graded B on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether SLB's stock is fairly valued [15][16]. Conclusion - The information presented suggests that SLB may perform in line with the broader market in the near term, as indicated by its Zacks Rank [18].

Group 1 - Schlumberger, ConocoPhillips, and Halliburton saw pre-market gains exceeding 2% [1] - Chevron and ExxonMobil experienced pre-market increases of over 1% [1]

Group 1 - The discussion includes a reference to a recent 20% retracement in a stock's movement, indicating a potential buying opportunity [1] - There is a mention of various companies and sectors, including Coinbase and SLB Corp, suggesting interest in these stocks [1] - The conversation reflects a casual tone, indicating a focus on market sentiment and trading strategies rather than detailed financial analysis [1]

Revenue Performance - Third-quarter 2025 revenue was $8.9 billion, an increase of $382 million, or 4%, compared to the second quarter of 2025[103] - Digital revenue reached $658 million, growing 11% sequentially, with a 22% increase in Digital Operations and a 28% increase in Digital Exploration[106] - Production Systems revenue increased 18% sequentially to $3.5 billion, primarily due to the acquisition of ChampionX, which contributed $575 million[111] - Reservoir Performance revenue was $1.68 billion, a decline of 1% sequentially, impacted by lower activity in the Middle East & Asia[108] - Well Construction revenue remained flat at $3.0 billion, with higher revenue in offshore Guyana and North America offset by lower activity in Saudi Arabia and Argentina[109] - Nine-month 2025 revenue totaled $25.96 billion, a decrease of 4% year-on-year, primarily due to activity reductions in Saudi Arabia, Mexico, and key offshore markets[115] - Digital revenue for the nine months of 2025 was $1.84 billion, a 6% year-on-year increase, driven by growth in Digital Operations and Platforms & Applications[117] - Production Systems revenue for the nine months of 2025 was $9.25 billion, reflecting a 5% year-on-year increase, aided by the acquisition of ChampionX[120] Financial Position - As of September 30, 2025, SLB reported cash and short-term investments totaling $3.6 billion, with committed debt facility agreements of $5.0 billion available[133] - Net debt increased to $9.181 billion as of September 30, 2025, compared to $8.461 billion at the end of 2024, reflecting a net debt increase of $1.776 billion during the nine months[130] - Free cash flow for the first nine months of 2025 was $1.826 billion, down from $2.359 billion in the same period of 2024[130] - Capital investments for the first nine months of 2025 were $1.7 billion, a decrease from $1.9 billion in the same period of 2024, with full-year expectations of approximately $2.4 billion[136] Shareholder Returns - Dividends paid during the first nine months of 2025 were $1.2 billion, compared to $1.1 billion in 2024, reflecting a 9% increase[136] - SLB repurchased $2.414 billion worth of shares at an average price of $40.23 per share during the first nine months of 2025, compared to $1.236 billion at an average price of $46.47 in 2024[132] - The company announced a 3.6% increase in its quarterly cash dividend from $0.275 to $0.285 per share, effective from April 2025[136] Future Outlook - SLB expects revenue growth in the fourth quarter driven by international markets and a full quarter of activity from the acquired ChampionX businesses[105] Taxation - The effective tax rate for the third quarter of 2025 was 23%, up from 18% in the second quarter of 2025[126] Other Transactions - The company disposed of the ChampionX Drilling Technologies business for proceeds of $286 million during the third quarter of 2025[136] - SLB recorded a net cash inflow of $338 million from the sale of its interest in the Palliser APS project during the second quarter of 2025[137] Accounts Receivable - SLB's net accounts receivable balance as of September 30, 2025, was significantly influenced by the United States and Mexico, each accounting for 11%[134]

Core Insights - Schlumberger's total revenue for the quarter ending September 2025 was $8.93 billion, reflecting a year-over-year decline of 2.5% [4] - The company's international revenue streams are crucial for assessing its financial resilience and growth prospects [2][3] International Revenue Breakdown - Latin America contributed $1.48 billion, accounting for 16.6% of total revenue, with a surprise decline of -2.91% compared to analyst expectations of $1.53 billion [5] - Middle East & Asia generated $3 billion, representing 33.6% of total revenue, with a surprise decline of -1.04% against expectations of $3.03 billion [6] - Europe & Africa provided $2.43 billion, making up 27.3% of total revenue, exceeding the consensus estimate of $2.41 billion by +1.02% [7] Future Revenue Expectations - Analysts project Schlumberger's revenues for the current fiscal quarter to reach $9.5 billion, an increase of 2.3% year-over-year, with expected contributions of 17.3% from Latin America ($1.65 billion), 34.4% from Middle East & Asia ($3.26 billion), and 27% from Europe & Africa ($2.56 billion) [8] - For the full year, total annual revenue is expected to be $35.47 billion, a decrease of 2.3% compared to the previous year, with projected contributions of 17.4% ($6.16 billion) from Latin America, 34.5% ($12.25 billion) from Middle East & Asia, and 27% ($9.58 billion) from Europe & Africa [9] Market Performance and Outlook - The reliance on international markets presents both opportunities and challenges for Schlumberger, making it essential to track international revenue trends for future projections [10] - The company's current Zacks Rank is 4 (Sell), indicating potential underperformance in the near term [12] - Over the past month, Schlumberger's stock has declined by 1.4%, while the Zacks S&P 500 composite increased by 1.2% [13]

Core Viewpoint - SLB reported third-quarter earnings that exceeded expectations, reflecting cautious optimism for future growth despite current market challenges [2][3] Financial Performance - Revenue for the third quarter was $8.93 billion, slightly above the expected $8.92 billion [2] - Earnings per share (EPS) were 69 cents, surpassing estimates of 66 cents by 3.95% [2] Market Context - SLB's stock has declined over 1% following the earnings report and is down approximately 14% in 2025, correlating with crude oil price movements [1] - Crude oil prices recently fell below $60 per barrel, but structural trends suggest potential for higher demand and pricing power in the future [4][5] Growth Catalysts - North American infrastructure investment and onshoring efforts are expected to drive energy demand, potentially tightening supply and supporting oil prices [5][6] - International markets, particularly in the Middle East and Asia, are showing resilience, with 80% of SLB's revenue derived from these regions [8] Strategic Initiatives - SLB is focusing on long-cycle projects and anticipates OPEC+ will gradually increase production quotas, which aligns with the company's investment strategy [9] - The company is also advancing in digital and transition technologies, with its SLB New Energy division targeting carbon capture and lithium extraction [10] Financial Outlook - Analysts project a 12-month stock price forecast of $52.00, indicating a potential upside of 59.61% from the current price of $32.58 [12] - SLB is trading at a discount to historical valuation multiples and industrial peers, with a forward earnings multiple around 9x [13][14]