Schlumberger(SLB) Forbes·2025-01-20 13:00Energy Policy Shift - The nomination of Chris Wright as Energy Secretary indicates a significant shift towards expanding domestic energy production, contrasting with previous administrations' views on energy as a liability [2][3] - Wright emphasizes the need to enhance energy production across various sectors, including commercial nuclear and liquefied natural gas, to compete globally [3][5] - The new administration's focus on energy production is echoed by Interior Secretary nominee Doug Burgum, who aims to maximize energy production from U.S. public lands and waters [4] Company Overview: SLB - SLB, formerly known as Schlumberger, is positioned to benefit from the anticipated shift in U.S. energy policy, highlighted by a recent 6% increase in stock price due to better-than-expected Q4 earnings [6][7] - The company operates in over 100 countries and is the largest service provider to the oil and gas industry, showcasing strong demand for its drilling equipment and technology [7] - SLB's Q4 performance reflects robust gains in its digital and integration business, underscoring its technological leadership and operational efficiency [7] Investment Potential - SLB's stock is currently trading at less than 11 times earnings with a 3% dividend yield, suggesting significant upside potential as it appears undervalued [8] - The company has announced a $2.3 billion stock buyback program and increased its dividend, indicating confidence in future growth [6][8] - With low debt levels and strong financials, SLB is well-positioned for the expected energy expansion in 2025, making it an attractive investment opportunity [8][9]