SLB Secures $1.5 Billion Contract for Mutriba Field Development

Group 1 - SLB has been awarded a five-year, $1.5 billion contract by Kuwait Oil Company to design, develop, and manage production at the Mutriba field in Kuwait [1][5] - The project aims to develop difficult and hard-to-reach oil and gas resources more quickly while minimizing environmental impact and controlling costs [2] - The contract represents trust and cooperation between KOC and SLB, expanding SLB's scope of work and responsibility, which supports stable and predictable cash flow generation [2][5] Group 2 - SLB and other oilfield equipment and service companies rely heavily on capital spending by upstream energy producers, which is influenced by fluctuations in oil prices [3] - The current business environment for oil and gas exploration firms is favorable, with West Texas Intermediate crude oil prices above $60 per barrel, positively impacting the business models of companies like Cactus, Baker Hughes, and Halliburton [4] - SLB currently carries a Zacks Rank 3 (Hold), while Halliburton and Baker Hughes also hold a Zacks Rank 3, and Cactus has a Zacks Rank 4 (Sell) [3][4]