Core Thesis - SLB N.V. is viewed positively due to its attractive valuation and strong competitive position in the offshore oilfield services and advanced drilling technology sectors, despite cautious near-term sentiment due to oil price pressures [1][2][3] Business Overview - SLB's core business is heavily reliant on offshore oilfield services and advanced drilling technology, which currently generates the majority of its revenue [2] - The company has a trailing P/E of 17.57 and a forward P/E of 15.36, indicating a potentially attractive valuation [1] Market Conditions - Oil prices are expected to remain under pressure until 2026 due to a supply glut and a potentially weakening global economy, leading to cautious sentiment around the stock [2] - Historical trends suggest that oil prices may eventually recover, particularly if OPEC intervenes or if global GDP exceeds expectations, which could increase consumption and pricing [3] Long-term Opportunities - SLB is positioned to benefit from the growing demand for geothermal energy, which is seen as a more viable alternative compared to nuclear or speculative fusion energy [4][5] - The company has been involved in approximately 80% of global geothermal projects over the past century, showcasing its expertise and capability to execute projects within a five to ten year horizon [6] Operational Strategy - SLB has improved its portfolio by exiting low-margin US frac work and reallocating capital towards offshore, digital, and international markets, which offer higher returns [7] - The company has gained international market share by winning a majority of new offshore tenders globally and taking market share from competitors in Asia and the Middle East [7] Capital Allocation - SLB's disciplined capital allocation and strategic acquisitions, such as ChampionX during a downturn, position the company favorably for both an oil cycle recovery and a broader next-generation energy supercycle [8]