Core Insights - Freeport-McMoRan reported fourth-quarter 2025 earnings that exceeded expectations, with adjusted EPS of $0.47, surpassing analyst predictions of $0.28 to $0.29 per share [2][8] - Revenue for the quarter was approximately $5.63 billion, slightly down from the previous year but above consensus estimates, driven by higher realized commodity prices, with copper averaging $5.33 per pound and gold at $4,078 per ounce [2][5] Operational Performance - Copper production declined over 30% year-over-year due to a temporary halt at the Grasberg Block Cave mine, one of the largest copper mines globally [5] - Despite production challenges, the company exceeded sales volume forecasts in other areas and maintained cash costs under control, generating strong operational cash flow and an adjusted EBITDA of just over $2 billion for the quarter [5] Stock Performance - The stock price movements around the earnings announcement were mixed, as much of the positive news was already reflected in the stock price, with concerns about production scheduling dampening enthusiasm [6] - Recently, FCX stock has shown resilience, moving towards recent highs due to optimism surrounding the phased restart of Grasberg and favorable commodity pricing dynamics [6] Future Outlook - Management plans a phased restart of Grasberg operations in Q2 2026, with a potential return to full production by mid-2026, which is expected to significantly enhance production levels and earnings capacity [7] - For 2026, the company anticipates slightly lower copper sales and reduced gold production compared to 2025, but expects strong growth into 2027-2028 as major projects commence and output recovers [7] - Freeport reaffirmed its capital allocation priorities, focusing on prudent spending for growth initiatives while maintaining a robust balance sheet [7]

Production Systems: Revenue of $4.1 billion increased 17% sequentially, reflecting a full quarter of ChampionX activity. Excluding ChampionX, Production Systems revenue rose 11% sequentially, driven by completions and artificial lift sales and project milestones in process technologies, subsea, and valves. Pre-tax operating margin increased 20 basis points to 16%.Well Construction: Revenue of $2.9 billion declined 1% sequentially, with declines in the Middle East and Asia offsetting higher offshore drilling ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $9.7 billion, an increase of $817 million or 9% sequentially, with approximately $300 million attributed to the acquisition of ChampionX [20][19] - Adjusted EBITDA margin for the fourth quarter was 23.9%, an increase of 83 basis points sequentially, driven by strong digital performance [20][19] - Earnings per share, excluding charges and credits, was $0.78, reflecting a sequential increase of $0.09 but a decrease of $0.14 compared to the same quarter last year [19] Business Line Data and Key Metrics Changes - Digital revenue reached $825 million, a 25% sequential increase, with a pre-tax operating margin of 34%, up 557 basis points [21] - Reservoir Performance revenue was $1.7 billion, a 4% sequential increase, driven by strong international activity [21] - Production Systems revenue increased by 17% sequentially to $4.1 billion, reflecting a full quarter of activity from ChampionX [22] Market Data and Key Metrics Changes - Internationally, organic revenue increased by 7%, with North America seeing a 6% increase [6] - The Middle East showed increased activity, particularly in Saudi Arabia and UAE, contributing to the overall revenue growth [6][12] - The company noted a stabilization in global upstream activity, with key markets showing early signs of a rebound [6] Company Strategy and Development Direction - The company aims to leverage technology and digital solutions to enhance operational efficiency and reduce costs for customers [10][11] - There is a focus on production recovery as a critical domain for value creation, integrating equipment with intelligent digital capabilities [11][66] - The company anticipates a gradual recovery in upstream investment, particularly in international markets, as supply and demand rebalance [10][12] Management's Comments on Operating Environment and Future Outlook - Management expects near-term oversupply to exert downward pressure on commodity prices, but geopolitical uncertainties may provide a price floor [9][10] - The outlook for 2026 includes revenue expectations between $36.9 billion and $37.7 billion, driven by a full year of ChampionX activity and growth in digital operations [15][16] - The company is optimistic about the recovery in international markets, particularly in Latin America and the Middle East, while anticipating slight declines in Europe and Africa [15] Other Important Information - The company generated $3 billion in cash flow from operations during the fourth quarter, with free cash flow of $2.3 billion [22] - A total of $4 billion was returned to shareholders in 2025, with plans for a similar amount in 2026 through dividends and stock buybacks [26] - The company is the only international service provider actively operating in Venezuela, with plans to ramp up activities as conditions allow [18][56] Q&A Session Summary Question: CapEx trends and capital intensity - Management indicated a slight increase in CapEx to $2.5 billion for 2026, emphasizing improved capital efficiency compared to the past [31][32] Question: Customer mix and market opportunities in the Middle East - Management expressed confidence in national companies executing capital programs and noted a rebound in Saudi Arabian drilling activity [35][36] Question: Exit rate expectations for 2026 - Management expects the fourth quarter of 2026 to be higher than that of 2025, driven by international market recovery [45][46] Question: Digital business penetration - Management highlighted the potential for digital platforms to transform the industry, with increasing customer adoption of digital solutions [47][48] Question: Opportunities in Venezuela - Management noted readiness to ramp up operations in Venezuela, leveraging historical partnerships and existing assets [56][58] Question: Offshore market outlook - Management anticipates improved offshore activity in 2026, supported by FID and project developments in various regions [91][92]

SLB (NYSE:SLB) Q4 2025 Earnings call January 23, 2026 09:30 AM ET Company ParticipantsJames R. McDonald - SVP of Investor Relations and Industry AffairsJames West - Managing DirectorNeil Mehta - Managing DirectorOlivier Le Peuch - CEOStephen Richardson - Senior Managing Director for EquitiesStéphane Biguet - EVP and CFOConference Call ParticipantsArun Jayaram - AnalystJ. David Anderson - AnalystMarc Bianchi - AnalystScott Gruber - AnalystOperatorThank you for your patience. The call will begin momentarily. ...

Financial Data and Key Metrics Changes - The company reported a fourth quarter revenue of $9.7 billion, an increase of $817 million or 9% sequentially, with approximately $300 million attributed to an additional month of activity from the acquired ChampionX businesses [18] - Adjusted EBITDA margin for the fourth quarter was 23.9%, an increase of 83 basis points sequentially, primarily driven by strong digital performance [18] - Fourth quarter earnings per share, excluding charges and credits, was $0.78, representing an increase of $0.09 sequentially and a decrease of $0.14 compared to the same quarter last year [17] Business Line Data and Key Metrics Changes - Digital revenue for the fourth quarter was $825 million, increasing 25% sequentially, with a pre-tax operating margin expanding to 34% [19] - Reservoir Performance revenue was $1.7 billion, up 4% sequentially, driven by strong international activity, particularly in Saudi Arabia and East Asia [19] - Production Systems revenue increased by 17% sequentially to $4.1 billion, reflecting a full quarter of activity from ChampionX [20] Market Data and Key Metrics Changes - The company observed sequential revenue growth across all geographies for the first time since Q2 2024, indicating stabilization in global upstream activity [5] - The Middle East market is expected to rebound in drilling and workover activity, particularly in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026 [11] - Latin America and Asia are leading the rebound in international markets, with double-digit growth noted in the UAE, Iraq, and Kuwait [11] Company Strategy and Development Direction - The company aims to leverage technology and digital solutions to enhance efficiency and reduce costs for customers, focusing on performance assurance across the asset lifecycle [10] - The integration of ChampionX is expected to provide synergies that will enhance production systems margins, with approximately half of the $400 million in total synergies anticipated by the end of 2026 [22] - The company is expanding its data center solutions business, expecting to reach a quarterly revenue run rate of $1 billion by year-end 2026 [13] Management's Comments on Operating Environment and Future Outlook - Management anticipates that near-term oversupply may exert downward pressure on commodity prices, but geopolitical uncertainties could provide a price floor [9] - The company expects a gradual recovery in upstream investment as supply and demand rebalance into 2027, driven by economic growth and infrastructure investments [9] - For 2026, the company projects revenue between $36.9 billion and $37.7 billion, with growth expected from Latin America and the Middle East, while Europe and Africa may see slight declines [14] Other Important Information - The company generated $3 billion of cash flow from operations in the fourth quarter, with free cash flow of $2.3 billion [21] - The company plans to return more than $4 billion to shareholders in 2026 through dividends and stock buybacks [24] - The company is the only international service company actively operating in Venezuela, with plans to ramp up activities as conditions allow [16][40] Q&A Session Summary Question: CapEx outlook and capital intensity - The company increased CapEx slightly to $2.5 billion, indicating improved capital efficiency compared to the past [25] Question: Customer mix and market opportunities - Management expressed confidence in national companies executing capital programs and noted a rebound in Saudi Arabian drilling activity [27] Question: Exit rate for 2026 - The company expects the fourth quarter of 2026 to be higher than the fourth quarter of 2025, driven by international market recovery [30] Question: Digital business penetration - The company is seeing significant traction in digital operations, with platforms like Lumi and Tela gaining customer adoption [35] Question: Venezuela's revitalization potential - The company has a strong historical presence in Venezuela and is prepared to ramp up operations if conditions allow [40] Question: Data center infrastructure growth - The company expects to reach a $1 billion run rate in revenue for its data center solutions by year-end 2026, with plans for international expansion [41]

Financial Performance - SLB earnings demonstrate resilience in the market, international growth, and margin expansion [2] - The company is well-positioned for the year [2] Market Dynamics - Oil and gas fundamentals are intact [4] - OPEC+ decision to release more supply coincides with summer demand, China stock refilling, and low global inventory [4][5] - The effect of added supply has not significantly impacted the community [5] - Optimism remains that the resilience of the oil market will stay in place [5] - Short cycle market adjustments are expected, possibly in North America [6] - Long duration and long cycle markets, such as capacity expansion in the Middle East and deepwater assets, will continue to see investment [6] ChampionX Deal & Recovery Market - ChampionX has a best-in-class portfolio [7] - Customers prioritize getting more barrels with existing assets by increasing operating and capital efficiency while lowering emissions [7] - ChampionX portfolio complements SLB's portfolio with full technology solutions [7] - The recovery market is a growing and exciting market opportunity [8] - SLB can transform the recovery market by adding integration, digital capability, and subsurface expertise [8] - Unlocking recovery of existing assets adds more reserves, barrels, and sustained production [8] - Champex portfolio complements SLB's portfolio both internationally and in North America [9]