Summary of Global Oil Services Conference Call Industry Overview - The focus is on the **Global Oil Services** industry, with a specific outlook for **2026** highlighted in the report [1][2]. Core Insights and Arguments - The report suggests that the oil services sector may be at an **inflection point**, primarily driven by changing investor perceptions rather than fundamental economic shifts [2][3]. - Investor interest has been historically low, but there are signs of a shift as the sector's valuation improved from **1.3x EV/Revenue** in October 2025 to **1.44x** in December 2025, following positive earnings calls from major companies [3][19]. - **Thirteen relevant themes** have been identified for the oil services sector, with five expected to gain momentum in 2026: 1. Investor interest 2. The Middle East 3. OCTG (Oil Country Tubular Goods) 4. Exploration 5. Digital advancements [4][23]. Key Themes and Trends - The **Middle East** is expected to see a significant increase in capital expenditures, particularly with **Adnoc** launching a **$150 billion** capex plan for 2026-2030 [4][24]. - **OCTG** volumes are anticipated to rise in the second half of 2026, with potential price increases due to steel tariffs and improved pricing power [4][24]. - **Exploration** spending is set to increase, with companies like **Chevron** planning to boost exploration capex by approximately **50%** [4][24]. - The **Digital** sector is highlighted as a growth area, with companies like **SLB** and **Adnoc** investing in AI tools to enhance operational efficiency [4][25]. Financial Strength and Valuation - The oil services industry is reported to be in a stronger financial position compared to previous cycles, with a **CFO-to-revenue ratio** of **15%**, a **net-debt-to-assets ratio** of **14%**, and a **ROIC** of **9%** [26][27]. - Despite a supportive macro environment, investor engagement in the sector has not met expectations, indicating potential for future growth [7][26]. Investment Recommendations - The report lists preferred stocks for 2026: - **Tenaris** (Target Price: €21) - **SLB** (Target Price: $52.3) - **Vallourec** (Target Price: €22.6) - **Saipem** (Target Price: €3.54) - **Subsea 7** (Target Price: NOK240) [5][41]. - Short-term trading opportunities are identified in **Technip Energies**, **GTT**, **Viridien**, **SBM Offshore**, and **Rubis** [5][41]. - Long-term value is seen in **Adnoc Drilling** and **Adnoc L&S** [5][41]. Additional Insights - The oil services sector has largely **decorrelated from oil prices** since 2022, indicating a shift in how the sector's performance is influenced by oil market fluctuations [32][36]. - The **free cash flow** for the industry reached **$26 billion** in 3Q25, surpassing the previous peak of **$15.5 billion** in 2015, reflecting strong cash generation capabilities [37][39]. Conclusion - The Global Oil Services industry is poised for potential growth in 2026, driven by improved investor sentiment, strategic capital investments in the Middle East, and advancements in digital technology. The financial health of the sector supports a positive outlook, with several companies identified as key investment opportunities.

Core Insights - SLB's stock has experienced a significant rally, approaching a near two-year high following a substantial earnings beat, contributing to its historic gains this month [1] Company Performance - The recent earnings report indicates that SLB has outperformed market expectations, leading to a notable increase in stock value [1] Market Reaction - The stock's performance reflects strong investor confidence and positive market sentiment towards SLB, as evidenced by the rally in its share price [1]

Oil services stocks have climbed sharply since late December, with the VanEck Oil Services ETF (NYSEARCA:OIH) up roughly 18% YTD. ...

Halliburton stock was climbing Wednesday after the oil-services company's quarterly earnings beat expectations. This follows gains made recently amid excitement over a possible return to Venezuela as it battles a slowdown in North America. ...

Geopolitical Impact - The U.S. captured Maduro in Venezuela, leading to a generally positive response in the stock market, particularly in the oil and defense sectors [3][5][6] - Canadian oil stocks are negatively impacted due to competition with Venezuelan heavy crude, which could lower prices for Canadian oil sands [4] - Defense stocks are rising due to geopolitical tensions and potential contracts for infrastructure development in Venezuela [5][6] Market Trends - Memory and storage stocks have surged, with Sandisk up 36% in the past week and 71% in the past month, indicating a high demand for memory chips driven by AI developments [10][11] - Companies like Oklo and Vistra are gaining attention as they provide alternative power solutions for data centers, reflecting the growing need for energy in the tech sector [12][13] - Caterpillar's stock is also rising as demand for equipment to build data centers increases [14][15] Labor Market Insights - The unemployment rate held steady at 4.4%, with a slight increase of 50,000 jobs in December, indicating a stagnant job market [17][19] - The labor participation rate has decreased, suggesting some individuals may have exited the workforce [18] - There is a notable shift where individuals with coding skills may need to transition to construction roles to support data center development [21][26] Company-Specific Developments - Roblox's stock has declined by about 10% in the past week and 45% since its last earnings report, attributed to new age verification requirements for chat, which may hinder user participation [27][28][30] - The company faces public pushback and lawsuits regarding safety concerns on its platform, highlighting the need for self-regulation in the tech industry [29][30] Economic Indicators - The upcoming CPI report and earnings from major financial institutions like Citi and Bank of America will provide insights into economic activity and consumer spending [33][34] - The trucking firm JB Hunt's earnings report will also serve as an economic indicator, reflecting overall market conditions [35] Future Market Outlook - The year 2026 is viewed as a pivotal year for the market, with ongoing debates about whether the AI sector is in a bubble, as many stocks are trading at high valuations [37][39] - External geopolitical events, such as tensions with China and the situation in Ukraine, will likely influence market dynamics throughout the year [40][41] - The political landscape, including the upcoming midterms, may set the tone for market behavior in the latter half of the year [42][43]

Group 1 - The VanEck Oil Services ETF (OIH) has reached a 52-week high and is up 65.9% from its 52-week low price of $191.21 per share [1] - The underlying index, MVIS U.S. Listed Oil Services 25 Index, tracks U.S.-listed companies involved in oil services to the upstream oil sector, including oil equipment, services, and drilling [1] - The fund charges an annual fee of 35 basis points [1] Group 2 - The rally in oil prices this year is primarily due to U.S. intervention in Venezuela, creating uncertainty in future oil supply dynamics [2] - The United States Oil Fund LP (USO) has increased by 3.1% so far this year as of January 8, 2026 [2] - Geopolitical tensions are contributing to the rise of the oil services ETF OIH [2] Group 3 - OIH currently holds a Zacks ETF Rank of 3 (Hold) with a high-risk outlook [3] - The ETF may continue its strong performance in the near term, indicated by a positive weighted alpha of 26.64 [3]

Core Insights - CleanGo Innovations Inc. has launched its MycoSet™ Oilfield Remediation technology globally, with a focus on the Saudi Arabian market through its subsidiary CleanGo Arabia LTD, marking a strategic entry into the Gulf Cooperation Council (GCC) region [1][2] Company Overview - CleanGo Innovations Inc. specializes in proprietary green chemistry and sustainable industrial solutions, aiming to replace toxic chemicals with high-performance green alternatives [7] - The company has manufacturing operations across North and South America, and now in Saudi Arabia, emphasizing its commitment to sustainability [7] Technology Details - MycoSet™ technology offers a biological alternative to traditional mechanical remediation, designed to operate effectively in the extreme arid and hypersaline environments of Saudi Arabia [2][5] - The MycoSet™ suite includes BioIngress™ biostimulant and PhytoCentra™ surfactant, which enhance the effectiveness of the remediation process [2][5] Environmental Impact - MycoSet™ technology eliminates the need for "dig and dump" excavation, reducing logistical costs by up to 60% [6] - It requires 85% less water than traditional soil washing methods, which is particularly advantageous in the water-scarce GCC region [6] - The technology restores the biological health of the soil, allowing native flora to return, unlike thermal desorption methods that leave soil sterile [6] Strategic Importance - The launch of MycoSet™ is seen as a paradigm shift for the oil and gas industry, providing a cost-effective and environmentally regenerative solution [3][5] - CleanGo Arabia is positioned to set a new standard in the GCC, delivering products that benefit both the environment and the financial performance of energy companies [5]

Market Performance - Stocks fluctuated on the first trading day of 2026, with the Nasdaq down 6.36 points to 23,235.63, the S&P 500 up 12.97 points to 6,858.47, and the Dow climbing 319.10 points to 48,382.39 [1] - For the holiday-interrupted week, the Nasdaq fell by 1.5%, the S&P 500 decreased by 1.0%, and the Dow slid by 0.7% [2] Sector Performance - Semiconductor stocks experienced a significant increase, with the Philadelphia Semiconductor Index surging by 4.0%, driven by Micron Technology, which rose by 10.5% to a record closing high [3] - Oil service stocks also showed strength, with the Philadelphia Oil Service Index increasing by 3.9% despite a modest decrease in crude oil prices [4] - Computer hardware, banking, and networking stocks had strong upward movements, while software stocks declined sharply [4] International Markets - Stock markets in the Asia-Pacific region mostly moved higher, with Hong Kong's Hang Seng Index up by 2.8% and South Korea's Kospi rising by 2.3% [4] - Major European markets also advanced, with the French CAC 40 Index up by 0.6%, and both the German DAX Index and the U.K.'s FTSE 100 Index rising by 0.2% [5] Economic Indicators - A lack of major U.S. economic data may have kept some traders on the sidelines ahead of key reports, including the monthly jobs report [3][5] - The yield on the benchmark ten-year treasury note increased by 2.4 basis points to 4.187% as treasuries extended their downward move [5]

Core Thesis - Liberty Energy Inc. is transitioning from a cyclical oil services company to a significant player in behind-the-meter power solutions, targeting large, continuous energy demands like data centers [2][3] Business Segments - The Power platform offers a comprehensive "power-as-a-service" solution, which includes natural-gas genset procurement, installation, fuel logistics, 24/7 monitoring, and maintenance under multi-year contracts, leveraging decades of operational experience and strategic vendor relationships [4] - The core oil services business remains strong, characterized by capital discipline and robust return on invested capital (ROIC), providing a stable cash flow foundation as the Power business expands [5] Market Valuation - The market currently undervalues Liberty Energy, treating it primarily as a cyclical oil services business, which results in a stock price below its 2024 highs [3] - Valuation analysis suggests a separation of the two business segments, with the Power platform valued at 10x 2027 EBITDA and the core business at 6x through-cycle EBITDA, leading to a year-end 2027 target price of over $33, indicating a potential 2x return [5] Growth Catalysts - Key catalysts for growth include the signing of initial power contracts, which could lead to a significant stock rerating, while manageable risks involve potential declines in oil prices and execution challenges in securing power capacity contracts [5]

Summary of the Conference Call on the Oil Services Industry Industry Overview - The report focuses on the oil services industry, specifically the period from 2000 to 2050, highlighting the evolution and future outlook of the sector [6][11]. Key Periods in the Oil Services Journey - The journey is divided into five periods: 1. The Golden Age (2000-2014) 2. The Great Disruption (2015-2024) 3. Drill, Baby Drill (2025-2029) 4. The Age of Sustainability (2030-2035) 5. The Age of Circularity (2036-2050) [11]. Core Insights and Arguments - The oil market is currently perceived as oversupplied, with a short-term supply increase peaking in early 2025, but a rapid rebalancing is anticipated in 2026 [7][9]. - A significant IEA report indicates that 90% of current oil and gas capital expenditures (capex) are for maintaining production rather than increasing it, suggesting a structural under-supply in the long term [10]. - The need for new drilling is underscored by projected decline rates of oil production, estimated at approximately 8% CAGR post-2025, necessitating new investments [15]. Investment and Capex Plans - Aramco's CFO highlighted the importance of massive investments in subsurface data acquisition and computing power, indicating a shift towards more data-driven operations [18]. - ADNOC announced a $150 billion capex plan for 2026-2030, aimed at maintaining operations and meeting growing global energy demand [25]. - Argentina's Vaca Muerta shale play is experiencing rising oil production, with production surpassing 447,000 barrels per day in March 2025, although rig counts remain historically low [20][23]. Market Dynamics and Future Projections - The report suggests that the current "Drill, Baby Drill" cycle may peak around 2028, driven by various factors including new offshore basins with low break-even prices and increasing global oil demand [29][38]. - SLB, Saipem, and Tenaris have forecasted a rebound in upstream spending in Saudi Arabia, indicating improved prospects for the oil services industry [39]. Company-Specific Insights - SLB is positioned as a key beneficiary of the improved market outlook, particularly in the Middle East, with a market share of nearly 10% in the region [39]. - Subsea 7 and Saipem are expected to create a new entity, "Saipem7," which will enhance their competitive positioning in the subsea market [44]. - Technip Energies is projected to have a record year for order intake in 2026, with several significant projects likely to be sanctioned [45]. Pricing Power and Market Conditions - The pricing power thesis for Tenaris and Vallourec remains intact, supported by tight capacity for premium tubes and rising costs [33]. - The report anticipates a gradual recovery in pricing conditions starting from the second half of 2026 as inventories clear [33]. Conclusion - The oil services industry is undergoing significant changes, with a focus on innovation, investment in technology, and a shift towards sustainability. The upcoming years are expected to bring both challenges and opportunities as companies adapt to evolving market dynamics and increasing global energy demands [11][39].