Company Announcement - NOV Inc. will hold a conference call to discuss its second quarter 2025 results on July 29, 2025, at 10 a.m. Central Time [1] - A press release with the company's results will be issued after the market closes on July 28, 2025 [1] - The conference call will be webcast live on the company's investor relations website [1] Company Overview - NOV delivers technology-driven solutions to empower the global energy industry [2] - The company has over 150 years of experience in pioneering innovations that enable safe and abundant energy production while minimizing environmental impact [2] - NOV's expertise and technology are essential for improving oilfield operations and advancing the energy transition towards sustainability [2]

Group 1 - Core Laboratories Inc. (NYSE: CLB) is currently trading at around a five-year low, with the stock price dropping from $48 in June 2021 to approximately $10 earlier this year [1] - The significant decline in stock price indicates potential investment opportunities for investors looking for undervalued assets in the market [1]

Liberty Energy Overview - Liberty Energy is the 4th largest North American Oilfield Services (OFS) company based on TTM revenue through December 31, 2023[7, 9, 25, 27] - The company's average Cash Return on Capital Invested (CROCI) from 2012-2023 is 24%[11, 25] - Liberty Energy's trailing twelve month (TTM) revenue is $47 billion and adjusted EBITDA is $12 billion as of December 31, 2023[25] Technology and Fleet Transition - Liberty Energy expects 90% of its fleet to be primarily natural gas powered by the end of 2024[19] - The company's digiFleets and dual fuel fleets earn premium pricing[19] - digiFleets are expected to comprise the majority of Liberty's fleet within 5-7 years[19] Capital Returns - Liberty Energy has returned $328 million to shareholders through buybacks[20] - The company has repurchased 12% of shares outstanding since the buyback reinstatement in July 2022[20, 25] - Liberty Energy raised the quarterly cash dividend to $007 per share in Q4 2023[20]

Liberty Energy's Performance and Strategy - Liberty Energy is the 4th largest North American Oilfield Services (OFS) company[7, 39] - The company boasts a 12-year average Cash Return on Capital Invested (CROCI) of 24%[11, 39] - Liberty's Adjusted EBITDA for the trailing twelve months (TTM) is $11 billion, with a net income of $431 million and EPS of $250[39] - Liberty has repurchased 13% of its shares since July 2022[35, 39] - The company's annualized dividends are payable at $028 per share[39] Energy Market Dynamics and Liberty's Position - Hydrocarbons still account for 85% of global energy consumption[64, 65] - Liberty expects 90% of its fleets to be primarily natural gas-powered by the end of 2024[29] - Liberty's lateral feet completed have increased by 27% since 2022[24] Return of Capital Program - Liberty has returned $388 million through buybacks[35] - The company's cumulative return of capital is $459 million[35] - Since 2021, Liberty's return of capital is over $600 million[35]

Company Overview - SLB is reorienting its business to adapt to depressed activity levels, particularly in the onshore US market, with a focus on long-term growth in its New Energy and Digital businesses [1] Investment Strategy - Narweena, an asset manager led by Richard Durant, seeks to identify market dislocations due to poor understanding of long-term business prospects, aiming for excess risk-adjusted returns through secular growth opportunities in markets with barriers to entry [1] - The research process emphasizes company and industry fundamentals to uncover unique insights, with a high risk appetite and long-term investment horizon targeting deeply undervalued stocks [1] Market Dynamics - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, contrasting with industries facing stagnation or secular decline, which may improve business performance due to reduced competition [1] - The economy is increasingly dominated by asset-light businesses, leading to a declining need for infrastructure investments, resulting in a large pool of capital chasing limited investment opportunities, driving up asset prices and compressing risk premia over time [1] Leadership Background - Richard Durant holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University, along with having passed the CFA exams [1]

Core Insights - Halliburton Company (HAL) has secured a significant contract to support GeoFrame Energy's lithium extraction and geothermal project in East Texas, with operations set to begin in late 2025 [1][10] - The project aims to produce approximately 83,500 metric tons of battery-grade lithium carbonate annually, which is expected to meet the current U.S. demand entirely [1][10] - This initiative is anticipated to enhance domestic lithium production and decrease reliance on foreign supply chains [1] Group 1: Project Details - Halliburton will lead the drilling phase by designing, constructing, and operating the demonstration wells, playing a central role in scaling the project to full field development [2][10] - GeoFrame's project is designed to be the first in the U.S. to deliver battery-grade lithium carbonate from the Smackover Formation, focusing on sustainable mining practices [3] - The facility will utilize geothermal brine to generate zero-emission electricity, which will power the lithium production process and allow surplus energy to be sold to the grid [3] Group 2: Halliburton's Position - Halliburton's extensive experience in well construction and its strong commitment to innovative energy solutions position the company uniquely to advance GeoFrame's vision [4] - The recent contract highlights the growing convergence between energy services and advanced technology solutions, enhancing Halliburton's growth initiatives [5] - Securing new contracts is expected to create a positive financial outlook for Halliburton and its stakeholders [5]

Core Insights - Halliburton Company (HAL) has formed a strategic collaboration with Petronas Carigali to implement advanced technologies for subsurface modeling and reservoir management [1][6] - The partnership focuses on utilizing Halliburton Landmark's DecisionSpace 365 Geosciences Suite and Unified Ensemble Modeling solutions to enhance operational efficiency and reduce time to first oil [1][9] Technology Deployment - The collaboration introduces scalable, live-earth modeling and probabilistic ensemble forecasting, moving away from traditional grid-based methods [2] - These technologies facilitate real-time collaboration among Petronas' exploration and asset teams, leading to improved reserve estimation and faster scenario analysis [2][9] - The Unified Ensemble Modeling solution allows asset teams to automatically generate multiple probabilistic geological scenarios, enhancing forecasting accuracy and decision-making confidence [3][5] Advantages of Halliburton's Technology - Halliburton's Geosciences Suite is an AI-driven technology that optimizes returns and enhances subsurface understanding, supporting better collaboration and productivity [4] - The technology aims to mitigate errors and data gaps while ensuring seamless integration and reducing redundancy [4] Alignment with Petronas' Objectives - The collaboration aligns with Petronas' vision for faster project delivery and seamless continuity from exploration through production [6] - It builds on a comprehensive benchmarking of Petronas' practices across both greenfield and mature assets [6] Company Overview - Halliburton is one of the largest oilfield service providers globally, offering a range of services to the energy, industrial, and government sectors [7] - Currently, Halliburton holds a Zacks Rank 4 (Sell) [7]

Investment Rating - The report maintains an Overweight (OW) rating for various companies across the energy sub-sectors, indicating a positive outlook for investment opportunities in the sector [94][95]. Core Insights - The energy sector has performed in line with the broader market year-to-date, with rising geopolitical risks and stronger oil prices contributing to this performance [15][17]. - The report highlights a preference for natural gas exposure over oil, particularly in the Exploration & Production (E&P) segment, due to expected gas deficits and oversupply in the oil market [103][95]. - The refining and marketing sub-sector is expected to benefit from summer travel demand and tight product inventories, supporting margins [115][117]. Energy Performance & Valuation - Energy sub-sectors are near 10-year median EV/EBITDA multiples, with services stocks at the low end of historical ranges [17]. - The report forecasts a median free cash flow (FCF) yield of 11% at $65 WTI, with variations based on oil price scenarios [103][110]. Commodities and Macro Outlook - WTI oil prices have rallied approximately 25% since early May, driven by a tight crude market and geopolitical tensions [24][31]. - The report anticipates a surplus in the oil market in the second half of 2025, while a natural gas deficit is expected to re-emerge [103][42]. Sub-Sector Views Exploration & Production - The report emphasizes a defensive bias and preference for U.S. gas exposure over oil, with EQT identified as a top pick [95][111]. - Oil producers with a positive rate of change are favored, with Devon Energy (DVN) and Permian Resources (PR) highlighted for their strong performance [95][111]. Refining & Marketing - The summer travel season is expected to provide a demand boost, with product inventories remaining tight [115][117]. - Key stock plays include Valero Energy Corporation (VLO) and HF Sinclair Corp (DINO) due to their operational strengths [115][117]. Energy Services - The report suggests maintaining exposure to defensive and diverse characteristics, with Baker Hughes (BKR) and Schlumberger (SLB) as preferred stocks [95][130]. - The energy services sector is trading at historically low valuations compared to the S&P, indicating potential upside [124][132]. Midstream Energy - Midstream energy infrastructure is viewed as misvalued, with expectations for strong free cash flow and high dividend yields [136][142]. - Key stocks in this segment include Targa Resources Corp (TRGP), Oneok Inc. (OKE), and Energy Transfer LP (ET) [142].

Core Insights - SLB shares have decreased by 6.5% over the past six months, outperforming the oil-energy sector's decline of 8.2% and peers like Core Laboratories and Oceaneering International, which fell by 27.3% and 17.3% respectively [1][5] - The stock is currently trading above its 50-day simple moving average (SMA), indicating a bullish trend [3][5] - SLB has a VGM Score of B, reflecting value and positive earnings surprises, although it lags slightly in momentum with a C score [5][7] Financial Performance - SLB has surpassed earnings estimates in three of the last four quarters, with an average earnings surprise of 0.77% [8] - The average target price for SLB, based on 27 analysts, is $48.50 per share, suggesting a potential upside of 35.29% from the last closing price [9] Market Position and Strategy - SLB's strong international market presence provides a competitive edge, particularly in securing new offshore projects and long-term agreements with state-owned companies [12] - Despite challenges in certain regions, revenues in key markets like the UAE, North Africa, and China have shown double-digit growth, contributing to more stable earnings [13] - The company's New Energy portfolio, including carbon capture and geothermal projects, is expected to generate over $1 billion in annual revenues by 2025, aligning with global decarbonization trends [14] - Ongoing cost-control initiatives have led to an adjusted EBITDA margin increase to 23.8%, despite a 3% year-over-year revenue decline in Q1 2025 [15] - SLB's diversification into data center infrastructure solutions is showing strong growth, particularly in North America, driven by demand from hyperscalers and AI [16]

Core Insights - The article highlights the investment strategies of Paul Franke, a seasoned investor with 39 years of trading experience, emphasizing his contrarian stock selection style and the development of a system called "Victory Formation" for identifying stocks based on supply/demand imbalances [1] Group 1: Investment Strategies - Paul Franke suggests using 10% or 20% stop-loss levels on individual stock choices and recommends a diversified approach by owning at least 50 well-positioned stocks to achieve regular outperformance in the stock market [1] - The "Bottom Fishing Club" articles focus on deep value candidates or stocks that are experiencing significant upward technical momentum reversals [1] - The "Volume Breakout Report" articles discuss positive trend changes supported by strong price and volume trading actions [1] Group 2: Performance Recognition - Paul Franke was consistently ranked among the top investment advisors nationally during the 1990s and achieved the 1 position in the Motley Fool® CAPS stock picking contest during parts of 2008 and 2009, out of over 60,000 portfolios [1] - As of June 2025, he was ranked in the Top 4% of bloggers by TipRanks® for 12-month stock picking performance based on suggestions made over the last decade [1]