Bernstein Energy & Power: Reshaping the Oil Services Industry - the 2000-50 journey (Part.3: Drill, Baby Drill: 2025-29) Guillaume Delaby +33 1 42 13 62 29 guillaume.delaby@bernsteinsg.com Deepa Venkateswaran, ACA +44 20 7676 6990 deepa.venkateswaran@bernsteinsg.com Irene Himona, Ph.D. +44 20 7762 5353 irene.himona@bernsteinsg.com Bob Brackett, Ph.D. +1 917 344 8422 bob.brackett@bernsteinsg.com Neil Beveridge, Ph.D. +852 2123 2648 neil.beveridge@bernsteinsg.com Nikhil Nigania +91 226 842 1414 nikhil.nigania ...

Market Performance - Major stock indices have reached new record intraday highs, with the Dow up 218.78 points (0.5%) at 47,925.15, the Nasdaq up 131.49 points (0.6%) at 23,958.99, and the S&P 500 up 14.53 points (0.2%) at 6,905.42 [1] Company Highlights - Nvidia (NVDA) has surged by 3.9%, becoming the first company with a $5 trillion market capitalization, following a 5.0% spike after announcing a $1 billion strategic partnership with Nokia (NOK) [2] - Seagate Technology (STX) has seen a significant increase of 18.7% after reporting better-than-expected fiscal first-quarter results, contributing to a 5.3% rise in the NYSE Arca Computer Hardware Index [6] Economic Indicators - The National Association of Realtors reported that pending home sales were flat in September, with the pending homes sales index unchanged at 74.8, contrary to expectations of a 1.0% increase [5] Sector Performance - Oil service stocks have surged by 2.6%, driven by a sharp increase in crude oil prices following a report of a significant drop in U.S. crude oil inventories [7] - The semiconductor, gold, and transportation sectors are also showing considerable strength, while commercial real estate stocks have declined [7] Global Market Trends - In the Asia-Pacific region, stock markets have mostly moved higher, with Japan's Nikkei 225 Index up 2.2% and South Korea's Kospi up 1.8%, both reaching new record closing highs [9] - European markets have shown mixed results, with the U.K.'s FTSE 100 Index up 0.6%, while the French CAC 40 Index and the German DAX Index are down by 0.2% and 0.6%, respectively [9]

Summary of Global Oil Services Conference Call Industry Overview - The report discusses the **Global Oil Services** industry, focusing on the outlook for 2H25 and FY26, highlighting both positive and negative signals in the market [1][2]. Key Insights 1. **Financial Strength**: The industry is currently in a strong financial position, although it is trading at historically low multiples. Many investors have not capitalized on the O&G capex recovery from 2022-24 [1][2]. 2. **Conflicting Signals**: There are concerns regarding oil supply and price stability, with questions about whether oil will remain oversupplied and if prices might decline. Additionally, there are indications of weakening International/Offshore activity, which could be exacerbated by high consensus expectations [1][2]. 3. **US Market Activity**: The Dallas Fed survey indicates a rapid deterioration in US activity expected in 4Q25, despite a stabilizing rig count. Current consensus expectations for the US market are low [1][2]. 4. **Optimism from Key Players**: Companies like GTT and Viridien express optimism ahead of 3Q25, contrasting with the overall cautious sentiment [1][2]. Regional Activity Recovery 1. **Diverging Opinions**: There are differing views on whether North America or international markets will lead the recovery. SLB suggests North America will remain constrained due to economic challenges, while Halliburton believes it is positioned for recovery [3][4]. 2. **Investment Implications**: The outlook for 2026-27 is more positive than generally perceived, with potential catalysts for the sector. The report suggests that 4Q25 may represent a low point for North America, and given the sector's low valuation (approximately 1.3x EV/Revenue), there is significant upside potential for various stocks [4][6]. Preferred Investment Calls - **Next 6 Months**: GTT (Target Price €193), Viridien (Target Price €94), SLB (Target Price $47.60) - **Next 12 Months**: SBM (Target Price €24), Rubis (Target Price €38.7), Vallourec (Target Price €22.6), Tenaris (Target Price €21) - **Next 18 Months**: Adnoc Drilling (Target Price AED6.76), Saipem (Target Price €3.54), Subsea (Target Price NOK240) - Notably, GTT, SBM, and Rubis are largely de-correlated from oil prices [6]. Conclusion - The Global Oil Services industry is at a critical juncture with mixed signals regarding future activity and investment opportunities. The financial strength of the sector, combined with low valuations, presents potential upside for select stocks, while regional disparities in recovery expectations highlight the complexity of the market landscape [1][4][6].

Final trade time. Timothy >> going to be an interesting week and looking forward to bowing. I think there's a surprise on cash flow.BA >> Karen. >> Yes. So, as Peter Bookbar said, and I like to see him bullish.We don't often. He really likes oil. I like the OIH with Peter Courtney.>> Uh, looking ahead to next week, I think Visa is an interesting setup. I would take a look at this here. >> Carter Braxton wor >> Zoom.Uh, may it zoom. >> Thank you for watching Fast Money. Have a terrific weekend.Mad Money with ...

Core Insights - Halliburton's Q3 revenue reached $5.6 billion, exceeding Wall Street's estimate of $5.39 billion, leading to an 11.6% increase in shares [1] - The company reported an adjusted net income of $0.58 per share with a 13% adjusted margin, indicating effective cost controls and stable international demand [1] Financial Performance - North American revenue increased by 5% due to heightened activity in the U.S. and Canada, while international sales remained flat, with growth in Africa and Latin America offsetting declines in Saudi Arabia [2] - Halliburton generated $276 million in free cash flow and repurchased $250 million in stock during the quarter [3] - The reported net income was $18 million or $0.02 per share, significantly lower than the previous year's $571 million or $0.65 per share, reflecting an 11.8% decline in stock price over the year [4][5] Strategic Initiatives - The company is focusing on maximizing returns and leveraging technology, particularly artificial intelligence, to enhance operational efficiency [3] - Halliburton is working to reset its 2026 capital budget and aims to save approximately $100 million per quarter by idling underperforming equipment [3] - A strategic partnership was announced with VoltaGrid to provide distributed power generation solutions for data centers, with initial implementation targeted for the Middle East [6][7]

Core Viewpoint - Halliburton's third-quarter net income experienced a significant decline primarily due to substantial impairment charges [1] Financial Performance - The company reported a sharp decrease in net income for the third quarter, indicating financial challenges [1] - Impairment charges were a major factor contributing to the decline in profitability [1]

Group 1 - SLB N.V. (NYSE:SLB) is highlighted in Jim Cramer's game plan, indicating its significance in the current market [1] - Cramer expresses a bearish outlook on oil prices, suggesting that oil could drop below $60, potentially reaching $55 [1] - SLB provides a range of services and technologies for the energy sector, including field development, hydrocarbon production, and carbon management [1] Group 2 - Cramer advises caution regarding SLB stock, indicating a preference against oil stocks and suggesting to "keep watching" without making a purchase [1] - The article suggests that certain AI stocks may present better investment opportunities with higher upside potential and lower downside risk compared to SLB [1]

Core Insights - The Hecht Commodity Report is recognized as one of the most comprehensive commodities reports available, focusing on market movements of over 29 different commodities [1] - The report provides various market calls including bullish, bearish, and neutral, along with directional trading recommendations and actionable ideas for traders and investors [1][2] Group 1 - The report covers market movements of 20 different commodities, offering insights for traders [2] - The author maintains positions in commodities markets through futures, options, ETF/ETN products, and commodity equities, with positions changing on an intraday basis [3] Group 2 - The report emphasizes that past performance is not indicative of future results, and no specific investment recommendations are provided [4]

Market Overview - After an initial sharp decline, major stock indices have recovered some losses but remain in negative territory, with the Nasdaq down 201.76 points (0.9%) at 22,492.84, the S&P 500 down 31.32 points (0.5%) at 6,623.40, and the Dow down 65.95 points (0.1%) at 46,001.63 [1] Trade Tensions - Renewed concerns about trade tensions between the U.S. and China have contributed to the market pullback, following President Trump's conciliatory remarks that had previously boosted the market [2] - A spokesperson from China's Ministry of Commerce indicated that China's export controls on rare earths are a response to U.S. restrictions on Chinese firms, emphasizing that the U.S. has overstated national security and adopted discriminatory practices [3] Company Earnings - Wells Fargo shares surged by 6.1% after reporting better-than-expected third-quarter results and raising its profitability target [5] - Citigroup also saw an increase in its stock price following third-quarter results that exceeded estimates, while Johnson & Johnson and JPMorgan Chase experienced declines despite reporting better-than-expected results [5] Sector Performance - The NYSE Arca Computer Hardware Index is down by 1.5%, and the Philadelphia Semiconductor Index has lost 1.3%, indicating notable weakness in the computer hardware and semiconductor sectors [6] - Software and oil service stocks are also experiencing weakness, while airline stocks have shown strong gains [6] International Markets - In the Asia-Pacific region, stocks mostly declined, with Japan's Nikkei 225 Index down 2.6% and Hong Kong's Hang Seng Index down 1.7% [7] - Most European stocks also moved lower, with the German DAX Index down 0.7% and the French CAC 40 Index down 0.2%, although the U.K.'s FTSE 100 Index remained slightly above the unchanged line [7] Bond Market - Treasuries have pulled back near the unchanged line after initial strength, with the yield on the benchmark ten-year note down to 4.044% after hitting a low of 4.015% [8]

Market Performance - Major averages closed higher for the fifth consecutive session, reaching new record closing highs, with the Nasdaq up 88.89 points (0.4%) to 22,844.05, the Dow up 78.62 points (0.2%) to 46,519.72, and the S&P 500 up 4.15 points (0.1%) to 6,715.35 [1] - Semiconductor stocks performed strongly, with the Philadelphia Semiconductor Index rising 1.9% to a record closing high, driven by optimism in the AI sector [5] AI Sector Developments - Nvidia (NVDA) advanced by 0.9% to a record closing high, while Advanced Micro Devices (AMD) surged by 3.5%, reflecting strength in AI stocks following OpenAI's reported $500 billion valuation [2] - The sale of approximately $6.6 billion worth of stock by current and former employees of OpenAI has positioned the company as the world's most valuable privately-owned company, surpassing SpaceX [3] Sector Performance - Airline stocks showed notable strength, with the NYSE Arca Airline Index gaining 1.2% after bouncing off its lowest closing level in nearly two months [6] - Energy stocks declined, with the Philadelphia Oil Service Index down 2.5% and the NYSE Arca Oil Index down 1.2%, influenced by falling crude oil prices [6] - Pharmaceutical stocks experienced a 1.0% loss after a two-day surge, as indicated by the NYSE Arca Pharmaceutical Index [7] International Markets - In the Asia-Pacific region, stocks mostly moved higher, with Japan's Nikkei 225 Index up 0.9% and Hong Kong's Hang Seng Index up 1.6% [8] - European markets also saw gains, with the German DAX Index and French CAC 40 Index rising by 1.3% and 1.1%, respectively, while the U.K.'s FTSE 100 Index dipped by 0.2% [8] Bond Market - Treasuries moved modestly higher, with the yield on the benchmark ten-year note dipping 1.8 basis points to 4.088% [9]