Group 1 - SLB N.V. is highlighted as a significant stock in the S&P 500, gaining 26% in January, making it a strong performer in the energy sector [1] - The company's performance is seen as a good proxy for the broader energy sector, despite skepticism regarding oil prices due to political policies [1] - SLB provides technology and services for the energy sector, including solutions in field development, hydrocarbon production, carbon management, and energy system integration [3] Group 2 - The company delivers technologies for well construction, reservoir evaluation, drilling, and production optimization [3] - There is a belief that certain AI stocks may offer greater upside potential compared to SLB, indicating a competitive landscape in investment opportunities [4]

Group 1 - SLB N.V. is facing challenges due to a difficult macroeconomic environment, with OPEC+ supply increases and geopolitical uncertainty negatively impacting oil prices and upstream investment activity [2] - The company experienced revenue softness and margin pressure in its Reservoir Performance and Well Construction segments, despite strong contributions from Digital and Production Systems services [2] - There are medium-term tailwinds expected as national oil companies increase investment in long-cycle projects to counter anticipated production declines, positioning SLB as a leading oilfield services provider [2] Group 2 - Jim Cramer expressed caution regarding SLB's upcoming report, noting the current crude oil price below $60 per barrel may hinder the company's ability to deliver strong results [1] - Ariel Investments highlighted that SLB traded lower during the third quarter of 2025, reflecting the challenging market conditions [2] - The company is recognized for its unmatched scale and broad technical capabilities, which are essential for meeting rising global energy demand [2]

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]

Industry Overview - The Zacks Oil & Gas – Integrated - United States industry presents a strong investment case due to energy security, solid infrastructure, and supportive regulations [1] - The U.S. shale boom has enhanced cost efficiency, scalable production, and access to high-quality pipelines and refineries, leading to improved profitability and resilience [1] - U.S. companies are well-positioned to meet long-term domestic natural gas demand, driven by power generation, coal-to-gas transition, and increasing LNG exports [1] Company Analysis: Occidental Petroleum (OXY) - Occidental Petroleum combines steady cash flow from its Permian Basin and global oil and gas assets with a growing focus on carbon management solutions [3] - The company is supported by Berkshire Hathaway, providing long-term value through a balanced approach to traditional energy production and scalable low-carbon technologies [3] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 32.66% for 2025, followed by growth of 14.38% for 2026 [6] - Current dividend yield for Occidental Petroleum is 2.33%, higher than the S&P 500's yield of 1.6% [12] - Occidental's return on equity (ROE) is 16.6%, compared to the industry average of 16.94% [13] - The company's debt-to-capital ratio stands at 40.64% [14] - Occidental is trading at a trailing 12-month EV/EBITDA of 4.87X, which is lower than Hess Corporation's 7.23X [15] - In the last month, shares of Occidental Petroleum gained 4.5% [16] - Approximately 83% of Occidental's production comes from domestic assets, with stable international operations and ongoing debt reduction acting as tailwinds [19] Company Analysis: Hess Corporation (HES) - Hess Corporation is focused on sustainable growth and has invested in renewable energy projects to reduce greenhouse gas emissions [4] - The company is undergoing a major transition with a pending acquisition by Chevron, currently under arbitration due to disputes over its Guyana assets [4] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 38.53% for 2025, followed by growth of 20.14% for 2026 [9] - Current dividend yield for Hess Corporation is 1.53% [12] - Hess's return on equity (ROE) is 21.78%, higher than Occidental's [13] - The company's debt-to-capital ratio is 41.48% [14] - Hess Corporation's trailing 12-month EV/EBITDA is 7.23X [15] - International operations, particularly in Guyana, are a significant source of oil and gas production for Hess [19] Conclusion - Based on the analysis, Occidental Petroleum is suggested for inclusion in oil and gas portfolios, while Hess Corporation is recommended to be avoided for the time being [20]