Core Insights - The company reported a strong fourth quarter with total revenue of $9.7 billion, reflecting a sequential increase of 9% driven by contributions from ChampionX and organic growth [5][6][8] Production Systems - Revenue reached $4.1 billion, up 17% sequentially, with an 11% increase when excluding ChampionX, attributed to completions and artificial lift sales [1] - Pre-tax operating margin improved by 20 basis points to 16% [1] Well Construction - Revenue declined to $2.9 billion, a decrease of 1% sequentially, impacted by lower activity in the Middle East and Asia, despite higher offshore drilling in North America and Europe/Africa [2] - Pre-tax operating margin was slightly down at 18.7% [2] Digital Segment - Revenue increased to $825 million, a 25% sequential rise, with pre-tax operating margin expanding by 557 basis points to 34% [3] - For the full year, Digital revenue totaled $2.7 billion, up 9%, with an EBITDA margin of 35% [3] Financial Performance - The company generated $3.0 billion in cash flow from operations and $2.3 billion in free cash flow in the fourth quarter, with full-year free cash flow at $4.1 billion [8] - Net debt was reduced by $1.8 billion to $7.4 billion, with capital investments totaling $716 million in the fourth quarter [9] Shareholder Returns - The company returned $4.0 billion to shareholders in 2025, including $2.4 billion in buybacks and $1.6 billion in dividends, with a 3.5% dividend increase announced [9][10] 2026 Outlook - Revenue is guided between $36.9 billion and $37.7 billion for 2026, with adjusted EBITDA expected between $8.6 billion and $9.1 billion [12] - North America is expected to benefit from ChampionX activity, while international revenue is projected to trend upward, particularly in Latin America and the Middle East [13] Strategic Focus - The company emphasizes production recovery as a key area for value creation, integrating intelligent and autonomous digital capabilities into its offerings [15] - Significant subsea activity is anticipated, with over 500 subsea trees expected to be awarded in 2026 and 2027, representing a 20% increase from 2025 [17] Market Opportunities - The company is actively operating in Venezuela and is positioned to ramp up activities quickly, contingent on licensing and compliance [19]

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]

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 acquired ChampionX businesses [20] - Adjusted EBITDA margin for the fourth quarter was 23.9%, an increase of 83 basis points sequentially, driven by strong digital performance [20] - 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 for the fourth quarter was $825 million, a 25% sequential increase, with a pre-tax operating margin expanding to 34% [21] - Reservoir Performance revenue increased by 4% sequentially to $1.7 billion, driven by strong international activity, particularly in Saudi Arabia and East Asia [21] - Production Systems revenue rose by 17% sequentially to $4.1 billion, reflecting a full quarter of activity from ChampionX, with an 11% increase when excluding ChampionX [22] Market Data and Key Metrics Changes - International markets are stabilizing, with Latin America and the Middle East leading the rebound in 2026 [12] - The Middle East is expected to see a resurgence in drilling and workover activity, particularly in Saudi Arabia, with rig counts potentially returning to early 2025 levels by the end of 2026 [12] - Offshore markets are anticipated to present long-term growth opportunities, particularly in deepwater, with over 500 subsea trees expected to be awarded in 2026 and 2027 [13] Company Strategy and Development Direction - The company aims to leverage its integrated portfolio, including ChampionX, to meet the growing demand in production recovery and optimization [11] - A focus on digital solutions and technology integration is emphasized to enhance efficiency and reduce costs for customers [10] - The company is strategically positioned to capitalize on the expected rebound in international activity as supply and demand rebalances [14] Management's Comments on Operating Environment and Future Outlook - Management anticipates near-term oversupply may exert downward pressure on commodity prices, but geopolitical uncertainties could provide a price floor [9] - The company expects 2026 revenue to be between $36.9 billion and $37.7 billion, benefiting from a full year of ChampionX activity and stronger offshore activity [15] - Management expressed confidence in the gradual recovery of upstream investment, particularly in key international markets, as economic growth and infrastructure investments drive demand [10] 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 [22] - A total of $4 billion was returned to shareholders in 2025, with plans to return more than $4 billion in 2026 through dividends and stock buybacks [26] - The company is the only international service company actively operating in Venezuela, with plans to ramp up activities as conditions allow [18] 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 and readiness to capture new opportunities as activity recovers [32] Question: Customer mix and market opportunities in the Middle East - Management reinforced confidence in national companies executing capital programs and noted a rebound in Saudi Arabian drilling activity, with positive momentum in Kuwait and UAE [35] Question: Exit rate expectations for 2026 - Management expects the fourth quarter of 2026 to be higher than the fourth quarter of 2025, driven by international market recovery [45] Question: Digital business penetration - Management highlighted the significant potential of digital solutions to transform the industry, with increasing customer adoption of platforms like Lumi and Tela [48] Question: Opportunities in Venezuela - Management expressed readiness to ramp up operations in Venezuela, citing historical partnerships and existing local resources [56] Question: Data center infrastructure business growth - Management anticipates reaching a $1 billion run rate in revenue for the data center solutions business by year-end, with plans for international expansion [59]

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]

Energy technology company SLB (SLB) just rolled out something that could reshape how it pays dividends to shareholders for years to come. The company, formerly known as Schlumberger, launched Tela in 2025, an artificial intelligence tool designed to automate processes for energy companies looking to leverage AI for growth. It's a move that underscores how critical digital business has become to SLB's financial health. For investors watching their dividend checks, that matters more than you might think. ...

Core Insights - SLB has launched a new AI tool named Tela to automate processes for oilfield service companies, aiming to leverage AI for growth [1][2] - Tela can operate collaboratively with humans or autonomously, making decisions on interpreting well logs, predicting drilling issues, and optimizing equipment performance [2] - The digital sector has significantly contributed to SLB's revenue growth, with an 11% increase in the third quarter compared to the second quarter [3] Group 1 - SLB's new technology, Tela, will be integrated into its existing applications and platforms, featuring a conversational interface for user interaction [1] - Rakesh Jaggi, SLB's president of Digital & Integration, emphasized the importance of digital technology for the company's long-term success [2] - The digital business has been reported as a standalone division, with expectations of double-digit year-on-year sales growth [3]

Core Insights - SLB has launched Telaâ™, an agentic AI assistant designed to transform the upstream energy sector [1] - Tela aims to automate processes, transform workflows, and drive better business outcomes [1] - The AI assistant will be integrated into SLB's portfolio of applications and platforms, featuring a simple conversational interface for user interaction [1] Company Overview - SLB is a global energy technology company [1] - The introduction of Telaâ™ signifies SLB's commitment to leveraging advanced technology in the energy sector [1] Industry Impact - The deployment of agentic AI in the upstream energy sector is expected to enhance operational efficiency and productivity [1] - By automating processes, Telaâ™ could lead to significant improvements in business outcomes for companies in the energy industry [1]