Schlumberger NV

SLB's OneSubsea joint venture has secured a contract from ExxonMobil Moçambique for the first phase of the Rovuma liquefied natural gas project offshore Mozambique. The award covers subsea trees, manifolds, umbilicals and control systems, along with engineering, procurement, manufacturing and installation services. SLB OneSubsea also intends to establish a service base in Mozambique to support Rovuma LNG and serve other regional operators and future subsea developments. SLB currently carries a Zacks Rank #3 (Hold), and the contract reinforces its position in large-scale subsea work as rising offshore and LNG spending supports demand for its technology and equipment.

SLB announced it has been awarded four integrated well construction contracts by Aramco to support oil and gas development across the Kingdom of Saudi Arabia. Under the three-year contracts, SLB will manage end-to-end well construction services and deliver more than 450 wells, with an optional extension of up to two years. The awards represent a significant expansion of SLB's integrated well construction business in the Kingdom and build on decades of collaboration between the two companies. SLB's integrated model combines digital drilling workflows with automated drilling, evaluation, fluids, cementing, and completions products and services. Steve Gassen, executive vice president of Geographies for SLB, said awarding these advanced well construction programs at scale reflects Aramco's confidence in the company's integrated model and capabilities.

SLB has been awarded a contract by Equinor to expand real-time leak detection, virtual flow metering and digital production monitoring across the Johan Sverdrup Phase 3 development in the North Sea, while Invictus Energy selected SLB for drilling and well services at the Musuma-1 exploration well in Zimbabwe. The two awards highlight growing adoption of SLB's digital and high-end drilling technologies across both mature offshore hubs and frontier onshore basins. SLB's investment narrative projects $42.2 billion in revenue and $5.6 billion in earnings by 2029, yielding a $61.39 fair value that implies 18% upside to its current price. Some analysts assume a tougher path, with revenue growing only about 2.6% a year to roughly US$39.3 billion and earnings to about US$4.9 billion. The company's expanded NVIDIA collaboration to build an AI Factory for Energy also underlines its push to scale higher margin digital workflows across production and reservoir management.

National Energy Services Reunited Corp. is participating in Middle East tenders totaling roughly $3-$4 billion, including several large multiyear opportunities, as it aims to accelerate its 3B3 strategy targeting a $3-billion revenue run rate within three years. Management said the contracts often run for five, seven or even nine years, supporting backlog growth and longer-term revenue visibility, and believes stronger contract wins can accelerate that timeline. NESR has maintained uninterrupted service through the ongoing Middle East conflict, which has disrupted energy activity across the region with project shutdowns in Iraq and LNG interruptions in Qatar, and its operating track record has qualified it to bid on larger contract lots previously dominated by bigger service providers. The company has emerged as the region's largest hydraulic-fracturing company while building scale across several production and completion service lines. Other providers stand to benefit from a recovery in Middle East energy spending, with SLB N.V. citing stronger customer engagement around well intervention, shut-in well recovery and infill drilling in markets such as the United Arab Emirates and Qatar, and Baker Hughes Company highlighting major awards for electric motor-driven compression trains tied to a large offshore Middle East field and Aramco's Uthmaniyah gas development. NESR shares have gained 198.8% over the past year compared with the industry's 66.5% growth, and the stock trades at a trailing 12-month EV/EBITDA of 10.33X versus the industry average of 9.09X.

SLB announced on August 31 that it will acquire Kelvion from Apollo Global and funds advised by Triton for around $3.4 billion in cash plus the assumption of approximately $0.7 billion of debt, a total of $4.3 billion. The deal aims to expand SLB's data center business and capitalize on AI-driven demand for power and cooling infrastructure. Kelvion, which specializes in thermal management and heat exchange, will more than double SLB's revenue opportunity per gigawatt of delivered capacity. SLB expects the transaction to be accretive to earnings and free cash flow per share within 12 months and to generate about $120 million in annual EBITDA synergies within three years. The company reaffirmed its target to return more than $4 billion to shareholders this fiscal year, with the deal expected to close in the first half of 2027.

The U.S. government's agreement with Venezuela, touted by President Trump as "the biggest oil deal in world history," grants American access to 65 billion barrels of proven Venezuelan reserves through 100-year concessions across 17 oilfields, brokered with North American Blue Energy Partners. The deal, which includes a 25-year cooperation framework, aims to more than double U.S. oil reserves and lower gasoline prices, while Chevron, ExxonMobil, ConocoPhillips, SLB, and Halliburton are positioned to benefit from an estimated $100 billion in infrastructure investment targeting 1.5 million barrels per day. For investors, energy ETFs like XLE, VDE, OIH, and IYE offer exposure to these beneficiaries, with year-to-date gains ranging from 42.2% to 50.7%.

SLB N.V. has signed an agreement to acquire Kelvion, a global provider of thermal management and heat-exchange technologies, for approximately $3.4 billion in cash and the assumption of about $0.7 billion of debt, aiming to accelerate the expansion of its Data Center Solutions business. Kelvion is expected to generate approximately $2.3-$2.4 billion in revenues and $350-$400 million in adjusted EBITDA in 2026, with data centers representing its largest and fastest-growing end market, projected at $1.2-$1.3 billion in revenues. The acquisition broadens SLB's addressable market, with management expecting its revenue opportunity per gigawatt of delivered data center capacity to more than double. On a pro forma basis, SLB and Kelvion together are expected to generate more than $2 billion in data center revenues and approximately $300 million in adjusted EBITDA in 2026, with SLB targeting revenues of $4.5-$5 billion and adjusted EBITDA of $700-$800 million by 2028. The transaction is valued at roughly 11 times estimated 2026 EBITDA before synergies and about 8.5 times after expected synergies, with management expecting it to be accretive to earnings per share and free cash flow per share within the first 12 months after closing, and targeting approximately $120 million in annual EBITDA synergies within three years. The deal is expected to close in the first half of 2027, subject to regulatory approvals, and SLB reaffirmed plans to return more than $4 billion to shareholders in 2026.

SLB, the global energy-technology heavyweight, surged about 3.4% to $59.30 Monday morning after announcing a $3.4 billion cash deal to acquire thermal-management specialist Kelvion, assuming roughly $700 million of debt. The acquisition values Kelvion at about 11 times estimated 2026 EBITDA before synergies and 8.5 times after them, with management expecting $120 million in annual EBITDA benefits within three years. SLB forecasts the combined data-center business to generate over $2 billion in revenue and about $300 million in adjusted EBITDA in 2026, aiming for $4.75 billion in revenue and $750 million in EBITDA by 2028. The stock trades 30.07% above its GF Value of $45.59, reflecting high investor expectations for execution.

SLB has agreed to acquire Kelvion, a thermal management and heat-exchange technology provider, for approximately $3.4 billion in cash plus the assumption of about $700 million in debt, with the deal expected to close in the first half of 2027. The acquisition, from Apollo Global Management and Triton, aims to strengthen SLB's position in the rapidly growing AI and data-center cooling market. SLB expects the combined data-center businesses to generate $4.5 billion to $5 billion in revenue and $700 million to $800 million in adjusted EBITDA in 2028, and projects about $120 million in annual EBITDA synergies within three years. The company says the transaction will be accretive to earnings and free cash flow per share within the first 12 months, and it reaffirms its commitment to deliver more than $4 billion in shareholder returns in 2026.

SLB has been selected as the strategic reservoir partner for the Havstjerne carbon storage project in the Norwegian North Sea, which aims to provide offshore storage for European industrial emitters. The company will supply subsurface engineering support to help develop large-scale carbon storage capacity at the site. In a separate development, SLB launched its ExaCT electrical downhole coiled tubing control system, which delivers real-time electrical control for downhole interventions across multiple applications. These announcements highlight SLB's dual focus on low-carbon projects and production optimization, with the Havstjerne role spanning from subsurface studies to subsea injection and monitoring, while ExaCT enhances its core well intervention services. Investors should watch for the Havstjerne final investment decision, which depends on concept and FEED work and reservoir appraisal data from 2025, as well as adoption rates for ExaCT, which has already reported a 175-hour reduction in a six-lateral well.

President Trump's new energy agreement with Venezuela grants U.S. companies majority control of more than 65 billion barrels of proven Venezuelan reserves, pushing total U.S.-accessible proven reserves to roughly 111 billion barrels, or about 7.1% of the world's 1.57 trillion barrels. The deal covers 17 strategic fields in the Orinoco Belt and Lake Maracaibo, with Venezuelan officials projecting over $100 billion in private investment and $209 billion in eventual tax revenue. Chevron, which already operates the largest U.S. footprint in the country and accounts for a substantial share of current output near 1.25 million barrels per day, is positioned as the clearest near-term beneficiary, while service providers like SLB have secured early contracts. However, Venezuela's extra-heavy crude requires specialized refining and major infrastructure repairs, so production gains will take years rather than months, and gas prices won't fall overnight. U.S. Gulf Coast refiners like Marathon Petroleum and Valero Energy stand to benefit from more reliable volumes, but the full production impact will unfold over years.

SLB NV has signed oil-related agreements with Venezuela and Hunt Oil to boost crude production, including a framework deal for integrated reservoir studies and a contract tied to two oil fields, with plans to reactivate up to 15 rigs. The agreements follow a long-term pact with state oil company PDVSA and President Trump's call for investment in Venezuela, which holds the world's largest proven reserves at about 17% of the global total. However, the country's history of nationalization, unpaid debts, and infrastructure challenges pose significant risks, despite SLB's longstanding local presence and potential competitive edge over rivals like Halliburton and Baker Hughes.

Venezuela is considering leaving OPEC, the oil cartel it helped found in 1960, according to people familiar with the matter. No final decision has been made, but the option has been discussed with U.S. officials, who envision a U.S.-Venezuela alliance that would diminish OPEC's influence. ING analysts noted that an exit would reduce OPEC's sway but the group still holds a large market share, especially with OPEC+. Separately, the Trump administration is in talks with Venezuela about taking an ownership stake in its oil fields, including a potential 100-year lease on several fields.

SLB and Venezuela's state-run PDVSA signed a contract last week granting the U.S. company access to coveted oilfield data and allowing it to organize and upgrade PDVSA's vast but outdated databases following years of neglect and a recent cyberattack. Many details of the contract, including duration and payment mechanism, remain unknown, but SLB will be able to use new technology, including artificial intelligence, to expand, modernize, and make Venezuela's oil data reliable again. Venezuela has not published routine oil statistics in more than a decade, and the latest annual bulletin released by the oil ministry was in 2015; except for limited production data reported monthly to OPEC, the lack of information has become a major obstacle to promoting oilfields for investment. PDVSA has managed to patch its main applications since it was the target of a ransomware attack last year that knocked down applications and key contract administration software, but it needs to migrate systems, particularly its geological and production databases, to new providers and implement modern tracking tools. Venezuela's oil ministry confirmed last week that an agreement with SLB had been signed with PDVSA to modernize exploration and production.

SLB has received a contract from Brunei Shell Petroleum to assist in restoring production from shut-in wells in multiple offshore fields. The agreement covers multiple disciplines and services, aiming to improve recovery from mature assets through an integrated execution model, though financial terms were not disclosed. SLB will provide subsurface evaluation, candidate selection, engineering, offshore execution, project management, intervention operations, monitoring, metering, and marine logistics under a single framework. This marks the first time BSP uses an integrated production restoration model, following a well, reservoir, and facility management methodology. BSP operates over 200 offshore installations connected by more than 5,000 kilometers of pipeline.

SLB reported second-quarter results that exceeded Wall Street expectations, with revenue of $8.97 billion beating analyst estimates of $8.68 billion and adjusted earnings per share of $0.55 surpassing the $0.52 consensus. The 4.5% year-on-year revenue decline was offset by broad-based international growth and a rebound in North American operations, while operating margin narrowed to 13.3% from 14.3% a year earlier. CEO Olivier Le Peuch highlighted higher offshore activity in Latin America, Europe, Africa, and Asia, along with increased U.S. land demand, though Middle East operations remained constrained by ongoing conflict. During the earnings call, analysts pressed management on the pace of Middle East recovery, the durability of the exploration cycle, offshore growth prospects for 2027, the economics of the new Data Center Solutions business, and revenue potential in Venezuela. The company noted that Data Center Solutions is capital-light with strong free cash flow despite lower margins, and it is preparing to scale operations in Venezuela with contracts secured for 2027.

SLB shares climbed last week after the oilfield services leader reported higher-than-expected sales and profits. Revenue rose 5% year over year to $8.97 billion in the second quarter, while adjusted earnings reached $0.55 per share, topping Wall Street estimates of $0.52. CEO Olivier Le Peuch cited the Middle East conflict as driving customers to prioritize energy security and production capacity expansion. The company is also expanding into artificial intelligence, with data center revenue soaring 80% and on pace to surpass a $1 billion annualized run rate by the end of 2026.

SLB announced an alliance with Liberty Energy to deliver modular behind-the-meter power solutions for AI-driven data centers, while its OneSubsea joint venture secured a multi-well subsea EPC contract from Eni for Phase 3 of the Baleine project offshore Côte d'Ivoire. The company's narrative projects $42.2 billion in revenue and $5.6 billion in earnings by 2029, requiring 5.5% annual revenue growth and a $2.3 billion earnings increase from $3.3 billion today. A Kuwait Oil Company seven-year Ahmadi Innovation Valley agreement reinforces SLB's push into AI, industrial IoT, and production optimization. Analysts' cautious view assumes about 3% annual revenue growth and roughly $4.8 billion in earnings by 2029. SLB's fair value estimate stands at $61.39, representing a 30% upside to its current price.

The global Floating Production Systems market is projected to grow from $16.15 billion in 2025 to $28.09 billion by 2035, at a CAGR of 5.69%, according to SNS Insider. The FPSO segment held the largest share in 2025 at about 49% of market revenue, while the Spar Platforms segment is expected to grow fastest at 7.08% CAGR. Deep-water applications accounted for roughly 42% of revenue in 2025, and the ultra-deep-water segment is forecast to expand at 7.03% CAGR. National oil companies contributed around 41% of market revenue in 2025, with offshore contractors projected to grow at the highest CAGR of 7.64%. North America led with nearly 29% of global revenue in 2025, while Asia Pacific is anticipated to grow at the fastest rate of 7.58% CAGR.

SLB shares drew attention after the company announced a new alliance with Liberty Energy to supply modular infrastructure and integrated power generation for data centers serving AI and high performance computing. The most widely followed narrative points to a fair value around $61.39, compared with SLB's last close at $47.54, suggesting the stock is undervalued. This valuation is grounded in detailed long-term earnings and cash flow assumptions, supported by double-digit year-over-year growth in SLB's digital business, notably the DELFI platform. However, the narrative faces pressure from potential declines in global upstream spending and the risk that the ChampionX integration delivers slower or smaller cost synergies.

SLB announced that its OneSubsea joint venture has been awarded a major multi-well engineering, procurement, and construction contract by Eni for Phase 3 of the deepwater Baleine project offshore Côte d'Ivoire. SLB OneSubsea will deliver complete subsea production systems for 13 wells. The contract supports Eni's efforts to advance the complex deepwater project efficiently while contributing to the long-term development of offshore resources in Côte d'Ivoire. In pre-market trading on NYSE, SLB shares rose 0.93 percent to $48.20.

Wolfe Research initiated coverage of three major oilfield services companies, assigning Outperform ratings to SLB and Baker Hughes while rating Halliburton at Peer Perform. Analyst Carlos Escalante said the industry faces a selective capital cycle favoring international exposure. On SLB, Wolfe set a $62 price target, citing margin upside from the ChampionX integration and growth in digital and data center business lines, which doubled from fiscal 2024 to 2025 and is expected to grow 13-15% annually over the next decade. Baker Hughes received a $70 price target, with Wolfe saying its free cash flow trajectory is being mispriced at an oilfield services multiple and its Industrial and Energy Technology business is set to exceed 50% of EBITDA for the first time. The pending $13.6 billion Chart Industries acquisition was flagged as a key catalyst. Halliburton was seen as largely macro dependent, carrying the largest North America exposure of the large-cap oilfield services group.

SLB shares have fallen 23% from their recent high amid a crash in oil prices, but the oilfield services company is being touted as a top buy on the dip. Brent crude, which surged to $138 per barrel earlier this year after U.S. and Israeli strikes on Iran, has since plummeted to around $71 per barrel on hopes of a peace deal. SLB’s first-quarter revenue fell 11% sequentially and net income dropped 6% year over year to $752 million due to Middle East disruptions, though management views the impact as temporary and is preserving capacity for a rebound. The company points to a Final Investment Decision pipeline exceeding $100 billion in long-cycle deepwater projects, which supports pricing power and future revenue. With oil still above pre-conflict levels and supply rebalancing expected, SLB is positioned to benefit from sustained upstream investment.

SLB has signed a seven-year contract with Kuwait Oil Company to lead the Ahmadi Innovation Valley initiative, which includes a dedicated research and development facility focused on digital technology and deployment across Kuwait's energy sector. The company is also launching a major international innovation hub tied to this long-term collaboration in the Middle East. Over the seven-year timeframe, the scope and visibility of this agreement may influence how SLB allocates capital and engineering resources in the region. Investors can monitor how quickly the new research hub ramps up, the extent to which technology from the project is adopted across Kuwait, and whether similar contracts are announced in other Middle Eastern markets.

SLB has been awarded a seven-year contract by Kuwait Oil Company to develop and deploy advanced technologies under KOC's Ahmadi Innovation Valley program. The oilfield services company will work with KOC on nearly 100 projects focused on AI, production optimization, reservoir technologies, water management and energy transition, aiming to improve upstream operations and build local technical expertise. As part of the deal, SLB will build a dedicated innovation facility in Kuwait, with construction starting in 2026 and the center set to open in 2028. In pre-market activity on the NYSE, shares of SLB were up 0.58 percent, changing hands at $46.63, after closing Monday's regular session 1.32 percent lower.

SLB N.V. emerges as the stronger energy stock for 2026 compared to NOV, driven by its higher profitability, global scale, and attractive valuation. SLB generated $35.7 billion in revenue and $3.4 billion in net income in fiscal 2025, yielding a net margin of 9.4%, while NOV posted $8.7 billion in revenue and $145 million in net income with a 1.7% margin. SLB's free cash flow reached nearly $4.8 billion, far exceeding NOV's $864 million, and its forward price-to-earnings ratio of 21.2x is lower than NOV's 24.0x. Although NOV boasts a stronger balance sheet with a current ratio of 2.4x and lower debt, SLB's technology-driven model and diversified international operations position it for long-term growth. Both companies face cyclical energy sector risks, but SLB's scale and cash generation make it the preferred choice for most investors.

Stifel raised its price target on SLB N.V. to $64 from $61 and maintained a Buy rating on June 18, following the company's Digital Investor Day where it detailed its digital capabilities. Separately, on June 15, SLB launched the SLB Digital Marketplace, a curated destination to help energy companies discover and deploy AI agents, domain models, and digital applications within their existing environments. The marketplace extends SLB's open platform strategy to its Tela agentic AI assistant, allowing partners and customers to bring purpose-built digital capabilities through a single governed channel.

Goldman Sachs said artificial intelligence and digital technologies could significantly shorten development timelines and lower costs for new oil and gas projects. AI, high-performance computing, and digitalization could reduce the average development cycle for greenfield deepwater projects from about 12 years to seven years, with most of the time savings occurring before final investment decisions through faster exploration, appraisal, and engineering work. The improvements could lift the internal rate of return for a typical greenfield oil project to 19% from 15.5% by lowering capital spending, reducing operating costs, shortening development timelines, and increasing production, while project breakeven prices could decline by about 15%. Among oilfield services companies, TGS, Vallourec and SLB were identified as the strongest beneficiaries of increasing AI adoption, while companies focused on floating production storage and offloading vessels and pure subsea construction contractors are expected to benefit less because their operations remain constrained by fabrication capacity rather than digital workflows.

SLB has signed a long-term contract with Venezuela's state oil company PDVSA to support the revitalization and modernization of the country's oil and gas sector. The memorandum of understanding covers cooperation across exploration, field development, production, digital enablement, and workforce training and development. A key focus is the digital transformation of Venezuela's oil and gas sector, with SLB and PDVSA using connected data, predictive models, and AI-driven workflows to improve efficiency and fast-track decision-making. CEO Olivier Le Peuch stated that the partnership builds on SLB's nearly century-long presence in Venezuela and aims to strengthen operational excellence and develop local skills.

Jim Cramer said on Mad Money that SLB, formerly Schlumberger, is 'by far the best there is' in the oil services industry. Speaking after the company's investor day meeting in New York, Cramer highlighted SLB's rapidly growing digital business, which accounted for roughly 7% of revenue last year but carries higher margins than the rest of the company. He described it as a modern growth business within the 100-year-old institution, while also noting that peace prospects in the Middle East are putting pressure on crude prices.

SLB has launched the SLB Digital Marketplace, a platform enabling energy companies to find and deploy AI agents and digital tools directly into existing operations. The stock recently fell 4.45% in a single session, though it recorded a 7-day return of 14.12% and a 30-day return of 15.29%, with a year-to-date return of 19.63% and a one-year total shareholder return of 37.81%. Trading at $48.09, SLB is considered 21.7% undervalued based on a fair value estimate of $61.39, driven by strong adoption and double-digit year-over-year growth in its digital business, notably the DELFI platform. However, risks include potential weakening in global upstream spending and uncertainty around the ChampionX integration delivering expected cost and revenue benefits.

SLB and Nvidia have deepened their two-decade partnership by launching a joint AI Factory for Energy, with SLB selected as a modular design partner for Nvidia DSX AI factories. SLB CEO Olivier Le Peuch told CNBC on June 18, 2026 that the collaboration is being industrialized across SLB's Delfi and Lumi platforms, while the company's digital annual recurring revenue crossed $1 billion, up 15% year over year, and data center solutions grew 45% year over year. Autonomous drilling in Libya cut well time roughly in half, and automated footage reading rose 145% year over year. SLB shares trade at $48.28, down 11.48% over the past month, while Nvidia reported Q1 FY2027 revenue of $81.61 billion, up 85.2% year over year.