10 Best Energy Stocks To Buy According to Hedge Funds

3. Schlumberger Limited (NYSE:SLB)  

Number of Hedge Fund Investors: 67  

Schlumberger Limited (NYSE:SLB) is a prominent oilfield services company that provides solutions for the exploration and development of oil and gas resources in more than 85 countries.

In Q3, Schlumberger Limited’s (NYSE:SLB) revenue increased 10% year over year to  $9.16 billion. Despite the flat revenue compared to the previous quarter, the company achieved a notable increase in its adjusted EBITDA margin, which expanded by 55 basis points to 25.6%. Additionally, the company generated a significant $1.81 billion in free cash flow during the quarter, while earnings per share (EPS) reached $0.89, excluding charges and credits.

The company’s digital and integration segment delivered a strong performance, with revenue increasing by 4% sequentially to $1.1 billion. The segment’s margins also expanded by 456 basis points to 35.5%, demonstrating the company’s growing expertise in digital solutions. Meanwhile, the production systems segment saw a 3% sequential increase in revenue to $3.1 billion, with margins expanding by 110 basis points to 16.7%.

In terms of cash flow, Schlumberger Limited (NYSE:SLB) reported $2.4 billion in cash flow from operations, while capital investments totaled $644 million during the quarter. The company also returned a significant amount of capital to shareholders, repurchasing 11.3 million shares for $501 million. Furthermore, Schlumberger Limited (NYSE:SLB) announced several new digital products and partnerships, including collaborations with NVIDIA and Amazon Web Services.

On October 10, Schlumberger Limited (NYSE:SLB), Amazon Web Services (AWS), and Shell Global Solutions Nederland announced a multi-year collaboration agreement to deliver digital end-to-end workflows for Shell using Schlumberger Limited’s (NYSE:SLB) subsurface solutions on AWS cloud infrastructure. The partnership aims to provide high-performance and cost-efficient subsurface digital solutions, which will be used by Shell and made available to the industry.

The collaboration will utilize a data platform to enhance the user experience, increase efficiency and collaboration, and produce better insights for Shell and the energy industry. This agreement builds on the existing strategic collaboration between Schlumberger Limited (NYSE:SLB) and AWS, accelerating the availability of Schlumberger Limited’s (NYSE:SLB) industry-leading software, including Petrel subsurface solutions and Techlog wellbore solutions, on AWS.