1. Schlumberger Limited (NYSE:SLB)
Number of Hedge Fund Holders: 67
Schlumberger Limited (NYSE:SLB) is a Texas-based company that delivers a wide range of technology and services aimed at advancing hydrocarbon production and field development. It offers carbon management and the integration of energy systems. The company focuses on various facets of the energy industry. Its services include reservoir interpretation, well construction services, and subsurface geology evaluations, all of which are essential for efficient exploration and production processes. The company supplies crucial drilling fluids and equipment, as well as artificial lift production systems that facilitate extraction efforts. Cramer said:
“SLB has not gone up nearly as much as I would’ve expected. Given the fact that oil’s up, I would buy the stock right here. It is the best of breed.”
Schlumberger’s (NYSE:SLB) management has highlighted the trend towards deepwater developments, particularly in regions like Latin America and Africa, where the majority of future oil capacity expansions are expected.
Projections by management for offshore final investment decisions (FID) suggest a substantial growth trajectory, with estimates reaching $100 billion in 2024 and a similar figure in 2025, driven by rising interest in high-yield, low-carbon assets.
On September 30, Schlumberger (NYSE:SLB) announced the formation of Turnwell Industries LLC OPC, a joint venture with ADNOC Drilling Company and Patterson-UTI. Through the JV, the companies aim to harness cutting-edge innovations in artificial intelligence, smart drilling design, and advanced completions engineering.
The joint venture will prioritize the acceleration of the United Arab Emirates’ unconventional oil and gas initiatives, with an ambitious plan to complete an initial 144 wells by the end of 2025. Within this partnership, Schlumberger will contribute integrated drilling, stimulation, and completion services, alongside project management and digital capabilities, to support the venture’s objectives. ADNOC Drilling will hold a 55% majority stake, while Schlumberger will have a 30% stake and Patterson-UTI will own the remaining 15%.
While we acknowledge the potential of Schlumberger Limited (NYSE:SLB) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than SLB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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