Top 12 Oil and Gas Stocks To Invest In According to Hedge Funds

4. Schlumberger Limited (NYSE:SLB)

Number of Hedge Fund Holders: 65

Coming in at number 4 in our list of the Best Energy Stocks Specializing in Oil and Gas is Schlumberger Limited (NYSE:SLB) – the world’s leading provider of technology for reservoir characterization, drilling, production, and processing to the global energy industry. The company’s clients include major oil and gas producers worldwide.

For its Q3 2024, Schlumberger Limited (NYSE:SLB) reported a revenue of $9.16 billion, up by over 10% YoY, but still missing the analysts’ estimates by $144.43 million. However, the company expanded its adjusted EBITDA margin by more than 50 basis points to 25.6% by driving efficiencies throughout the business and generated a very strong free cash flow of $1.81 billion. Meanwhile, the operating cash flow was $2.45 billion. SLB also returned close to $900 million to shareholders through stock repurchases and dividends during the quarter, bringing total return to shareholders for the first nine months of the year to $2.38 billion. On October 17th, the company approved a quarterly cash dividend of $0.275 per share. Demand for Schlumberger’s digital products and services continued to accelerate in the international market and it maintained steady growth in the Middle East and Asia, fueled by oil capacity expansions and strong gas activity as well as offshore projects.

In a move to solidify itself at the forefront of technological innovation in the energy industry, Schlumberger Limited (NYSE:SLB) introduced the Lumi AI platform, with applications spanning the entire E&P lifecycle. Moreover, the company is also working in collaboration with NVIDIA and AWS to strengthen its digital portfolio and generative AI capabilities.

Schlumberger Limited (NYSE:SLB)’s pending $8.2 billion acquisition of ChampionX is also expected to be finalized by the Q1 of 2025, and so the company is quite comfortable to reaffirm its $4 billion target returns to shareholders for next year, as free cash flow is expected to increase in 2025.

65 hedge funds in the IM database held a stake in Schlumberger Limited (NYSE:SLB) at the end of Q3 2024, with a total stake value of around $1.62 billion, up by almost 8% from the previous quarter.