- Schlumberger Limited (SLB): Among Morgan Stanley’s Highest Conviction Stocks
Aug 27, 2024
We recently compiled a list of the Morgan Stanley's Highest Conviction Stocks: Top 20 Stocks To Buy.In this article, we are going to take a look at where Schlumberger Limited (NYSE:SLB) stands against Morgan Stanley's other high conviction stocks.
With the second half of 2024 having settled in, the broader economic environment that will determine the future course of the stock market is becoming clearer. While the surge in investor interest surrounding artificial intelligence stocks placed the macroeconomic picture in the background for a while, now, as the second quarter earnings season is nearly over, macroeconomics is coming back into play. Investors are eager to read the mind of Fed chairman Jerome Powell for future interest rate cut decisions and the crystal ball to see what way the economy is heading.
On this front, investment bank Morgan Stanley has been churning out quite a lot of reports to guide investors. One such report came out in July and shared the bank's key themes to focus on during the month. While July is over, this report contains key details that can provide information about what to expect for the rest of the year too. Two of the biggest takeaways from this report cover an economic soft landing and the potential for equities performance to widen.
SEE ALSO 15 Best European AI Stocks According to Morgan Stanley and Best Humanoid Robot Stocks According to Morgan Stanley
On the former front, the bank shared that July "bolstered the case for a soft landing as inflation has declined and a few major central banks cut rates." It believes that forward looking data suggests that "wage growth should continue to slow in the U.S. and Eurozone" which will eventually contribute to cooling inflation and eventually lower rates to increase the chances of a soft landing. In terms of data, the bank's estimates for 2025 suggest that year over year wage growth could sit at 3% in 2025 for a marked growth over the 2022 peak.
Back then, wage growth percentages as indicated by Indeed postings and the Fed had stood at ~9.4% and ~6.5%, respectively. As an additional positive note, the bank also adds that the US is leading the EU and the UK because of its wage growth of 3% which is less than half of the UK's roughly 7%.
On the latter front, i.e., MS' belief that equities performance can widen, it shares that there "is ample room for equities performance to broaden, but this requires a cyclical recovery." What this means is that big tech has accounted for most of the market's returns this year due to the AI hype, and this can spread out to smaller firms but only if the broader economy recovers. Underlying this belief is data for the flagship S&P index's price to earnings ratio, as the bank shares that the 12 month forward P/E "runs at 21x on a cap-weighted basis but only 16x equal- weighted." This suggests that the smaller companies have room to catch up with the larger companies, but their performance will only improve if consumer and business spending flourishes during a cyclical uptrend.
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This potential has led the bank to lament that "we turned neutral too soon" as it also cites forward earnings data to support the hypothesis of the bifurcation in valuation. For the Magnificent Seven stocks, the 12 month forward earnings rebased to 100 as of December 2023 sit at a whopping 120 while the estimate for the remaining 493 firms on the S&P index is ~106. However, before you get too optimistic, MS also cautions against investing in small cap stocks. It shares that small cap "requires economic growth acceleration with lower interest rates, which seems unlikely in the current inflation environment." Plotting the returns of small caps with bond yields to signify a relationship with interest rates, its data shows that when bond yields were at 1%, small cap relative returns to large caps were 100%. But when the yields soared to ~5.6%, these returns dropped to ~82%.
MS' August report builds on the July themes. It builds on the bearishness surrounding small caps, shifts the focus on the labor market over inflation, and brings real estate into the mix. Reducing wage growth allows the Fed to shift its focus from inflation "to potential cracks in the labor market," says the bank, but it cautions that recession "indicators such as the Sahm Rule are creeping toward a recessionary threshold based on the rising national unemployment rate." Its data shows that the 3 month national unemployment average is 0.5% over the previous 12 month low, which rings a warning bell, to say the least. Still bearish on small caps, it adds that while "recent inflation data and the resulting decline in rates was a lift to small cap, softer economic data may constrain its continued outperformance."
There is some positivity in the August report, though. The bank shares that commercial real estate, which has been one of the hardest hit sectors from rising rates and shifting trends to remote working, now presents an "emerging opportunity set." The analysts outline that commercial real estate valuations "valuations have become more attractive in the face of higher interest rates and elevated supply," adding that they "expect volumes to pick up this year due to upcoming debt maturities, reinforcing these lower entry points." Counterintuitively, this optimism is based on depressed valuations as it uses the commercial real estate cap rate. As per MS' data, this rate sat at 9% in March 2024, for nearly a two percentage point lead over retail real estate and a wider three point lead over residential real estate. The bank is also quite impressed with hedge fund performance in 2024 as it commented that the funds "delivered attractive risk-adjusted performance in the first half of 2024 and their positioning suggests confidence in the opportunities for skill-based returns."
Our Methodology
To make our list of MS' top stocks, we used its latest 20 top conviction stock ideas and ranked them by the average percentage share price upside to the bank's own share price targets.
For these stocks, we also mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
An aerial view of a well site, depicting the scale of oil and gas operations.
Schlumberger Limited (NYSE:SLB)
Share Price Upside: 45%
Number of Hedge Fund Investors In Q2 2024: 67
Schlumberger Limited (NYSE:SLB) is the biggest oilfield services provider in the world. This allows it to generate substantial revenues, and the industrial nature of its business means that future cash flows and revenues are visible through its order pipeline and backlog. Additionally, Schlumberger Limited (NYSE:SLB)'s competitive position is bolstered by the fact that it counts some of the biggest oil companies in the world such as Petrobras and Saudi Aramco as its customers. Schlumberger Limited (NYSE:SLB) however remains vulnerable to dropping production activities, especially like the one the oil industry has risked recently due to weak Chinese economic growth depressing the oil market. However, the firm's $3.9 billion in cash and equivalents and trailing twelve month free cash flow of $4.3 billion provide it with ample room to keep investors happy during downturns by conducting share buybacks and dividend payouts.
Artisan Partners mentioned Schlumberger Limited (NYSE:SLB) in its Q4 2023 investor letter. Here is what the firm said:
"We have stringent criteria for business quality, which is particularly important in commodities sectors as these businesses do not control the underlying commodity prices, which can be volatile. We expect Schlumberger to continue to successfully navigate market volatility and deliver on its free cash flow and profit margin growth objectives from combination of activity growth and pricing gains. The stock has been among our top contributors since we initiated our position in December 2020."
Overall SLB ranks 2nd on our list of Morgan Stanley's highest conviction stocks. While we acknowledge the potential of SLB as an investment, our conviction lies in the belief that some 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.
READ NEXT:$30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
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- Schlumberger (SLB) Rises As Market Takes a Dip: Key Facts
Aug 26, 2024
In the latest market close, Schlumberger (SLB) reached $45.60, with a +1.06% movement compared to the previous day. The stock's change was more than the S&P 500's daily loss of 0.32%. Elsewhere, the Dow gained 0.16%, while the tech-heavy Nasdaq lost 0.85%.
Heading into today, shares of the world's largest oilfield services company had lost 7.6% over the past month, lagging the Oils-Energy sector's gain of 0.1% and the S&P 500's gain of 1.52% in that time.
The upcoming earnings release of Schlumberger will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.89, reflecting a 14.1% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.3 billion, indicating a 11.91% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $3.49 per share and revenue of $36.87 billion. These totals would mark changes of +17.11% and +11.29%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Schlumberger. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.07% lower within the past month. Currently, Schlumberger is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Schlumberger is presently being traded at a Forward P/E ratio of 12.94. This signifies a discount in comparison to the average Forward P/E of 17.99 for its industry.
Also, we should mention that SLB has a PEG ratio of 0.96. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Oil and Gas - Field Services industry had an average PEG ratio of 1.02 as trading concluded yesterday.
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The Oil and Gas - Field Services industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 211, which puts it in the bottom 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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- Schlumberger Limited (SLB): A Top Pick Among the Best Oilfield Services Stocks to Buy Now
Aug 24, 2024
We recently compiled a list of the 10 Best Oilfield Services Stocks to Buy Now. In this article, we are going to take a look at where Schlumberger Limited. (NYSE:SLB) stands against the other oilfield services stocks.
Brent crude oil prices have dropped below $80 per barrel from more than $90/bbl in April because of reduced demand for oil, growing worldwide stockpiles, and a decrease in geopolitical risks. In the first half of the year, prices were extremely volatile owing to rising geopolitical tensions, reductions in production by OPEC+ members, and indications of strengthening worldwide industrial production.
Global oil demand is decelerating, mirroring difficulties in the worldwide economic landscape, especially the reduction in China’s economic expansion. Amid the deceleration, oil prices finding support above the $70 barrel should be a boon for the oilfield service sector, which is highly dependent on oil and gas prices.
The oilfield and service sector is made up of companies that offer assistance to companies involved in the exploration and production of oil and gas. Consequently, the best oilfield services stocks to buy are of companies that assist in the production, repair, and upkeep of wells and drilling machinery. The companies receive multibillion-dollar contracts from integrated energy firms and independent and national oil and gas companies.
READ ALSO: Salesforce Inc (CRM) Faces Activist Pressure By ValueAct Capital and 15 Most Feared Activist Hedge Funds.
When crude oil prices rise and remain well above the $70 barrel level, upstream companies’ ramp up spending on exploration and drilling activities, benefiting oilfield services companies. Increased spending translates to improved revenues and profit margins.
With oil prices finding support above the $70 per barrel level, the oilfield services sector should grow at a compound annual growth rate of 5.83% from $119 billion as of 2024. The robust growth is attributed to rising expectations of increased development of gas reserves and advanced technology.
While oil prices averaged $77 a barrel in 2023, persistently high inflation above 4% was one of the reasons that the oilfield services remained under pressure. That’s because upstream companies refrained from pursuing mega exploration and development projects.
Consequently, the overall oilfield service sector had a one-year return of −11.8%, underperforming the S&P 500, which was up by about 26%. The sector is down by about 3.87% for the year, underperforming the S&P 500, which is up by about 17%.
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While the underperformance is a concern, it provides an ideal entry-level for the best oilfield services stocks to buy now, as most appear to be trading at a discounted valuation.
The global upstream industry is expected to maintain its hydrocarbon investment at about $580 billion in 2024, representing an 11% year-over-year increase. Likewise, the expected investments should make the case for investors to pay close watch to the best oilfield services stocks to buy now, trading at discounted valuations.
The second quarter showed growing momentum across different verticals in the oilfield services sector amid a slowdown in U.S. activity.
“The four major oilfield service companies are well-positioned to benefit from the multi-year global upcycle in E&P spending and the increasing demand for energy services and technology,” Evercore analyst James West wrote. “Strong earnings growth and margin expansion are being driven by international and offshore markets.”
Our Methodology
We used Yahoo Finance’s Screener to compile the list of the best oilfield services stocks to buy now. We scanned for the most significant oil & gas equipment & services companies and those with a substantial upside potential based on analysts’ average price targets. Once we had a consolidated list, we selected and ranked the stocks based on their upside potential.
We also mentioned the number of hedge funds that had bought these stocks during the same filing period. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)
An aerial view of a well site, depicting the scale of oil and gas operations.
Schlumberger Limited. (NYSE:SLB)
Hedge Funds Holding Stakes: 67
Stock Upside Potential as of 12/08/2024: 51.55%
Given its role in providing oil and gas equipment and services, Schlumberger Limited (NYSE:SLB) is one of the best oilfield services stocks to buy now. With a market cap of about $65 billion, it is one of the most prominent players specializing in providing field development and hydrocarbon production. It also offers oil field services, including drilling, completion, and production solutions to upstream oil & gas companies in the U.S.
While Schlumberger Limited (NYSE:SLB) is down by about 17% for the year, it has rallied by more than 120% since 2021, outperforming the 45% gain of the S&P 500. It also rewards investors with a 2.52% dividend yield, which is ideal for generating passive income.
The fact that Schlumberger Limited (NYSE:SLB) has consistently beaten the S&P 500 affirms why it is one of the best oilfield service stocks to buy now. Its international and offshore segments outperform due to long-cycle development and capacity expansion projects. Oil supply cuts amid high demand should build a more supportive environment for higher oil prices, supporting the company’s prospects in the sector.
As of the end of the second quarter, 67 hedge funds tracked by Insider Monkey Database held stakes in the company. Schlumberger Limited (NYSE:SLB) is currently rated as a Buy with a $66 consensus price target, implying 51.55% upside potential from current levels.
In its fourth quarter 2023 investor letter, Artisan Value Fund said the following about Schlumberger Limited (NYSE:SLB):
“On the downside in Q4, our two energy holdings, Schlumberger Limited (NYSE:SLB), the world’s largest oil services company, and EOG Resources, a US shale-focused E&P company, were weak along with the broader sector. We have stringent criteria for business quality, which is particularly important in commodities sectors as these businesses do not control the underlying commodity prices, which can be volatile. We expect Schlumberger to continue to successfully navigate market volatility and deliver on its free cash flow and profit margin growth objectives from combination of activity growth and pricing gains. The stock has been among our top contributors since we initiated our position in December 2020.”
Overall SLB ranks 5th in our list of the best oilfield services stocks to buy. While we acknowledge the potential of 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.
READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
Disclosure: None. This article is originally published at Insider Monkey.
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- Is Trending Stock Schlumberger Limited (SLB) a Buy Now?
Aug 22, 2024
Schlumberger (SLB) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this world's largest oilfield services company have returned -8%, compared to the Zacks S&P 500 composite's +2.2% change. During this period, the Zacks Oil and Gas - Field Services industry, which Schlumberger falls in, has lost 9.2%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Revisions to Earnings Estimates
Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, Schlumberger is expected to post earnings of $0.89 per share, indicating a change of +14.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $3.49 for the current fiscal year indicates a year-over-year change of +17.1%. This estimate has changed +0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.10 indicates a change of +17.5% from what Schlumberger is expected to report a year ago. Over the past month, the estimate has changed +1%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Schlumberger.
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For Schlumberger, the consensus sales estimate for the current quarter of $9.3 billion indicates a year-over-year change of +11.9%. For the current and next fiscal years, $36.87 billion and $42.94 billion estimates indicate +11.3% and +16.4% changes, respectively.
Last Reported Results and Surprise History
Schlumberger reported revenues of $9.14 billion in the last reported quarter, representing a year-over-year change of +12.8%. EPS of $0.85 for the same period compares with $0.72 a year ago.
Compared to the Zacks Consensus Estimate of $9.07 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S) and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Schlumberger is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom Line
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Schlumberger. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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- SLB and Palo Alto Networks Expand Collaboration to Strengthen Cybersecurity for the Energy Sector
Aug 19, 2024
Digital transformation in the energy industry continues to drive comprehensive cybersecurity solutions in the face of growing cyber threats
HOUSTON and SANTA CLARA, Calif., Aug. 19, 2024 /PRNewswire/ -- Global energy technology company SLB (NYSE: SLB) and global cybersecurity leader Palo Alto Networks (NASDAQ: PANW) today announced they are expanding their collaboration to strengthen cybersecurity for the energy sector. Palo Alto Networks logo (PRNewsFoto/Palo Alto Networks, Inc.) (PRNewsfoto/Palo Alto Networks, Inc.)
The companies will combine SLB's cloud and edge technologies and domain expertise in the energy industry with Palo Alto Networks cross-industry, platform-based cybersecurity solutions. This will not only help SLB remain on the forefront with its own security infrastructure, but also help drive future enhanced solutions to address evolving cyber threats as the industry's adoption of digital solutions and artificial intelligence accelerates.
"The maturation of our industry's digital transformation makes cybersecurity paramount to our operations, and the digital solutions we offer to our customers," said Olivier Le Peuch, chief executive officer, SLB. "Through this collaboration, we will continue to enhance and strengthen our role as our customers' digital partner of choice."
As part of the collaboration, SLB will adopt Palo Alto Networks Precision AI™-powered cybersecurity platforms, including Prisma® SASE, Prisma Cloud, and Cortex XSIAM® in its technology stack. These platforms will enable SLB to achieve comprehensive security across its network, cloud and edge platforms, enabling thousands of domain and AI users on SLB's Delfi™ digital platform to collaborate in a safe and secure environment. The two companies also will develop and implement solutions for edge products and services, which will be critical as more energy customers move toward automated and autonomous operations.
"Through platformization, organizations can simplify their management processes, reduce their total cost of ownership (TCO), and enhance their security outcomes," said Nikesh Arora, chairman and chief executive officer, Palo Alto Networks. "Palo Alto Networks commends SLB for their forward-looking approach in shaping the future of the energy industry through secure and innovative solutions. Their vision for modern IT transformation through platformization, aligns with our own commitment to safeguarding critical infrastructure and driving technological advancement. Together, we can build a resilient and secure energy ecosystem that meets the challenges of tomorrow."
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About Palo Alto Networks Palo Alto Networks is the global cybersecurity leader, committed to making each day safer than the one before with industry-leading, AI-powered solutions in network security, cloud security and security operations. Powered by Precision AI, our technologies deliver precise threat detection and swift response, minimizing false positives and enhancing security effectiveness. Our platformization approach integrates diverse security solutions into a unified, scalable platform, streamlining management and providing operational efficiencies with comprehensive protection. From defending network perimeters to safeguarding cloud environments and ensuring rapid incident response, Palo Alto Networks empowers businesses to achieve Zero Trust security and confidently embrace digital transformation in an ever-evolving threat landscape. This unwavering commitment to security and innovation makes us the cybersecurity partner of choice.
At Palo Alto Networks, we're committed to bringing together the very best people in service of our mission, so we're also proud to be the cybersecurity workplace of choice, recognized among Newsweek's Most Loved Workplaces (2021-2024), with a score of 100 on the Disability Equality Index (2024, 2023, 2022), and HRC Best Places for LGBTQ+ Equality (2022). For more information, visitwww.paloaltonetworks.com.
About SLB SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
Media Contacts: Nicole Hockin – VP Global Communications Palo Alto Networks nhockin@paloaltonetworks.com
Moira Duff – Director of External Communications
SLB
Tel: +1 (713) 375-3407
media@slb.com
Investors Ryan Fenwick Sr. Manager – Investor Relations Palo Alto Networks ir@paloaltonetworks.com
James R. McDonald – SVP of Investor Relations & Industry Affairs
Joy V. Domingo – Director of Investor Relations
SLB
Tel: +1 (713) 375-3535
investor-relations@slb.com Cision
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SOURCE Palo Alto Networks, Inc.
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- VIX Vixens: 7 Attractive Stock Bets as the Fear Gauge Spikes
Aug 14, 2024
Early this month, the CBOE Volatility Index, or VIX soared to multi-year highs. As a contrarian indicator, a northward trek of the fear gauge implies a negative outlook for equities. To put it simply, the VIX tells us the magnitude by which options traders anticipate the market will move. Since acceleration is sharper during down cycles than up, higher mobility is generally bearish. Still, speculators may want to consider certain stocks to buy now.
That’s because the VIX is part of the usual ebb and flow of the equities space. Over the long run, the market features an upward bias: people tend to be optimistic and thus over time, they’re more inclined to buy up the red ink. Stated differently, it’s not so much about what the VIX is telling us right now. Rather, it’s more important to consider what may lie ahead.
Further, the VIX itself has come down significantly from its recent peak. That doesn’t mean investors should lose their vigilance – folks still need to be extra cautious. Nevertheless, for the risk-tolerant trader, there are several stocks to buy now that are awfully enticing.
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Vulcan Materials (VMC) The Vulcan Materials (VMC) website is displayed on a smartphone screen.
Source: madamF / Shutterstock.com
Operating in the construction materials space, Vulcan Materials (NYSE:VMC) represents one of the most important players in the infrastructural arena. Of course, Vulcan is sensitive to economic conditions. As a result, when the VIX soared to multi-year highs, it had a negative impact on VMC. Still, as the market digests the volatility, Vulcan could be one of the stocks to buy now.
Naturally, if broader economic sentiment picks up – and it’s possible that the Federal Reserve can play a key role in this via interest rate cuts – Vulcan would look quite attractive. Right now, shares are priced at 4.26X trailing-year sales. That’s a bit high compared to the building materials industry’s average multiple of 3.22X.
Given the uncertainties of the economy, analysts are actually projecting a dip in sales to $7.57 billion this year, down from last year’s print of $7.78 billion. Still, if the Fed cooperates, the high-side view calls for $7.93 billion. In addition, the consensus sales target for fiscal 2025 aims for $8.23 billion.
If you want to bet on America, VMC one of the stocks to buy now.
Newmont (NEM) Newmont logo on a mobile phone screen
Source: Piotr Swat/Shutterstock
Falling under the broad materials segment, Newmont (NYSE:NEM) specifically specializes in precious metals. Not surprisingly, NEM stock has been one of the top performers recently. In the trailing month, shares gained almost 4% of equity value. While that doesn’t sound like much, several high-profile tech players lost double-digit percentage points during the same period.
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By logical deduction, NEM represents one of the stocks to buy now thanks to the relevance of the underlying asset. Rising fear as illustrated by the VIX suggests that the Fed may need to act more aggressively with its policy. That could translate to more robust interest rate cuts, which would be inflationary. In turn, this backdrop could boost gold-related investments like Newmont.
In the trailing year since the second quarter, Newmont has been quietly delivering the goods. It posted an average earnings per share of 53 cents, above the consensus view of 47 cents. This yielded an earnings surprise of 15.33%.
NEM stock trades at 3.35X sales, which is pricey compared to the industry average of 2.63X. Still, the company may see gargantuan growth in the top line of 52.2% to $17.98 billion this year.
ServiceNow (NOW) ServiceNow office building in Silicon Valley;
Source: Sundry Photography / Shutterstock.com
Falling under the infrastructure software ecosystem, ServiceNow (NYSE:NOW) provides cloud-based services for enterprise IT operations management. Its offerings help organizations automate workflows. It’s an important idea to consider among stocks to buy now thanks to its leadership role in the digital transformation. Plus, its automation acumen may see greater demand among enterprise clients seeking a competitive edge.
Before diving into the bullish narrative, it’s impossible to ignore the obvious. NOW stock trades at a blisteringly hot premium – we’re talking a price-to-sales ratio of 16.78X. That’s well above the infrastructure software sector’s average yield of 3.96X. However, not everyone in the space has as much upside potential as ServiceNow.
First, the market in the past year accepted an average multiple of 16.48X. Further, in Q1 of this year, the average stood at 17.47X. Second and more importantly, covering experts are targeting significant growth of 21.6% in fiscal 2024 to $10.91 billion. In the following year, revenue could jump to $13.15 billion, another 20.6% up.
To be fair, that doesn’t quite mean NOW is a cheap discount. However, it’s one of the stocks to buy now that can rise from strength to strength.
Schlumberger (SLB) slb stock
Source: Valentin Martynov / Shutterstock.com
Operating in the hydrocarbon equipment and services space, Schlumberger (NYSE:SLB) is a key player in the oilfield services realm, offering technical know-how and services to the energy industry. It’s a compelling idea for stocks to buy now because the relatively soft oil pricing dynamics might not last. Geopolitics could make the upstream (exploration and production) component of the value chain more pertinent. If so, SLB stock could be a downwind beneficiary.
Right now, shares trade hands at 1.8X sales. That’s a bit higher than the equipment and services sector’s average multiple of 1.11X. However, in the past year, the market previously accepted a multiple of 2.36X. Therefore, it’s possible that Schlumberger may rise to its prior valuation. That could happen if geopolitical dynamics cynically cooperate; that is, if global supply chains get disrupted.
Even better, analysts anticipate robust business expansion in the years ahead. By fiscal 2025, EPS could hit $4.11 thanks to an average bottom-line expansion of 17.44%. On the top line, sales could hit $41.63 billion, implying an average growth rate of 12.1% over the next two years.
Block (SQ) Block logo over a background with former square logo. SQ stock.
Source: Sergei Elagin / Shutterstock
Operating in the financial technology (fintech) arena, Block (NYSE:SQ) offers payment processing solutions along with financial services for small businesses and individuals. Thanks to the burgeoning gig economy – or a network of freelance workers (independent contractors) – Block could see increased demand. Further, the platform offers cryptocurrencies, a popular avenue among young investors and entrepreneurs.
What makes Block exciting is that it technically falls under the infrastructure software ecosystem. This arena runs an average sales multiple of 3.96X. Right now, SQ stock trades at only 1.64X. That’s even undervalued relative to the prior year’s running average, which stood at 1.93X. During Q1, the metric averaged 2.37X.
Even better, covering experts are anticipating tremendous growth ahead. In fiscal 2024, EPS could double from $1.80 to $3.60. In the following year, the bottom line could rise to $4.59 per share, another solid increase. On the top line, fiscal 2024 sales could hit $24.72 billion, up 12.8%. That may be followed up by revenue of $27.45 billion in 2025.
To be fair, SQ stock is trading at 34.5X levered free cash flow (FCF), which is a bit hot. Still, the business is booming.
Prologis (PLD) The Prologis (PLD) logo displayed on a smartphone screen.
Source: rafapress / Shutterstock.com
Structured as a real estate investment trust or REIT, Prologis (NYSE:PLD) is a leading global enterprise specializing in logistics-based properties. This includes warehouses and distribution centers. Why is that important? With the continued rise of e-commerce, demand for such physical spaces has only increased. It will probably continue to rise, making PLD one of the potential stocks to buy now.
Financially, the company is more than holding its own. In the past year since Q2, the REIT posted an average EPS of 76 cents. This figure beat out the consensus target of 57 cents, thus yielding an average earnings surprise of 33.1%. However, if there is a noticeable point of contention, it’s that PLD stock is trading hands at 14.72X revenue. That’s quite high.
However, the idea with REITs is to generate consistent profits and turn that into passive income. Prologis offers a forward dividend yield of 3.2%. As for forward projections, this year may be mixed, with a decline in EPS and a boost in sales. However, fiscal 2025 could see EPS soar to $3.77 on revenue of $8.48 billion.
Last year, the REIT posted earnings of $3.29 on sales of $6.82 billion.
Uber (UBER) Uber sign on its headquarters building in San Francisco, California, USA - June 6, 2023. Uber Technologies is a transportation conglomerate.
Source: JHVEPhoto / Shutterstock.com
If the VIX truly settles down due to genuinely positive fundamentals, then ride-sharing giant Uber (NYSE:UBER) should be on your radar of stocks to buy now. If consumers feel more comfortable about their financial standing, they may be more willing to use ride-sharing platforms. That would be a positive for UBER stock. Plus, the company offers other services, such as food deliveries and even freight and logistics.
Technically, Uber falls under the application software sector, which features an average price-to-sales ratio of 3.87X. Right now, shares trade hands at 3.69X so technically speaking, the enterprise is undervalued. What’s more, the market previously accepted an average quarterly multiple exceeding 4X. So, UBER stock has room to expand vertically.
In terms of earnings performances, the company is hit or miss: it’s either going to hit big or miss big, with few in-betweens. That makes UBER risky but it’s also part of the fun.
Finally, analysts see major growth ahead. Fiscal 2024 sales could rise to $43.32 billion, up 24.4% from last year’s print of $34.83 billion. And fiscal 2025 sales could rise to $49.99 billion, up 15.4%.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.
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- 3 Energy Stocks to Buy on the Dip: August 2024
Aug 14, 2024
Despite last week’s market dip, energy stocks have seen steady performance this year. As a result, many energy companies are seeing a relatively easy comeback trail ahead of them. That’s because the cost of energy is relatively stable in the face of external economic pressures since the commodity is critical for producing all other goods and providing services.
Investing in the right energy stocks can be a good way to buffer against market instability, as energy companies can adjust prices to market pressures. Moreover, the debate around how the U.S. should source its energy has reached an all-time high as it becomes a focal point for both major political parties in the coming election.
Thus, savvy investors may want to consider the following energy stocks as strong buying opportunities despite temporary discounts.
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Occidental Petroleum (OXY) Occidental Petroleum Corporation (Oxy) logo seen on billboard.is an American company engaged in hydrocarbon exploration in the United States, and the Middle East. OXY stock
Source: Poetra.RH / Shutterstock.com
Occidental Petroleum (NYSE:OXY) made the news today after major investment firm CrownRock unveiled it will be selling $1.7 billion in company shares. This translates to 29.6 million outstanding shares and is likely to be snatched up by other major investment firms such as Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B), already a major investor in the company. The company is trading at a slight 3.6% discount for the last month, much of which results from last Monday’s market route.
However, at a price-to-earnings ratio of 14.49x, the company is too attractive to pass up, especially considering it is close to its 52-week low of $55. Should another major firm announce that it will be picking up CrownRock’s shares, OXY stock could likely see a generous rally.
As such, investors may want to keep a close eye on the news surrounding OXY stock, as it represents one of the better energy stocks to buy on the current dip.
Schlumberger (SLB) slb stock
Source: Valentin Martynov / Shutterstock.com
Major investing firm CX Institutional increased its shares in Schlumberger (NYSE:SLB) by 36.5% during the second quarter of the year, as revealed by recent 13-F filings with the Securities and Exchange Commission (SEC). Other major investors also recently increased their holdings of SLB stock, with Capital World Investors growing its position to 88,950,956 shares and Norges Bank entering a new stake of $1 billion worth of SLB shares.
This quiet accumulation of institutional ownership hints at significant confidence in the stock’s ability to recover from this year’s gentle slump.
Thus, by trading at a 15% dip year-to-date while maintaining strong financial performance across the first and second quarters of the year, SLB stock presents a strong buying opportunity. Moreover, the investment structure of SLB’s extraction assets stands poised to have breakeven points at about $40 a barrel; the company has a lot of leeway built into its production costs.
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HF Sinclair (DINO) A photo showing a hand putting a gas pump nozzle into a car.
Source: Shutterstock
Regarding energy companies, HF Sinclair (NYSE:DINO) tends to fly under the media radar. Part of this is because over 80% of its shareholders are institutional, meaning it acts more as a value play for bigger firms looking to reward investors with dividends. However, the company is more than its green dinosaur gas stations, which might lead you to believe.
It has an incredibly well-diversified portfolio of chemical products such as gasoline, diesel, aviation fuel and many specialty chemicals. As a result, investing in DINO stock is more than the traditional energy play, especially considering its under-the-radar nature.
With an attractive price-to-earnings ratio of 7.41x and a dividend yield of 4.28%, it’s curious why the company is trading near its 52-week low, especially as it worked to return $467.1 million to stockholders through dividends and share repurchases in the second quarter of 2024.
On the date of publication, Viktor Zarev did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Viktor Zarev is a scientist, researcher, and writer specializing in explaining the complex world of technology stocks through dedication to accuracy and understanding.
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- Schlumberger Limited (SLB) is Attracting Investor Attention: Here is What You Should Know
Aug 8, 2024
Schlumberger (SLB) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this world's largest oilfield services company have returned -5.3% over the past month versus the Zacks S&P 500 composite's -6.5% change. The Zacks Oil and Gas - Field Services industry, to which Schlumberger belongs, has lost 5.2% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings Estimates
Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Schlumberger is expected to post earnings of $0.89 per share, indicating a change of +14.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -3.2% over the last 30 days.
The consensus earnings estimate of $3.49 for the current fiscal year indicates a year-over-year change of +17.1%. This estimate has changed -0.5% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.11 indicates a change of +17.8% from what Schlumberger is expected to report a year ago. Over the past month, the estimate has changed -0.7%.
Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Schlumberger is rated Zacks Rank #3 (Hold).
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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue Growth
Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Schlumberger, the consensus sales estimate of $9.29 billion for the current quarter points to a year-over-year change of +11.8%. The $36.87 billion and $43.39 billion estimates for the current and next fiscal years indicate changes of +11.3% and +17.7%, respectively.
Last Reported Results and Surprise History
Schlumberger reported revenues of $9.14 billion in the last reported quarter, representing a year-over-year change of +12.8%. EPS of $0.85 for the same period compares with $0.72 a year ago.
Compared to the Zacks Consensus Estimate of $9.07 billion, the reported revenues represent a surprise of +0.82%. The EPS surprise was +2.41%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates three times over this period.
Valuation
No investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Schlumberger is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Conclusion
The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Schlumberger. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
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- SLB OneSubsea awarded major contract by Petrobras for two ultra-deepwater projects offshore Brazil
Aug 2, 2024
SLB OneSubsea manufacturing facility in Curitiba, Brazil. (Photo: Business Wire)
Subsea production systems will help unlock access to pre-salt reserves in the prolific Santos Basin
HOUSTON, August 02, 2024--(BUSINESS WIRE)--Regulatory News:
SLB (NYSE: SLB) has announced a major contract award by Petrobras (NYSE: PBR), following a competitive tender, to its OneSubsea™ joint venture for their standardized, pre-salt subsea production systems and related services. The scope covers the further development of two oil fields in the strategically important Santos Basin.
As part of the second development of the Atapu and Sepia fields, SLB OneSubsea will provide the Petrobras-standard configured, pre-salt vertical trees, subsea distribution units, subsea control systems and pipeline systems, along with related installation, commissioning and life-of-field services. Much of the technology and equipment to be deployed, including the vertical trees and subsea control systems, will be produced and serviced locally at SLB OneSubsea’s facilities in Brazil.
"This award deepens our valued partnership with Petrobras, and we are proud to be supporting the development of such important assets to Brazil," said Mads Hjelmeland, chief executive officer of SLB OneSubsea. "Leveraging our proven, locally developed technology platform facilitates on-time delivery and maximizes local content from our Brazilian manufacturing and service facilities. Brazil is a key market for us, and our continued in-country investments are key to support the growth we envisage for the region."
These projects add to Petrobras’ material pre-salt investments and will enable the addition of two new floating production, storage and offloading (FPSO) platforms, P-84 (Atapu) and P-85 (Sepia). They will each have a daily production capacity of 225,000 barrels of oil per day and processing of 10 million cubic meters of gas per day.
About SLB
SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
About SLB OneSubsea
SLB OneSubsea is driving the new subsea era that leverages digital and technology innovation to optimize our customers’ oil and gas production, decarbonize subsea operations, and unlock the large potential of subsea solutions to accelerate the energy transition. SLB OneSubsea is a joint venture backed by SLB, Aker Solutions, and Subsea7 headquartered in Oslo and Houston, with 10,000 employees across the world. Find out more at onesubsea.com.
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Cautionary Statement Regarding Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as "expect," "may," "can," "estimate," "intend," "anticipate," "will," "potential," "projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240801283987/en/
Contacts
Media
Moira Duff – Director of External Communications
SLB
Tel: +1 (713) 375-3407
media@slb.com
Investors
James R. McDonald – SVP of Investor Relations & Industry Affairs
Joy V. Domingo – Director of Investor Relations
SLB
Tel: +1 (713) 375-3535
investor-relations@slb.com
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- SLB and Aker Carbon Capture joint venture awarded FEED contract by CO280 for large-scale carbon removal project
Aug 1, 2024
(Photo: Business Wire)
Carbon capture project aims to remove 800,000 tonnes of carbon emissions at a pulp and paper mill on the U.S. Gulf Coast
HOUSTON, August 01, 2024--(BUSINESS WIRE)--Regulatory News:
The SLB and Aker Carbon Capture joint venture (SLB-ACC JV) today announced a contract award by its partner CO280 Solutions for front end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project, which aims to remove 800,000 tonnes of carbon emissions annually, will also deliver permanent, verifiable and affordable carbon dioxide removals (CDRs).
North America’s pulp and paper industry represents a carbon removal opportunity of up to 130 million tonnes per year. By capturing and storing these emissions permanently, the industrial activity achieves negative emissions as more carbon dioxide is removed from the atmosphere than is being emitted from the process.
"This contract represents a key milestone in our partnership with CO280 to deliver large-scale carbon capture solutions for the North American industry," said Egil A. Fagerland, chief executive officer, SLB-ACC JV. "We look forward to continuing our collaboration with CO280 and their pulp and paper partner to prepare for a full-scale carbon capture plant through the FEED."
The concept design for the FEED of the carbon capture plant is based on the SLB-ACC JV’s modularized Just Catch™ 400, a standardized and modular technology that enables the pre-fabrication of carbon capture units. The JV is already delivering both Just Catch™ and Big Catch™ solutions to several industrial sites in the bioenergy, cement and waste-to-energy sectors.
"Partnerships are the key to removing megatons of carbon before 2030: We are proud of the partnerships we have established in both the pulp and paper industry and CDR markets and of our collaboration with the SLB-ACC JV as a key technology partner," said Jonathan Rhone, chief executive officer, CO280. "By capturing and permanently storing biogenic CO2 at mills, we can unlock a vast carbon removal opportunity in the pulp and paper industry and scale up the CDR market."
This contract follows recent announcements by the SLB-ACC JV and CO280 on their collaboration to develop large-scale CDR projects in the United States and Canada pulp and paper industries and their collaboration with Microsoft to scale the full value chain of carbon removal in the United States and Canada by capturing and permanently sequestering biogenic CO2 at pulp and paper mills.
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About SLB
SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.
About SLB and Aker Carbon Capture Joint Venture
SLB and Aker Carbon Capture Joint Venture is dedicated to carbon removal and reduction solutions. The company’s proven modular technologies enable industries to deploy capture technology at speed and scale, meeting the requirements of tomorrow and the opportunities of today. The company is currently delivering seven carbon capture plants to bioenergy, waste to energy, and cement facilities. Visit the SLB-ACC JV website.
About CO280
CO280 Solutions Inc. is a developer of large-scale carbon removal projects. In partnership with pulp and paper companies, we develop, finance, own, and operate carbon removal projects that deliver a new standard of permanent, verifiable, and affordable CDR credits to customers in the voluntary carbon market. Learn more at co280.com.
Cautionary Statement Regarding Forward-Looking Statements:
This press release contains "forward-looking statements" within the meaning of the U.S. federal securities laws — that is, statements about the future, not about past events. Such statements often contain words such as "expect," "may," "can," "estimate," "intend," "anticipate," "will," "potential," "projected" and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as forecasts or expectations regarding the deployment of, or anticipated benefits of, SLB’s new technologies and partnerships; statements about goals, plans and projections with respect to sustainability and environmental matters; forecasts or expectations regarding energy transition and global climate change; and improvements in operating procedures and technology. These statements are subject to risks and uncertainties, including, but not limited to, the inability to achieve net-negative carbon emissions goals; the inability to recognize intended benefits of SLB’s strategies, initiatives or partnerships; legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change; the timing or receipt of regulatory approvals and permits; and other risks and uncertainties detailed in SLB’s most recent Forms 10-K, 10-Q and 8-K filed with or furnished to the U.S. Securities and Exchange Commission. If one or more of these or other risks or uncertainties materialize (or the consequences of such a development changes), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those reflected in our forward-looking statements. The forward-looking statements speak only as of the date of this press release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240731945651/en/
Contacts
Media
Moira Duff – Director of External Communications
SLB
Tel: +1 (713) 375-3407
media@slb.com
Hanne Rolén – Head of Communication and Sustainability
SLB-ACC JV
Tel: +47 990 02 571
hanne.rolen@akercarboncapture.com
Investors
James R. McDonald – SVP of Investor Relations & Industry Affairs
Joy V. Domingo – Director of Investor Relations
SLB
Tel: +1 (713) 375-3535
investor-relations@slb.com
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