10 Cheap Energy Stocks to Buy Now

8. Schlumberger Limited (NYSE:SLB)

Forward P/E Ratio as of May 11: 10.66

Ranking at number 8 on our list of Cheap Energy Stocks 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.

Schlumberger Limited (NYSE:SLB) missed forecasts in Q1 2025 as its adjusted EPS of $0.72 fell slightly below estimates by $0.01, primarily due to a significant reduction in drilling activity in Mexico. The company’s revenue of $8.49 billion also missed expectations by $102.52 million. Schlumberger’s Latin America revenue declined by 10% YoY to $1.50 billion, with total international revenue falling by 5% YoY to $6.73 billion. North America, however, posted an 8% YoY revenue increase, partly supported by strong growth in data center infrastructure.

On the plus side, Schlumberger Limited (NYSE:SLB) revealed that it has made progress in diversifying beyond fossil fuels, with its combined revenue from CCS, geothermal, critical minerals, and data center solutions on pace to visibly exceed $1 billion in 2025. The news is especially welcomed given the plunging crude oil price and a resultant expected slowdown in drilling activity. Moreover, SLB’s cash flow from operations more than doubled to $660 million in Q1, resulting in a positive free cash flow of $103 million. The company has pledged to spend more than 50% of its free cash flow on dividends and share buybacks, with a commitment to return at least $4 billion to shareholders in 2025.

Ariel Investments stated the following regarding Schlumberger Limited (NYSE:SLB) in its Q1 2025 investor letter:

“Additionally, we purchased Schlumberger Limited (NYSE:SLB), the largest oilfield services company in the world by revenue. SLB provides equipment, services and digital tools to help oil and gas producers operate more efficiently, including reservoir characterization, rig and well construction and production enhancement. We believe the company’s scale and technical expertise are key differentiators. Weak near-term demand, an oil glut, falling commodity prices and concerns about future spending amid a global shift to renewable energies presented an attractive entry point. We believe there are tailwinds supporting rising demand over the medium-term, as national oil companies invest in long-cycle projects to grow capacity and address the natural decline of production. Additionally, we expect SLB will continue to evolve their capabilities to help clients with rising energy needs going forward.”