13 Best Energy Stocks to Buy Right Now

10. Schlumberger Limited (NYSE:SLB)

No. of Hedge Fund Holders: 80

Schlumberger Limited (NYSE:SLB) is 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) had a tough start to the year as its Q1 net adjusted income fell by 9% YoY to $988 million, primarily due to a significant reduction in drilling activity in Mexico. As a result, the company’s adjusted EPS of $0.72 fell slightly below estimates by $0.01.

SLB’s revenue of $8.49 billion also missed expectations by $102.5 million, with the Latin America revenue falling 10% and total international revenue declining by 5% YoY. However, North America posted an 8% YoY revenue increase, partly supported by strong growth in data center infrastructure.

Schlumberger Limited (NYSE:SLB) has warned of decreased drilling activity by producers in light of the slumping crude prices. The company is already preparing for the slowdown, cutting costs and aligning resources with activity levels in the coming quarters. Moreover, the company 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.

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.”