SLB N.V. (SLB): A Bull Case Theory

We came across a bullish thesis on SLB N.V. on r/investing by u/John_Gabbana_08. In this article, we will summarize the bulls’ thesis on SLB. SLB N.V.’s share was trading at $45.90 as of January 13th. SLB’s trailing and forward P/E were 17.57 and 15.36 respectively according to Yahoo Finance.

SLB’s core business remains heavily tied to offshore oilfield services and advanced drilling technology, which currently drives the majority of its revenue. With oil prices expected to remain under pressure into 2026 due to a supply glut and a potentially weakening global economy, near term sentiment around the stock is cautious despite an attractive valuation.

Even after buying in around $36, the risk profile appears manageable, as SLB’s earnings power, international exposure, and strong competitive position limit downside while preserving meaningful mid to long term upside once the cycle turns. Oil prices have been declining since 2022, but history suggests they eventually recover, particularly if OPEC intervenes or global GDP surprises to the upside, which could lift consumption and pricing.

Beyond oil, the more compelling long term angle is SLB’s underappreciated role in next generation geothermal energy. As AI data centers drive exponential growth in electricity demand, many investors are focused on nuclear or speculative fusion, both of which face political resistance, extreme costs, and long timelines.

Geothermal, by contrast, is already proven, with next generation techniques evolving rapidly. While technical challenges such as equipment erosion remain, these hurdles appear far more solvable than scaling modular nuclear infrastructure globally.

SLB is uniquely positioned to capitalize, having been involved in roughly 80% of global geothermal projects over the past century and possessing the engineering depth to execute within a five to ten year horizon. Strategic acquisitions of emerging drilling innovators could further accelerate this opportunity.

Operationally, SLB has strengthened its portfolio by exiting low margin US frac work and reallocating capital into offshore, digital, and international markets, where returns are structurally higher. The company continues to gain international market share, winning the majority of new offshore tenders globally and taking share from competitors in Asia and the Middle East.

Its disciplined capital allocation and well timed acquisitions, including ChampionX during a downturn, reinforce the view that SLB is positioned not just for an oil cycle recovery, but potentially for a broader next generation energy supercycle.

Previously, we covered a bullish thesis on Occidental Petroleum Corporation (OXY) by Magnus Ofstad in May 2025, which highlighted the company’s low cost Permian assets, diversified cash flows, Berkshire Hathaway backing, and long term carbon capture potential. OXY’s stock price has appreciated by approximately 0.62% since our coverage. The thesis still stands on strong fundamentals and a long term compounding potential. u/John_Gabbana_08 shares a similar outlook but emphasizes SLB’s geothermal optionality and offshore dominance.

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Disclosure: None.