Top 15 Energy Companies With the Highest Upside Potential

4. Schlumberger Limited (NYSE:SLB)

Upside Potential as of April 28: 47.74%

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 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 was also down by almost 2.5% YoY and missed expectations by around $102.5 million. SLB’s Latin America revenue fell 10% YoY to $1.50 billion, with total international revenue declining 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. Moreover, the company’s cash flow from operations more than doubled to $660 million during the quarter.

Despite a tough quarter, Schlumberger Limited (NYSE:SLB) announced a quarterly dividend of $0.285 per share. The company has pledged to spend more than 50% of its free cash flow on dividends and share buybacks and remains committed to returning at least $4 billion in returns 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.”