SLB: Initiate at Outperform: lowest risk option on a selective capital cycle. Price target $62

Research evidence excerpt

SLB: Initiate at Outperform: lowest risk option on a selective capital cycle. Price target $62

July 8, 2026

SLB: lowest risk option on a selective capital cycle

Initiate coverage with an Outperform rating and a PT of $62/sh (38% upside).

SLB is the world’s largest oilfield services company, providing the drilling, reservoir evaluation, completions, production

systems, and digital technologies that support global oil & gas development. The company is heavily leveraged to

international upstream spending, particularly in the Middle East and deepwater markets, where technical complexity

and service intensity are greatest. SLB differentiates itself through technology leadership, an integrated service model,

and growing exposure to digital (AI-enabled) energy infrastructure solutions, while also expanding into data centers &

power infrastructure tied to rising electricity demand.

SLB operates within four primary reporting segments, covering equipment and services for the entire upstream value

chain, with its digital business a premium (high margin) add-on to the underlying offering to upstream:

●Reservoir Performance (RP): Essentially prepping wells for production and oil flowing over their lifespan,

including stimulation services, completions tools, and systems extending well life production. RP generates ~18%

of total revenue (see table below).

●Well Construction (WC): Focused on exploration and drilling services and equipment, generating ~30% of total

revenue. WC is SLB's second-largest business segment and the most leveraged to upstream capital spending.

●Production Systems (PS): Focused on artificial lift, subsea trees and systems, and production chemicals - all

levered to long-dated operating costs.