BKR - Schlumberger: Earnings And FCF Growth On Track Higher Oil A Tailwind
2024-03-28 13:56:51 ET
Summary
- The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has returned 20% since March 2022 despite oil and gas prices being in the red.
- Schlumberger Limited (SLB) is the world's largest provider of services and equipment for oil and gas wells, with strong financials and growth opportunities.
- Following a Q4 EPS beat, I see SLB shares as undervalued with a low PEG ratio, strong EPS growth, and attractive dividend and free cash flow outlooks.
- I highlight key price levels to watch on the chart.
It has been a wild couple of years in the oil & gas exploration and production space. The SPDR S&P Oil & Gas Exploration & Production ETF ( XOP ) has returned 20% since March 2022. Recall that it was 24 months ago when global oil and natural gas prices were shooting higher following Russia’s invasion of Ukraine. While shares of E&P firms were volatile in the months thereafter, XOP has steadied while both WTI and Henry Hub are firmly in the red....
Schlumberger: Earnings And FCF Growth On Track, Higher Oil A Tailwind