SLB (SLB.NYSE) is a global oilfield services and technology company supporting exploration, drilling and production across offshore and onshore energy markets.
Robert Mullin of Marathon Resource Advisors pitched SLB at the 2025 Sohn Hearts & Minds Conference. The stock is now up 55% since November, despite earnings headwinds, as the 20% of its revenue generated in the Persian Gulf region remains in temporary limbo due to the current Iran/U.S. conflict. The historic valuation discount that Marathon Resource Advisors (MRA) noted in late 2025 has narrowed somewhat (from -57% to current level of -33% relative Price/Earnings versus the S&P 500), but remains well below the range MRA believe is both historically supported and reasonable, given the high quality of the company, its superior return on invested capital, as well as the attractiveness and potential catalysts surrounding its SLB Digital software, AI, machine learning and datacenter power divisions.
In MRA’s opinion, the eventual reopening of the Strait of Hormuz, whenever that may occur, will bring considerable reconstruction opportunities, as over 70 points of energy infrastructure have been damaged since late February. Additionally, the conflict has revealed the inherent fragility of a global energy system that has been systematically underinvested over the last decade. s corporations and sovereign nations reflect on their respective vulnerabilities, MRA expects the imperative to build stronger, more robust and resilient energy infrastructure will drive rapid earnings acceleration for energy service companies as a whole, and SLB in particular, from 2H 2026 onward.
MRA expects SLB’s current 50c quarterly earnings run rate to double over the next 12 months. Coupled with a market multiple closer to ~25x, this supports a target price north of USD$100/share. Should enthusiasm for technology turn toward the potential daylighting of value for SLB Digital via a spinout, JV, or tracking stock, MRA envisions something closer to USD$150/share.
