• In February 2026, Mubadala Energy announced it had awarded SLB multiple integrated offshore drilling services contracts for the Tangkulo deepwater gas development and related wells in Indonesia’s Andaman Sea, while Equinor and Star Energy Geothermal also selected SLB for subsea compression upgrades and geothermal drilling support.
• Together, these wins underscore how SLB’s integrated drilling, subsea compression and geothermal capabilities are being applied across both conventional gas and lower-carbon projects in key international basins.
• We’ll now examine how SLB’s new integrated offshore contracts with Mubadala Energy influence its investment narrative around international and energy-transition growth.

Find 54 companies with promising cash flow potential yet trading below their fair value.

SLB Investment Narrative Recap

To own SLB, you generally need to believe that international and offshore activity, plus digital and energy transition offerings, can offset spending softness in more cyclical markets. The new Mubadala Energy contracts support that international and offshore angle but do not remove near term risks tied to potential upstream budget cuts, integration execution around ChampionX, or exposure to more volatile regions that could still weigh on revenue and margins.

Among the latest announcements, the Mubadala Energy awards stand out as most directly relevant. They broaden SLB’s integrated offshore work in Asia and showcase full well life cycle engagement, from drilling fluids to completions and real time monitoring. For investors focused on catalysts like more resilient international spending and longer duration offshore projects, this contract reinforces that part of the narrative even as macro and energy transition risks remain in the background.

But while these wins look positive, investors should still be aware of SLB’s exposure to structurally or politically unstable markets where...

SLB’s narrative projects $38.7 billion revenue and $4.9 billion earnings by 2028. This requires 2.9% yearly revenue growth and about an $0.8 billion earnings increase from $4.1 billion today.

Uncover how SLB's forecasts yield a $55.05 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Some of the lowest estimate analysts were expecting only about 1.5 percent annual revenue growth to roughly US$37.1 billion and earnings of US$4.7 billion by 2028, so developments like the Mubadala offshore win could eventually challenge that more pessimistic view or reinforce it, depending on how you see long term energy transition and margin pressure playing out.

Explore 11 other fair value estimates on SLB - why the stock might be worth as much as 61% more than the current price!

The Verdict Is Yours

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your SLB research is our analysis highlighting 3 key rewards and 3 important warning signs that could impact your investment decision.
• Our free SLB research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate SLB's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.