SLB Announces Third-Quarter 2024 Results

SLB (NYSE: SLB) today announced results for the third quarter of 2024.

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The exterior of the SLB headquarters in Houston, Texas. (Photo: Business Wire)

Third-Quarter Results

SLB Expands Margins and Earnings, Despite Cautious Macro Environment

“SLB delivered strong third-quarter results, achieving earnings growth and margin expansion in line with our full-year adjusted EBITDA margin goal of 25% or higher,” said SLB Chief Executive Officer Olivier Le Peuch. “These results were achieved by our ongoing focus on cost optimization, greater adoption of our digital products and solutions, and the contribution of long-cycle projects in deep water and gas.

“This performance was achieved despite an environment where short-cycle activity growth softened, and some international producers exercised cautious spending triggered by lower oil prices and ample global supply, while land activity in the U.S. remained subdued. Revenue grew in the Middle East & Asia and offshore North America but was offset by a decline in Latin America, while Europe & Africa held steady,” Le Peuch said.

Digital Leads Results as Customers Focus on Cloud Computing and Automation

“As we continue to see the transformative impact of digital technology across the industry, we delivered a 4% sequential increase in Digital & Integration revenue. This was driven by our digital business, which grew 7% sequentially and 25% year on year. Digital & Integration pretax segment operating margin expanded by 456 basis points (bps) sequentially, mostly driven by our digital business.

“Our customers are increasingly embracing digital technology to shorten planning cycle times, boost automation, and extract efficiency. Our cloud-based platform offerings have emerged as integral tools for unlocking data and AI across the energy value chain, enabling data-driven decision-making and streamlined operations. Our leadership in this area was on full display as we welcomed more than 1,000 customers and partners to the SLB Digital Forum in September to share progress, innovate together, and explore new digital opportunities.

“At the event, we announced exciting new collaborations and partnerships with NVIDIA, Amazon Web Services, Aramco, and others. Additionally, we launched the Lumi™ data and AI platform, which integrates advanced AI capabilities—including generative AI—with workflows across the energy value chain. More details can be found in the quarterly highlights of this release.

“In the Core Divisions—comprising Reservoir Performance, Well Construction, and Production Systems—revenue was essentially flat sequentially. Production Systems revenue increased 3% sequentially, posting record quarterly revenue with pretax segment operating margin expanding year on year for the ninth consecutive quarter. Reservoir Performance revenue was flat sequentially, while Well Construction revenue declined by 3% due to lower drilling activities,” Le Peuch said.

With Strong Cash Flow, SLB Accelerates Returns to Shareholders

“Overall, in the third quarter, we achieved an adjusted EBITDA margin of 25.6%, a 55-bps sequential increase. Cash flow from operations was $2.45 billion, and free cash flow was $1.81 billion. Additionally, we returned close to $900 million to shareholders through stock repurchases and dividends, bringing total return to shareholders for the first nine months of the year to $2.38 billion.

“With strong cash flows and visibility into continued strong cash flow generation, we have accelerated our share repurchase program, taking advantage of current share price levels. We now expect to exceed the $3.0 billion return to shareholders commitment we made earlier this year.

“I would like to thank the SLB team for their unwavering dedication and outstanding execution, consistently delivering for both our customers and shareholders,” Le Peuch said.

International, Digital, and Cost Optimization to Remain the Focus

“Although some customers have adopted a more cautious approach to their near-term capital expenditures and discretionary spending amid lower commodity prices, most projects are progressing as planned. Recent geopolitical events have further highlighted the importance of long-term energy security and reducing potential supply disruptions.

“SLB is well positioned to navigate the evolving market conditions by leveraging its unique exposure to long-cycle projects in international, deepwater, and gas markets. Additionally, SLB’s digital leadership and growing presence in emerging low-carbon markets—such as carbon capture and storage and geothermal—are supporting a more balanced portfolio.

“Although the rate of upstream spending growth has moderated in the last few months due to the macroenvironment, we continue to expect a sustained level of upstream investment in the years to come. In this context, we anticipate delivering strong cash flows and a full-year adjusted EBITDA margin at or above 25%, supported by our international leadership, robust digital sales, and ongoing cost optimization initiatives.

“Overall, our business remains well positioned to deliver further margin expansion and increased returns to shareholders,” Le Peuch said.

Other Events

During the quarter, SLB repurchased 11.3 million shares of its common stock for a total purchase price of $501 million. For the first nine months of the year, SLB repurchased a total of 26.6 million shares of its common stock for a total purchase price of $1.24 billion.

On October 17, 2024, SLB entered into a definitive agreement to sell its working interests in the Palliser Block located in Alberta, Canada. The transaction, which is subject to regulatory approval and other customary closing conditions, is expected to close late in the fourth quarter of 2024.

On October 17, 2024, SLB’s Board of Directors approved a quarterly cash dividend of $0.275 per share of outstanding common stock, payable on January 9, 2025, to stockholders of record on December 4, 2024.

Third-Quarter Revenue by Geographical Area

International

Revenue in Latin America of $1.69 billion decreased 3% sequentially, reflecting lower production system sales in Brazil and reduced drilling activity in Mexico and Guyana. Year over year, revenue was flat, as strong activity in Argentina and higher production system sales in Brazil were offset by drilling activity declines in Mexico.

Europe & Africa revenue of $2.44 billion was flat sequentially as higher sales of artificial lift in North Africa were offset by lower sales of subsea production systems in Scandinavia and reduced drilling, intervention, and stimulation activity in sub-Saharan Africa. Year on year, revenue increased 16% driven by the acquired Aker subsea business, primarily in Scandinavia, and increased drilling, intervention, and stimulation activity in North Africa.

Revenue in the Middle East & Asia of $3.30 billion increased 1% sequentially, with strong sales of production systems in Australia, Saudi Arabia, Iraq, Kuwait, and Qatar and increased drilling in East Asia and United Arab Emirates offsetting weaker performance in Egypt and India. Year on year, revenue grew 16% due to higher stimulation, intervention, and evaluation activity as well as increased sales of production systems in Saudi Arabia, UAE, Iraq, Kuwait, Qatar, and Oman. Increased drilling in East Asia and Indonesia and the acquired Aker subsea business in Australia also contributed to the year-on-year growth.

North America

North America revenue of $1.69 billion increased 3% sequentially due to strong sales of production systems in the U.S. Gulf of Mexico and higher drilling in Canada land, partially offset by lower drilling revenue in U.S. land. Year on year, revenue increased 3% due to higher sales of subsea production systems and increased evaluation and stimulation activity in the U.S. Gulf of Mexico, partially offset by lower drilling revenue in U.S. land.

Third-Quarter Results by Division

Digital & Integration

Digital & Integration revenue of $1.09 billion increased 4% sequentially due to higher digital revenue while Asset Performance Solutions (APS) revenue was flat. Digital revenue grew 7% sequentially driven by the increased adoption internationally of our cloud, AI, and edge technology platforms. Year on year, revenue increased 11% due to digital growing 25%, while APS revenue declined 3%.

Digital & Integration pretax operating margin of 36% expanded 456 bps sequentially, mostly due to improved profitability in digital, following higher uptake of digital products and solutions and cost efficiencies. Year on year, pretax operating margin expanded 353 bps due to increased profitability in digital, partially offset by lower profitability in APS from the effects of higher amortization expense and lower gas prices.

Reservoir Performance

Reservoir Performance revenue of $1.82 billion was flat sequentially as higher intervention activity was offset by lower evaluation activity while stimulation revenue was flat. Geographically, revenue grew in offshore North America and Latin America, partially offset by declines in Europe & Africa and Middle East & Asia. Year on year, revenue increased 9% due to increased stimulation and intervention activity, partially offset by lower evaluation revenue.

Reservoir Performance pretax operating margin of 20% contracted 53 bps sequentially due to lower profitability in evaluation, partially offset by improved profitability in intervention. Year on year, pretax operating margin contracted 37 bps due to an unfavorable technology mix.

Well Construction

Well Construction revenue of $3.31 billion declined 3% sequentially and year on year on lower revenue in measurements and fluids. This was driven by lower drilling activity in Latin America, U.S. land, and Saudi Arabia.

Well Construction pretax operating margin of 22% declined 19 bps sequentially and 58 bps year on year due to reduced activity both in North America and internationally.

Production Systems

Production Systems revenue of $3.10 billion increased 3% sequentially with growth led by higher sales of surface production systems, completions, and artificial lift, partially offset by reduced sales of subsea and midstream production systems. Year on year, revenue grew 31%, mainly due to the acquisition of the Aker subsea business and strong international sales across the portfolio.

Production Systems pretax operating margin of 17% expanded 110 bps sequentially with improved profitability in surface production systems, completions, and artificial lift. Year on year, pretax operating margin expanded 325 bps due to improved profitability in surface production systems, artificial lift, and valves.

Quarterly Highlights

CORE

Contract Awards

SLB continues to win new contract awards that align with SLB’s strengths in the Core, particularly in the international and offshore basins. Notable highlights include the following:

• In the UAE, SLB, ADNOC Drilling Company, and Patterson-UTI announced the formation of the Turnwell Industries LLC OPC joint venture (JV). The JV will focus on the acceleration of UAE’s unconventional oil and gas program, with an initial 144 wells scheduled for completion by the end of 2025. SLB will provide integrated drilling, stimulation, and completion services, as well as project management, digital capabilities, and subsurface support.
  
  
  
  
• In Kuwait, Kuwait Oil Company (KOC) has awarded SLB a lump sum turnkey (LSTK) drilling contract to drill and deliver wells in south and east Kuwait. SLB will manage the planning, construction, and drilling of 141 wells over a period of three years. This LSTK contract will enable improved efficiency and faster deployment of technologies.
  
  
  
  
• In Oman, Shell Development Oman LLC has awarded SLB a two-year integrated well construction contract covering up to 23 wells in Block 10 and Block 11 with the potential to extend an additional three years. SLB will provide bits and drilling tools, cementing, drilling fluids, drilling services, and mud logging.
  
  
  
  
• In the North Sea, bp awarded SLB OneSubsea™ and Subsea7 an integrated engineering, procurement, construction, and installation contract for the Murlach development (formerly Skua Field), 240 kilometers east of Aberdeen in the U.K. North Sea. The Murlach project will include the first-ever implementation of SLB OneSubsea standard, configurable vertical monobore tree systems in the U.K. North Sea, which will be deployed by Subsea7 via vessel to reduce rig days.
  
  
  
  
• In Brazil, Petrobras awarded SLB OneSubsea a major contract for two ultradeepwater projects. The contract covers standardized presalt subsea production systems and services to develop the Atapu and Sepia oil fields in the Santos Basin. SLB OneSubsea will supply Petrobras-standard configured presalt vertical trees, subsea distribution units, control systems, and pipeline systems, along with related installation, commissioning, and life-of-field services. These projects will add to Petrobras' presalt investments and enable Petrobras to add two new FPSO platforms, each with a daily capacity of 225,000 barrels of oil and 10 million cubic meters of gas.
  
  
  
  
• Also in Brazil, Equinor awarded SLB a contract for the deepwater development of the Raia Project with first oil expected in 2028. SLB will provide directional drilling services, fluids, cementing, and logging and completion tools for six wells. The area contains a recoverable volume of natural gas and oil condensate of more than 1 billion barrels of oil equivalent.
  
  
  
  
• Also in Brazil, Petrobras awarded SLB a 10-year contract for the delivery of encapsulated submersible pump services for up to 200 systems in Bahia state. This performance-based contract underscores the reliability and excellence of SLB equipment and services.
  
  
  
  
• Offshore Norway, Equinor awarded SLB a multiyear integrated drilling and reservoir evaluation contract spanning a wide range of operations. This includes integrated drilling and wireline services for an exploration drilling campaign on the Norwegian continental shelf; IriSphere™ look-ahead-while-drilling service for Stage II of the Troll Phase 3 project; wireline services for an exploration drilling campaign in the Barents Sea; and drilling and wireline services in the Irpa subsea development to create a tieback that extends the lifespan of Aasta Hansteen Field. Work for this integrated-domain contract will begin in 2025.
  
  
  
  
• In Namibia, an operator awarded SLB a three-year integrated contract for well construction and reservoir characterization services. This contract includes the utilization of the SLB Ora™ intelligent wireline formation testing platform.

Technology and Innovation

Notable technology introductions and deployment in the quarter include the following:

• In the U.S., ExxonMobil and SLB collaborated on the longest well section in the Permian Basin, delivering the first-ever four-mile well in the Second Bone Spring formation. Utilizing SLB’s PowerDrive Orbit G2™ rotary steerable system with a ruggedized pad design, the single-run lateral was achieved by steering at a complex high angle in harsh downhole conditions. This approach also led to a significant reduction in drilling time, releasing the well in 16.4 days.
  
  
  
  
• In Kuwait, SLB and KOC implemented an advanced well intervention workflow, integrating distributed temperature sensing, 3D far-field sonic service, and production logging tools. Deploying ACTive™ real-time downhole coiled tubing services, SLB provided detailed reservoir insights and enabled the precise deployment of engineered stimulation fluids. This intervention identified a critical thief zone, mapped the surrounding microfractures, and improved water intake patterns, ultimately resulting in an increase of 200 barrels of oil per day from four nearby wells. One previously shut-in well achieved 1,800 barrels of oil per day postintervention. Based on this success, KOC has approved the expansion of this workflow across the Sabriyah Mauddud flank, with four additional wells slated for similar interventions.
  
  
  
  
• In Angola, SLB and TotalEnergies deployed the first offshore application of OneSTEP EF™ efficient, low-risk sandstone stimulation solution in the Canela Field. The candidate well, situated in a sandstone reservoir, faced multiple damage mechanisms, including mudcake, lost circulation material, organic deposits, silt, clay, and fines migration. After deploying the solution, the well's flow rate increased by 250% and has become TotalEnergies' top producing well in Angola.

Decarbonization

SLB is focused on developing and implementing technologies that can reduce emissions and environmental impact with practical, quantifiably proven solutions. Highlights include the following:

• In the U.S., SLB OneSubsea has signed a memorandum of understanding with C-Power to explore the use of converted energy from ocean waves as a lower-cost, lower-carbon power source for subsea energy applications. The joint industry project, cosponsored by the U.S. Department of Energy, will be conducted by SLB OneSubsea in collaboration with its Integration Alliance partner, Subsea7.
  
  
  
  
• In Norway, SLB and Equinor successfully deployed the world’s first offshore electric-powered light-string coiled tubing package. This innovative package was designed together with Equinor to bridge the gap between conventional offshore wireline and coiled tubing capabilities. When compared with the traditional coiled tubing package, the light-string package requires 48% less rig floor footprint, 33% fewer personnel on board, and up to 75% less rig-up and rig-down time. In its first job, the light-string coiled tubing package performed a downhole cleanout operation 75% faster than would have been possible with conventional wireline.

DIGITAL

SLB is deploying digital technology at scale, partnering with customers to migrate their technology and workflows into the cloud, to embrace new AI-enabled capabilities, and to leverage insights to elevate their performance. Notable highlights include the following:

• SLB launched the Lumi data and AI platform, which integrates advanced AI capabilities—including generative AI—with workflows across the energy value chain. The open, secure, and modular platform unlocks access to high-quality data across subsurface, surface, planning, and operations, increasing cross-domain collaboration and releasing new intelligence and insights to improve the quality and speed of decision-making at the enterprise level.
  
  
  
  
• SLB and NVIDIA announced that they will build on their long-standing collaboration to develop generative AI solutions for the energy industry. Working together, the companies will build and optimize models to the specific needs and requirements of the data-intensive energy industry, including subsurface exploration, production operations, and data management. The collaboration accelerates the development and deployment of industry-specific generative AI models across SLB’s global platforms, including its Delfi™ digital platform and Lumi data and AI platform.
  
  
  
  
• SLB and Amazon Web Services (AWS) announced an extended partnership to expand access to applications from the Delfi digital platform. Energy Data Insights from AWS will also offer compatibility with SLB’s new Lumi data and AI platform. SLB and Amazon have also entered into a multiyear strategic framework agreement to explore the deployment of low-carbon technologies.
  
  
  
  
• SLB and Palo Alto Networks announced an expanded collaboration to strengthen cybersecurity for the energy sector. The companies will combine SLB’s cloud and edge technologies and domain expertise in the energy industry with Palo Alto Networks’ cross-industry, platform-based cybersecurity solutions. This will not only help SLB remain on the forefront with its own security infrastructure but will also help drive future enhanced solutions to address evolving cyber threats as the industry’s adoption of digital solutions and artificial intelligence accelerates.
  
  
  
  
• SLB and Aramco have signed an agreement with the aim of codeveloping, commercializing, and utilizing digital solutions to help mitigate greenhouse gas emissions in industrial sectors. The agreement establishes a framework for the development of several digital solutions on SLB’s digital sustainability platform that will enable industrial companies to accelerate their progress toward net zero by more easily measuring, reporting, and verifying their emissions.
  
  
  
  
• In Australia, Woodside Energy has awarded SLB a three-year digital frame agreement, which incorporates global subsurface data management, software provisioning, Delfi on-demand reservoir simulation, and onsite support services. SLB will help Woodside Energy to standardize an enterprise-scale data management solution, while also providing a full suite of software products and compute scalability via the Delfi platform for reservoir simulations.

NEW ENERGY

SLB continues to participate in the global transition to low-carbon energy systems through innovative technology and strategic partnerships, including the following:

• In Nevada, SLB achieved breakthrough results in sustainable lithium production. Using a proprietary integrated solution that combines SLB’s subsurface expertise with surface engineering of advanced technologies that include direct lithium extraction (DLE), SLB was able to produce lithium at a rate 500 times faster than conventional methods while using only 10% of the land. The plant reached a verified recovery rate of 96% lithium from brine while using significantly less water, energy, and fewer chemical reagents in comparison with other lithium mining techniques.
  
  
  
  
• In the U.S., SLB Capturi™, the newly formed joint venture between SLB and Aker Carbon Capture, was awarded a contract by CO280 Solutions for front end engineering and design (FEED) of a large-scale carbon capture plant at a pulp and paper mill on the U.S. Gulf Coast. The project, which aims to remove 800,000 metric tons of carbon emissions annually, will also deliver permanent, verifiable, and affordable carbon dioxide removals (CDRs). This follows recent announcements by SLB Capturi and CO280 on their collaboration to develop large-scale CDR projects in the U.S. and Canada pulp and paper industries and their collaboration with Microsoft^® to scale the full value chain of carbon removal.
  
  
  
  
• Also in the U.S., SLB Capturi has secured funding from the U.S. Department of Energy’s Office of Clean Energy Demonstrations for the first phase of two carbon capture projects. These projects, which commenced in August 2024 with a FEED study, involve deploying carbon capture systems at Basin Electric’s Dry Fork Station in Wyoming and International Paper’s Vicksburg Containerboard Mill in Mississippi. The projects are undertaken in partnership with TDA Research for the Wyoming project and with RTI International, International Paper, and Amazon, for the Mississippi project. The combined aim of these projects is to capture 278,000 metric tons of CO₂ annually, demonstrating the potential of early-stage carbon capture technologies for achieving significant emissions reductions.
  
  
  
  
• In Norway, SLB launched a well integrity assessment solution that simplifies carbon storage site selection and evaluation by quantifying well integrity risks in mature or retired oil and gas fields. SLB's solution incorporates advanced failure mode, effects, and criticality analysis to assess potential leakage pathways, well barriers, failure mechanisms, and resulting consequences; helping customers understand the risks associated with each well, inform remediation strategies, and, ultimately, estimate project viability.

FINANCIAL TABLES

Condensed Consolidated Statement of Income

Condensed Consolidated Balance Sheet

Liquidity

Charges & Credits

In addition to financial results determined in accordance with U.S. generally accepted accounting principles (GAAP), this third-quarter 2024 earnings release also includes non-GAAP financial measures (as defined under the SEC’s Regulation G). In addition to the non-GAAP financial measures discussed under “Liquidity”, SLB net income, excluding charges & credits, as well as measures derived from it (including diluted EPS, excluding charges & credits; effective tax rate, excluding charges & credits; adjusted EBITDA and adjusted EBITDA margin) are non-GAAP financial measures. Management believes that the exclusion of charges & credits from these financial measures provide useful perspective on SLB’s underlying business results and operating trends, and a means to evaluate SLB’s operations period over period. These measures are also used by management as performance measures in determining certain incentive compensation. The foregoing non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP. The following is a reconciliation of certain of these non-GAAP measures to the comparable GAAP measures. For a reconciliation of adjusted EBITDA to the comparable GAAP measure, please refer to the section titled “Supplementary Information” (Question 9).

There were no charges or credits during the third quarter of 2023.

Divisions

Supplementary Information

Frequently Asked Questions

About SLB

SLB (NYSE: SLB) is a global technology company driving energy innovation for a balanced planet. With a global presence in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

Conference Call Information

SLB will hold a conference call to discuss the earnings press release and business outlook on Friday, October 18, 2024. The call is scheduled to begin at 9:30 a.m. U.S. Eastern time. To access the call, which is open to the public, please contact the conference call operator at +1 (844) 721-7241 within North America, or +1 (409) 207-6955 outside North America, approximately 10 minutes prior to the call’s scheduled start time, and provide the access code 8858313. At the conclusion of the conference call, an audio replay will be available until November 18, 2024, by dialing +1 (866) 207-1041 within North America, or +1 (402) 970-0847 outside North America, and providing the access code 8893594. The conference call will be webcast simultaneously at www.slb.com/irwebcast on a listen-only basis. A replay of the webcast will also be available at the same website until November 18, 2024.

Forward-Looking Statements

This third-quarter 2024 earnings press release, as well as other statements we make, contain “forward-looking statements” within the meaning of the federal securities laws, which include any statements that are not historical facts. Such statements often contain words such as “expect,” “may,” “can,” “believe,” “predict,” “plan,” “potential,” “projected,” “projections,” “precursor,” “forecast,” “outlook,” “expectations,” “estimate,” “intend,” “anticipate,” “ambition,” “goal,” “target,” “scheduled,” “think,” “should,” “could,” “would,” “will,” “see,” “likely,” and other similar words. Forward-looking statements address matters that are, to varying degrees, uncertain, such as statements about our financial and performance targets and other forecasts or expectations regarding, or dependent on, our business outlook; growth for SLB as a whole and for each of its Divisions (and for specified business lines, geographic areas, or technologies within each Division); oil and natural gas demand and production growth; oil and natural gas prices; forecasts or expectations regarding energy transition and global climate change; improvements in operating procedures and technology; capital expenditures by SLB and the oil and gas industry; our business strategies, including digital and “fit for basin,” as well as the strategies of our customers; our capital allocation plans, including dividend plans and share repurchase programs; our APS projects, joint ventures, and other alliances; the impact of the ongoing conflict in Ukraine on global energy supply; access to raw materials; future global economic and geopolitical conditions; future liquidity, including free cash flow; and future results of operations, such as margin levels. These statements are subject to risks and uncertainties, including, but not limited to, changing global economic and geopolitical conditions; changes in exploration and production spending by our customers, and changes in the level of oil and natural gas exploration and development; the results of operations and financial condition of our customers and suppliers; the inability to achieve our financial and performance targets and other forecasts and expectations; the inability to achieve our net-zero carbon emissions goals or interim emissions reduction goals; general economic, geopolitical, and business conditions in key regions of the world; the ongoing conflict in Ukraine; foreign currency risk; inflation; changes in monetary policy by governments; pricing pressure; weather and seasonal factors; unfavorable effects of health pandemics; availability and cost of raw materials; operational modifications, delays, or cancellations; challenges in our supply chain; production declines; the extent of future charges; the inability to recognize efficiencies and other intended benefits from our business strategies and initiatives, such as digital or new energy, as well as our cost reduction strategies; changes in government regulations and regulatory requirements, including those related to offshore oil and gas exploration, radioactive sources, explosives, chemicals, and climate-related initiatives; the inability of technology to meet new challenges in exploration; the competitiveness of alternative energy sources or product substitutes; and other risks and uncertainties detailed in this press release and our most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the Securities and Exchange Commission (the “SEC”).

This press release also includes forward-looking statements relating to the proposed transaction between SLB and ChampionX, including statements regarding the benefits of the transaction and the anticipated timing of the transaction. Factors and risks that may impact future results and performance include, but are not limited to, and in each case as a possible result of the proposed transaction on each of SLB and ChampionX: the ultimate outcome of the proposed transaction between SLB and ChampionX; the effect of the announcement of the proposed transaction; the ability to operate the SLB and ChampionX respective businesses, including business disruptions; difficulties in retaining and hiring key personnel and employees; the ability to maintain favorable business relationships with customers, suppliers, and other business partners; the terms and timing of the proposed transaction; the occurrence of any event, change, or other circumstance that could give rise to the termination of the proposed transaction; the anticipated or actual tax treatment of the proposed transaction; the ability to satisfy closing conditions to the completion of the proposed transaction; other risks related to the completion of the proposed transaction and actions related thereto; the ability of SLB and ChampionX to integrate the business successfully and to achieve anticipated synergies and value creation from the proposed transaction; the ability to secure government regulatory approvals on the terms expected, at all or in a timely manner; litigation and regulatory proceedings, including any proceedings that may be instituted against SLB or ChampionX related to the proposed transaction, as well as the risk factors discussed in SLB’s and ChampionX’s most recent Forms 10-K, 10-Q, and 8-K filed with or furnished to the SEC.

If one or more of these or other risks or uncertainties materialize (or the consequences of any such development changes), or should our underlying assumptions prove incorrect, actual results or outcomes may vary materially from those reflected in our forward-looking statements. Forward-looking and other statements in this press release regarding our environmental, social, and other sustainability plans and goals are not an indication that these statements are necessarily material to investors or required to be disclosed in our filings with the SEC. In addition, historical, current, and forward-looking environmental, social, and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Statements in this press release are made as of the date of this release, and SLB disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events, or otherwise.

Additional Information about the Transaction with ChampionX and Where to Find It

In connection with the proposed transaction with ChampionX, SLB filed with the SEC a registration statement on Form S-4 on April 29, 2024 (as amended, the “Form S-4”) that includes a proxy statement of ChampionX and that also constitutes a prospectus of SLB with respect to the shares of SLB to be issued in the proposed transaction (the “proxy statement/prospectus”). The Form S-4 was declared effective by the SEC on May 15, 2024. SLB and ChampionX filed the definitive proxy statement/prospectus with the SEC on May 15, 2024 (https://www.sec.gov/Archives/edgar/data/87347/000119312524139403/d818663d424b3.htm), and it was first mailed to ChampionX stockholders on or about May 15, 2024. Each of SLB and ChampionX may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the Form S-4 or proxy statement/prospectus or any other document that SLB or ChampionX may file with the SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (if and when available) and other documents containing important information about SLB, ChampionX and the proposed transaction, through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by SLB will be available free of charge on SLB’s website at https://investorcenter.slb.com. Copies of the documents filed with, or furnished to, the SEC by ChampionX will be available free of charge on ChampionX’s website at https://investors.championx.com. The information included on, or accessible through, SLB’s or ChampionX’s website is not incorporated by reference into this communication.

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