ChampionX Strengthens SLB's Portfolio, Given Exposure to Customer Operating Expenditures

SLB's strategy focuses on three growth engines: core, digital, and new energy. Our thesis primarily relies on SLB's first two growth engines, specifically its offshore business outside North America and its digital offerings. Market bears seem concerned about a possible recession, a slowdown in the exploration and production capital expenditure cycle, and the acquisition of ChampionX diluting shareholder value. We disagree that ChampionX diluted value and think parts of the cycle could be more resilient than the market appreciates.