Oil and gas companies have been infused with a new zeal amid recovering oil prices. Analysts are also hopeful that OPEC will extend its oil production agreement in the second half of 2017. On Thursday, Saudi Arabia Energy Minister Kalid al-Falih said some of the OPEC countries had already reached a “tentative agreement” to extend oil production. Investors are keenly watching Houston-based oil giant Schlumberger Limited (NYSE:SLB) after the company posted first quarter earnings on Friday. The company earned $0.25 a share, in-line with average analyst estimates, while revenue in the period came in at $6.89 billion, versus the consensus estimate of $6.99 billion. It is important to note that revenues declined by 3% in the period sequentially.
Earlier this week, investment firm Goldman Sachs added Schlumberger Limited. (NYSE:SLB) to Goldman’s Sustain List.
Schlumberger Limited. (NYSE:SLB) CEO Paal Kibsgaard said in a statement on the first quarter earnings call that North America land market continued to in the first three months of 2017. Revenues were mostly driven by hydraulic fracturing, drilling services, Artificial Lift, Surface Systems and Valves & Measurement. Mr. Kibsgaard said that Schlumberger Limited. (NYSE:SLB) is in a process of recovery from the “deepest downturns” on record.
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Jim Cramer recently said that Schlumberger Limited. (NYSE:SLB) took pre-emptive steps to profitability in the current environment because it started bracing up for the impact long ago with several cost cutting measures and layoffs. He also said that investors should buy more Schlumberger Limited. (NYSE:SLB) shares if the stock tumbles after the first quarter results.
Investment firm Jefferies also reiterated a ‘Buy’ rating on Schlumberger Limited. (NYSE:SLB) stock on Thursday. The firm has a $99 price target for the stock. Similarly, Scotiabank recently recommended investors to buy Schlumberger Limited. (NYSE:SLB) shares, as it thinks the stock is set to reach $95.00 price in the near future.