Schlumberger (SLB) and the Geothermal Gold Rush: Why This Oilfield Giant Is a Must-Have for Energy Transition Portfolios

If you're looking for a stock that bridges the gap between the old energy world and the new, Schlumberger (SLB) is the name to watch. The company, long synonymous with oilfield services, has quietly positioned itself as a geothermal energy pioneer—and the numbers are piling up in its favor. With 80 hedge funds now holding SLB shares in Q4 2024, the stock ranks 4th on the list of best geothermal stocks to buy. This isn't just a passing trend; it's a seismic shift in institutional capital toward a sector poised to redefine the energy landscape.

Let's break it down. Schlumberger's GeothermEx division isn't just a side project—it's the engine driving 80% of the world's geothermal power projects. The company's expertise in drilling, subsurface characterization, and digital solutions has been repurposed to unlock geothermal energy's untapped potential. And here's the kicker: SLB isn't just talking about green energy. It's deploying real-world solutions like its Celsius Energy system, which provides carbon-free heating and cooling for buildings. In 2024, Eversource deployed this tech in Massachusetts, connecting 140 customers across 40 buildings. That's scalability, not just a lab experiment.

But the real magic lies in SLB's partnerships. In January 2025, the company inked a tech deal with Star Energy Geothermal (a subsidiary of Indonesia's Barito Renewables) to boost recovery rates and slash costs using AI-driven drilling and subsurface analysis. Indonesia alone has 40% of the world's geothermal potential, and SLB is now at the helm of turning that into reality. Meanwhile, collaborations with Ormat Technologies and DEEP Energy are pushing the boundaries of enhanced geothermal systems (EGS), which could unlock energy in regions previously deemed unviable.

Financially, SLB is firing on all cylinders. Q4 2024 earnings showed an adjusted EPS of $0.92, beating estimates by $0.02, while revenue hit $9.28 billion—a 3.27% YoY jump. The company's international revenue grew 12% in fiscal 2024, and it's returning $4 billion to shareholders by 2025 via buybacks and dividends. With a 3.6% dividend hike and $2.3 billion in share repurchases already executed, SLB is proving it can balance growth with shareholder rewards.

Here's the rub: Geothermal is the next big energy play. While solar and wind get most of the headlines, geothermal offers 24/7 baseload power—critical for AI data centers and industrial sectors needing reliable energy. Schlumberger's tech stack—AI, digital twins, and advanced drilling—positions it as the go-to partner for countries and corporations chasing carbon-free energy. And with global geothermal capacity expected to grow 50% by 2030, SLB's early-mover advantage is undeniable.

So, what's the takeaway? Schlumberger isn't just surviving the energy transition—it's leading it. Hedge funds are betting on its ability to monetize geothermal's scalability, and its partnerships are accelerating the sector's commercial viability. For investors, this is a no-brainer: A blue-chip company with a proven track record, a clear path to decarbonization, and a financial model that rewards patience.

Buy SLB now, and you're not just buying a stock—you're buying a stake in the future of energy.