SLB is furloughing employees and cutting executive pay as the company reels from low oil prices.
Pricing power has been waning in the oil patch for a while. The coronavirus and falling oil prices have amplified the situation.
SLB trades at less than 5x EBITDA. OPEC supply cuts or a path to supply cuts could send oil prices and SLB higher.
The knock-on effects of the coronavirus are punishing the U.S. economy. Less talked about has been the free fall in oil prices. Saudi Arabia and Russia recently increased supply. Brent oil is sub-$35,