US ENERGY SECTOR: SLB: 3Q25 Results
Credit Neutral - SLB has $1.25B in 2025 maturities which it could refi. The company noted a continued tough macro-backdrop, with some optimism on international-led activity as supply demand rebalances. When asked about acting as an industry consolidator, SLB noted that it is focused on the integration of ChampionX; $400M of synergies within 3 years of close was reiterated.
• Revenue was slightly ahead of street consensus at $8.93B ($8.92B est.), and was -9% YoY organically (-3% including ChampionX), dragged by N. America.
• EBITDA decreased by 12% YoY and margins decreased by 249bps to 23.1%.
• FCF was $870M compared to $1.6B in the prior year quarter. The company bought back $114M of stock.
• Gross and net leverage ended the quarter at 1.5x and 1.1x, respectively.
• SLB expects 4Q25 revenue to grow HSD% q/q and reiterated 2H25 revenue guidance of $18.2-$18.8B. The company expects 4Q25 EBITDA margins to expand by 50-150bps sequentially.
• FY25 capex is expected to be $2.4B.
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US: Schumer Maintains A Bipartisan Bill Is Required To Avert Oct 1 Govt Shutdown
Senate Minority Leader Chuck Schumer (D-NY) reiterated in an interview that Republicans must negotiate a bipartisan government funding solution to avert a government shutdown on October 1. His comments come after House Republican leadership unveiled a 'clean' stopgap funding measure yesterday that fails to include any Democratic demands on healthcare.
- Schumer said, when asked if he sees any route to avoiding a shutdown, "I hope [Republicans] would avoid a shutdown. They're on the path to causing it..." Schumer says, on the way to avoid it, "we have two weeks. Let's sit down and talk. Let's have input from both sides and come up with a bipartisan bill that can pass and avoid a shutdown."
- Schumer adds, "the data shows that the American people are on our side... 59% believe [Trump] would cause a shutdown and when you ask them why, it's because they won't negotiate."
- Schumer is expected to release an alternate funding plan in the coming days that includes a permanent extension of the Obamacare enhanced premium tax credits. That proposal is DOA with Republicans, but could provide Democrats a credible justification for pushing a shutdown, particularly as Medicaid cuts will figure prominently in 2026 midterm election campaigning.
- The implied probability of a shutdown ticked up slightly in the last few hours, to just under 40%. Bettors likely believe that the required seven Republican Senators will ultimately fold when the House bill reaches the upper chamber.
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US TSYS: Light Pressure Stemming From UXY Block & BoC
Fresh session lows in TU through UXY futures comes on spillover from north of the border as BoC Governor Macklem notes that the Bank considered leaving rates unchanged today (against the delivered and expected 25bp cut).
- 2s10s trades back to session lows, but the moves are limited in the grander scheme of things, with that curve and aforementioned futures contracts sticking to the ranges established in recent sessions.
- The previously noted block sale in UXY futures also a factor in the downtick in Tsys.
