Company Reports

Narrow-moat Halliburton delivered decent second-quarter results, with sales and margins approximately flat across the board, year over year and sequentially. This was mainly because of subdued North American drilling and completions activity, offset by elevated demand for the same services across international markets. Well incorporate the firm's full financial and operating results shortly, but after this first look, we maintain our $39 fair value estimate.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Narrow-moat Halliburton posted its 2024 first-quarter results in line with our expectations. Revenue was up 2% year over year and 1% sequentially, while firmwide operating margins declined very slightly to 17%. Continued strength in international drilling activity continues to shine amid a subdued North American market. As such, we’ve slightly cut our near-term sales outlook to reflect continued slowness in North America. We’ve reduced our fair value estimate to $39 from $40.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Narrow-moat Halliburton posted solid fourth-quarter results, with revenue increasing 4% year over year, led by the firm’s completions and production segment. The firmwide operating margin was 18%, up 95 basis points year over year and 57 basis points quarter over quarter, reflecting continued strength in international drilling and completions activity while North American activity remains subdued. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look, we maintain our $40 fair value estimate.

Halliburton's third-quarter earnings fell in line with our expectations, with revenue increasing 8% year over year, led by the firm's completions and production segment. The firmwide operating margin was 18%, up nearly 250 basis points compared with the third quarter of 2022, reflecting strong international drilling and completions activity. We maintain our $40 per share fair value estimate and narrow-moat rating following results.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton delivered a solid performance in the second quarter, posting modest sequential revenue growth of 2% with a 17% firmwide operating margin. The firm’s operations are roughly evenly split between North America and international geographies, with international markets expected to lead the charge for global activity growth in the future. We maintain our outlook for decelerating top line growth—though still averaging 7% growth per year—and expect operating margins will remain steady at 17% over the next five years. Our $40 per share fair value estimate and narrow moat rating are unchanged following results.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton’s first-quarter earnings reflected significantly improved production activity compared with the same period last year. Total revenue increased 33% year over year and 2% sequentially, mostly led by a very strong North American market. Profitability trended similarly, with the firmwide operating margin expanding nearly 500 basis points year over year and contracting very slightly quarter over quarter. We maintain our narrow moat rating and $40 fair value estimate following results.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

After incorporating Halliburton’s full results for the fiscal year 2022, we’re slightly raising our fair value estimate to $40 from $39. We maintain our narrow moat and stable moat trend ratings. Most of our increase is attributable to our improved outlook for the firm’s profitability moving forward. By our estimate, the firmwide operating margin will average 17% over the next five years, compared with our previous estimate of 15% on average.

Narrow-moat Halliburton posted solid fourth-quarter earnings as global oil and gas activity continued to steadily increase, especially internationally. Fourth-quarter revenue increased 31% year over year and 4% sequentially. The favorable pricing environment also persisted as production equipment remains near full capacity utilization. The firmwide operating margin was 17.5% expanding 170 basis points quarter over quarter. Management indicated its pressure pumping equipment remains sold out for 2023, so we're confident Halliburton will demonstrate continued strength into 2023 and likely beyond. We'll incorporate the firm's full financial and operating results shortly, but after this first look, we maintain our $39 fair value estimate.

We're raising Halliburton’s fair value estimate to $39 from $37 per share, based on a favorable outlook for both activity growth and pricing gains into 2023. Our narrow moat rating is unchanged. By our estimate, top-line growth will average 13% over the next five years, driven by a particularly strong 2022 and 2023 as the market for oilfield services remains tight around the world. Management also continues to pursue a larger international footprint, which we expect will maintain continued growth as production activity outside North America gains momentum in the coming quarters. Management indicates that total international revenue increased 21% sequentially this quarter, even after accounting for its exit from Russia. The Middle East and Asia in particular remain strong for Halliburton—these regions currently represent nearly one quarter of the firm’s total revenue compared with less than 20% historically.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton is one of the three largest oilfield service firms in the world, and it’s the largest pressure pumper in North America. The firm is renowned for its exceptional record of innovation, consistently developing novel ways to maximize value for its customers.

Halliburton had a solid third quarter, as drilling and fracking activity remain strong across North America. Total revenue increased 39% year over year and 6% sequentially. The firmwide operating margin was 16%, a level not generated since 2014. After our initial review, we maintain our $37 fair value estimate. Our narrow moat, stable moat trend, and High Morningstar Uncertainty ratings are also unchanged following the results.