Halliburton’s capex to remain steady, but will its stock go up?



Capital investments may remain steady in 2015

In the previous sections of the series, we looked at Halliburton’s (HAL) quarterly and full-year performance in detail. Now we’ll see where growth may come from in the future.

In 2014, Halliburton spent ~$3.3 billion on capex (capital expenditures), up 12% from the $2.9 billion spent in 2013. The following accounted for most of Halliburton’s 2014 capex:

  • production enhancement
  • Sperry Drilling for drilling systems and services
  • cementing
  • Boots & Coots for well intervention services
  • wireline and perforating product service lines for open-hole logging services on information related to the evaluation and reservoir fluid analysis
  • cementing production service lines

North America accounted for most of the 2014 capex.

In its latest conference call, Halliburton expressed that it anticipates its 2015 capex to remain steady and to be in line with 2014 capex.

How much returns can investors expect in 2015? Read Part 15 of this series to know.

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Halliburton’s 2015 international operations outlook

In 2015, Halliburton (HAL) expects the Middle East and Asia to be the best performing region. Halliburton has recently received awards in Saudi Arabia, Iraq, the UAE, and Kuwait. This is expected to drive growth.

In 2015, Halliburton expects activity in Europe/Africa/CIS to decline across the entire region, particularly in North Sea, Russia, and Angola. Russia’s economy has been going through a rough patch, and its currency has been devalued.

Read Market Realist’s Currency depreciation fuels a financial crisis in Russia to know more. CIS (Commonwealth of Independent States) is a regional organization of countries.

Halliburton (HAL) expects 4Q14 revenue growth to slow down in Latin America, primarily due to lower activity levels in Mexico and Colombia. This may more than offset higher unconventional activity levels in Argentina and a new integrated asset management project in Ecuador.

Halliburton Company (HAL) is 11.5% of the VanEck Vectors Oil Services ETF (OIH) and 2.6% of the Energy Select Sector SPDR (XLE). Other companies in this industry that are components of OIH include Weatherford International Plc. (WFT) and National Oilwell Varco (NOV).

How does Halliburton expect its North American operations to perform in 2015? Read the following section to know.


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