International rig count
From September to November 2016, the international rig count fell 1%. A lower international rig count could decrease Halliburton’s (HAL) revenues and earnings in 4Q16. HAL makes up 0.21% of the iShares Dow Jones US ETF (IYY), and the energy sector makes up 7.1% of IYY.
Baker Hughes (BHI), which entered an agreement with GE (GE) to form a partnership, could benefit from increased international exposure. For more information, please read Market Realist’s Can the BHI–GE Partnership Benefit from Global Growth?
Revenue from international operations
In 3Q16, Halliburton’s (HAL) revenue share generated outside the US rose. HAL’s international revenues rose to 57% of its total revenues in 3Q16 compared to 55% in 3Q15. In comparison, Schlumberger’s (SLB) revenues from its international operations by the end of 3Q16 rose to ~76% of its total revenues compared to 71% by the end of 3Q15.
Next, we’ll discuss what Halliburton’s revenues and earnings in 3Q16.