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How Could the International Rig Count Affect Halliburton in 4Q16?

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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?international-rev-share

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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.

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