US rig count
In 3Q16, the US rig count fell 38% compared to 3Q15. The US rig count reached its multiyear high in September 2014 and since then, it has dropped 66% through December 30, 2016.
From September 30 until the week ended December 30, 2016, the US rig count rose ~26% to close at 658. A higher US rig count could increase Halliburton’s (HAL) revenues and earnings in 4Q16.
Crude oil prices have recovered 11% since September 30. Higher crude oil prices have driven the higher US rig count. Please read the latest on crude oil prices in Market Realist’s Crude Oil: Analyzing Bearish and Bullish Drivers.
Revenue by geography
Halliburton’s (HAL) revenue share from North America fell to 43% compared to 45% in 3Q15. During the same period, HAL’s aggregate revenues fell 31%.
In comparison, Weatherford International’s (WFT) 3Q16 revenues fell 39% over its 3Q15 revenues. FMC Technologies’s (FTI) revenues fell 29%, while Superior Energy Services’s (SPN) revenues fell 46% from 3Q15 to 3Q16. For more information on FTI, please read Market Realist’s Is FMC Technologies’ Merger with Technip Almost Complete?
Next, we’ll discuss HAL’s revenues from international operations and its international rig count.