US rig count
From December 30, 2016, until the week ended April 7, 2017, the US rig count rose ~28% to close at 839. A higher US rig count can increase Halliburton’s (HAL) revenues and earnings in 1Q17.
Crude oil prices have dropped 3% since December 30, 2016. Despite lower crude oil prices, the US rig count has continued to surge. You can see which way crude oil prices are moving in Market Realist’s US Crude Oil Is above $52: What to Expect from Energy ETFs.
The US rig count rose ~83% in the past year through April 7, 2017. The US rig count reached its multiyear high in September 2014. Since then, it has dropped 57% through April 7, 2017.
Revenue by geography
In 4Q16, Halliburton’s (HAL) revenue share from North America increased to 45% compared to 43% in 3Q16. During the same period, HAL’s aggregate revenues increased 5%.
From December 2016 to March 2017, the international rig count rose ~2%. A higher international rig count can increase Halliburton’s revenues and earnings in 1Q17.
Comparison with peers
HAL makes up only 0.18% of the iShares Russell 3000 ETF (IWV). The energy sector makes up 6.1% of IWV, which tracks the Russell 3000 Index (RUA-INDEX). The RUA-INDEX increased 16% in the past year versus a 37% rise in HAL’s stock price.
Next, we’ll discuss investors’ short interest in HAL.