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How the Rig Count Could Affect Halliburton in 2Q17

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Halliburton’s North America revenues

In 1Q17, Halliburton’s (HAL) revenue share from North America rose to 52% compared to 45% in 4Q16. By comparison, Weatherford International’s (WFT) North America revenue share was ~38% in 1Q17, while Schlumberger’s (SLB) 1Q17 North America revenue share was 28%. Baker Hughes’s (BHI) North America revenue share was 31% in 1Q17.

In 1Q17, Halliburton generated 48% of its revenues from international operations. HAL makes up 0.15% of the iShares Russell 3000 ETF (IWV). Since March 31, 2017, IWV has risen 3% compared to the 9% decline in IWV’s stock price.

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Rig count

As of March 31, 2017, the US rig count rose 25% compared to the count on December 30, 2016. From March 31, 2017, until the week ending June 9, 2017, the US rig count rose ~13% to close at 927. In May 2017, the international rig count rose by one compared to April 2017. The higher rig count could increase HAL’s revenues and earnings in 2Q17.

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