Halliburton’s stock price compared to industry
Halliburton (HAL) stock is down 2% in the past one year as of July 28, 2017. HAL has outperformed the VanEck Vectors Oil Services ETF (OIH), which has generated -11% returns in the past year. The Energy Select Sector SPDR ETF (XLE), the broader energy industry ETF, has generated -1% returns in the past one year. However, Halliburton has severely underperformed the SPDR S&P 500 ETF (SPY), which has produced 14% one-year returns. The Dow Jones Industrial Average (DJIA-INDEX) improved 18% in the past one year. The energy sector makes up 5.9% of the DJIA-INDEX.
Crude oil price
The West Texas Intermediate (or WTI) crude oil price is once again seeing a recovery with a 19% increase in the past one year. The US rig count rose 107% in the past year. Read more on crude oil prices in Market Realist’s Crude Oil Futures Are near a 2-Month High. Higher crude oil prices prompt upstream companies to increase production, which can benefit oilfield services companies like Schlumberger (SLB) and Weatherford International (WFT).
Events that could drive HAL’s returns
- Halliburton will pay $29.2 million to settle civil charges regarding an alleged violation of anti-bribery rules. The US Securities and Exchange Commission (or SEC) alleged a violation of rules related to books, record-keeping, and internal accounting controls in Angola.
- In July 2017, Halliburton acquired Summit ESP and Ingrain. Summit ESP provides electric submersible pumps and related technology and services. Ingrain analyzes complex rock types.
- Halliburton signed a contract with Royal Dutch Shell’s (RDS.A) Shell Iraq Petroleum Development during 1Q17. Halliburton will activate three rigs at Majnoon Oil Field in Iraq.
- Halliburton is cooperating with Petrobras (PBR) to develop deepwater pre-salt and mature fields.
- Halliburton and technology company Accenture are working together to help upstream operators achieve a lower cost per barrel of oil equivalent.
In this series, we’ll look at investors’ short interest in Halliburton and the stock’s implied volatility. We’ll discuss what HAL’s implied volatility suggests for its stock price next.