US rig count
From March 31, 2017, until the week ending July 7, 2017, the US rig count rose 16% to 952. The increased US rig count could raise Halliburton’s (HAL) 2Q17 revenues and operating income, though the price of crude oil has dropped 13% since March 31, 2017.
The US rig count has risen ~116% in the past year as of July 7, 2017. In September 2014, the US rig count reached a multiyear high. Since then, it has dropped 51%.
Revenue by geography
In 1Q17, Halliburton’s revenue share from North America rose to 52%, compared with 45% in 4Q16. During the same period, HAL’s total revenues increased 6%.
In 1Q17, Halliburton generated 48% of its revenues from international operations. From March 2017 to June 2017, the international rig count rose ~2%. Halliburton’s 2Q17 revenues and earnings could likely benefit from the higher international rig count.
Comparison with peers
HAL makes up only 0.15% of the iShares Russell 3000 ETF (IWV), but IWV has risen 14% in the past year, compared with the 5% fall in HAL stock.
You can read more about how the large-cap oilfield equipment and services companies like Weatherford International (WFT) and National Oilwell Varco (NOV) are expected to fare in 2Q17 in Market Realist’s Wall Street’s 2Q17 Picks: Best and Worst Oilfield Services Stocks.
Continue to the next part of this series for a look at what HAL’s implied volatility means for its stock price.