Halliburton’s net debt
In 3Q17, Halliburton’s (HAL) total debt fell 11% from the year prior, while its cash and marketable securities fell 42%. Its net debt remained at ~$9.0 billion. Despite a decrease in total debt, a steep decline in cash and marketable securities prevented any sharp fall in HAL’s net debt.
Is HAL’s credit rating changing?
Moody’s maintained Halliburton’s “Baa1” long-term debt rating in 3Q17, suggesting it is subject to moderate credit risk. During 1Q17, HAL redeemed $1.4 billion in debt through early extinguishment, improving its credit profile.
Net debt for Halliburton’s peers
Halliburton’s trailing-12-month net-debt-to-adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) ratio rose 4% to ~3.6x between 3Q16 through 3Q17. Although Halliburton’s net debt fell, its EBITDA fell more, leading to slightly higher indebtedness in 3Q17. Next, we’ll discuss Halliburton’s free cash flow.