From 3Q16 to 3Q17, Halliburton’s (HAL) D&E (Drilling and Evaluation) segment’s revenue rose ~15%. Increased drilling activity in the Middle East, North America, and Latin America led to higher revenue in 3Q17. The D&E segment’s revenue rose 4% on a quarter-over-quarter basis.
From 3Q16 to 3Q17, Halliburton’s C&P (Completion and Production) segment’s revenue rose 62.5%. Halliburton accounts for 11.1% of the iShares US Oil Equipment & Services ETF (IEZ). IEZ fell 19% in the past year, while Halliburton fell 8% during this period.
Net earnings comparison
- increased well completion and pressure pumping activity in Canada
- higher utilization and better pricing in the US onshore business, which primarily benefited Halliburton’s pressure pumping business
- increased pressure drilling activity and pumping services in the Eastern Hemisphere
- increased activity in multiple product services lines in Latin America
- decreased activity and pricing across Southeast Asia
- lower project management activity in Iraq
- a decline in the upstream activity in Angola
Next, we’ll discuss how much the US rig count impacts Halliburton’s North America operations.