The Rig Count and Halliburton’s Revenue in 4Q17



The rig count and Halliburton’s revenue

In 4Q17, Halliburton’s (HAL) North American revenue made up 57% of its overall revenue, compared with 58% in 3Q17. In 4Q17, Halliburton generated 43% of its revenue from international operations. By the end of 4Q17, the US rig count was 929, 1% lower than in 3Q17.

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Halliburton’s earnings margin

Between 3Q17 and 4Q17, Halliburton’s EBITDA (earnings before interest, tax, depreciation, and amortization) margin (or EBITDA as a percentage of its revenue) increased from 18.8% to 19.4%. EBITDA margins measure operating earnings. Halliburton makes up 0.16% of the iShares Dow Jones US ETF (IYY). Between December 29, 2017, and February 14, 2018, IYY increased 1%, while HAL fell ~2%.

Peer comparison

In 4Q17, Schlumberger’s (SLB) EBITDA margin was 19.8%, while Baker Hughes, a GE company’s (BHGE) was 8.3%. Next, we’ll discuss Halliburton’s net debt.


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