Halliburton’s stock price compared to the industry
Halliburton’s (HAL) one-week stock price was 8.0% higher until April 13, 2018. Since April 6, 2018, the Energy Select Sector SPDR ETF (XLE) has increased 6.0%. XLE represents the broader energy industry. The VanEck Vectors Oil Services ETF (OIH) saw 10% one-week returns. OIH tracks an index of 25 oilfield equipment and services companies. So, Halliburton outperformed XLE but underperformed OIH in the past week. Since April 6, 2018, the SPDR S&P 500 ETF (SPY) has underperformed Halliburton. SPY has produced 2.1% returns during this period. Halliburton accounts for 0.20% of SPY.
Crude oil’s price and rigs
On April 13, 2018, the West Texas Intermediate crude oil price increased 8.6% compared to a week ago. Led by crude oil price’s strength, the US rig count increased by five to 1,008 in the past week until April 13, 2018. Read Are Equity Markets Limiting Your Energy Portfolio’s Upside? to learn more about crude oil price’s recent drivers. For a comparison between Schlumberger (SLB) and Halliburton, read Schlumberger and Halliburton: A Comparison after 4Q17.
Halliburton’s key drivers in 4Q17
- Halliburton’s pressure pumping business benefited from increased utilization and better pricing for Halliburton’s products and services in the US onshore business.
- There were higher costs and seasonality in the US business.
- There was a decline in the upstream activity in Angola.
- The Gulf of Mexico had higher drilling activity and completion tool sales.
- The Middle East had higher drilling and stimulation activity.
In this series
In this series, we’ll discuss the short interest in Halliburton and its correlation with crude oil. Next, we’ll discuss Halliburton’s stock price forecast.