Halliburton Co

Halliburton stock has risen as much as 5.50% in the pre-market session today as of 8:39 AM ET. The stock rose due to the company’s earnings surprise.

The top ten institutional investors in Halliburton added 32.4 million HAL shares in the third quarter, indicating their bullish sentiment in the stock.

Both Schlumberger and Halliburton are underperforming the S&P 500, but Wall Street analysts remain bullish on oilfield stocks.

Schlumberger (SLB) announced its third-quarter results today. The company’s revenue rose 3% sequentially to $8.5 billion in the quarter.

To understand the US energy sector, it’s essential first to understand the country’s energy needs. The US uses various energy sources to meet its energy needs.

Crude oil production continues to rise, and oil prices remain at $50. Despite that, US energy stocks aren’t getting investors’ interest.

Although the US doesn’t export much crude oil to China, the additional supply of cheap Iranian oil could pressure both Brent and WTI crude prices.

Halliburton (HAL) reported its second-quarter earnings on Monday before the markets opened. The company’s earnings rose sequentially.

Between February 11, 2016, and July 15, 2019, WTI crude oil prices rose 127.3%. The United States Oil Fund LP (USO) gained 53.9% in the period.

In the next quarter, the US crude oil production might rise—an important factor that might kill any upside in oil prices. For the week ending June 7, US crude oil’s weekly production was near its record high of 12.3 MMbpd.

Halliburton (HAL) fell ~25%, while Schlumberger (SLB) and National Oilwell Varco (NOV) fell 19% and 20%, respectively, in May.

Together, the top ten institutional investors in Halliburton (HAL) added 4.5 million shares to their positions in the first quarter.

Last week, the oil rig count fell by two to 805—the lowest level since March 30. The rig count tends to follow US crude oil prices with a three-to-six-month lag.

Last week, the oil rig count rose by two to 807. The rig count tends to follow US crude oil prices with a three to six-month lag.

Last week, the oil rig count fell by 20 to 805—the lowest level since March 30, 2018.

Schlumberger (SLB) has risen 31% so far in 2019.

Last week, the oil rig count rose by two to 833—just 17 more rigs than the lowest level since April 13, 2018.

Among the 37 analysts tracking Schlumberger, six recommended a “strong buy,” 16 recommended a “buy,” and 15 recommended a “hold.”

The capacity constraints are expected to persist over the next few quarters, which might impact Schlumberger’s (SLB) first-quarter results.

The total US rig count fell from 1,083 in the week ending December 28 to 1,006 in the week ending March 29. The rigs fell by 77 in the first quarter.

Schlumberger (SLB) is scheduled to report its first-quarter earnings on April 18. Analysts’ consensus EPS estimate is $0.3 per share.

Last week, the oil rig count rose by 15 to 831 from the lowest level since April 13, 2018.

Last week, the oil rig count fell by eight to 816—the lowest level since April 13, 2018.

Last week, the oil rig count fell by nine to 824. The rig count tends to follow US crude oil prices with a three to six-month lag.

Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.1x, which is lower than its five-year average multiple of 10.2x.

Baker Hughes (BHGE), Schlumberger (SLB), and National Oilwell Varco (NOV) have debt-to-equity ratios of 0.2x, 0.4x, and 0.2x, respectively.

Baker Hughes expects to spend up to 5% of its 2019 revenues on capital projects in 2019.

Increased global drilling activity and focused cost reduction efforts contributed to National Oilwell Varco’s earnings growth in 2018.

Halliburton (HAL) and National Oilwell Varco (NOV) recorded 16% revenue growth in 2018—compared to 2017.

After falling significantly in 2018, the top oilfield services stocks have witnessed some gains in 2019.

Last week, the oil rig count fell by ten to 843. The rig count tends to follow US crude oil prices with a three to six-month lag.

In February 2018, analysts’ mean target price for Halliburton was $63.6. Currently, the stock is trading at $31.8.

In February 2018, analysts’ mean target price for Schlumberger (SLB) was $82.6. Currently, the stock is trading at ~$44.3.

Combined, nine of the top ten investors added 2.4 million U.S. Silica Holdings shares to their positions in the fourth quarter.

The Vanguard Group bought 1.2 million Schlumberger shares in the fourth quarter. State Street Global Advisors bought 3.7 million shares.

Helmerich & Payne reported its first-quarter results on January 29. The company reported an EPS of $0.17 for the quarter ending December 31.

Halliburton reported its fourth-quarter results on January 22. The company’s EPS fell to $0.41 from $0.53 per share in the fourth quarter of 2017.

The oil rig count could keep rising until at least March. By the second quarter, US crude oil production growth might slow down.

On January 10, Jefferies cut its target price for Schlumberger from $54 to $47. Morgan Stanley cut its target price for the stock from $50 to $45.

Schlumberger (SLB) is scheduled to report its fourth-quarter results on January 18. Analysts expect its EPS to fall ~25% to $0.36.

Last week, the oil rig count fell by four to 873. The rig count tends to follow US crude oil prices with a three to six-month lag.

Last week, the oil rig count fell by eight to 877. The rig count tends to follow US crude oil prices with a three to six-month lag.

Last week, the oil rig count rose by ten to 883. The rig count tends to follow US crude oil prices with a three to six-month lag.

Last week, the oil rig count fell by four to 873. The rig count tends to follow US crude oil prices with a three to six-month lag.

Last week, the oil rig count fell sharply by ten to 877. The rig count tends to follow US crude oil prices with a three- to six-month lag.

The Vanguard Group, State Street Global Advisors, and Wellington Management Company are the top three investors in Halliburton (HAL).

Last week, the oil rig count rose by two to 888, the highest level since March 6, 2015.

The mean target price for Helmerich & Payne is $70.7, which implies an upside potential of ~22% from its current price.

For Schlumberger, seven analysts rated it as a “strong buy,” 15 rated it as a “buy,” 13 rated it as a “hold,” and one rated it as a “sell.”

Currently, 71% of the analysts surveyed by Reuters rated Baker Hughes as a “buy,” 25% rated it as a “hold,” and 4% rated it as a “sell.”

Baker Hughes (BHGE) and National Oilwell Varco (NOV) have fallen 26% and 11%, respectively, YTD.

In the week ending on November 2, US crude oil production was at 11.6 MMbpd (million barrels per day)—its new record level.

National Oilwell Varco’s EPS of $0.00 missed analysts’ estimates of $0.12 for the third quarter.

TechnipFMC (FTI) reported its third-quarter earnings on October 24 after the markets closed.

After Halliburton’s (HAL) third-quarter earnings release, Credit Suisse cut its target price on the stock from $51 to $46.

Halliburton (HAL) reported its third-quarter earnings results on October 22. The company reported EPS of $0.50.

Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHGE), and TechnipFMC (FTI) have an upside potential of 27%, 36%, 14%, and 23%, respectively.

Halliburton (HAL) is trading at a forward EV-to-EBITDA multiple of ~8.6x—lower than Schlumberger and Baker Hughes’s forward EV-to-EBITDA multiples.

The number of Halliburton (HAL) shares shorted fell from ~16.7 million on August 15 to ~14.4 million on August 31—a fall of ~13.4%.

In the first half of 2018, Halliburton’s (HAL) revenues grew 29% YoY—compared to Schlumberger’s (SLB) 12% revenue growth during the same period.

Schlumberger operates through four segments—Reservoir Characterization, Drilling, Production, and Cameron.

In the week ended September 7, the oil rig count fell by two to 860, nine less than its 3.5-year high.

HAL’s Drilling and Evaluation segment’s operating income rose 2.0% sequentially in the second quarter.

Halliburton (HAL) stock has fallen ~18% in 2018, underperforming its sector peers. HAL stock fell significantly after its Q2 earnings.

Capital Research Global Investors and State Street Global Advisors sold net 2.6 million and 0.3 million Halliburton shares from their holdings.

Seven of the top ten investors reduced their positions in Schlumberger in the second quarter, which likely hints at investors’ bearish sentiment.

Of the 27 analysts surveyed by Reuters covering National Oilwell Varco (NOV), one analyst rates the stock as “strong buy,” three analysts rate it as a “buy,” and 21 analysts rate it as a “hold.”

By adjusted EBITDA, the US Drilling segment saw the strongest growth of 130% in the second quarter—compared to the second quarter of 2017.

Halliburton’s (HAL) stock price correlation with crude oil on July 20–27 was 0.22—a moderately positive correlation.

Halliburton stock will likely close between $43.14 and $40.46 by August 3—based on its implied volatility.

From Q2 2017 to Q2 2018, National Oilwell Varco’s (NOV) Wellbore Technologies segment revenue rose 29.2%.

On July 25, 2018, FTI’s stock price was down 10.9% compared to May 9 when its first-quarter financial results were released.

In the second quarter, TechnipFMC recorded total revenues of ~$2.96 billion, down 23% from ~$3.85 billion in Q2 2017.

TechnipFMC (FTI) released its second-quarter financial results on July 25 after the market closed. The company recorded operating revenues of $2.96 billion.

The C&P segment accounted for 68% of HAL’s Q2 revenues.

SLB’s Drilling group’s operating margin deflated to 13.0% in Q2 2018 from 14.0% in Q2 2017.

Halliburton (HAL) released its Q2 2018 financial results today. The company recorded total revenues of ~$6.15 billion in Q2 2018, up 24% from its ~$4.96 billion in Q2 2017.

The correlation between Weatherford International’s (WFT) stock price and crude oil’s price from April 17 to July 16 was 0.03.

On July 17, Weatherford International’s (WFT) implied volatility was ~65.2%.

ION Geophysical’s (IO) correlation with crude oil on April 19–July 19 was 0.30. The correlation represents a positive relationship.

On July 16, US crude oil August futures fell 4.2% and settled at $68.06 per barrel—their lowest closing level since June 21.

Halliburton stock will likely close between $47.12 and $43.58 by July 20 based on its implied volatility. Halliburton’s stock price was $45.35 as of July 13.

TETRA Technologies’ (TTI) one-year returns were 71% until July 12. Since July 13, 2017, the Energy Select Sector SPDR ETF (XLE) has increased 16.7%.

From April 23 to July 6, Halliburton’s implied volatility has increased from 25.0% to 28.0%.

Short interest in Halliburton (HAL) as a percentage of its float was 1.47% on July 6, compared to 3.23% on July 6, 2017.

In the first quarter, Halliburton’s revenues from North America increased 58.0% year-over-year.

Halliburton’s (HAL) management expects its upstream activities in North America to remain strong, supported by robust hydraulic fracturing activity.

Analysts expect Halliburton (HAL) to report adjusted EPS of $0.58 in Q2 2018, a 41% improvement from its Q1 2018 adjusted EPS of $0.41.

In the week ending July 6, Nabors Industries’ (NBR) correlation with crude oil was 0.26.

In Q1 2018, hedge funds increased their aggregate holdings in Cimarex Energy, Williams Companies, and Concho Resources by 12.66%, 22.73%, and 71.02%, respectively.

In the first half of 2018, CXO fell from its 2017 close of $150.22 to $138.35—a moderate decrease of ~8.0%.

In the second quarter of 2018, analysts expect Schlumberger (SLB) to report $0.43 adjusted EPS, a 13% sequential increase.

Approximately 6% of the Wall Street analysts tracking Oil States International recommended a “sell” or some equivalent as of June 25.

Approximately 10% of the analysts tracking National Oilwell Varco have recommended a “sell” or some equivalent as of June 25.

As of June 22, short interest in Weatherford International (WFT) as a percentage of its float was 14.1%, compared to 15.2% as of June 22, 2017.

OII’s correlation with crude oil’s price from March 21 to June 21 represented a positive relationship between OII and crude oil.

According to Wall Street analysts’ ratings, Halliburton (HAL) has the highest “buy” or some equivalent rating in the OFS industry.