Schlumberger NV

In this article, we’ll analyze how Halliburton’s (HAL) operating cash flows have trended over the past few quarters. We’ll also discuss its free cash flow (or FCF).

In the past couple of years, some major US upstream and integrated companies have reduced their capital expenditures (capex) following crude oil’s sharp fall.

In December so far, 90% of the analysts tracking Halliburton rated it a “buy” or some equivalent.

Halliburton’s cash from operating activities (or CFO) turned positive in 3Q16.

In 3Q16, Halliburton’s net-debt-to-adjusted-EBITDA multiple was ~3.8x, or 251% higher than it was a year ago.

In 4Q16, Baker Hughes’s (BHI) management expects a trade-off between strong North American upstream activity and a weaker international energy environment.

In November, 34% of the analysts tracking FMC Technologies rated it a “buy,” ~55% rated it a “hold,” and only 3% of the analysts rated it a “sell.”

In November, 83% of the analysts tracking Schlumberger rated it a “buy” or some equivalent. The other 18% of the analysts recommended a “hold” or a “sell.”

The oilfield equipment and services industry refers to all products and services associated with the oil and gas exploration and production process, or the upstream energy industry.

SLB’s international revenues rose to 76% of its total revenues in 2Q16, as compared to 72% in 2Q15.

Schlumberger’s business model is diversified and not overly dependent on any particular line of business, catering to upstream companies’ needs.

In this part of the series, we’ll take a look at free cash flow for Schlumberger (SLB), Halliburton (HAL), Baker Hughes (BHI), and FMC Technologies (FTI).

In the OFS industry, Schlumberger has clearly been dominant while Weatherford International is now considered one of the weaker names.

By October 30, 2015, the total US rig count fell by 16 crude oil rigs. The number of crude oil rigs has continued to fall in the past nine weeks.

Schlumberger (SLB) provides technology, project management, and information technology services to the oil and natural gas exploration and production industry.

Halliburton (HAL) is a Texas-based energy company. It’s an oil and gas equipment and service provider. In the past year, Halliburton’s stock price went down ~22%.