Current HAL Stock Info

Two oilservice giants standing tall in face of downturn
The oil and gas industry may be bracing for a downturn in drilling operations, but Halliburton (ticker: HAL) and Baker Hughes (ticker: BHI) are entering 2015 on the heels of one of the finest years in each company’s respective history.

Discussions for the merger are continuing as planned and are expected to close in 2H’15. HAL said the valuation will fluctuate in relation to its common stock price, but current valuations place BHI shares at 1.12 HAL shares in addition to $19.00 in cash...

Analyst Commentary

Capital One Securities (1.20.15)

BHI 4Q Quick Take
$56.56, OVERWEIGHT, $63.00 Target
BHI crushed it. 4Q EPS of $1.44 vs our est of $1.11 and the Street's $1.07. The beat of our est was due to +16c NA, +6c LA, +3c Europe/Africa/Russia/Caspian, +7c M East/Asia, and +6c taxes which was partially offset by lower Industrial EBIT and higher corp expenses. NA revs were +4.7% q/q (+0.8% est) and margins improved q/q from 12% to 14..8% (12.4% est) and came very close to BHI's 15% tgt. LA revs were +3.5% q/q (+8% est), but margins popped q/q from 12.4% to 20% (13% est). EH revs were +7% q/q (+6.5% est), and margins grew q/q from 13.6% to 18.4% (15% est). Substantial improvement was shown across all geo-mkts, and the main question is: are these the operating results to start the decline off of in '15 or is it 3Q levels?

HAL 4Q Quick Take
$39.13, OVERWEIGHT, $41.00 Target
Positive. 4Q EPS of $1.19 vs our est of $1.07 and the Street's $1.10. The beat of our est was due to +1c NA, +2c M East/Asia, and +1c corp w/ the balance coming from taxes. NA revs were flat as expected, and margins increased slightly from 19.2% to 19.4% (19.1% est) w/ a benefit from cost efficiencies and the continued roll-out of strategic initiatives. L America revs were +2.8% (+2% est) q/q, and margins declined less than expected from 13.2% to 12.3% (11.8% est). E/A/CIS revs dropped 8.1% q/q (-7.4% est), and margins declined q/q from 14.8% to 10.5% (10.9% est). M East/Asia revs grew 10.4% q/q (+7.9% est), and margins expanded substantially from 17.8% to 20.8% (19.6% est).  


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