Current HAL Stock Info

Efficiency is way more important than pricing: Lesar
Halliburton (NYSE: HAL) released its fourth quarter 2016 results Monday, reporting numbers that indicate that the recovery is well underway in North America’s oil and gas sector.

Improved pricing in the second half of the year saw E&P companies drilling more wells, which led to higher demand for Halliburton’s services and a tightening in the equipment market.

“First and foremost, I am very pleased to announce that we returned to operating profitability in North America after three ...

Analyst Commentary

Stephens
HAL reported a solid quarter all things considered with EBITDA/EPS
beat vs. cons and "a tale of two cycles" playing out between NAM
and Int'l regions. NAM revs increased 9% q/q, driven by improved
pressure pumping pricing and utilization; this did underperform
competitor SLB who showed double-digit NAM land rev increases,
likely due to HAL's larger completions exposure. However, the market
share wins during the downturn should position HAL well if NAM
spending increases can sustain. LAM and ME/Asia were strong vs.
our expectations as well. We expect that NAM could lead recovery
completions and the ME region should be resilient given capital
access and renewed foreign investment, respectively, while LAM and
E/A/CIS regions could be slower responders to a global recovery.

Capital One Southcoast
Don't get hung up on the 4Q NA rev number: It was already expected that HAL would underperform the US land rig count in 4Q, but we were modeling mid teens growth vs the 9% that was posted. The 4Q rev underperformance is likely attributable to marketed utlz being fairly healthy heading into 4Q, reactivations more a 1Q event than 4Q, pricing just starting to move in 4Q, and HAL waiting on pads to be drilled before they could be completed. Overall, we're not concerned w/ the NA rev trajectory and believe 1Q could be setting up for a healthy qtr as pricing takes root and reactivations hit the field. 4Q incrementals were very robust at 65%, and it gives us further confidence that our '17 incremental margin est in the high 40% range is attainable.  


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