Core Viewpoint - Halliburton's stock has shown resilience in a declining market, with a notable performance ahead of major indices, but upcoming earnings are expected to reflect a decline in both earnings and revenue year-over-year [1][2]. Financial Performance - Halliburton is set to announce its earnings on January 21, 2026, with analysts predicting earnings of $0.54 per share, representing a year-over-year decline of 22.86% [2]. - The consensus estimate for revenue is $5.39 billion, indicating a 3.87% decrease compared to the same quarter of the previous year [2]. - For the full year, earnings are projected at $2.26 per share and revenue at $21.89 billion, reflecting changes of -24.41% and -4.58% respectively from the prior year [3]. Analyst Estimates - Recent adjustments to analyst estimates for Halliburton are crucial as they reflect short-term business trends, with upward revisions indicating positive sentiment towards the company's operations [4]. - The Zacks Rank system, which incorporates these estimate changes, currently assigns Halliburton a rank of 3 (Hold), indicating a neutral outlook [6]. Valuation Metrics - Halliburton is trading with a Forward P/E ratio of 12.47, which is below the industry average Forward P/E of 19.05, suggesting it may be undervalued compared to its peers [7]. - The Oil and Gas - Field Services industry, to which Halliburton belongs, holds a Zacks Industry Rank of 37, placing it in the top 15% of over 250 industries [7][8].

Group 1 - BMO Capital reiterated a Market Perform rating and a $31 price target on Halliburton, citing resilience in North American activity and steady international growth [1] - The firm expects Halliburton's fourth-quarter 2025 results to show stronger-than-usual seasonal performance in North America, with fourth-quarter earnings per share projected at $0.56 and EBITDA at approximately $1.02 billion [1] - For full-year 2026, BMO projected EBITDA of $4.01 billion and earnings of $2.21 per share, with EBITDA margins expected to decline about 30 basis points year over year to 18.5% [2] Group 2 - BMO slightly raised its first-quarter 2026 EBITDA estimate to $952 million from $938 million, anticipating year-over-year growth in the second half of the year [2] - The analyst highlighted Halliburton's 20% ownership stake in VoltaGrid and its international partnerships as key areas to monitor, estimating that $2.50 to $3.00 per share of value related to these assets is already reflected in the stock price [3]

Industry Overview - The Zacks Oil and Gas - Field Services industry provides support services to exploration and production companies, including well maintenance, drilling equipment leasing, and seismic testing [3] - The industry is positively correlated to upstream expenditures, with companies expanding into liquefied natural gas (LNG) facilities to capitalize on contracts and reduce carbon emissions [3] Current Market Dynamics - Demand for oilfield services is expected to remain strong as upstream businesses, like those of Exxon Mobil Corporation, are likely to be profitable despite low oil prices due to advancements in drilling technologies [1][4] - The price of West Texas Intermediate (WTI) crude is currently below $60 per barrel, yet exploration and production activities in areas like the Permian Basin remain profitable due to lower break-even prices [4] Financial Health - The industry has a low debt exposure, with a composite debt-to-capitalization ratio of only 32.6%, allowing companies to navigate challenging business environments effectively [5] - The current trailing 12-month EV/EBITDA ratio for the industry is 7.96X, significantly lower than the S&P 500's 18.56X, indicating potential undervaluation [14] Technological Advancements - Oilfield service companies are increasingly providing smarter technologies to help upstream companies reduce costs and emissions, leading to higher demand for electric subsea systems and digital monitoring technologies [6] Industry Outlook - The Zacks Oil and Gas - Field Services industry holds a Zacks Industry Rank of 53, placing it in the top 22% of over 250 Zacks industries, indicating solid near-term prospects [7][8] Key Players - Halliburton Company (HAL) is well-positioned with a strong presence in all stages of the oilfield lifecycle and is focused on cleaner energy solutions, currently holding a Zacks Rank of 2 (Buy) [17] - Oceaneering International, Inc. (OII) is recognized for its robotic solutions and is expected to see growth in its Aerospace and Defense business, currently holding a Zacks Rank of 1 (Strong Buy) [19] - Baker Hughes (BKR) is also well-positioned to benefit from ongoing exploration and production activities, supported by a strong balance sheet for growth and acquisitions [21]

Core Insights - Halliburton Company (HAL) is a key player in the global energy sector, offering a wide range of services including well completion, stimulation, cementing, and artificial lift solutions, with a market capitalization of approximately $23.3 billion [1] Financial Performance - Halliburton's Q4 fiscal 2025 earnings are anticipated to show a diluted EPS of $0.54, reflecting a 22.9% decrease from the previous year's $0.70 [2] - In Q3, Halliburton's revenue decreased by 1.7% year-over-year to $5.6 billion but exceeded Wall Street expectations of $5.39 billion [3] - The adjusted EPS for Q3 fell by 20.5% to $0.58 compared to the previous year, yet it surpassed the analyst estimate of $0.50, indicating operational resilience [3] Operational Metrics - The company achieved a 13% adjusted operating margin and is implementing cost-saving measures projected to save $100 million per quarter [4] - Management has reset the 2026 capital budget and retired underperforming equipment, demonstrating disciplined cost control and strategic resource allocation [4] Future Projections - Analysts predict a 24.4% year-over-year decline in diluted EPS for fiscal 2025 to $2.26, followed by a further 4% decrease to $2.17 in fiscal 2026 [4] Stock Performance - Over the past 52 weeks, HAL stock has increased by 7.6%, with year-to-date gains of approximately 2%, underperforming the S&P 500 Index which gained 16.5% annually [5] - HAL stock has closely tracked the State Street Energy Select Sector SPDR ETF (XLE), which rose by 5.9% over 52 weeks [5] Market Reactions - On December 17, HAL stock rose by 2% as energy producers rallied, influenced by a more than 1% increase in WTI crude oil following geopolitical developments regarding Venezuela [6]

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Core Insights - Halliburton's stock price decreased by 4.29% to $27.19, underperforming the S&P 500's loss of 0.24% on the same day [1] - Over the past month, Halliburton's shares increased by 6.72%, outperforming the Oils-Energy sector's decline of 1.72% and the S&P 500's gain of 1.31% [1] Earnings Expectations - The upcoming earnings report for Halliburton is scheduled for January 21, 2026, with an expected EPS of $0.54, reflecting a 22.86% decrease from the same quarter last year [2] - Revenue is projected to be $5.39 billion, indicating a 3.92% decline compared to the previous year [2] - For the entire year, earnings are forecasted at $2.26 per share and revenue at $21.87 billion, representing changes of -24.41% and -4.69% respectively compared to the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Halliburton are crucial as they often indicate shifts in near-term business trends [4] - Upward revisions in estimates suggest analysts' positive outlook on the company's operations and profit generation capabilities [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Halliburton at 3 (Hold) [6] - The Zacks Consensus EPS estimate has increased by 2.32% in the past month [6] - Halliburton's Forward P/E ratio stands at 12.59, which is lower than the industry's Forward P/E of 19.68, indicating a valuation discount [7] Industry Context - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, holds a Zacks Industry Rank of 45, placing it in the top 19% of over 250 industries [7] - The Zacks Industry Rank evaluates the strength of industry groups based on the average Zacks Rank of individual stocks, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **North America Energy Services & Equipment (ESE)** sector, with a particular emphasis on the outlook for 2026 and the dynamics of oil and gas markets [1][4][10]. Core Insights and Arguments - **Market Outlook**: North America is nearing a bottom in terms of oil prices, with international onshore growth driven by OPEC activity. However, offshore growth is expected to be muted due to moderating efficiency gains [1][5]. - **Earnings and Valuations**: The ESE sector has seen a rally of approximately **30%** since the lows post-Liberation Day, resulting in year-to-date gains of about **5%**. Despite this, earnings estimates have fallen, leading to higher EV/EBITDA multiples and tighter free cash flow yields, now aligning with historical median levels [4][15]. - **Spending Trends**: North American onshore spending is expected to remain constrained, while international activity is projected to be flat in 2026 before increasing in 2027, driven by OPEC+ activity and unconventional gas opportunities [5][10][26]. - **Offshore Activity**: The outlook for offshore spending is more cautious, particularly for deepwater projects, due to anticipated efficiency gains that will limit the need for additional rigs [9][10][26]. Key Themes for 2026 - **Power and Data Centers**: There is an emerging opportunity in power generation, with demand expected to grow at a **2.6% CAGR** through 2035, driven by data center growth and electrification. Companies like HAL and LBRT are positioned to provide power solutions directly to end-users [10][35][41]. - **Oil and Gas Price Forecasts**: Oil prices are expected to decline by approximately **20%** since the start of 2025, with a forecasted surplus of **~2 mb/d** in 2026, potentially reaching **~3 mb/d** in the first half of 2026. Brent prices are anticipated to drop to around **$60/bbl** before a recovery begins in mid-2027 [10][63][64]. - **Rig Counts and Efficiency**: The total US rig count has decreased by **~7%** since the beginning of 2025, with oil-directed rigs down by **~14%** and gas-focused activity up by **25%**. Efficiency improvements have led to a reduction in drilling days per well [77][80][86]. Company-Specific Insights - **Top Picks**: HAL is identified as a top pick due to its exposure to the Middle East and power generation opportunities. The strategic partnership with VoltaGrid is highlighted as a key differentiator [14][54]. - **NOV Downgrade**: NOV has been downgraded to equal-weight due to its significant offshore capex exposure and less resilience in oil and gas production opex compared to peers [14][54]. Additional Important Points - **Investment Strategy**: The report emphasizes a preference for stocks with defensive and unique revenue streams, favoring gas over oil-focused activities and spending tied to existing production [54][43]. - **Long-term Trends**: The report notes that oil capex represents only **~55%** of revenues for the covered companies, with significant contributions from gas capex and non-upstream markets, indicating a shift in revenue dynamics [45][50]. This summary encapsulates the critical insights and projections for the North America Energy Services & Equipment sector as discussed in the conference call, highlighting both opportunities and challenges in the current market landscape.

Core Insights - Digital innovation is rapidly becoming a core driver in the oilfield services industry, with significant cost-saving potential estimated at over $320 billion in the next five years through various digitalization efforts [1][2] - The oilfield services ecosystem is expected to undergo a major transformation, with core companies shifting towards a "digital-first" business strategy [1] - The frequency of mentions regarding digitalization in financial disclosures is increasing, indicating its growing importance in the industry [1] Digitalization Impact - Key areas for digitalization include drilling optimization, autonomous robotics, predictive maintenance, reservoir management, and logistics optimization [1] - Schlumberger has begun reporting its digital segment's performance separately, projecting a profit margin of 35% for this segment by 2025 [1] - Viridien reported a revenue of $787 million from its digital, data, and environmental segment last year, reflecting a 17% year-over-year growth [1] Challenges and Responses - The widespread adoption of digital oilfields faces obstacles such as high initial hardware and software investments, ongoing maintenance costs, and cybersecurity expenses [2] - Medium-sized companies are selectively enhancing specific digital capabilities to improve services, while smaller niche firms focus on providing modular and customized solutions [2] - Collaboration between oilfield service companies and technology firms is increasing, enhancing internal digital capabilities and complementing merger and acquisition activities in the digital space [2]

HOUSTON--(BUSINESS WIRE)--Halliburton Company (NYSE: HAL) will host a conference call on Wednesday, January 21, 2026, to discuss its fourth quarter 2025 financial results. The call will begin at 8:00 a.m. CT (9:00 a.m. ET). The Company will issue a press release regarding the fourth quarter 2025 earnings prior to the conference call. The press release will be posted on the Halliburton website at www.halliburton.com. Please visit the Halliburton website to listen to the call via live webcast. A. ...

This investment demonstrates the companies' commitment to focus on innovative, sustainable energy solutions that meet evolving global infrastructure requirements. The collaboration combines Halliburton's operational expertise and global footprint with VoltaGrid's proven distributed power platform to deliver reliable, scalable, and efficient power for hyperscale data centers, critical to supporting artificial intelligence (AI), cloud computing, and digital transformation. ABOUT HALLIBURTON Halliburton is one ...