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]

Core Viewpoint - Halliburton Company will host a conference call to discuss its fourth quarter 2025 financial results on January 21, 2026 [1] Group 1 - The conference call will begin at 8:00 a.m. CT (9:00 a.m. ET) [1] - A press release regarding the fourth quarter 2025 earnings will be issued prior to the conference call [1] - The press release will be available on Halliburton's website [1]

Core Insights - Halliburton and VoltaGrid have announced a strategic collaboration to manufacture 400 megawatts (MW) of modular natural gas power systems for data centers in the Eastern Hemisphere, with delivery scheduled for 2028 [1][2] Group 1: Strategic Collaboration - The partnership aims to focus on innovative and sustainable energy solutions to meet global infrastructure needs [2] - Halliburton's operational expertise combined with VoltaGrid's distributed power platform will provide reliable and efficient power for hyperscale data centers [2][3] Group 2: Market Opportunity - The Eastern Hemisphere is identified as a significant opportunity for data center investment and power generation [3] - The investment reflects the increasing demand for power to support digital infrastructure growth, particularly in AI and cloud computing [3] Group 3: Environmental Considerations - The modular natural gas power systems are designed to have a lower emissions profile compared to conventional diesel generation [5]

Core Insights - Halliburton's stock closed at $29.04, reflecting a daily increase of 1.61%, outperforming the S&P 500's gain of 0.68% [1] - Over the past month, Halliburton shares appreciated by 1.85%, surpassing the Oils-Energy sector's gain of 0.84% and the S&P 500's gain of 1.8% [1] Earnings Performance - Halliburton is projected to report earnings of $0.54 per share, indicating a year-over-year decline of 22.86% [2] - The consensus estimate for revenue is $5.39 billion, representing a 3.92% decrease compared to the same quarter last year [2] - For the full year, analysts expect earnings of $2.26 per share and revenue of $21.87 billion, marking changes of -24.41% and -4.69% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Halliburton are crucial as they reflect the evolving business landscape [4] - Positive revisions in estimates indicate analyst optimism regarding the company's business and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), shows Halliburton currently holds a rank of 3 (Hold) [6] - The Forward P/E ratio for Halliburton is 12.66, which is a discount compared to the industry average Forward P/E of 19.77 [7] - The Oil and Gas - Field Services industry, part of the Oils-Energy sector, has a Zacks Industry Rank of 67, placing it in the top 28% of over 250 industries [7]

Core Viewpoint - Halliburton has announced the promotion of Shannon Slocum to executive vice president and chief operating officer, effective January 1, 2026, as part of a strategic leadership transition to enhance global operations and business development [1][2]. Leadership Changes - Shannon Slocum will take over global operations, business development, health, safety, environment, and global technology, reporting directly to Jeff Miller, the chairman, president, and CEO of Halliburton [1][2]. - Rami Yassine will succeed Slocum as president of the Eastern Hemisphere, effective January 1, 2026, after serving as senior vice president for the Middle East North Africa region [3]. Background of New Leaders - Shannon Slocum has been with Halliburton since 2005, holding various leadership roles, including president of the Eastern Hemisphere and senior vice president for global business development and marketing [2][3]. - Rami Yassine joined Halliburton in 2002 and has held multiple roles in operations and technology management across North America, the Middle East, and North Africa [4]. Company Overview - Halliburton is a leading provider of products and services to the energy industry, founded in 1919, focusing on innovative technologies and services to maximize asset value and promote a sustainable energy future [5].

Core Viewpoint - Halliburton has appointed Mr. Timothy A. Leach to its board of directors, effective December 2, 2025, with plans for him to stand for election at the 2026 Annual Meeting of Shareholders [1] Group 1 - Mr. Leach is recognized as a respected leader in the oil and gas industry, bringing decades of leadership experience [1]

Dividend Announcement - Halliburton will trade ex-dividend on 12/3/25 for its quarterly dividend of $0.17, payable on 12/24/25 [1] - The dividend represents approximately 0.65% of Halliburton's recent stock price of $26.22, indicating shares may open 0.65% lower on the ex-dividend date [1] Dividend History and Performance - The historical dividend chart shows that the most recent declared dividend is $0.17, and the estimated annual yield is 2.59% [2][3] - Halliburton's 52-week stock price range is between $18.72 (low) and $32.08 (high), with the last trade at $26.52 [3] Market Activity - In recent trading, Halliburton shares are up about 1.7% on the day [4]

Core Insights - The three major international oil service companies, Baker Hughes, Halliburton, and Schlumberger, reported significant declines in net profits for the third quarter due to oversupply in the global oil market and persistently low international oil prices. However, the CEOs of these companies provided positive evaluations of their third-quarter performance [1]. Baker Hughes - Baker Hughes reported a net profit of $609 million for Q3, a 20% decrease year-over-year from $766 million, and a 13% decrease from Q2's $701 million [2]. - The adjusted EBITDA for Q3 was $1.238 billion, showing a 2% increase both year-over-year and quarter-over-quarter [2]. - The company’s total revenue for Q3 was $7.01 billion, a slight increase of 1% from both Q2 and the same quarter last year [3]. - Baker Hughes' order intake reached $8.207 billion in Q3, marking a 23% increase year-over-year and a 17% increase from Q2 [2]. Halliburton - Halliburton's net profit for Q3 was $18 million, a staggering 97% decline from $571 million year-over-year and a decrease from $472 million in Q2 [4]. - The total revenue for Q3 was $5.6 billion, remaining relatively stable compared to Q2 but down from $5.697 billion in the same quarter last year [7]. - The company’s operating income for Q3 was $356 million, a significant drop from $871 million year-over-year [8]. Schlumberger - Schlumberger reported a net profit of $739 million for Q3, down 38% from $1.186 billion year-over-year and a 27% decrease from Q2's $1.014 billion [9]. - The total revenue for Q3 was $8.928 billion, reflecting a 4% increase from Q2 but a 3% decrease from the same quarter last year [9]. - The company’s adjusted EBITDA for Q3 was $2.061 billion, a 12% decrease year-over-year [9].