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].

Core Viewpoint - Halliburton reported a mixed performance in its third-quarter earnings, with adjusted net income per share of 58 cents, surpassing estimates but declining from the previous year's profit of 73 cents due to reduced activity in North America [2][4]. Financial Performance - Adjusted net income per share for Q3 2025 was 58 cents, beating the Zacks Consensus Estimate of 50 cents, but down from 73 cents year-over-year [2]. - Revenues totaled $5.6 billion, a 1.7% decline year-over-year, yet exceeded the Zacks Consensus Estimate by 4% [2]. - North American revenues decreased by 0.9% to $2.4 billion, outperforming projections by over $246 million [3]. - International revenues fell by 2.3% to $3.2 billion, missing estimates of $3.3 billion [3]. Segment Performance - The Completion and Production segment reported operating income of $514 million, down from $669 million year-over-year but above the estimate of $449.5 million [4]. - The Drilling and Evaluation unit's profit decreased to $348 million from $406 million year-over-year, yet outperformed the estimate of $339 million [5]. Capital Expenditure and Cash Flow - Capital expenditure for Q3 was $261 million, significantly below the projected $323.8 million [6]. - The company generated $488 million in cash flow from operations, resulting in free cash flow of $276 million [6]. Management Strategy and Outlook - Halliburton aims to achieve approximately $100 million in quarterly savings and has reduced its 2026 capital budget by around 30% to $1 billion [7]. - The company is focusing on maximizing value through disciplined returns and advanced technologies, while also committing to returning cash to shareholders [7]. Estimate Revisions - There has been a notable upward trend in estimate revisions, with the consensus estimate shifting by 16.71% [9]. - Halliburton currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [11]. Industry Context - Halliburton operates within the Zacks Oil and Gas - Field Services industry, where competitor Liberty Oilfield Services reported a revenue decline of 16.8% year-over-year [12]. - Liberty Oilfield Services is projected to post a loss of $0.21 per share for the current quarter, reflecting a significant year-over-year change [13].

Core Points - Halliburton Company announced a fourth quarter dividend of seventeen cents ($0.17) per share on its common stock [1] - The dividend is payable on December 24, 2025, to shareholders of record as of December 3, 2025 [1] - Halliburton is recognized as one of the leading providers of products and services to the energy industry, with a history dating back to 1919 [1]

Market Overview - The US equity market experienced a rally in the third quarter of 2025, with the S&P 500 Index increasing by 8.12% [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] Performance Analysis - The composite return for the quarter was 7.22% gross of fees and 7.10% net of fees, which underperformed the S&P 500 Index's gain of 8.12% [1] - The underperformance of the strategy was attributed to security selection [1] Company Focus: Halliburton Company (NYSE:HAL) - Halliburton Company had a one-month return of 20.69%, but its shares declined by 10.34% over the past 52 weeks [2] - As of November 14, 2025, Halliburton's stock closed at $27.30 per share, with a market capitalization of $22.98 billion [2] Investment Decisions - The strategy sold Halliburton Company shares to invest in Baker Hughes, citing expected headwinds in the U.S. completion and pumping business due to declining onshore activity and pricing weakness [3] - Halliburton Company was held by 44 hedge fund portfolios at the end of Q2 2025, down from 54 in the previous quarter [3] - The strategy suggests that certain AI stocks may offer greater upside potential and less downside risk compared to Halliburton [3]

Core Viewpoint - Halliburton (HAL) is currently viewed as a macro barometer, with stock performance likely to improve with better demand conditions, but it is not seen as an obvious buy at this time [1] Group 1: Company Insights - Narweena, an asset manager led by Richard Durant, focuses on identifying market dislocations due to misunderstandings of long-term business prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with high barriers to entry [1] - Narweena's investment strategy emphasizes company and industry fundamentals to uncover unique insights, with a preference for smaller cap stocks and markets lacking obvious competitive advantages [1] Group 2: Market Trends - An aging population with low growth and stagnating productivity is expected to create new investment opportunities, differing from past trends [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance as competition diminishes [1] - The economy is increasingly influenced by asset-light businesses, leading to a declining need for infrastructure investments over time [1] - A significant amount of capital is pursuing a limited number of investment opportunities, resulting in rising asset prices and compressed risk premiums [1]

Core Viewpoint - The U.S. stock market experienced a decline on November 4, with technology stocks leading the drop, influenced by notable short-selling activities by Michael Burry, who has bet over $1 billion against companies like Nvidia [2] Summary by Relevant Categories Company Actions - Michael Burry has invested approximately $1.1 billion in put options for Nvidia and Palantir Technologies, indicating a strategy to profit from potential declines in their stock prices [2] - In addition to the bearish positions, Burry also purchased call options for Halliburton and Pfizer, suggesting a mixed investment strategy [2] Market Impact - The decline in the stock market was particularly pronounced in the technology sector, reflecting investor sentiment influenced by Burry's significant short positions [2]

Core Insights - Halliburton Company (HAL) is one of the largest oilfield service providers globally, with a market cap of $22.9 billion, offering a range of services to the energy sector [1] Financial Performance - HAL's stock has underperformed the broader market, with a year-to-date decline of 1.4% and a 52-week drop of 4.7%, while the S&P 500 Index gained 15.1% in 2025 and 18.5% over the past year [2] - The company also lagged behind the iShares U.S. Oil Equipment & Services ETF, which saw a 2.2% increase in 2025 and a 2.9% rise over the past year [3] - Following the release of better-than-expected Q3 results on October 21, HAL's stock surged 11.6%. The company's Q3 revenue decreased 1.7% year-over-year to $5.6 billion but exceeded expectations by 4%. Adjusted net income fell 22.6% year-over-year to $496 million, while adjusted EPS of $0.58 surpassed consensus estimates by 16% [4] Future Outlook - For the full fiscal year 2025, analysts project HAL to deliver an adjusted EPS of $2.16, reflecting a 27.8% year-over-year decline. However, the company has a strong earnings surprise history, exceeding bottom-line projections in the last four quarters. The consensus rating among 24 analysts is a "Moderate Buy," with 13 "Strong Buys," three "Moderate Buys," and eight "Holds" [5] - A month ago, the stock had a "Strong Sell" rating, indicating a more optimistic outlook now [6] - On November 3, Rothschild & Co analyst initiated coverage on HAL with a "Buy" rating and set a price target of $35. The mean price target of $29.59 suggests a 10.4% premium, while the highest target of $41.50 indicates a potential upside of 54.8% from current levels [7]

Core Insights - Halliburton Company (HAL) has seen a decline of 1.1% over the past year, while Ranger Energy Services, Inc. (RNGR) has outperformed with a rise of 9.2% [1] Company Performance - RNGR is a leading well-service provider in the U.S. domestic market, generating significant revenues from its High-Specification Rigs business segment despite a substantial decline in rig counts for drilling activities [4][5] - HAL operates globally and reported positive progress in both onshore and offshore markets, indicating a more diversified business model compared to RNGR [6] Financial Health - RNGR boasts a strong balance sheet with zero net debt and has returned approximately 43% of its free cash flow to shareholders since Q2 2023 [8] - HAL has a higher debt exposure with a debt-to-capitalization ratio of 41.7%, but it maintains financial discipline through share buybacks and cost-cutting measures [9] Capital Allocation Strategies - RNGR is more aggressive in returning capital to shareholders, while HAL focuses on generating cash flows through disciplined cost control [11] - HAL's trailing 12-month EV/EBITDA ratio is 6.49, indicating a premium valuation compared to RNGR's 3.31, reflecting HAL's diversified operations and stability [12] Investment Considerations - Investors seeking stability and lower risk may prefer HAL, while those willing to take on higher risks with expectations of strengthening onshore service activities may consider RNGR [15]

Core Insights - Halliburton has introduced its Remote Operated Controls Systems (ROCS) technology, significantly advancing deepwater operations and signing a strategic agreement with Shell for umbilical-less tubing hanger services [1][15] - ROCS technology is set to revolutionize well-completion challenges in harsh deepwater environments, demonstrating its effectiveness in various regions [2][4] Technology Overview - ROCS, developed by Optime, outperforms traditional hydraulic systems in deepwater well-completion, offering a compact and umbilical-less alternative that enhances safety and efficiency [3] - The technology has achieved a global benchmark by successfully installing a tubing hanger at 8,458 feet, marking the deepest umbilical-less operation in history [4] Efficiency and Safety - ROCS accelerates running-in and pulling-out-of-hole procedures, reducing deck operations by up to 75%, leading to significant cost savings and enhanced safety [5] - The technology improves downhole line tests, allowing for more accurate results and quicker decision-making, thereby reducing human error [6] Proven Performance - ROCS has been deployed in challenging environments, including the Norwegian Continental Shelf, West Africa, and the Gulf of America, demonstrating consistent performance and reliability [7] - Successful trials in the Gulf of America validated ROCS as a viable alternative to traditional methods, showcasing its ability to perform in deepwater conditions [8] Future Outlook - As the demand for efficient and reliable technologies in deepwater exploration grows, ROCS is well-positioned to meet these needs, marking a significant milestone in offshore drilling [9][10] - The partnership between Halliburton and Shell highlights the industry's shift towards safer and more efficient operations, with ROCS poised to become the standard in deepwater well-completion [11]

Core Insights - Halliburton has signed a framework agreement with Shell to provide services for the installation and retrieval of tubing hangers without traditional umbilicals, utilizing Halliburton's remote operated controls system (ROCS) technology [1][4] - The ROCS technology has been successfully implemented in various regions, achieving a record installation depth of 8,458 feet, marking the deepest umbilical-less operation to date [2] - The technology enhances efficiency by reducing deck operations by up to 75% and improving safety during installations, indicating a significant shift in deep-water operations [3] Technology and Implementation - ROCS technology, developed by Optime, allows for quicker procedures in running in and pulling out of holes compared to traditional methods [2] - The recent operation in partnership with Aker BP tested Halliburton's enhanced remote operated control system alongside the optime tubing hanger orientation system for subsea control and completions [4] Market Position and Future Outlook - The agreement with Shell positions Halliburton's ROCS as a reliable and cost-effective alternative to conventional methods, suggesting potential for broader adoption across global rig fleets [3]