Group 1 - Halliburton shares increased by 9.6% due to rising oil and gas prices amid escalating tensions between NATO and Russia [1] - NATO's leaders announced a "robust" response to recent Russian drone incursions, likely leading to further sanctions that could restrict Russian oil supply, which constitutes about 10% of global oil supply [2] - Oil prices rose over 2%, with Brent Crude surpassing $67 per barrel and West Texas Intermediate exceeding $63 per barrel, prompting a rally in oil and gas stocks [4] Group 2 - Halliburton is significantly leveraged to oil prices, with $8.5 billion in gross debt and $6.5 billion in net debt, making its stock particularly responsive to oil price fluctuations [4][7] - Oil and gas stocks, including Halliburton, can serve as a hedge against geopolitical instability and offer substantial dividends, with Halliburton's current dividend yield at 3% [6][8] - Halliburton is considered a strong candidate for portfolio inclusion due to its low valuation at 11.5 times earnings [8]
Why Halliburton Rallied Today