This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Halliburton's Settlement Is Great News for Shareholders

Stocks in this article: SLB, BHI, RIG, BP

Unlike Schlumberger, Halliburton is focused on the North American market.

As per Halliburton's latest quarterly results, the company generated about 54% of its revenue and 73% of its operating income, excluding the impact of corporate expenses, from North America. As a result, Halliburton's performance and its future depend heavily on the strength of the North American market.

Halliburton expects further improvements in North American activity levels, which should continue to fuel its growth. To capitalize on this business environment, Halliburton has been building on its fleet of equipment used to extract shale oil and gas.

Meanwhile, the company is also ramping up its logistics capabilities, such as its rail cars.

Rail bottlenecks could worsen in the future, but companies such as Halliburton, whose rail car fleet could touch 7,000 cars by early next year, "are likely to fare better than those without," Robert Mackenzie, director of research at Iberia Capital, wrote in an email.

Oilfield services companies use rail cars to transport goods, primarily fracking sand, which is used in extraction of shale oil and gas.

Halliburton is also eyeing growth in international markets, particularly in Latin American and the Eastern Hemisphere. The company could witness a turnaround in Mexico, where rig count hit 10-year lows in the previous quarter, on the back of the oil reforms.

Meanwhile, Halliburton is targeting about $3 billion worth of long-term asset management projects in Ecuador.

As for the Eastern Hemisphere, Halliburton is looking at a bright future with "slow and steady growth", despite problems in Iraq and Russia.

Mackenzie thinks that Halliburton gets just about 2% of its revenue from Russia and 1.5% from Iraq, making it least exposed to these countries as compared with its peers.

On the other hand, the company's growth is being driven by several markets, particularly Saudi Arabia, which has become its second-largest international market.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

 

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs