This Day On The Street
Continue to site
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

Why Halliburton's Settlement Is Great News for Shareholders

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
HAL $29.59 0.00%
AAPL $94.99 0.00%
FB $101.39 1.90%
GOOG $678.11 0.00%
TSLA $151.85 2.40%


Chart of I:DJI
DOW 16,014.38 -12.67 -0.08%
S&P 500 1,852.21 -1.23 -0.07%
NASDAQ 4,268.7630 -14.99 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs