Follow Halliburton to never miss an important update.
Oil prices rose about 6 percent after negotiations between the U.S. and Iran failed. This jump in prices matters for Halliburton because its customers, the oil and gas companies, usually increase their spending on drilling and well services when the price of oil is high.
While Halliburton is shifting more of its focus to international projects, higher global oil prices generally support the demand for its engineering and technology services. If prices stay at these levels, it could lead to more work for its two main divisions that handle drilling and well stimulation.
Oil prices climbed after Iranian state news shared a plan to set new conditions for ships moving through the Strait of Hormuz, a critical narrow waterway for global energy supplies. As an oilfield services company, Halliburton generally benefits when higher oil prices encourage energy producers to spend more on drilling and well construction. While the tension adds risk to regional operations, the resulting price support for crude is a tailwind for the company's broader service business.
Source: CNBC
The company reached a non-binding agreement to support a gas project in Australia's Northern Territory that will link energy production directly to AI data centers. This move aligns with the company's focus on digital services and finding new ways to use natural gas. While the deal is early and not yet a firm contract, it shows how the company is positioning its engineering expertise to serve the growing power needs of the AI industry.
Source: Reuters
Analysts at Argus Research lowered their price target to $40 following the company's recent quarterly update. The move reflects a slightly more cautious outlook on the near-term market for oilfield services, even as the firm maintains its positive long-term view. The new target still sits about 23 percent above the current stock price.
Source: Argus Research
Analysts at Freedom Broker upgraded the stock after seeing the company's second-quarter performance. While the firm is not yet recommending a buy, the move away from a sell rating suggests they see less risk in the stock at its current price. The upgrade comes as the company continues to return cash to shareholders through buybacks despite a shifting market.
The company has beaten profit expectations for four straight quarters, showing management is good at managing costs even when the broader market softens.
| Expectation | |
|---|---|
| EPS | $0.59 |
| Revenue | $5.58B |
Follow Halliburton to get the latest and most important updates.
Follow HAL