Halliburton Company

(New York Stock Exchange)
Back to all articles
Bullish +60

Halliburton and SLB Are 2 Energy Stocks Riding the Oilfield Recovery. 1 ...

AI-generated analysis

πŸ“ˆ Halliburton stock has climbed 13% year-to-date, outperforming the broader market as oilfield recovery gains momentum.

πŸ’° Q2 revenue reached $5.7 billion, a 6% sequential increase, with Completion and Production revenue rising to $3.2 billion.

πŸ”§ Drilling and Evaluation revenue increased 5% to $2.5 billion in the second quarter despite seasonal software sales impacts.

🌍 The company added 30 rigs to the U.S. land market, supporting a recovery in drilling and evaluation activity.

🀝 Halliburton secured major international awards including work for Saudi Aramco involving approximately 285 wells.

πŸ—οΈ A major integrated well-construction contract was secured for TotalEnergies' GranMorgu development in Suriname.

πŸ’Έ The company spent $235 million on capital expenditures in Q2 with full-year 2026 spending expected at about $1.1 billion.

πŸ“‰ Operating income for Drilling and Evaluation declined 4% to $338 million due to seasonal software sales roll-offs.

πŸ’Ή Halliburton returned cash to shareholders via a quarterly dividend of $0.17 per share and $200 million in stock repurchases.

🎯 Analysts offer a consensus 'Moderate Buy' rating with an average target price of $43.79 suggesting 30.17% upside.

Bullish Signals
  • Halliburton stock has climbed 13% year-to-date, outperforming the broader market as oilfield recovery gains momentum.
  • Q2 revenue reached $5.7 billion, a 6% sequential increase, with Completion and Production revenue rising to $3.2 billion.
  • Drilling and Evaluation revenue increased 5% to $2.5 billion in the second quarter despite seasonal software sales impacts.
  • The company added 30 rigs to the U.S. land market, supporting a recovery in drilling and evaluation activity.
  • Halliburton secured major international awards including work for Saudi Aramco involving approximately 285 wells.
  • A major integrated well-construction contract was secured for TotalEnergies' GranMorgu development in Suriname.
  • The company spent $235 million on capital expenditures in Q2 with full-year 2026 spending expected at about $1.1 billion.
  • Halliburton returned cash to shareholders via a quarterly dividend of $0.17 per share and $200 million in stock repurchases.
Risk Factors
  • Operating income for Drilling and Evaluation declined 4% to $338 million due to seasonal software sales roll-offs.
  • Analysts include seven 'Hold' ratings among the 25 covering the stock, indicating some caution on current valuation.
Full Analysis
Halliburton (HAL) is benefiting from the post-disruption oilfield recovery, with its stock climbing 13% year-to-date as operations restart globally. The company operates two main segments: Completion and Production, which saw revenue rise 6% sequentially to $3.2 billion in Q2, and Drilling and Evaluation, where revenue increased 5% to $2.5 billion despite a seasonal dip in operating income due to software sales roll-offs. Halliburton has expanded its U.S. land market presence by adding 30 rigs in the second quarter and secured significant international contracts, including work for Saudi Aramco involving approximately 285 wells and a major integrated contract for TotalEnergies' GranMorgu development in Suriname. Management projects that worldwide growth engines will generate between $2.5 billion and $3 billion in annual revenue by 2028, driven by stronger activity in unconventional resources, offshore projects, and well intervention. The company maintains a strong capital allocation strategy, spending $235 million on capital expenditures in Q2 while returning cash to shareholders through a quarterly dividend of $0.17 per share and roughly $200 million in stock repurchases during the quarter. Analysts hold a consensus 'Moderate Buy' rating with an average target price of $43.79, suggesting potential upside of 30.17% from current levels, though some analysts rate it as a 'Hold'.