Middle East tensions/conflict have made petroleum-related stocks attractive again as a group in June, prompting me to increase portfolio exposure for weeks running. Halliburton is quite undervalued historically, given oil/gas prices are headed higher in a long-term cycle upturn. HAL boasts less debt than in the past, solid free cash flow generation, and an abnormally high dividend yield, positioning it well for future upside.
In the latest trading session, Halliburton (HAL) closed at $22.19, marking a +2.02% move from the previous day.
HAL to deliver integrated well services and rigless solutions to boost Repsol UK's North Sea production and decommissioning efficiency.
In the latest trading session, Halliburton (HAL) closed at $19.97, marking a +0.3% move from the previous day.
HAL debuts EarthStar 3DX, the industry's first 3D horizontal look-ahead resistivity tool, enabling earlier formation detection for better drilling outcomes.
HAL and Rhino Resources complete delivery of two exploration wells offshore Namibia, marking the first fully in-country completion.
I rate Halliburton as a Hold with a $21 price target based on a 2025 adjusted EPS of $2.33, reflecting bearish oil price outlook. Economic uncertainty, potential U.S. recession, and OPEC+ production increases contribute to a bearish outlook for the oil field service sector through 2025. Halliburton's revenues and margins are pressured by lower oil prices, with significant downside risks if WTI falls below $55 per barrel.
Finding value in today's market is what most investors are after. Given where broad market-based multiples sit, many investors who may be sitting on the sidelines may be doing so for fear that these multiples may have gotten ahead of the market's medium-term potential.
Halliburton shares have declined 50% due to slowing energy activity, particular in US oil production, and fear of recession. The company has a solid balance sheet, high free cash flow yield, and is returning capital to shareholders through buybacks and dividends. The stock is trading at historically low valuations, presenting a potential upside if the energy sector stabilizes.
While the top- and bottom-line numbers for Halliburton (HAL) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
HAL generated $377 million of cash flow from operations in the first quarter, leading to a free cash flow of $124 million.
U.S. environmental groups say they are preparing for a legal showdown with the White House over its sweeping efforts to sidestep federal regulations on oil, gas and coal development.