Join our smart investors - Get the best stock directories in  blockchain, cannabis, crypto, AI, IoT, cleantech. Daily podcasts in cannabis and crpto. Just $99  a year

This Year Looks Bullish for Texas Energy Services Firm

Source: Streetwise Reports


May 1, 2018 ( Newswire) Praveen Narra of Raymond James reviewed how this company should perform throughout the year and why.

In an April 23 research report, Raymond James analyst Praveen Narra noted that Halliburton Co.'s (HAL:NYSE) "weak" Q1/18 due to transitory issues does not portend similar future performance. On the contrary, it should achieve 20% margins by H2/18. "We fully expect the remainder of 2018 to play towards Halliburton's strengths," he added.

The company's Q1/18 EBITDA was $1,013 million ($1,013M), higher than but relatively in line with consensus of $986M and Raymond James' estimate of $1,011M.

Looking forward, demand, attrition and the North American market all should positively impact Halliburton's 2018 performance and margins, Narra indicated. Demand continues to increase. An expected 1.7 million hydraulic horsepower of pressure pumping are expected to be lost this year, "hence, not all of the announced capacity adds will result in net additions to the fleet." Consequently, fracking pricing should keep rising. Finally, a "robust recovery is in full swing" in North America, and a tightening of that market is expected throughout 2018.

The international market, however, is further away from recovery and, therefore, likely to lag in general with only pockets of strength. "Although the rate of tenders is double 2017's pace, pricing is unlikely to be a 2018 event," wrote Narra. Bidding remains competitive. Raymond James estimates Halliburton's margins and revenue from international operations should rebound in 2019, resulting in an approximate 8% revenue growth in 2018-2019.

As for costs, Halliburton increased its capex guidance to $2 billion ($2B) from around $1.7B. "While higher than expected, it does appear that the addition is return-generated spend particularly focused on the rollout of Sperry Drilling-related technology," Narra explained. Despite the outlay, the company expects to generate post-dividend free cash flow of about $440M.

Narra reiterated Raymond James' Strong Buy rating on Halliburton "due to its leverage to the North American land market and pressure pumping," and reduced its price target by $1 to $63 per share. Halliburton is currently trading at around $52.99 per share.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

Disclosures from Raymond James, Halliburton Co., Apr. 23, 2018


Analyst Compensation: Equity research analysts and associates at Raymond James are compensated on a salary and bonus system. Several factors enter into the compensation determination for an analyst, including i) research quality and overall productivity, including success in rating stocks on an absolute basis and relative to the local exchange composite Index and/or a sector index, ii) recognition from institutional investors, iii) support effectiveness to the institutional and retail sales forces and traders, iv) commissions generated in stocks under coverage that are attributable to the analyst's efforts, v) net revenues of the overall Equity Capital Markets Group, and vi) compensation levels for analysts at competing investment dealers.

The views expressed in this report accurately reflect the personal views of the analyst(s) covering the subject securities. No part of said person's compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this research report. In addition, said analyst has not received compensation from any subject company in the last 12 months.


Raymond James Ltd. or its affiliates expects to receive or intends to seek compensation for investment banking services from all companies under research coverage within the next three months.

Raymond James & Associates makes a market in shares of HAL. investing ideas in oil and gas stocks

Like Oil and Gas Stocks? View our Oil and Gas Stocks Directory

Get News Alerts on Energy Stocks

More Info: Newswire

This news is published on the Newswire - a global digital news source for investors and business leaders

Disclaimer/Disclosure: is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: Learn more about publishing your news release on the newswire

Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: Global investors must adhere to regulations of each country.

Please read privacy policy: