After a century of operations, Halliburton is the world’s premier wellbore engineering firm. It made a historic bet on US shale, which ensured its position as North America’s premier oilfield-services company. The company tailors its pressure pumping solutions to drive down producers’ development costs.
Halliburton’s greater short-cycle exposure than its Big Three peers means its fundamentals should benefit sooner amid elevated oil prices.
Bears
Demand destruction from elevated oil prices is a vicious cycle, as slowing economic activity means Halliburton’s customers will eventually pull back on capital spending.
Halliburton is North America’s largest oilfield-services company as measured by market share. Despite industry fragmentation, it holds a leading position in the hydraulic fracturing and completions market, which makes up nearly half of its revenue. It also holds strong positions in other service offerings like drilling and completions fluids, which leverages its expertise in material science, as well as the directional drilling market. While we consider SLB the global leader in reservoir evaluation, we think Halliburton leads in any activity from the reservoir to the wellbore. Halliburton's innovations have helped multiple producers lower their development costs per barrel of oil equivalent, with techniques that have been honed over a century of operations.