Stock Research and Analysis

by Stephen Simko, CFA

Bulls Say

The merger with Baker Hughes will help Halliburton close the gap with Schlumberger and will provide a great opportunity to realize revenue and cost synergies by applying Halliburton practices across Baker's service offerings.
Halliburton's deep-water contract revenue is growing 25% faster than the industry average, and despite lower prices, we still foresee continued offshore investment.
Mature field production offers great opportunity for integrated projects with long lives. Given low oil prices, these projects are even more compelling for cash-strapped national oil companies. Read more 

Bears Say

The downturn in oil prices may potentially scuttle the proposed merger should shareholders demand greater compensation as Halliburton's stock price has fallen.
Falling oil prices could cause the international and national oil companies to push highly profitable (for Halliburton) deep-water projects into later years, in favor of adding lower-cost reserves.
Mexico and Brazil have become a challenge because of lower-than-anticipated activity levels, which are placing pressure on the firm's margins in the Latin American region. Read more 


Halliburton's management team has built considerable value for shareholders and delivered returns above the firm's cost of capital. In our view, management is a standard steward of shareholder capital.
Having captured the market leader position in North   Read more 


Houston-based Halliburton is an oil services company focused on North American unconventional, deep-water exploration and development, and mature oilfield management markets.  Read more 

Friday Five: A $100 Billion Week of M&A 
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