Halliburton CEO Warns of Historic Oil Supply Shock, Targets 15% Margins by 2027
HAL sits 51% above its 52-week low of $22.22.
Summary
Halliburton beat Q3 estimates with revenue of $5.703B (vs $5.572B consensus) and adjusted EPS of $0.60 (vs $0.58), and shares rose about 1.5% to $33.46. On the call, CEO Jeff Miller warned of one of the largest energy supply disruptions in history, citing nearly 3 billion barrels of oil lost since the Middle East conflict began and roughly 1 billion barrels drawn from global inventories. He expects restoration work, inventory rebuilding and energy security spending to drive multiyear demand for oilfield services, framing the industry as entering an upcycle. Management guided 2027 to mid-single-digit revenue growth and roughly 15% operating margins, about 200 bps higher, assuming flat North American conditions, with CFO Eric Carre targeting $100M-$150M of cost cuts next year. Results included a $107M pretax severance charge from global workforce reductions, and the company bought back about $250M of stock. The pitch is that margins improve without a North America frack recovery, which is the key debate for the stock.
At the time of this announcement, HAL was trading at $33.59 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $28B. The 52-week trading range was $22.22 to $43.59. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.