Halliburton Stock Likely To See Higher Levels Post Q1 Results

Halliburton stock (NYSE: HAL), an energy company organized into the exploration, development, and production of oil and natural gas, is scheduled to report its fiscal first-quarter results on Tauesday, April 25. We expect HAL’s stock to trade higher due to revenues and earnings beating expectations marginally in its first quarter. Halliburton
HAL
possesses strong positions to benefit from the current crude oil price cycle which is expected to last for some time due to underinvestment in oil and gas upstream capex in recent years. In 2022, higher oil and gas prices gave producers the confidence to increase their capital spending which drove demand for the company’s equipment and services. Consequently, Halliburton’s revenue rose 33% year-over-year (y-o-y) to $20.3 billion and its operating income rose 50% y-o-y to $2.7 billion in 2022. That enabled the oil-field services giant to produce growing free cash flow – which was used to strengthen its balance sheet and return additional capital to shareholders through a higher dividend and the resumption of its share repurchase program.

We believe the macro backdrop that underpins a strong multiyear upcycle for energy remains very compelling in both oil and gas and in low-carbon energy resources. The growing tight supplies due to geopolitical uncertainty and the soaring demand from the reopening of China’s economy will likely bode well for energy prices in 2023. Multiple tailwinds remain in place for 2023, and the activity outlook abroad remains robust, especially in the Middle East, offshore, and North American markets.