Analyst Note| Katherine Olexa |
Narrow-moat Halliburton posted solid fourth-quarter earnings as global oil and gas activity continued to steadily increase, especially internationally. Fourth-quarter revenue increased 31% year over year and 4% sequentially. The favorable pricing environment also persisted as production equipment remains near full capacity utilization. The firmwide operating margin was 17.5% expanding 170 basis points quarter over quarter. Management indicated its pressure pumping equipment remains sold out for 2023, so we're confident Halliburton will demonstrate continued strength into 2023 and likely beyond. We'll incorporate the firm's full financial and operating results shortly, but after this first look, we maintain our $39 fair value estimate.