HAL - Halliburton: The New AI Paradigm In Oilfield Services

2024-02-12 11:00:00 ET

Summary

• Halliburton reported record free cash in Q4 2023 and expects a 10% boost in 2024, leading to a 10% rally in the stock.
• The company's shift towards high-tech AI has increased its profitability and resilience, generating more cash per share.
• The potential catalyst for Halliburton stock is its position as the number one provider of fracturing services in North America, with the demand for Zeus frac spreads rapidly increasing.
• We rate the company as a buy at current levels.

Introduction

Halliburton Company ( HAL ), also known as “Big Red” reported record free cash in its fourth quarter, and year-end 2023 investor call, and expects a 10% boost in 2024. They gave an optimistic outlook for the year ahead. The stock rallied nearly ~10% on this news over the next couple of days. Then the laws of the physical universe reasserted themselves, and gravity pulled Halliburton stock back down to earth. Why? People aren't paying attention to the real fundamentals of the company, as I will explain in this article....

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