Halliburton’s Numbers & My Aunt Mildred

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So, Halliburton. The stock’s been… exuberant. A 55% climb since October, which, honestly, feels less like shrewd investing and more like someone accidentally hit the “up” button on a very large lever. I’ve been watching it, of course, because that’s what I do. I poke at companies, try to figure out if they’re genuinely improving or just…performing. It reminds me of my Aunt Mildred and her attempts at competitive birdhouse building. A lot of glitter, a questionable foundation, and an eventual collapse. But I digress.

They’ve managed to erase last year’s losses, which is impressive, I suppose. Though I’m always suspicious of anything that sounds like a financial resurrection. It usually involves someone else’s misfortune. The key, it seems, is cost-cutting. A simple concept, really. Though try telling that to the marketing department at any company. They’ll tell you about “brand synergy” and “thought leadership” while simultaneously ordering artisanal water for the office. Their fourth-quarter revenue was…flat. Barely a twitch. But profitability? That showed a little life. They’ve trimmed the fat, apparently. Or at least, rearranged it.

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They announced a reduction in overhead and labor, saving roughly $400 million annually. I’m picturing a room full of accountants in tiny visors, gleefully slashing budgets. It’s probably less glamorous than that. And they’re pulling back on capital expenditures. A sensible move, though it does feel a little…defeatist. Like admitting the golden age of oil is, well, over. My brother-in-law, a retired geologist, would have a field day with that. He’s currently obsessed with collecting antique maps of fictional islands.

International Rescue

The domestic business is struggling, which isn’t exactly breaking news. Exploration & Production operators seem to prefer returning capital to shareholders over, you know, actually producing anything. It’s like a collective decision to slowly wind down. North American sales dropped 7% in the last quarter. That’s a significant sigh. But international revenue? Up 7%. They’re finding life overseas. Europe/Africa is doing well, thanks to increased tool sales in the North Sea and some wireline activity in Africa. I’m imagining a lot of very specialized wrenches. Latin America is also contributing. Brazil and Mexico, specifically. It’s like they’re diversifying their portfolio of potential disasters.

The CEO, Jeff Miller, expects North American revenue to decline further in 2026. But the international order book for completion tools is at an all-time high. Deepwater and offshore projects, apparently. It’s a bit like watching someone abandon a sinking boat for a slightly less leaky raft.

Share Buybacks & The Illusion of Value

They repurchased 42 million shares last year at a bargain price. About 30% lower than today’s. A cool $1 billion. It’s a strategy to lower the total share count, bringing it to a decade low. They plan to continue this pace, supported by the pullback in capital spending. It’s a bit like rearranging the deck chairs on the Titanic, but if the Titanic was also trying to look financially solvent. They’re paying a quarterly dividend, yielding about 2%. It’s well covered, representing 30% of their free cash flow.

They trade at about 15 times forward earnings, which is a discount compared to Schlumberger’s P/E ratio of 17. The rally has closed the gap, but the price still offers a fair value. Or at least, a less outrageous value. I’m still wary. I’ve learned that “fair value” is often just a polite way of saying “slightly overpriced.”

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2026-02-11 13:52