Will Halliburton’s (HAL) Brazil Deepwater Wins Shape Its International Margin Expansion Strategy?

• Petrobras has awarded Halliburton multiple contracts to deliver vessel stimulation services, intelligent completions, and advanced safety valves in Brazil's deepwater fields, with these projects set to begin in 2026 and aiming to enhance reservoir productivity and operational efficiency.
• This announcement underscores Halliburton’s role in providing advanced technology solutions for complex offshore environments while deepening its partnership with Petrobras in a key international energy market.
• Next, we'll examine how new deepwater contracts in Brazil may influence Halliburton's outlook for margin growth and international expansion.

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Halliburton Investment Narrative Recap

To be a Halliburton shareholder, you need to believe that global oil and gas demand, especially for advanced offshore services, will remain resilient, supporting margin recovery and long-term international growth. While the Petrobras deepwater contract win may enhance Halliburton’s visibility in Latin America and future international diversification, it does not alter the most immediate catalyst for the stock, which remains near-term earnings momentum and margin stabilization; nor does it substantially reduce the overarching risk tied to North American market exposure.

Among recent announcements, the North Sea contract with ConocoPhillips is most relevant, emphasizing Halliburton’s ability to secure international workloads even as U.S. activity softens. This international expansion, visible in both Brazil and the North Sea, ties into the main catalyst supporting margin resilience despite lackluster North American drilling and completion trends.

In contrast, one risk investors should note is that global decarbonization pressures continue to challenge oilfield service demand, and...

Read the full narrative on Halliburton (it's free!)

Halliburton's outlook suggests $22.1 billion in revenue and $2.0 billion in earnings by 2028. This is based on a projected annual revenue decline of 0.2% and a $0.1 billion increase in earnings from the current $1.9 billion.

Uncover how Halliburton's forecasts yield a $27.04 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Twelve fair value estimates from the Simply Wall St Community range from US$20.00 to US$46.04 per share, illustrating significant variance in expectations. While some investors focus on international contract wins as a revenue catalyst, it is worth considering that long-term demand for oilfield services could still soften amid global decarbonization efforts.

Explore 12 other fair value estimates on Halliburton - why the stock might be worth over 2x more than the current price!

Build Your Own Halliburton Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Halliburton research is our analysis highlighting 4 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Halliburton research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Halliburton's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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