Halliburton’s Price Is A Steal

Halliburton Company (HAL) is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. In early April 2007, Halliburton completed the separation of Kellogg Brown & Root (KBR). The transaction enabled Halliburton to become a pure-play energy services company.

Continued commodity and credit-market issues are weighing on the oilfield service group in general and Halliburton shares in particular. The stock has underperformed its large-cap peers in recent days, primarily due to its perceived over-exposure to domestic natural gas prices through its dominant pressure pumping franchise.

But we think that the market’s reaction has been misplaced and excessive. Halliburton is much more than a North American pressure pumping player — it is a top three global player in each of the product/service market it competes in. Also, the company remains in excellent financial health.

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