Halliburton (HAL, Financial) (0.2%) (HAL – $24.62 – NYSE), based in Houston, Texas, is one of the world’s largest energy services companies.The company provides a range of vital services and products to upstream oil and gas operators worldwide. HAL is poised to benefit from higher drilling activity, tight equipment capacity and improved pricing across all its services and product lines. The company reduced the capital intensity of its businesses and is well positioned to generate significant free cash flow. Halliburton’s capital allocation priorities remain paying down debt and returning cash to shareholders. As soon as HAL achieves its debt target goal (likely before the end of this year), it will turn its focus on shareholder return, via restoring the dividend and initiating a stock repurchase program. It already increased its quarterly dividend from $0.045/share to $0.12/ share earlier this year, but we expect there is more to come. In 2022, we estimate the company to generate revenue of $20.1 billion, EBITDA of $3.8 billion, and EPS of $1.90. Our 2023P PMV for Halliburton is $44 per share.
From Mario Gabelli (Trades, Portfolio)'s Gabelli Asset Fund third-quarter 2022 commentary.
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