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Is Halliburton Really Worth Less Than $15?

Summary

Halliburton's Q2 revenue and EBITDA fell Y/Y by 9% and 59%, respectively.

Its $3.5B gift to BHI hurt liquidity and its intrinsic value, but HAL is up nearly 20% Y/Y.

A bottoms up analysis suggest HAL is worth less than $15. Avoid the stock.

Halliburton CEO Dave Lesar

Halliburton (NYSE:HAL) has dominated the financial news over the past 18 months due to its public courting of Baker Hughes (NYSE:BHI) and ultimate merger failure. Courting BHI, negotiating with regulators for merger approval and trying to manage the downturn in the oil patch has taken its toll. Its $3.5 billion merger break-up fee was particularly painful.

The break-up fee and a $2.6 billion debt repayment caused cash to fall to $3.1 billion in Q2 from $9.6 billion in the previous quarter. Revenue and...


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