2023 Oil Boom
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Wall Street's betting on new oil bull market…
JP Morgan analysts have pegged the future price of oil at $380 per barrel.
That would send oil companies skyrocketing.
However…
There is a much better way to profit from oil in 2023.
It's NOT oil stocks, futures, or anything you've likely heard about.
Rather, it's an unusual investment that could hand you huge monthly income from the oil and gas markets.
In fact, one man used it build a small $1,000 investment into a $100,000 income stream over fifty years.
All the details are right here from my colleague, income expert Marc Lichtenfeld.
Halliburton Company (HAL), headquartered in Houston, Texas, is one of the world's largest providers of products and services to the energy industry. With a history dating back to 1919, Halliburton has developed a strong reputation and is deeply rooted in the energy sector. The company's operations are divided into two main segments: Drilling and Evaluation, and Completion and Production.
Halliburton serves the upstream oil and gas industry throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production through the life of the field. The company's expertise in extraction and production processes, combined with its innovative technologies, makes it a leader in the industry.
Texas Roots and Global Reach
Being based in Texas, a state known for its rich oil and gas resources, Halliburton has been able to leverage the state's infrastructure, skilled workforce, and business-friendly policies to grow its operations. Texas is home to many of the world's largest oil and gas companies, creating a competitive but also collaborative environment that drives innovation and efficiency in the sector.
Halliburton's Texas roots have also provided it with opportunities to work closely with local oil and gas producers, gaining valuable experience and insights that have helped shape its service offerings. The company's deep understanding of the Texas oil and gas landscape has been a key factor in its ability to deliver effective solutions to its clients.
Despite its strong Texas roots, Halliburton's reach extends far beyond the state. The company operates in more than 70 countries, providing a wide range of services to the global energy industry. Its international operations allow it to diversify its revenue streams and reduce its exposure to any single market.
Halliburton's Texas heritage and its global reach make it a unique player in the energy industry. The company's extensive experience, coupled with its innovative approach to reservoir management, position it well to navigate the challenges and opportunities in the energy sector. As the industry continues to evolve, Halliburton's deep roots in Texas and its broad international presence will continue to be key assets.
Now, let’s take a look at Halliburton’s financials, compare them to its competitors, and see if it’s a worthwhile stock to own before a potential surge in the price of oil…
Halliburton Company (HAL) Financial Overview
- Current Price: $32.70
- Market Cap: $29.5B
- P/E Ratio: 15.2
- Dividend Yield: 2.0%
- Revenue (TTM): $14.4B
- Net Income (TTM): $1.1B
- Earnings Per Share (EPS): $1.25
Schlumberger NV (SLB) Financial Overview
- Current Price: $47.96
- Market Cap: $68.4B
- P/E Ratio: 17.9
- Dividend Yield: 2.1%
- Revenue (TTM): $23.6B
- Net Income (TTM): $1.5B
- Earnings Per Share (EPS): $1.04
Baker Hughes Co. (BKR) Financial Overview
- Current Price: $30.17
- Market Cap: $30.5B
- P/E Ratio: N/A
- Dividend Yield: 2.5%
- Revenue (TTM): $20.7B
- Net Income (TTM): $653M
- Earnings Per Share (EPS): $0.53
Analysis
When comparing Halliburton to its competitors, it's clear that each company has its strengths and weaknesses.
Halliburton has a lower P/E ratio than both Schlumberger and Baker Hughes, indicating that it may be undervalued compared to its earnings. This could make it an attractive investment for value investors. Sure, HAL’s dividend yield is lower than its competitors, but it’s not drastically lower to the point where SLB or BKR are more attractive investments given their higher P/E ratios and lower EPS.
In terms of revenue and net income, Halliburton falls between Schlumberger and Baker Hughes. Its revenue is lower than Schlumberger but higher than Baker Hughes, and its net income is higher than both competitors. This suggests that Halliburton may be more efficient at generating profit from its revenue.
Related: Oil = Monthly Income
The Bullish Case for Halliburton
- Oil prices continue to rise, which leads to increased demand for Halliburton's services.
- Halliburton expands its market share in the global oilfield services market.
- Halliburton successfully executes its strategic plan, which includes investing in new technologies and expanding its operations in new markets.
The Bearish Case for Halliburton
- Oil prices fall, which leads to decreased demand for Halliburton's services.
- Halliburton faces increased competition from other oilfield services companies.
- Halliburton experiences operational problems, which lead to delays and cost overruns.
Halliburton Price Predictions
- Bullish: $50-$60 per share
- Bearish: $20-$30 per share
- Most Likely: $30-$40 per share
It is important to note that these are just predictions, and the actual price of Halliburton stock could be much higher or lower. The market is unpredictable, and there are many factors that could affect Halliburton's stock price in the next 12 months.
Here are some additional factors that could affect Halliburton's stock price in the next 12 months:
- The pace of economic growth in the United States and other major economies.
- The supply and demand for oil and natural gas.
- The success of new oil and gas exploration and production projects.
- The regulatory environment for the oil and gas industry.
- The actions of Halliburton's competitors.
In conclusion, Halliburton appears to be a solid investment based on its financial metrics. It's potentially undervalued compared to its earnings, and it's efficient at generating profit. However, its lower dividend yield could be a downside for some investors. As always, it's important to consider these metrics in the context of your individual investment goals and risk tolerance.
A 10,000% Dividend?!?
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Have you seen this strange oil investment?
It's NOT a stock, bond, or private company…
It has NO age requirements…
You do NOT need to be accredited to participate…
And you can get in for as little as $25.
Yet this secret is so powerful that one man used it to build a $100,000 income stream from just $1,000.
And he was collecting this income even 50 years later!
That's like earning a 10,000% dividend year after year!
In short…
This is easily the #1 Oil Play for 2023 and beyond.
My short presentation reveals everything:
