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Halliburton (HAL) Lands Eni Cronos Deal On A Narrative That Says The Stock Is Undervalued

Simply Wall St · 2d ago

Halliburton (HAL) has just secured a bundled well construction and completions contract from Eni for the multi-year Cronos ultra-deepwater gas project in Cyprus, putting fresh attention on the stock’s offshore exposure.

At a share price of US$35.67, Halliburton has had a mixed few months. The 30-day share price return of 3.63% has been partially offset by a 7-day decline of 3.07%, while the 1-year total shareholder return of 62.32% points to strong momentum building over a longer stretch.

Scan how other offshore and energy service players stack up after Halliburton's Cronos win by running the curated 38 power grid technology and infrastructure stocks across critical infrastructure and support plays in the sector.

Bulls point to Halliburton’s Cronos win, rising net income, and a value score of 6. Bears focus on the mixed recent returns and a weaker 3 year record. Which side does the current valuation support next?

Most Popular Narrative: 17% Undervalued

On the most followed view, Halliburton’s fair value of $43.20 sits above the recent $35.67 share price, putting the Cronos contract into a broader story about international projects, digital tools, and where future cash flows might come from.

Halliburton's expansion and adoption of proprietary digital and automation technologies (e.g., ZEUS IQ, iCruise, LOGIX, EarthStar 3DX) are enabling higher-margin, differentiated offerings. Increased deployment and customer adoption, especially internationally, has potential to structurally improve net margins and recurring revenues over the medium to long term.

See why 101 investors see Halliburton as 17% undervalued.

Result: Fair Value of $43.20 (UNDERVALUED)

Still, the narrative around Halliburton can crack if tighter pricing and cost inflation squeeze margins, or if faster decarbonization shifts capital away from oilfield services.

Find out about the key risks to this Halliburton narrative.

Next Steps

Sentiment around Halliburton is split, which is exactly why it pays to review the numbers yourself and decide where you stand. To weigh the trade off between those concerns and the upside potential, start with the 4 key rewards and 2 important warning signs.

Looking for more Halliburton sized ideas?

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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.