Halliburton’s Indonesian Geothermal Deal And What It May Mean For Valuation

• Halliburton (NYSE:HAL) secured a multiyear contract to support geothermal well construction projects in Indonesia.
• The work is for KS Orka Renewables and focuses on services for geothermal developments in the region.
• The agreement expands Halliburton's activity in renewable energy related services.

For a company best known for oilfield services, this move puts Halliburton into a different corner of the energy space: geothermal development in Indonesia. The contract with KS Orka Renewables adds another line of work tied to low carbon energy sources, alongside its traditional offerings.

For investors watching NYSE:HAL, this type of contract can help indicate how the company is positioning its service portfolio as energy systems evolve. It also provides an example of how existing drilling and subsurface expertise can be applied to projects outside conventional oil and gas.

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📰 Beyond the headline: 4 risks and 2 things going right for Halliburton that every investor should see.

Quick Assessment

• ⚖️ Price vs Analyst Target: At US$34.77, Halliburton trades about 4% below the US$36.22 analyst price target, which is within the typical range of uncertainty.
• ✅ Simply Wall St Valuation: Our model flags the shares as trading about 55.1% below estimated fair value, suggesting a large valuation gap.
• ✅ Recent Momentum: The stock is up roughly 6.8% over the last 30 days, which shows recent positive interest.

There is only one way to know the right time to buy, sell or hold Halliburton. Head to Simply Wall St's company report for the latest analysis of Halliburton's Fair Value.

Key Considerations

• 📊 The Indonesian geothermal contract adds activity in low carbon services, which may help diversify Halliburton's revenue mix beyond traditional oilfield work.
• 📊 Watch how much geothermal and other renewable related work contributes to orders and margins relative to the current 5.8% net income margin.
• ⚠️ The company carries a high level of debt and has a lower profit margin than last year, so investors may want to see that new projects support returns without stretching the balance sheet.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Halliburton analysis. Alternatively, you can visit the community page for Halliburton to see how other investors believe this latest news will impact the company's narrative.

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.

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