Halliburton and Nabors achieve drilling automation milestone in Oman

Published 15/04/2025, 13:38
Halliburton and Nabors achieve drilling automation milestone in Oman

HOUSTON - Halliburton (NYSE: HAL), currently trading at $21.25 and identified as undervalued according to InvestingPro analysis, and Nabors Industries (NYSE: NBR) have successfully completed the first fully automated drilling operations in Oman, marking a significant advancement in the region’s drilling automation capabilities. The collaboration utilized Halliburton’s LOGIX automation and remote operations solutions alongside Nabors’ SmartROS rig operating system to execute both rotary and slide drilling processes.

The automated system orchestrated drilling parameters, integrated real-time data analytics, managed experience, and enabled remote control of operations. This led to operational improvements, including a higher average rate of penetration and reduced non-productive time, allowing wells to be delivered ahead of schedule. The company’s operational efficiency is reflected in its strong financial metrics, with a healthy EBITDA of $5 billion and an impressive return on equity of 25% over the last twelve months.

Steve Haden, senior vice president of Project Management at Halliburton, highlighted the achievement by stating, "The wells were delivered ahead of plan with a higher average rate of penetration and lower non-productive time. This milestone demonstrates our leadership in drilling automation."

Subodh Saxena, senior vice president of Canrig and Nabors Drilling Solutions, echoed the sentiment, emphasizing the importance of collaboration in driving industry-wide automation enhancements to bolster safety and efficiency.

The successful implementation of this technology in the Middle East has optimized drilling performance and shortened well construction times. The companies received the 2025 Digital Enabler of the Year Award for their efforts, reflecting the industry’s recognition of their leadership in drilling automation.

Halliburton, a leading provider of energy industry products and services since 1919, continues to innovate and support its customers throughout the life cycle of an asset. With a market capitalization of $18.45 billion and a strong financial health score rated as "GREAT" by InvestingPro, the company maintains a solid position in the industry. Notable achievements include maintaining dividend payments for 55 consecutive years, with a current yield of 3.2%. Nabors Industries, known for its advanced technology in the energy sector, operates in over 20 countries, focusing on drilling, engineering, automation, data science, and manufacturing to foster safe and efficient energy production. For deeper insights into Halliburton’s financial performance and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro, which covers over 1,400 top US stocks.

This article is based on a press release statement.

In other recent news, Halliburton announced a first-quarter dividend for 2025, set at $0.17 per share, payable to shareholders of record as of March 5, 2025. This follows Halliburton’s ongoing commitment to returning value to its shareholders. In a significant development, Halliburton secured a major contract with Petrobras for integrated drilling services in Brazil, marking its largest service contract with the company to date. This contract will employ advanced technologies like the iCruise® intelligent rotary steerable system and LOGIX™ automation platform to enhance drilling efficiency and precision.

On the analyst front, Benchmark, Stifel, and Goldman Sachs have all revised their price targets for Halliburton. Benchmark lowered its target to $35 from $40, citing revenue and EBITDA expectations below consensus due to challenges in North America and Mexico. Stifel adjusted its target to $37 from $42, maintaining a Buy rating, and highlighted margin pressures in the Completion and Production segment. Goldman Sachs set its price target at $34, emphasizing Halliburton’s technological innovations and potential revenue growth driven by advancements in drilling technologies.

Despite these target adjustments, analysts remain optimistic about Halliburton’s long-term growth prospects, with Goldman Sachs projecting a $2.4 billion free cash flow in 2025. Halliburton’s strategic focus on expanding its technology offerings is expected to bolster its competitive edge and contribute to future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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