About Us

Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

A Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Social Media

Bluesky • Facebook • Instagram • LinkedIn • YouTube

Meet the Laser Focus World Team

Editorial

Sales

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology
My Watchlist
Indicators
Industrial Laser Index
Markets
Stocks
ETFs
Tools
Markets:
Overview
News
Currencies
International
Treasuries

Winners And Losers In The Oilfield Supercycle

By: MarketBeat

Oil field stocks

There are no losers in the oil field super cycle, only winners, but winning is relative. While the signs are good that the spending in upstream, natural gas, and efficiency will continue, 1 oilfield services company stands out as the clear winner. Halliburton (NYSE: HAL) offers a value relative to its peers and a more substantial opportunity for income and growth investors.

The company’s results show it can do more with less, which is a lever for shareholder returns. The company’s outperformance is best seen in its ability to generate substantial cash. The takeaway is that Halliburton, Baker Hughes (NYSE: BKR), and Schlumberger (NYSE: SLB) stocks are set to move higher, but Halliburton will likely lead the way. 

The Oilfield Supercycle Has Long Legs 

Among the many takeaways from the Q2 reporting period is that the oilfield supercycle has legs. Baker Hughes says upstream spending should remain solid in 2023, and the LNG market is good. In their eyes, the LNG upswing has several more years to unfold, and international markets are strong for crude and LNG operations.

Looking forward, they see 2024 producing more of the same and execs at Halliburton and Schlumberger echoes that. Halliburton’s CEO is confident in the strength and direction of the supercycle. At the same time, Schlumberger’s Olivier Le Peuch is “excited about the opportunities for our business, with international- and offshore-led growth fueling strong pretax segment operating margin expansion and cash flows as highlighted in this quarter’s results.”

The Q2 results are solid across the board. The takeaways here are double-digit top-line growth, but the analysts expected it. Baker Hughes outperformed by a slim margin while the other both came up slightly short.

The best news is the margin and the bottom lines, which expanded and outperformed the Marketbeat.com consensus. All 3 experienced operating leverage in the quarter to produce GAAP and adjusted earnings above targets.

The takeaway is that Halliburton produced the strongest bottom-line growth and delivered the strongest free cash flow. 

Halliburton generated $0.798 billion in FCF for an FCF margin of 14.25%. That compares to only 9.8% at Baker Hughes and 12% at Schlumberger. Schlumberger produced more FCF, but the company’s business is almost double the size; it would be a surprise if it didn’t.

The takeaway is that both companies can make significant dividend increases over the next few years, and Halliburton is in the best shape of all. While Baker Hughes maintained and even grew its distribution since 2020, both HAL and SLB made suspensions that have yet to be corrected. 

Value Makes The Difference 

Schlumberger would have to increase its dividend by 100% to reach its prepandemic level compared to only 12.5% for Halliburton, but there is a difference. Halliburton is better positioned to continue raising its dividend beyond the 2019 levels and trades at a value.

It trades at only 12X its earnings compared to 19X for SLB, which implies a substantial dividend hike is already priced in. Baker Hughes, which pays out twice as much of its earnings, yields 2.2% but trades at 23X earnings. This suggests that Halliburton stock could see a significant price multiple expansion and distribution increases over the next few years. 

A look at the chart is telling. Halliburton stock is clearly leading the market since 2018. If confirmed, the stock price is waving a Bullish Flag that could lead to another 50% upside. That is consistent with the analysts' consensus target and rating of Buy; the consensus target is about 30% above the current price action, with a high target that’s another 15% higher. 

Haliburton stock chart

More News

View More
Bassett Furniture: Buy Now, Sit Back, and Collect Dividends
Via MarketBeat
Tickers BSET ETD HVT
AST SpaceMobile's Big Win: Shares Soar on New Deal With Verizon
Via MarketBeat
Tickers ASTS JOBY RGTI T VOD VZ
Catch the Next Bitcoin Rally With These 3 ETFs
Via MarketBeat
Topics ETFs
Tickers BITQ FBTC IBIT
MarketBeat Week in Review – 10/06 - 10/10
Via MarketBeat
Topics Economy
Tickers ACHR AMD AMZN AVGO CELH CRWV
3 Heavily Shorted Stocks That Could Pop on Rate Cuts
Via MarketBeat
Topics Artificial Intelligence Economy
Tickers ETSY SMR SOUN
Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.