Halliburton's Texas Dual Listing: A Strategic Move to Fuel Growth and Liquidity

Halliburton's decision to dual-list its shares on the newly launched NYSE Texas, effective May 28, 2025, marks a bold strategic pivot to deepen its ties to Texas's booming energy sector while addressing liquidity needs in a volatile market. This move not only aligns the company with regional economic momentum but also positions it to capitalize on shareholder demand in a state that accounts for 25% of U.S. oil production. By maintaining its NYSE primary listing while trading under the same “HAL” ticker on NYSE Texas, Halliburton has created a compelling case for investors seeking exposure to a resilient energy services leader.

Regional Alignment: Fueling Growth Through Texas's Energy Engine

Texas is the undisputed heart of U.S. energy production, and Halliburton's Founding Member status on NYSE Texas underscores its commitment to the state's economic ecosystem. The dual listing leverages Texas's status as a hub for energy innovation, attracting local investors and institutional capital focused on the sector. With 70% of Halliburton's revenue tied to North America—and Texas alone accounting for over 30% of U.S. shale output—the move solidifies its market presence at a critical juncture for the energy transition.

Halliburton's leadership in advanced drilling and completion technologies, such as its autonomous fracturing systems and ZEUS platform, directly serve Texas's oil and gas industry. This alignment ensures the company remains a key partner to state-based producers, which are increasingly prioritizing efficiency and sustainability.

Liquidity Benefits: Expanding Investor Access

The dual listing mitigates liquidity risks by broadening access to Halliburton's shares. NYSE Texas, as a fully electronic exchange, reduces trading costs and enhances accessibility for retail investors in Texas, where energy-sector interest is surging. This could stabilize HAL's stock price, which has fluctuated amid global macroeconomic pressures.

Analysts estimate that dual-listed stocks often see a 10–15% increase in trading volume due to expanded investor pools. For Halliburton, this could mean reduced volatility and a tighter bid-ask spread—critical advantages as energy markets grapple with geopolitical risks and oil price swings.

Financial Resilience: Dividend Stability Amid Headwinds

While Halliburton's Q1 2025 earnings missed EPS estimates ($0.60 vs. $0.61), revenue surged 2% year-over-year to $5.4 billion, exceeding forecasts. The adjusted operating margin of 14.5% reflects cost discipline, even as non-operational charges (e.g., $356M in restructuring and asset write-downs) weighed on reported results.

Crucially, Halliburton has maintained its dividend at $0.17 per share for Q2 2025, extending its 55-year streak of uninterrupted payouts. This stability contrasts with peers like Schlumberger (SLB), which cut dividends in 2023. Combined with $250M in share repurchases this quarter, Halliburton is signaling confidence in its cash flow and long-term prospects.

Analyst Sentiment: Caution Balanced with Long-Term Optimism

Despite short-term EPS pressures, analysts remain bullish on Halliburton's strategic advantages. Stifel, while lowering its price target to $32 from $37, reaffirmed a “Buy” rating, citing the company's “leading position in high-margin international markets.” Barclays, which trimmed its target to $26 from $29, noted that Halliburton's “dividend resilience and innovation in automation” justify its valuation discount to peers.

The consensus price target of $29.34 implies a 48% upside from current levels. Analysts project earnings to grow to $2.4B by 2028 as margins improve to 10.7%, driven by cost savings from the SAP S4 migration and gains in high-growth markets like Saudi Arabia and Namibia.

Investment Thesis: A Defensive Play in a Volatile Sector

Halliburton's dual listing is more than a PR move—it's a calculated strategy to insulate itself from liquidity risks while capitalizing on Texas's energy renaissance. The company's:
- Technology Edge: Autonomous fracturing and AI-driven drilling solutions reduce costs for clients.
- Geographic Diversification: 60% of 2025 revenue growth is expected from international markets, balancing U.S. shale volatility.
- Balance Sheet Strength: A current ratio of 1.98 and $1.6B in planned shareholder returns in 2025 reflect financial prudence.

Backtest the performance of Halliburton (HAL) when 'buy condition' is triggered on quarterly earnings announcement dates and 'hold' for 20 trading days, from 2020 to 2025.

Historical data reveals that such a strategy would have underperformed, with an average return of -1.79% and a maximum drawdown of -10.25% during this period. This underscores the risks of short-term timing strategies and reinforces the case for a long-term, fundamentals-driven approach.

Risks to Consider

• Oil Price Volatility: A prolonged price slump below $70/barrel could strain budgets for exploration.
• Regulatory Headwinds: Texas's push for clean energy could shift demand away from traditional oil services.
• Global Supply Chains: Delays in equipment delivery could disrupt project timelines.

Conclusion: A Buy for the Long Game

Halliburton's NYSE Texas listing is a masterstroke of regional alignment and shareholder value creation. While near-term EPS volatility persists, the company's dividend stability, innovation, and Texas-centric strategy position it to outperform peers in both upswings and downturns. For investors seeking a resilient energy services leader with a clear path to liquidity and growth, HAL is a compelling buy at current valuations—especially given the risks of short-term trading, as evidenced by the historical underperformance of earnings-driven strategies.

Act Now: With Halliburton's stock trading at a 46% discount to its 2028 projected earnings multiple, the window to capitalize on its Texas-powered growth is open—but likely narrowing.