What are the implications for Halliburton's market share in offshore well‑stimulation services in Europe?

Fundamental outlook

The five‑year ConocoPhillips contract – with three optional extensions – effectively adds a dedicated, “off‑shore‑first” stimulation vessel (the converted North Pomor) to Halliburton’s European fleet. The North Sea is a mature, high‑pressure, high‑temperature basin where operators are increasingly turning to advanced stimulation to offset declining production. By securing a multi‑year, high‑visibility deal with one of the region’s largest upstream players, Halliburton not only locks in a steady revenue stream (estimated to be in the low‑hundreds of millions of dollars annually) but also showcases its capability to deliver complex offshore services. This positions Halliburton ahead of rivals such as Schlumberger and Baker Hughes, who have been scrambling for similar contracts, and should translate into a measurable uplift in its European offshore well‑stimulation market share – likely a double‑digit percentage gain over the next 12‑18 months as the vessel ramps up and the optional extensions are exercised.

Technical and trading implications

The contract news is a classic catalyst for Halliburton’s stock, especially on the upside of the “Stimulation Services” narrative. On the daily chart, the price has already broken above the 20‑day SMA and is testing the $260–$270 resistance band that has held since early 2024. A clean close above $270 would signal a bullish continuation, while a retest of the 20‑day SMA around $255 could act as a short‑term support level. Given the fundamental boost and the relatively limited upside in the short‑term, a moderate‑risk long position (e.g., buying on a pull‑back to $255–$260 with a stop just below $250) is warranted, targeting the next resistance at $285–$295. If the market digests the news and the stock stalls, a tighter stop at $250 protects against a broader sector pull‑back. Conversely, a breach of $295 could open the door to a higher‑risk, higher‑reward play toward $310, reflecting the longer‑term upside from an expanding European offshore franchise.