Basically inventing the process of hydraulic fracturing, oil services stalwart Halliburton (NYSE:HAL) should remain firmly as a top play in the shale boom. The firm’s high-pressure pumps are the industry standard when it comes to fracking and have seen higher demand as the boom presses on.
More importantly, unlike rival Schlumberger (NYSE:SLB), Halliburton received nearly three-fourths of its 2011 revenue from fields in the U.S. While margins should feel the pressure as energy firms shift toward more shale oil and natural gas liquids over natural gas, the long-term picture is rosy for the oil service stock.
Investors can have that rosy outlook at a current 45% discount to the company’s historical valuations, despite the fact that it recently reported record quarterly earnings.