Halliburton Company (HAL)

[Timothy Smith]

$HAL - Over the years, the company has been working on integrating its drilling services to fully optimize drilling performance while lowering costs.

The company began by placing its drilling engineering applications under one roof, including fluids, bits, and directional drilling.

Over time, the firm has integrated its services into a single solution, which means that a customer could obtain substantially greater well performance and reduced levels of nonproductive time by standardizing on Halliburton rather than mixing services from multiple service providers.

With the help of its integrated services, the company has been able to grow its revenues at a CAGR of 25.93% over a three-year period. Though intense competition forced the company to cut its margins, resulting in a drop of 4.50% in operating margin to 14.6% in 2012, and a 2.19% drop in net margin, to 9.24%.