Halliburton (HAL) reported a "strong" Q3 supported by less frac white space and higher Gulf of Arabia activity, UBS Securities said."

Adjusted earnings beat expectations, driven by a 15% increase in completions and production operating income, while Q4 guidance for revenue, operating income, and margins also topped forecasts.

The company announced $100 million in quarterly operating expense savings beginning in Q4 and plans to cut 2026 capital expenditures to about $1 billion, roughly $300 million below prior targets, the brokerage said in a Tuesday research note.

UBS viewed Halliburton's expanded VoltaGrid partnership as a longer-term positive, saying its 20% stake and co-investment role in international power generation projects could add $1 to $3.50 per share in value.

The firm raised its 2026 and 2027 adjusted earnings estimates by 10% and 6%, respectively, to $2.31 and $2.64 per share, and lifted its price target to $24 from $23 while maintaining a neutral rating.

Shares of Halliburton were up 2.6% in recent Wednesday trading.

Price: 25.88, Change: +0.64, Percent Change: +2.55