It might still be a bumpy road for a while, but Halliburton Company HAL 0.2% is well-positioned to thrive in the long-term following the breakup of its potential Baker Hughes Incorporated BHI 1.26% merger. According to JPMorgan analyst Sean Meakim, now that Halliburton is passed the Baker Hughes distraction, it can get back to focusing on what it does best: execution.

“With the BHI saga over, we expect Halliburton to get back to business as an oil services company that has generated best-in-class returns over the past cycle, holds the pole position in the right market in a recovery (U.S. onshore) and a well-earned reputation for execution,” Meakim explained.

Halliburton’s recently reported Q1 revenue of $4.2 billion on operating EPS of $0.07 both beat JPMorgan’s estimates. Meakim now believes that Halliburton will be free to cut additional costs that is has maintained in preparation for the Baker Hughes deal. He estimates that these costs have been a 3–4 percent drag on Halliburton’s margins.

The $3.5 billion breakup fee that Halliburton dished out to Baker Hughes takes…

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