26% Annual Return And Halliburton
Chris DeMuth Jr. • 44 Comments
Chris DeMuth Jr. • 44 Comments
Thu, Jul. 28, 2:47 PM
- Baker Hughes (BHI +2.6%) is higher despite posting a wider than expected Q2 loss on 39% less revenue Y/Y, as the company says it expects margins to improve across its businesses due to recent job cuts and other restructuring actions.
- Capital One analyst Luke Lemoine was positive on the results, saying BHI's Q2 "clean" EBITDA came in at ~$61M, close to expectations of $65M, $500M in cost-cutting is on track, and that the company repurchased $500M in shares in the quarter, a third of its buyback program.
- However, CEO Martin Craighead is less optimistic about Q2 than rivals Schlumberger (SLB -1%) and Halliburton (HAL -0.2%), saying he does not expect a substantial recovery in drilling and pricing in North America this year and that oil prices "in the upper $50s at a minimum are required for a sustainable recovery."
- BHI cut ~3K jobs in quarter, after eliminating 2K in Q1 and 18K last year.
Wed, Jul. 20, 7:57 AM
- Halliburton (NYSE:HAL) CEO Dave Lesar says the U.S. rig count bottomed out during Q2, and he expects to see a modest uptick during H2: "We believe the North America market has turned. With our growth in market share during the downturn, we believe we are best-positioned to benefit from any recovery, including a modest one."
- HAL +0.7% premarket after reporting a lighter than expected Q2 loss on revenues of $3.84B, down 35% Y/Y, but North American revenues fell 15% while the continent’s rig count fell by a steeper 23%; HAL, which derives ~40% of its revenue from North America, is more exposed to the region than rivals Schlumberger (NYSE:SLB) and Baker Hughes (NYSE:BHI).
- The U.S. rig count "reached a landing point" during Q2 after falling 78% from the November 2014 peak, improving by 26 over the past several weeks, "reflecting operator confidence in stabilizing commodity prices."
- HAL booked $3.52B of costs related to terminating the Baker Hughes merger, as well as $423M of other impairments and charges during the quarter; HAL's unadjusted Q2 net loss was $3.21B, or $3.73/share, vs. a profit of $54M, or $0.06/share, in the year-ago quarter.
- "The outlook was the most important thing," Edward Jones analyst Rob Desai says, since Q2 expectations for HAL were so low.
Wed, Jul. 20, 6:51 AM
Tue, Jul. 19, 5:30 PM
Tue, May 3, 8:47 AM
- Hallliburton (NYSE:HAL) -1.4% premarket after reporting better than expected Q1 earnings and a 40% Y/Y drop in revenues that were in-line with pre-announced results issued April 22, as deep cost cuts helped cushion the impact of weaker drilling and completion activity.
- HAL says revenue in its North American operations fell 49% Y/Y to $1.79B, hurt by continued weakness in drilling activity and pricing.
- HAL recorded Q1 company-wide charges related primarily to asset impairments and severance costs of totaling ~$2.1B, compared to $192M in Q4 2015, including a $378M charge for acquisition costs related to the failed Baker Hughes merger, the result of delayed depreciation and amortization expenses tied to assets that were supposed to be sold but now will remain within its portfolio.
- Now read Halliburton: It's over now
Tue, May 3, 6:53 AM
Mon, May 2, 5:30 PM
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Thu, Jan. 28, 12:39 PM
- Baker Hughes (BHI +4%) predicts the number of oil and gas rigs active globally, which already has declined 46% in the past year, could fall by another 30% in 2016 if oil prices fail to recover from current levels.
- "BHI's management team has been the most bearish about the oilfield service cycle, but has also been the most correct as the duration and severity of the downturn has continued to exceed the market's initial expectations," Barclays analysts say.
- CEO Martin Craighead says BHI's customers among oil and gas production companies are facing “more acute” challenges of maximizing production, cutting costs and protecting cash flows, thus BHI's role in the industry is "more relevant today than it has ever been before."
- But the industry downturn has hurt the usage of BHI's services and the prices it can charge; FY 2015 revenues fell 36% Y/Y to $15.7B, and Q4 revenues sank 49% Y/Y to $3.39B.
- The CEO says BHI remains committed to closing its pending merger with Halliburton (HAL +4.7%), despite the long regulatory delays that have raised questions about the deal’s ability to consummate.
Mon, Jan. 25, 8:53 AM
- Halliburton (NYSE:HAL) -1.8% premarket after reporting better than expected Q4 earnings but a 42% Y/Y drop in revenues, including a 54% plunge to $2.16B in its North American operations, which account for more than half the company's revenue.
- The $0.31/share in adjusted Q4 earnings exclude a $192M impairment charge and costs related to its pending acquisition of Baker Hughes (NYSE:BHI): HAL says it recently offered an enhanced set of divestitures to regulators in an effort to resolve competition-related concerns.
- HAL says Q4 operating margins in its North American operations improved 1.6 percentage points, driven by cost reduction efforts and year-end completion tool sales in the Gulf of Mexico.
- HAL does not provide guidance in its release, but Q1 consensus estimates call for EPS of $0.15 on revenues of $4.79B; for the full year, EPS is estimated at $0.87 on revenues of $20.13B.
Mon, Jan. 25, 6:53 AM
- Halliburton (NYSE:HAL): Q4 EPS of $0.31 beats by $0.07.
- Revenue of $5.08B (-42.1% Y/Y) misses by $30M.
Sun, Jan. 24, 5:30 PM
Oct. 19, 2015, 8:29 AM
- Halliburton (NYSE:HAL) -0.9% premarket after beating expectations for Q3 earnings and missing slightly on revenues
- HAL says results were hurt by slumping oil patch activity and pricing pressure in North America, where the company has seen operating income fall to near breakeven levels; Q3 revenue in its North America business fell 47% Y/Y and 7% Q/Q to $2.49B.
- HAL says Q3 revenues in the Eastern Hemisphere fell 5%, but operating income margins remained at similar levels vs. Q2 "due to our relentless focus on cost management."
- HAL also logged a $257M charge in the quarter, mostly due to asset writeoffs and severance costs stemming from falling crude prices and declining oilfield activity.
- Says it remains "enthusiastic about and fully committed to closing this compelling [Baker Hughes] transaction."
Oct. 19, 2015, 6:52 AM
- Halliburton (NYSE:HAL): FQ3 EPS of $0.31 beats by $0.04.
- Revenue of $5.58B (-35.9% Y/Y) misses by $60M.
Oct. 18, 2015, 5:30 PM
Oct. 15, 2015, 5:11 PM
- Schlumberger (NYSE:SLB) -0.9% AH after reporting slightly better than expected Q3 earnings, as deep cost cuts and efficiency improvements helped ease the pain of a 47% Y/Y decline in North America revenues to $2.3B.
- SLB says Q3 revenue from outside North America, which accounted for nearly three quarters of its total revenue, fell 27%; revenues fell 6% Q/Q globally and 4% Q/Q in North America,
- SLB says the market outlook for oilfield services "looks increasingly challenging with activity expected to be reduced further, as lack of available cash flow exhausts capital spending for a number of our customers, leading them to take a conservative view on 2016 E&P spending in spite of any gradual improvement in oil prices."
- SLB reaffirms FY 2015 capex of ~$2.5B.
- U.S. oil services peers Halliburton (NYSE:HAL) and Baker Hughes (NYSE:BHI) are scheduled to report earnings next Monday and Wednesday, respectively.
Halliburton Co. provides services and products to the energy industry related to the exploration, development, and production of oil and natural gas. The company operates through two segments: Completion & Production and Drilling & Evaluation. The Completion & Production segment delivers... More
Sector: Basic Materials
Industry: Oil & Gas Equipment & Services
Country: United States
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