- Halliburton (HAL +8.1%) reverses an opening loss in a big way after company execs promise more cost cuts after reporting a bigger than expected drop in Q3 revenues.
- HAL, which earlier this month cut 650 jobs in North America, said it would take steps over the next few quarters that will lead to $300M in annualized cost savings.
- "Regardless of the cuts and idling of equipment, the size and scale of our business in North America give us the ability to drive a sustainable model without sacrificing our leadership position," CEO Jeffrey Allen Miller said on today's earnings conference call.
- HAL warned of increased declines in North American activity, seeing Q4 revenue for its hydraulic fracturing business down by low double digits and margins by 125-175 basis points.
- HAL is "taking costs out more aggressively than the Street forecast, which it expects to lead to strong Q4 operating margin improvement in the Drilling & Evaluation segments despite falling revenue," says AKap Energy's Anish Kapadia.
- Rival Schlumberger (SLB +4.1%) also surges higher.