Latest news with #Halliburton
Yahoo
4 days ago
- Business
- Yahoo
Compared to Estimates, Halliburton (HAL) Q2 Earnings: A Look at Key Metrics
Halliburton (HAL) reported $5.51 billion in revenue for the quarter ended June 2025, representing a year-over-year decline of 5.5%. EPS of $0.55 for the same period compares to $0.80 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $5.44 billion, representing a surprise of +1.35%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.55. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Halliburton performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Revenues- Latin America: $977 million versus $911.06 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -10.9% change. Revenues- Europe/Africa/CIS: $820 million versus the five-analyst average estimate of $769.7 million. The reported number represents a year-over-year change of +8.3%. Revenues- North America: $2.26 billion versus $2.26 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -9% change. Revenues- Middle East/Asia: $1.45 billion versus the five-analyst average estimate of $1.51 billion. The reported number represents a year-over-year change of -2.9%. Revenues- Drilling and Evaluation: $2.34 billion versus $2.27 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -3.8% change. Revenues- Completion and Production: $3.17 billion versus the seven-analyst average estimate of $3.18 billion. The reported number represents a year-over-year change of -6.8%. Operating income- Completion and Production: $513 million compared to the $539.22 million average estimate based on six analysts. Operating income (loss)- Corporate and other: $-66 million compared to the $-86.6 million average estimate based on six analysts. Operating income- Drilling and Evaluation: $312 million versus $313.49 million estimated by six analysts on average. View all Key Company Metrics for Halliburton here>>> Shares of Halliburton have returned +8.6% over the past month versus the Zacks S&P 500 composite's +4.6% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Halliburton Company (HAL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Reuters
5 days ago
- Business
- Reuters
US drillers cut oil and gas rigs for 12th time in 13 weeks, Baker Hughes says
July 24 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for the 12th time in 13 weeks, energy services firm Baker Hughes (BKR.O), opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by two to 542 in the week to July 25. , , Baker Hughes said this week's decline puts the total rig count down 47 rigs, or 8% below this time last year. Baker Hughes said oil rigs fell by seven to 415 this week, their lowest since September 2021, while gas rigs rose by five to 122, their highest since August 2023. In July, the combined rig count fell for a fifth consecutive month. Baker Hughes this week joined its U.S. rivals Halliburton (HAL.N), opens new tab and SLB (SLB.N), opens new tab in warning of a slowdown in upstream activity and spending as weak and volatile oil prices have led producers to curb capital spending and drilling. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected a 68% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 105.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023.
Globe and Mail
5 days ago
- Business
- Globe and Mail
Halliburton Reports Q2 Revenue Drop
Key Points Revenue reached $5.51 billion, topping analyst estimates by 1.7%. Operating margin dropped to 13% in Q2 2025. Free cash flow fell to $582 million for Q2 2025, compared to $999 million in Q2 2024. These 10 stocks could mint the next wave of millionaires › Halliburton (NYSE:HAL), one of the world's largest oilfield services providers, released its results for the second quarter of fiscal 2025 on July 22, 2025. The main news from the report was a revenue beat, with the company posting $5.51 billion in GAAP revenue for Q2 2025—1.7% above expectations. Adjusted earnings per share (EPS) landed at $0.55, almost exactly matching consensus. However, the quarter highlighted fresh margin pressures and signaled a more cautious outlook for the oilfield services market ahead, underscored by management statements about subdued demand. Overall, the period showed modest operational progress but also underscored ongoing challenges in profitability. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change Adjusted EPS $0.55 $0.55 N/A N/A Revenue $5.51 billion $5.41 billion $5.83 billion (5.5%) Operating Margin 13% 17.7% (4.5 pp) Free Cash Flow $582 million $999 million (41.7%) Net Income $472 million $709 million (33.4%) Source: Halliburton. Note: Analysts' consensus estimates for the quarter provided by FactSet. "pp" = percentage points. Business Overview and Strategic Priorities Halliburton operates in more than 70 countries, providing oilfield services and products to companies that explore, develop, and produce oil and natural gas. Its core offerings fall into two segments: Completions & Production (C&P) and Drilling & Evaluation (D&E). C&P includes services and equipment for well completion, hydraulic fracturing, and artificial lift, while D&E covers drilling, wireline, and reservoir evaluation technologies. The company's performance relies heavily on global demand for oil and gas, which shapes customer spending on drilling and production projects. To remain competitive, Halliburton has focused on digital transformation, international revenue growth, technological advancements, and returning capital to shareholders. Capital efficiency—keeping capital expenditures near 6% of revenue in 2024— and investments in innovation and sustainability are top priorities. Management has also expanded Halliburton Labs, its clean energy incubator, to target the transition toward sustainable energy. Quarterly Highlights: Financial Results and Operating Developments Revenue (GAAP) for Q2 2025 came in above expectations. However, that headline number masked underlying softness, as total revenue dropped 5.5% compared to the second quarter of 2024. Net income (GAAP) was $204 million, compared to $606 million in the first quarter of 2024, a decrease of 66.3%. The results reflected pricing and utilization pressures within the company's major divisions. Completions & Production, a segment known for its pressure pumping and well completion tool offerings, generated $3.17 billion in GAAP revenue in Q2 2025 (down 8% compared to the prior year). Operating income for the segment was $513 million, a decrease of 3% compared to the first quarter of 2025, driven mainly by lower pricing for stimulation services in the U.S. and decreased activity in the Middle East. Notably, margin pressure was attributed to customer pricing trends and a reduction in North American artificial lift activity, which involves equipment used to enhance oil extraction rates from wells. The Drilling & Evaluation segment reported GAAP revenue of $2.34 billion for Q2 2025 (down 3.8% compared to the second quarter of 2024.). The segment's operating income (GAAP) decreased 11% to $312 million, compared to the first quarter of 2025, with operating margin for the segment at 13%. The main factors cited were a global dip in software sales, lower wireline activity—where electrical tools are lowered into wells to gather reservoir information—and higher mobilization costs as new international contracts began. North America revenue totaled $2.26 billion (GAAP), down 9.0% compared to the second quarter of 2024, held flat sequentially by offsetting trends: stronger U.S. land cementing contrasted by softer Gulf of America activity and less artificial lift demand. Within regions, Latin America's GAAP revenue was $977 million, down 11% compared to Q2 2024. Europe/Africa/CIS posted revenue of $820 million, an increase of 8% compared to the second quarter of 2024, lifted by new projects in Norway. The Middle East and Asia region had revenue of $1,454 million, down 2.9% compared to Q2 2024, primarily due to lower activity levels in Kuwait and Saudi Arabia. On the technology front, Halliburton marked several milestones. It launched EarthStar 3DX, a new resistivity service providing 3D geological insights up to 50 feet ahead of the bit in horizontal wells. The company also debuted fully automated surface and subsurface drilling, partnering with Nabors Industries to automate drilling in Oman. In completions, a closed-loop hydraulic fracturing system was rolled out with Chevron U.S.A, adding automation and real-time feedback to enhance well performance. There were no major one-time charges announced in the quarter. Ongoing SAP S4 migration expenses, related to overhauling the company's enterprise software systems, were reported at $32 million. Another notable investment was a $345 million outlay to boost ownership in VoltaGrid, a distributed power solutions company. Total capital expenditures were $354 million, keeping with Halliburton's commitment to capital discipline. Halliburton returned $250 million to shareholders through share repurchases and paid a $0.17 per share quarterly dividend, mirroring the prior period's payout. The company continues to emphasize both buybacks and dividends as core elements of its capital return framework. Looking Ahead: Guidance and Investor Focus Management's outlook has become more cautious, warning of 'softer than previously expected' demand in the global oilfield services sector over the coming months. Management did highlight ongoing risks, including further volatility in oil and gas prices, delay or softness in customer spending, and uncertainties in key international markets such as Mexico and the Middle East. Potential impacts from recent tariffs could affect earnings in future quarters; the longer-term impacts are to be quantified as conditions evolve. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. 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Yahoo
6 days ago
- Business
- Yahoo
Halliburton CEO: Oil and gas markets are 'softer' than expected and will remain weak for all of 2025
A combination of weaker oil prices, widespread spending cuts, and ramped-up OPEC crude oil volumes created a softer-than-expected industry environment that will continue at least through the rest of 2025, the CEOs of oilfield services leaders Halliburton and SLB said. Global economic volatility, including ongoing tariff uncertainty, is leading oil and gas producers to plan more conservatively for the rest of the year than anticipated, they said, although though the longer-term oil and gas outlook remains bullish. The U.S. and Mexico are showing particular weakness even as shale oil and gas technologies developed in the U.S. over the past 20 years spread worldwide from Argentina to Australia, said Halliburton chairman and CEO Jeff Miller during the July 22 earnings call. 'To put it plainly, what I see tells me the oilfield services market will be softer than I previously expected over the short to medium term,' Miller said, arguing that oil producers and countries are cutting back spending more dramatically than current oil prices would normally necessitate. The U.S. oil pricing benchmark is about $66 per barrel, and it would need to rise well above $70 to be considered relatively healthy for the industry. What that means for Halliburton and SLB is focusing more on technology and some of their service specialties while retiring some equipment and well completions—or fracking—fleets. 'We'll clearly stack some fleets just because we're not going to work at uneconomic levels,' Miller said. 'It's strategic for us, and it takes some equipment out of the market as well. But, from our perspective, working at uneconomic levels literally burns up equipment, creates HSE (health, safety, and environment) risk, and all sorts of things that we just don't want to do.' On the other hand, Halliburton (194 in the Fortune 500) is growing market share with its new autonomous and electrified fracking fleets, called Zeus IQ, and has partnered with Chevron (No. 16 in the Fortune 500) and others. Halliburton first developed early hydraulic fracturing, or fracking, techniques more than 75 years ago under founder Erle P. Halliburton. For all of 2025, Halliburton now estimates its North American revenues will decline by more than 10%. Halliburton reported second-quarter revenues that fell nearly 6% from $5.83 billion to $5.51 billion year over year. Net income plunged 33% from $709 million down to $472 million. The biggest oilfield services company in the world, SLB (479 in the Fortune Global 500), formerly Schlumberger, also saw its quarterly revenues dip 6% year on year to $8.55 billion. Net income of $1.01 billion fell by 9%. Oilfield outlook OPEC and its allies have surprised much of the energy industry since this spring by unwinding years of voluntary production cuts more rapidly than anticipated to gain back market share. Dumping those new barrels on a saturated global marketplace Is adding to the weaker oil price environment, leading U.S. oil and gas producers and others to cut back spending and, in many cases, oil and gas volumes. Adding to the weakness is the oilfield services sector becoming a victim of its own success. Efficiently gains now allow producers to extract more oil and gas per location without requiring as many drilling rigs and fracking fleets. In mid-July, SLB closed its nearly $8 billion acquisition of ChampionX. The merger gives SLB a stronger footprint in artificial lift and production chemicals. Such services keep the oil and gas wells flowing optimally long after they are drilled and put into operation, which CEO Olivier Le Peuch said helps SLB avoid some of the industry's inherent cyclicality. Even as drilling activity slows down, the existing wells still need just as much servicing and maintenance. In fact, the number of drilling rigs active in the U.S. has fallen by 7% in the past 12 months, down to 544 active rigs, according to research firm Enverus, and the decline is expected to continue. Nearly half of all the active rigs are in the still-booming Permian Basin in West Texas and southeastern New Mexico. 'As we have seen more recently, the short-cycle markets have been more reactive to the persistent slightly lower commodity price than anticipated,' Le Peuch said. 'Yet, all in, we are seeing this as a resilient market going forward.' This story was originally featured on
Bloomberg
7 days ago
- Business
- Bloomberg
Halliburton's Decision to Idle Fracking Gear Confirms US Shale Slowdown
By Welcome to our guide to the commodities markets powering the global economy. Today, Today, reporter Emma Sanchez explores what Halliburton's decision to take fracking equipment out of service says about the US shale patch. Halliburton Co., the world's biggest fracking company, just brushed aside any doubts about whether growth is slowing in the US shale patch.
