Halliburton Announces Second Quarter 2012 Earnings [HAL]

Halliburton (NYSE:HAL) announced today that income from continuing operations for the second quarter of 2012 was $745 million, or $0.80 per diluted share. This compares to income from continuing operations for the first quarter of 2012 of $635 million, or $0.69 per diluted share. First quarter reported results included $300 million ($191 million, after tax, or $0.20 per diluted share) for an estimated loss contingency related to the Macondo well incident.

Halliburton’s consolidated revenue in the second quarter of 2012 was $7.2 billion, compared to $6.9 billion in the first quarter of 2012. Consolidated operating income was $1.2 billion in the second quarter of 2012, compared to $1.0 billion in the first quarter of 2012. All international regions experienced double digit percentage revenue and operating income growth from the first quarter of 2012. North America margins were negatively impacted, however, by rising costs and pricing pressure in production enhancement services.

“I am pleased with our second quarter results, which set a new revenue record for the total company and all three of our international regions,” commented Dave Lesar, chairman, president and chief executive officer.

"We continue to be successful in executing our strategy of market share growth while maintaining a focus on industry leading returns. From a global perspective, we achieved record revenues in eight of our product service lines, with four of them. Cementing, Completion Tools, Multi Chem, and Testing and Subsea, generating record operating income as well.

“Consolidated revenue for the second quarter was up over 5% sequentially. The international rig count was up 3% during the quarter, compared to a 15% increase for our international revenues. North America rig count decreased 17%, while our North America revenues were essentially flat compared to the first quarter. Key strategic market share gains in international operations, continued capacity additions, and strong utilization contributed to this outperformance.

Read the entire Halliburton earnings report

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Halliburton 1st Quarter Earnings Soar by a Whopping 23%

Halliburton (HAL) announced today that income from continuing operations for the first quarter of 2012 was $826 million, or $0.89 per diluted share, excluding $300 million ($191 million, after-tax, or $0.20 per diluted share), for an estimated loss contingency related to the Macondo well incident. Income from continuing operations for the first quarter of 2011 was $558 million, or $0.61 per diluted share, excluding a charge of $46 million, aftertax, or $0.05 per diluted share, related primarily to reserving certain assets as a result of political sanctions in Libya.

Reported income from continuing operations for the first quarter of 2012 was $635 million, or $0.69 per diluted share, compared to $512 million, or $0.56 per diluted share, for the first quarter of 2011. Reported net income attributable to company for the first quarter of 2012 was $627 million, or $0.68 per diluted share, compared to $511 million, or $0.56 per diluted share for the first quarter of 2011.....Read the entire First Quarter Earnings Announcement.

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Don Hodges: Despite Fall in Oil Prices, Buy Haliburton, Devon and Sandridge

Don Hodges, portfolio manager for the Hodges Fund, says energy plays like Halliburton, Devon and SandRidge are still moneymakers despite the drop in oil prices.

OPEC to Increase Production, Oil Services Companies Show a Jump in Profits

It appears we will start the week with a pull back in crude oil prices as Saudi Arabian Oil Minister Ali al-Naimi released a statement that OPEC will increase supply to meet what seems to be inevitable increased demand coming out of China and India. Our "friends" at Goldman Sachs are saying this only indicates that OPEC is using it's spare production supply and should only further the bulls story.

We personally have learned to not let Goldman Sachs lead the way in our oil trading but you also can't ignore it. While retail investors have less effect on oil markets then some other sectors, Goldman Sachs can increase that interest with their apparent media attention grabbing abilities.

But it's North American demand that is making most hedge funds and commercial buyers take a bigger interest in the "crude oil bull story" this week as a report from Commodity Futures Trading Commission showed that these investors have ramped up their net long positions 0.4 percent in crude contracts in the week ended Jan. 18th.

The oil services sector is giving traders additional confidence as Schlumberger reported better than expected quarterly profit on Friday followed by Haliburton releasing fourth quarter reports showing their net profit rose to $605 million, or .66 cents per share, from $243 million, or 27 cents per share, a year earlier. Revenue jumped 40 percent to $5.16 billion in the quarter after analysts had expected revenues to be $4.88 billion.

So do we open Monday morning selling the news on these companies? It's the numbers we trust and here's what we are using for Mondays trading......

Crude oil was lower overnight as it extends last week's decline. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. Closes below the reaction low crossing at 88.45 would confirm that a short term top has been posted. If March renews this winter's rally, weekly resistance crossing at 93.87 is the next upside target. First resistance is this year's high crossing at 93.46. Second resistance is weekly resistance crossing at 93.87. First support is the reaction low crossing at 88.45. Second support is the reaction low crossing at 88.07. Crude oil pivot point for Monday morning is 89.40.

Natural gas as it extends the rally off October's low. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term. If March extends the rally off October's low, the 62% retracement level of the June-October decline crossing at 5.025 is the next upside target. Closes below the 20 day moving average crossing at 4.478 are needed to confirm that a short term top has been posted. First resistance is the overnight high crossing at 4.823. Second resistance is the 62% retracement level of the June-October decline crossing at 5.025. First support is the 10 day moving average crossing at 4.554. Second support is the 20 day moving average crossing at 4.478. Natural gas pivot point for Monday morning is 4.719.

Gold was higher due to short covering overnight as it consolidates some of this month's decline. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible. If February extends this month's decline, the reaction low crossing at 1331.10 is the next downside target. Closes above the 20 day moving average crossing at 1380.40 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 1366.30. Second resistance is the 20 day moving average crossing at 1388.40. First support is last Friday's low crossing at 1337.00. Second support is the reaction low crossing at 1331.10. Gold pivot point for Monday morning is 1342.60.


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Halliburton Rejects Blame for BP Cement Job

Halliburton, whose failed cement job on the BP well in the Gulf of Mexico was identified as a contributing factor to the deadly blowout by a presidential investigative panel on Thursday, is defending its work and assigning the blame for the accident to BP. Panel Says Firms Knew of Cement Flaws Before Spill (October 29, 2010) Inquiry Puts Halliburton in a Familiar Hot Seat (October 29, 2010) In a six page statement issued Thursday night, Halliburton questioned tests that showed its cement mixture to be unstable and incapable of holding back the oil and the gas in the well, saying the tests were conducted on formulas other than what was eventually used on BP’s Macondo well. It said that a sample of the cement mixture it planned to use on the well, tested shortly before pumping began on April 19, had produced a positive result.

But Halliburton admitted that no stability test was conducted on the actual recipe for the cement used on the well. The company said that BP had ordered a change in Halliburton’s customary formula for cement by adding a higher proportion of a chemical that slows the hardening of the mixture. The well blew out on April 20, killing 11 workers and eventually releasing nearly five million barrels of oil into the gulf. Since then, BP, Halliburton, Transocean and other partners in the well have traded accusations of blame as civil and criminal investigations have proceeded.......Read the entire article.


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Zacks: Haliburton a Near Term Buy?

Earlier this week, major oilfield services provider Halliburton Co. (HAL) announced its financial results for the quarter ended September 30, 2010. Now that the analysts have had some time to digest the quarterly performance, they are weighing in with their estimate revisions. Below we cover the results of the recent earnings announcement, subsequent analyst estimate revisions and Zacks ratings for the stock.

Earnings Review
Halliburton's better than anticipated third quarter 2010 results were helped by the strength in the all important North American onshore activity levels (to which the company is heavily exposed through its market share leading pressure pumping business). Earnings per share, excluding special items, came in at 58 cents, beating the Zacks Consensus Estimate of 56 cents and were comfortably ahead of the year ago adjusted profit of 31 cents.

Revenues of $4.7 billion, 30% above the third quarter of 2009, also surpassed the Zacks Consensus Estimate of $4.6 billion, as sales increased across the company’s business units. During the quarter, North America accounted for approximately 51% of Halliburton’s total revenues and 65% of its operating income.

Agreement of Estimate Revisions
There is a strong positive agreement among the analysts regarding Halliburton’s outlook. In particular, we see a notable number of estimate revisions over the past 7 days, indicating that the revisions were in response to the company’s third quarter earnings release. Out of 33 analysts covering the stock, 23 have revised their estimates for 2010 upward, while 5 have gone in the opposite direction. Looking forward to 2011, the trend is more or less similar. Out of 33 analysts, 22 hiked their estimates compared to just one negative revision. Estimates are up for the December quarter of 2010 as well. For the current quarter, 21 of the 29 analysts have increased their estimates over the last 7 days, against 5 downward revisions.

Magnitude of Estimate Revisions
As a result of the analysts revising estimates over the past 7 days, the Zacks Consensus Estimates for fiscal 2010 and 2011 have gone up 5 cents (from $1.94 to $1.99) and 13 cents (from $2.49 to $2.62), respectively. Meanwhile, the estimate for the December 2010 quarter is up by 3 cents. The increases are based on the expectations of bullish near-term U.S. land drilling trends, where activity is being driven by oil and liquids-rich plays. This will make the reduction in gas activity less meaningful. Halliburton will continue to be a beneficiary of the bullish rig count fundamentals in the U.S., driven by horizontal drilling in the service intensive plays.

Our Recommendation
Halliburton currently has a Zacks #2 Rank (short-term 'Buy' rating). In the near term, the company is likely to benefit from bullish U.S. land drilling trends, where activity is tracking above expectations. However, new environmental regulations for hydraulic fracturing in the shale plays, the intensely competitive nature of the market, and depressed natural gas prices will continue to overhang the stock during the longer-term, accounting for our Neutral recommendation.

Courtesy of  Zack.com


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Halliburton Profit Drops Less Than Analysts Estimated

Halliburton Co.’s third-quarter profit dropped less than analysts estimated on projects the world’s second largest oilfield services provider is working on outside of North America. Net income fell to $262 million, or 29 cents a share, from $672 million, or 74 cents, in the third quarter of 2008, Houston based Halliburton said today in a statement. Excluding costs for job cuts, profit was 31 cents a share, 5 cents higher than the average of 24 analyst estimates compiled by Bloomberg.

Oil futures in New York averaged $68.24 a barrel in the third quarter, 42 percent lower than a year earlier. Crude climbed from $59.79 in the second quarter. Operating profit from a region that includes Africa, Europe and the former Soviet Union fell 2 percent, and income declined 16 percent in the Middle East and Asia. The drop in North America was 93 percent. “I thought that the numbers in the Middle East and Europe came in stronger than I expected, both in terms of revenues and margins,” said Mark Brown, a senior analyst at Pritchard Capital in New York who has a “buy” rating on Halliburton shares and owns none. “I thought that was a good sign for Halliburton”.....Read the entire article

Halliburton to Drill 170 Chicontepec Wells for $169MM

Oilfield services giant Halliburton Co. has won a $169 million contract to drill 170 wells Mexico's Chicontepec region, its first major project in the area, Petroleos Mexicanos said Thursday. Pemex, as the state oil company is known, has also awarded four contracts for about 140 wells each to local drillers, expanding its pool of suppliers for the expensive project. The new contracts underscore Pemex's efforts to accelerate spending and stabilize falling oil production, down by a fifth since peaking in 2004......Complete Story

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Halliburton 2Q Earnings Plummet, Beat Expectations

Halliburton said Monday its second quarter profit tumbled 48 percent as sluggish exploration and production activity, particularly in North America, crimped results. Its earnings beat Wall Street forecasts, though the company offered little hope for an uptick in drilling before year's end. The oilfield services company, which has corporate headquarters in Houston and Dubai, said net income for the April-June period fell to $262 million, or 29 cents per share. That compared with $504 million, or 55 cents a share, a year ago.....Complete Story

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Dan Dicker of The Street .Com breaks down crude's recent run up and reveals two stocks that could pop, if oil pushes even higher.

Haliburton Profits Tumble, Oil Falls the Most in Seven Weeks

"Oil Falls the Most in Seven Weeks as Dollar Gains, Stocks Drop"
Oil fell the most in seven weeks as a stronger dollar reduced the appeal of commodities and on speculation supplies will rise as the recession reduces demand.

Oil dropped as the dollar rose to a one-month high versus the euro, making crude less attractive as a currency and inflation hedge. An Energy Department report last week showed U.S. crude oil inventories climbed to the highest level since September 1990 as demand dropped.

“The strength of the dollar has prompted a selling in the oil market,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “We repeatedly shift from concentrating on the fundamentals of high inventories and low demand on one hand and hopes of recovery later this year. The fundamental picture has reasserted itself today.”....Complete Story

"Halliburton 1Q Profit Tumbles, Cuts Jobs"
Halliburton Co. kicked off the oil sector's first-quarter earnings period on a dour-but-not-unexpected note Monday, reporting net income that tumbled 35 percent from a year ago and offering a poor outlook. It also said it cut more than 2,000 jobs in the first three months of the year.

The company, which has corporate headquarters in Houston and Dubai, was hurt as oil and natural gas producers, stung by low prices, cut back on exploration and drilling, particularly in North America. That's bad news for service companies like Halliburton, which help producers with drilling, reservoir management and other oilfield work.

A major barometer of oil-patch activity is the U.S. rig count, which has fallen more than 50 percent since the end of August. Analysts say the count is likely to fall even more — perhaps another 20 to 30 percent — as producers continue to scale back spending amid bloated oil and gas supplies and weak demand....Complete Story


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Oil Industry Stock Market Winners and Losers

Winners

Brigham Exploration 7.46%
Goodrich Petroleum 6.44%
McMoRan Exploration 6.26%
Halliburton 6.15%

Losers

Edge Petroleum -11.11%
FMC Technologies -10.04%
Allis-Chalmers Energy -7.16%
Devon Energy -6.17%
Meridian Resource -5.88%

Change based on the last 2 days of trading