Oil and gas servicing giant Halliburton reported better than expected second quarter earnings Tuesday before the market. HAL reported earnings per share of 49 cents from $5.1 billion in sales. Analysts were looking for EPS of 45 cents and $4.7 billion in sales. HAL stock was trading up 3.5% on the news. Improved North American and international markets for drilling, completion, and production with $HAL’s aggressive approach to cutting costs flowed through.
The Baker Hughes oil rig count benefiting oil service companies have been recovering since falling off the cliff with the decreased activity in North America and the world since the Covid pandemic. Halliburton serves the upstream oil and gas industry throughout the lifecycle extraction to completion of the energy source.
Halliburton Company NYSE: HAL Reported Before Open Tuesday
$0.49 Beat $0.45 EPS Forecast and$5.10 Bil Beat $4.7 Billion Forecast in Revenue
Halliburton Q222 Earnings Highlights:
- Earnings per share of 49 cents from $5.1 billion in sales.
- Analysts were looking for EPS of 45 cents and $4.7 billion in sales.
“Our strong second quarter performance demonstrates that our strategy is working well,” said CEO Jeff Miller in the news release. “I expect the international markets will experience multiple years of growth, and I am confident that Halliburton is positioned to benefit more from this multi-year upcycle than ever before.”
Completion and Production
- Completion and Production revenue in the second quarter of 2022 was $2.9 billion, an increase of $558 million, or 24%, when compared to the first quarter of 2022, while operating income was $499 million, an increase of $203 million, or 69%.
- These results were driven by increased pressure pumping services in the Western Hemisphere, higher completion tool sales globally, increased artificial lift activity in North America land and Kuwait, and improved cementing activity in the Eastern Hemisphere.
- These improvements were partially offset by lower stimulation activity in Oman and decreased artificial lift activity in Latin America.
Drilling and Evaluation
- Drilling and Evaluation revenue in the second quarter of 2022 was $2.2 billion, an increase of $232 million, or 12%, when compared to the first quarter of 2022, while operating income was $286 million, a decrease of $8 million, or 3%.
- This revenue increase was due to increased fluid services and wireline activity globally, higher project management activity in Latin America and the Middle East, and increased drilling services in Latin America.
- Operating income decrease was driven by seasonally lower software sales globally and decreased drilling services in Brazil.
Free cash flow of $469 million beat expectations of $298.6 million.
“In North America, I expect Halliburton to uniquely maximize value in this strong, steadily growing, and all but sold-out market. Pricing gains across all product service lines supported significant sequential margin expansion in the second quarter.
Founded in 1919, Halliburton is one of the world’s largest providers of products and services to the energy industry. With more than 40,000 employees, representing 130 nationalities in more than 70 countries, the company helps its customers maximize value throughout the lifecycle of the reservoir – from locating hydrocarbons and managing geological data, to drilling and formation evaluation, well construction and completion, and optimizing production throughout the life of the asset. Visit the company’s website at www.halliburton.com.
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