Halliburton

Energy Services | Halliburton

Halliburton 4Q & 2016 Update – Net Loss of $153M in 2016
January 24, 2017January 24, 2017

Last week Schlumberger, the world’s largest oilfield services (OFS) company, reported their numbers for fourth quarter and full year 2016. As we highlighted, the company experienced a net loss last year (see Schlumberger 4Q16 & Full Year 2016 Results – Swings to Net Loss). Yesterday Halliburton, the world’s second largest OFS company, reported their numbers for last year. Like Schlumberger, Halliburton also had a net loss–of $153 million. And like Schlumberger, Halliburton said in 2017 prices for drillers are going up. Halliburton is a global company. Various regions were profitable or unprofitable. North America was unprofitable in 2016. Let’s dig into the details…
Read More “Halliburton 4Q & 2016 Update – Net Loss of $153M in 2016”
Energy Services | Halliburton

Halliburton 3Q16 Earnings Surprise: Turns a Profit!
October 20, 2016October 20, 2016

Halliburton kicked off the third quarter earnings season yesterday with some stunning news: the company actually turned a profit during 3Q16! It wasn’t much of a profit–just $7 million. But that comes after losing $3.2 billion during 2Q16. Engineering a turnaround like that is nothing short of miraculous. North America represents 40% of Halliburton’s revenue–the company made $1.7 billion in 3Q16, a 9% increase over 2Q16. The rest of the world (international) represents 60% of Halliburton’s revenue, which was $2.2 billion in 3Q16 (up 6% over 2Q16). The company predicted 4Q16 revenues will be flat. But hey, after billion dollar loses, who cares? CEO Dave Lesar once again reiterated his view that “things are getting better” for the oil and gas industry. A $3.2 billion turnaround in one quarter is a whole lotta proof to back up his assertion. However, company officials also said Halliburton remains in a pricing “barroom brawl” with competitors, and the oil market in particular remains “very challenging.” Here’s the Halli update…
Read More “Halliburton 3Q16 Earnings Surprise: Turns a Profit!”
Energy Services | Halliburton

Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ
July 21, 2016July 21, 2016

The second-largest oilfield services company in the world, Halliburton (once run by the evil puppet-master himself, Dick Cheney) issued their second quarter 2016 financial and operating update yesterday. The company reports losing $3.2 billion during 2Q16, largely because the Obama Dept. of Justice nixed a buyout of Baker Hughes by Halliburton, which triggered a $3.5 billion payment from Halliburton to BH (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated” and The Road Ahead for Baker Hughes – Post Halliburton Deal). Halliburton also reports revenue fell 15% and they laid off another 5,000 workers during the quarter. Here’s the update…
Read More “Halliburton 2Q16: $3.2B Loss, Lays Off Another 5K, Thx to Obama DOJ”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A | Regulation

Irony: DOJ Scuttled Halliburton/BH Merger, then Collects $11M Fine
July 14, 2016July 14, 2016

The news is now months old that Halliburton and Baker Hughes ended their attempt to merge. The reason they called it off was because of opposition from the Obama Department of Justice (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). The companies didn’t have the stomach to go up against the bullies at DOJ. So it was the DOJ that actually killed the deal. During the process of DOJ’s review, an “activist investor” (i.e. corporate raider) by the name of ValueAct Capital snapped up $2.6 billion worth of Halliburton and Baker Hughes stock with, according to the DOJ, the intent to influence the companies’ business decisions as the merger unfolded.” The DOJ charged ValueAct “with violating the reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act” (see DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger). ValueAct has settled by paying $11 million in shakedown money to the DOJ to make it all go away. Which we find ironic. The DOJ killed the deal, and yet the DOJ is extracting money for the deal they killed…
Read More “Irony: DOJ Scuttled Halliburton/BH Merger, then Collects $11M Fine”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

Moodys Downgrades Halliburton/Baker Hughes Debt Post-Failed-Merger
June 9, 2016June 9, 2016

Ever hear the phrase, “Better to try and fail than never to try at all.” That’s actually the name of a poem from William O’Brien (dead poet, read his famous poem here). Contrary to the wisdom of O’Brien’s poem, in some cases it may be better to never have tried in the first place. At least that’s what Halliburton and Baker Hughes may be thinking about their failed attempt to merge (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). Halliburton ended up having to pay Baker Hughes a $3.5 billion break-up fee (see The Road Ahead for Baker Hughes – Post Halliburton Deal). Ouch. But that’s not all. Last week Moody’s Investors Service downgraded the debt for both Halliburton and Baker Hughes–from A2 to Baa1. Why? In part because of the failed merger deal. That’s what Moody’s says. What does the credit downgrade mean? It means their outstanding debt is harder to buy and sell, affecting $12.8 billion of debt for Halliburton and $3.9 billion of debt for Baker Hughes. It also means should either company want to borrow more money, the cost will be higher to do so…
Read More “Moodys Downgrades Halliburton/Baker Hughes Debt Post-Failed-Merger”
Eclipse Resources | Energy Companies | Energy Services | Guernsey County | Halliburton | Hydraulic Fracturing | Industrywide Issues | Ohio

Halliburton Fracked Eclipse’s 3.5 Mile ‘Purple Hayes’ Utica Well
June 1, 2016June 1, 2016

There’s an old saying that goes like this: “Success has many fathers, but failure is an orphan.” Not long ago MDN reported that Eclipse Resources had drilled what is believed to be the longest horizontal well (on land) in the world–the 3.5 mile “Purple Hayes” Utica Shale well (see Eclipse Res. 1Q16: Drills Longest Shale Well Ever! “Purple Hayes”). It wasn’t but a day or two and one of the companies that worked on the well to help drill it, Nine Energy, popped up to say they had a hand in that recording-breaking well (see Nine Energy Completed World’s Longest Shale Well – in the Utica). Last week MDN told you that “snubbing” company Deep Well Services, from Pennsylvania, also helped with drilling the well (see PA Firm Helped Drill ‘Purple Hayes’ – World’s Longest Shale Well). Drilling any well is truly a team effort with many companies involved. Yesterday yet another company stepped up to claim they played a major role in drilling the Purple Hayes–Halliburton…
Read More “Halliburton Fracked Eclipse’s 3.5 Mile ‘Purple Hayes’ Utica Well”
Energy Services | Halliburton | Hydraulic Fracturing | Industrywide Issues

Halliburton Dominates Marcellus Refracks; Utica Shifting to Sand
May 31, 2016May 31, 2016

Every now and again it’s fun to delve into some of the technical aspects of drilling a Marcellus (and Utica) Shale well. We pick up on some of those particulars from a survey conducted by Hart Energy. Hart surveyed Marcellus and Utica drillers and found that, unsurprisingly, what has worked continues to work: When a Marcellus driller drills and fracks a well, the driller uses slickwater and up to 11 million pounds of white sand. What IS surprising to learn is that Utica drillers who had favored ceramic beads instead of sand are moving away from using ceramic beads and toward the Marcellus tried-and-true slickwater with sand approach. Here’s a few more interesting tidbits, including the fact that Halliburton is king of refracks in the Marcellus…
Read More “Halliburton Dominates Marcellus Refracks; Utica Shifting to Sand”
Baker Hughes | Energy Services | Halliburton

Halliburton CEO Talks About Failed BH Merger, Industry Turnaround
May 4, 2016May 4, 2016

David Lesar

Halliburton, the second largest oilfield services company in the world, released its first quarter 2016 update yesterday. Along with it, Halliburton CEO Dave Lesar held court with stock analysts on a ubiquitous quarterly earnings call. Among Lesar’s comments is that he thinks the oil and gas industry is right now beginning to turn more positive. Lesar believes that drilling will begin to pick up again later this year. He also had a number of comments, and questions, about the failed takeover/merger attempt with Baker Hughes (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). We found Lesar’s prepared remarks interesting and thought you would too…
Read More “Halliburton CEO Talks About Failed BH Merger, Industry Turnaround”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A

The Road Ahead for Baker Hughes – Post Halliburton Deal
May 3, 2016May 3, 2016

Yesterday MDN brought you the news that the Halliburton buyout of Baker Hughes is now officially dead (see Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”). So what’s ahead for Baker Hughes? First up is that they will get a $3.5 billion (with a “b”) payment from Halliburton tomorrow. At least, they’re supposed to. Baker Hughes says they will use $1.5 billion of the money to buy back company stock, and the other $1 billion to pay off certain debts. The company will also “rationalize” (i.e. downsize/cut) certain segments of its business–like the onshore pressure pumping business. You have to wade through lots of euphemisms and management gobbledygook speak, but here’s the Baker Hughes “path to the future” statement they issued yesterday…
Read More “The Road Ahead for Baker Hughes – Post Halliburton Deal”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | M&A | Regulation

Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated”
May 2, 2016May 2, 2016

It’s a sad day for Halliburton and Baker Hughes. The two companies intended to get married, with Halliburton buying out BH and merging it in a deal worth $35 billion (see Shotgun Wedding: Halliburton Forces Baker Hughes to Sell). That was in November 2014. Since then, the two companies have jumped through every hoop demanded of them, including shedding assets (see Halliburton/Baker Hughes Hold a Pre-Merger Garage Sale). By the end of last year, rumors were circulating that the deal is in trouble (see Whispers Turning in Chorus, Halliburton/BH Deal in Trouble). Then European regulators began throwing cold water on the deal (see Europe Puts Halliburton/BH Merger Under a Microscope). No problem–HalliHughes thought they could still pull it off. But then the bullies of the Obama Justice Department got involved and sued to block the deal (see Obama DOJ Sues to Block Halliburton/Baker Hughes Merger). We can’t remember a time when the DOJ opposed a big deal it ended up happening. And so it is with this one. The bullies have won. In a rare Sunday press release, Baker Hughes says the deal is now off–and Halliburton owes Baker Hughes $3.5 billion in a breakup fee–due by this Wednesday. Happy May Day, Halli!…
Read More “Obama DOJ Kills Halliburton/Baker Hughes Merger, Deal “Terminated””
Energy Services | Halliburton | Industrywide Issues | Jobs | Lycoming County | Pennsylvania

Ouch: Halliburton Axed ~200 Jobs in Lycoming County Last Friday
April 27, 2016April 27, 2016

Just a few years ago Halliburton, the second largest oilfield services company in the world, employed 600 people in its operation center located in Lycoming County, PA. Today? There are 40 working there. Some 200 of Halliburton’s Lycoming employees were laid off last Friday. Lycoming County is relatively rural with the city of Williamsport as its county seat. Losing 560 jobs, 200 of them in one go, is a huge blow to the area. We grieve with those who have lost their jobs–and with their families who depended on those jobs…
Read More “Ouch: Halliburton Axed ~200 Jobs in Lycoming County Last Friday”
Baker Hughes | Energy Services | GE Oil & Gas | Halliburton | Industrywide Issues | M&A

Scuttlebutt: With Halliburton Deal Crumbling, GE Eyes Baker Hughes
April 11, 2016April 11, 2016

Last Thursday MDN brought you the news that the Dept. of Justice has decided to try to block the merger/buyout of oilfield services company Baker Hughes by bigger oilfield services company Halliburton (see Obama DOJ Sues to Block Halliburton/Baker Hughes Merger). When you add up opposition from both Europe and Brazil, this deal looks like it will never take place. So what happens now? Halliburton/BH say they will fight the DOJ’s action. But let’s get real. When was the last time anyone went up against the DOJ antitrust division and won? Which brings us to the rumor mill, which is now swirling that General Electric’s (GE) Oil & Gas division may make a run at buying out Baker Hughes…
Read More “Scuttlebutt: With Halliburton Deal Crumbling, GE Eyes Baker Hughes”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A | Regulation

Obama DOJ Sues to Block Halliburton/Baker Hughes Merger
April 7, 2016April 7, 2016

That didn’t take long. Yesterday MDN told you that sources in the Obama Dept. of Justice (DOJ) were leaking to the press that they would soon file a lawsuit against the Halliburton/Baker Hughes merger, in order to block it (see DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead). They did. Yesterday the DOJ filed to block the merger saying the “merger would eliminate significant head-to-head competition in oilfield services industry.” Halliburton and Baker Hughes were quick to respond saying they will “vigorously contest the U.S. Department of Justice’s (DOJ) effort to block [the] pending merger.” Bring on the lawyers! Halliburton/BH say the DOJ has “reached the wrong conclusion in its assessment of the transaction and that its action is counterproductive, especially in the context of the challenges the U.S. and global energy industry are currently experiencing.” Here’s the dueling press releases issued yesterday…
Read More “Obama DOJ Sues to Block Halliburton/Baker Hughes Merger”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A | Regulation

DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead
April 6, 2016April 6, 2016

Yesterday MDN told you that the U.S. Dept. of Justice has sued investment firm ValueAct Capital with an accusation that ValueAct has inappropriately pulled strings with both Halliburton and Baker Hughes in their planned merger (see DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger). It seems that’s not the only lawsuit the DOJ is going to lodge. According to the Wall Street Journal and other national media sources, the Obama DOJ has let leak they plan to sue Halliburton/Baker Hughes to stop the merger. It appears as if it’s all but dead. The Europeans are not fans of the plan (see Europe Puts Halliburton/BH Merger Under a Microscope). Brazil is also against the deal (see Is the Halliburton Buyout of Baker Hughes in Trouble?). If the DOJ turns against it–there’s no way the deal will happen, in our humble opinion. Here’s the latest in the shotgun wedding that may turn out to be a couple at the alter with no one willing to marry them…
Read More “DOJ “Preparing Lawsuit” Against Halliburton/BH – Deal Looks Dead”
Baker Hughes | Energy Services | Halliburton | Industrywide Issues | Litigation | M&A

DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger
April 5, 2016July 14, 2016

So what’s happening with Halliburton’s $34.6 billion buyout of Baker Hughes? At last check the deal was at best a 50/50 proposition as to whether or not it would happen. Europe currently has the deal under a microscope (see Europe Puts Halliburton/BH Merger Under a Microscope). The European Commission launched a “second phase” of their investigation into the deal, which is problematic for Halliburton. The European Commission says they see “serious potential competition concerns” with the deal. Not good. But that was in January. Since then we’d not heard anything about the deal’s progress–until now. Yesterday the U.S. Dept. of Justice sued ValueAct Capital, accusing the company of purchasing $2.6 billion worth of stock in Halliburton and BH with “the intent to influence the companies’ business decisions as the merger unfolded.” The company has been charged with violating the reporting and waiting period requirements of the Hart-Scott-Rodino Antitrust Improvements Act…
Read More “DOJ Sues ValueAct Capital for Meddling in Halliburton/BH Merger”
Energy Services | Halliburton

Halliburton’s Ugly 4Q15: Fired Another 4,000, Lost $28M
January 26, 2016January 26, 2016

Oilfield services giant Halliburton, with major operations in the Marcellus/Utica, released their fourth quarter and full year 2015 update yesterday. It wasn’t pretty. For the last three months of 2014, Halliburton made $901 million in net income. For the last three months of 2015, that number went to minus $28 million. There are a number of reasons for the big swing. The price of oil (and gas) tanked in 2015, and with it, drillers laid down rigs operated by Halliburton. Top line revenue–how much revenue came in–tanked in 4Q15. In 4Q14 Halliburton’s total revenue was $8.77 billion, and in 4Q15 the number was $5.08 billion. Add in higher impairment costs (a permanent devaluing of a company’s assets on paper), costs related to laying off another 4,000 workers in 4Q15, costs related to buying Baker Hughes, etc., and the numbers for Halliburton are ugly. Total revenue for full year 2015 was $23.6 billion, a decrease of $9.2 billion, or 28%, from 2014. Reported operating loss for 2015 was $165 million, compared to reported operating income of $5.1 billion for 2014. Even so, Halliburton’s president Jeff Miller puts a happy face on and says the company is doing better than its peers…
Read More “Halliburton’s Ugly 4Q15: Fired Another 4,000, Lost $28M”