Halliburton Company (NYSE: HAL) saw its third-quarter earnings top Wall Street expectations on steady drilling and stimulation demand in North America.
Halliburton, the oilfield services giant with the highest exposure to the U.S. fracking market, on Tuesday reported an adjusted net income of $0.58 per diluted share for the third quarter. That’s down from $0.73 a year earlier, but higher than the $0.55 EPS for the second quarter and the $0.50 per share income expected for Q3 in an analyst consensus in The Wall Street Journal.
Halliburton’s stock surged by 4.4% in pre-market trade in New York on Tuesday after the release of the Q3 results.
“In North America, we are executing our strategy to Maximize Value — this means we are prioritizing returns, technology leadership, and working with leading operators,” said Jeff Miller, chairman, president and CEO at Halliburton.
“I am confident that our strategy execution will drive further outperformance,” the executive added, referring to the North American market.
In North America, Halliburton’s revenue for the third quarter rose by 5% sequentially to $2.4 billion, also beating the analyst consensus estimate of $2.17 billion.
The increase in the third-quarter revenues in North America was primarily driven by increased stimulation activity onshore the U.S. and Canada, and higher completion tool sales and increased wireline activity in the Gulf of America, the company said.
U.S. crude oil production has been setting records in recent weeks, with output rising to 13.636 million barrels per day (bpd) in the week ending October 10, the highest point ever.
Halliburton’s international revenue was flat at $3.2 billion, as an increase in drilling services in Argentina was offset by lower revenues in the Middle East and Asia market.
Last week, the world’s biggest oilfield services provider, SLB (NYSE: SLB), also reported higher-than-expected earnings for the third quarter as revenue from its North American business jumped by 17% from the second quarter and by 14% from a year earlier.
By Charles Kennedy for Oilprice.com
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