Halliburton Company (NYSE: HAL) stock rose over 8% on 21st October, 2019 (as of 12:00 pm GMT-4; Source: Google finance).
HAL has announced an asset acquisition of electromechanical downhole cutting tools and tubing punches from Westerton (UK) Ltd. during the third quarter 2019. These services offers the operators with the reliable alternative to traditional pipe recovery and intervention across the well lifecycle from exploration to abandonment. This new technology will help the operators to reduce the cost to construct new wells and extend the life of old wells.
Moreover, HAL has executed an integrated services contract with Petrobras for pre-salt development in the Santos Basin in the third quarter 2019. The thirty-month contract will offer drilling and completion services to boost greater efficiency by applying pre-salt expertise and integrating multiple product offerings.
Halliburton and its competitors are battling reduced spending by oil and gas producers as investors push for higher returns rather than growth in a weak oil price environment. Further, Halliburton was forced to cut 650 jobs across Colorado, Wyoming, New Mexico and North Dakota due to the slowing of oil and gas activity, while smaller rival ProPetro Holding Corp cut about 150 workers
HAL in the third quarter of FY 19 has reported the adjusted earnings per share of 34 cents, which is in line with the analysts’ estimates for the adjusted earnings per share of 34 cents, as per the FactSet consensus. The company had reported 10.1 percent fall in the adjusted revenue to $5.55 billion in the third quarter of FY 19. The revenue fell was on back of the completion and production revenue decline of 15.9% to $3.51 billion to miss expectations of $3.66 billion while drilling and evaluation revenue rose 2.1% to $2.04 billion but missed projections of $2.15 billion.
Additionally, North America revenue in the third quarter of 2019 fell 11% to $2.9 billion as compared to the second quarter of 2019, mainly related to lower activity and pricing in pressure pumping and well construction services in North America land.