Halliburton raised dividend for the first time in more than seven years Oil and gas news


Oil squeezing is a boon to the world’s best fracking service provider.

Shale oil companies are using almost all available fracking equipment and crews as the study expands, accelerates cost inflation and points to deteriorating disruptions in the industry’s supply chain.

North American oil drills appear likely to increase costs by more than 25 percent this year, while overseas explorers are on track for a more modest increase among teenagers, Halliburton Co. executives said. on Monday, after reporting their biggest quarterly profit in seven years.

The world’s best fracking service provider is already experiencing labor shortages, truck transport and raw material supplies, and in some regions up to 80% of workers are transplants hired from other areas. Even something as mundane as the sand that Halliburton blows into wells to help break up oil-soaked rocks is becoming increasingly difficult to obtain, CEO Jeff Miller said during a conference call with analysts.

The pressure proves a boon for Halliburton, which raised its dividend for the first time since 2014 and said orders for pumping equipment have more than doubled. The company’s fracking business is operating at full capacity and oil companies are paying higher prices for so-called finishing work. ConocoPhillips and colleagues such as Devon Energy Corp. have warned since last year that oil inflation is a growing threat.

“It’s a fantastic set of conditions for Halliburton,” Miller said. “Our current ordering book for graduation tools has more than doubled since a year ago, signaling strong growth and profitability again in 2022.”

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Oil and gas researchers are paying record costs as economic growth, which is at the heart of energy demand, recovers from the collapse caused by the pandemic, the Dallas Federal Reserve said in recent weeks. Disruption of the supply chain in the Permian Basin – the largest oil field in the United States – makes drilling projects more complex, time-consuming and expensive.

Miller said there was little reason to expect things to change any time soon.

“I don’t see 2023 as the end point in any way,” Miller said. I think the road goes well beyond that.

Expansion cycle

Halliburton has joined larger competitors Schlumberger and Baker Hughes Co. in forecasting a new multi-year cycle of expansion of oilfield contractors, although Halliburton was the only one among the trio to increase shareholder payouts. Shares fell 1.4% to $ 27.15 at 11:03 a.m. in New York amid a wider downturn in the stock market stemming from geopolitical tensions in Eastern Europe.

Schlumberger said last week that he was increasing spending by as much as 18 percent to $ 2 billion to prepare for the years of growth he expects from customers around the world.

As the largest oil producer in the United States and Canada, Halliburton could benefit most from North American-led cost recovery, which larger competitor Schlumberger said last week should increase by at least 20 percent.

Baker Hughes is also seeing waves of growth thanks to a revival of shale drilling in the United States. The Houston-based company posted orders last week, up 28 percent, led by a business line that produces massive turbines used to liquefy natural gas for export.

Excluding one-off items, Halliburton reported fourth-quarter earnings of 36 cents a share, up 2 cents from analysts’ average estimates in a Bloomberg survey.

The increase in the dividend to 12 cents a share was the first increase in the company’s payout since late 2014, when crude oil prices fell from more than $ 100 a barrel earlier in the year.

On a consistent basis, sales in the last three months of 2021 jumped by double digits in North America and abroad, respectively. The biggest surprise for revenue came from the Middle East and Asia, where sales exceeded forecasts by 8%.





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