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Halliburton turns red as U.S. shale firms "tapping the brakes"

Published 07/24/2017, 10:58 AM
© Reuters.  Halliburton turns red as U.S. shale firms "tapping the brakes"
HAL
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  • Halliburton (HAL -3.2%) has turned sharply lower after its earnings conference call, as Chairman Dave Lesar said rig count growth is showing signs of plateauing and North American customers are "tapping the brakes."
  • HAL says its pressure pumping equipment is sold out in Q3 and it has been successful passing along supply cost increases to its customers, but Q2 saw the first decline in years in average sand pumped per well.
  • HAL also expects margins in its completion and production division to increase by 225-325 basis points in Q3.
  • However, the company does not expect a near-term rebound in the international markets for several reasons, including the lengthy contracting cycles that will mute any near-term pricing inflection, and a lack of confidence in commodity prices in order to overcome the duration risk in their projects.
  • Now read: Halliburton: Homerun


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