Halliburton has laid off 650 employees across the Rockies region. Officials say there is growing concern over uncertainty following an oil and gas bill passed this year that overhauls industry regulations in the state.
Halliburton Cuts 8% of North American Fracking Jobs
After the Frac slowdown that started in the early part of the year, The world’s biggest provider of fracking equipment, including Rock blasting Pressure Pumping pumps and sand-storage silos, declined to tell analysts and investors Monday how much pressure-pumping gear it’s parked in the U.S. and Canada.
“We recognize the changing behavior of our North American customers and are executing a new playbook to keep generating returns and free cash flow,” Chief Executive Officer Jeff Miller said on the call. “What was the right playbook several years ago, when there was a different cadence and pace of customers’ spend, today needs to change.”
The Houston-based contractor cut 8% of its workforce in the region during the second quarter.
Industry consultant Rystad Energy estimated in February that Halliburton and its competitors would have a year-end supply of 24.4 million horsepower for fracing, but would face demand of just 14.5 million this year. Shale producers have cut spending as investors pressure the companies to return cash to shareholders after the worse oil-price crash in a generation five years ago.
The oil-rich Permian basin is slowing – Bad News For Halliburton?
Halliburton is days away from reporting 2Q19 earnings, and a shift in the narrative regarding North America could be bad news for Halliburton. Why? Below we take a look.
- High well-decline rates burning cash as investors stay away
- Smaller producers fight to survive, bigger ones cutting back
The promise of the Permian is shrinking.
Producers in the nation’s oil-rich shale basins are dialing back growth plans in the face of a growing panoply of problems that’s killing returns and keeping skeptical investors at bay. – https://www.bloomberg.com
Zacks Consensus Estimates are projecting earnings of $1.33 per share and revenue of $24.23 billion, which would represent changes of -30% and +0.98%, respectively, from the prior year.