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Why are Halliburton, Schlumberger Pulling Back from Russia?
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Halliburton (HAL - Free Report) said on Friday that it has decided to suspend future business in Russia with immediate effect, citing a wave of sanctions imposed after Moscow's attack on Ukraine. The oilfield service behemoth is also preparing to wind down its remaining operations in the nation to protest the full-scale invasion of Ukraine.
With sweeping international curbs making it difficult to conduct energy-related business in Russia — even with state-owned clients — this Houston, TX-based company took the public action. Halliburton added that it had already stopped transportation of “specific sanctioned parts and products” to Russia sometime back.
This way, HAL joined the lengthening list of oil and gas producers cutting ties with Russia as risks to finance and reputation mounts. However, it became the first energy services firm to unravel the Russian connection.
Larger rival Schlumberger (SLB - Free Report) followed suit by announcing stoppage to investment and technology supply to its Russian venture while closely monitoring the “dynamic” situation. SLB’s disclosure heightened its concerns about the war.
Like Halliburton, Schlumberger too raised red flags about the conflict and worries about the safety of workers, to go with the complications of doing business in the country as Western sanctions increase in scale and scope.
Halliburton and Schlumberger are two of the largest oilfield contractors offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. Both carry a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Devon Energy (DVN - Free Report) and Chevron (CVX - Free Report) . Each sports a Zacks Rank #1 (Strong Buy).
Devon Energy: Devon Energy is valued at some $40.8 billion. The Zacks Consensus Estimate for DVN’s 2022 earnings has been revised 18.5% upward over the past 60 days.
Devon Energy, headquartered in Oklahoma City, OK, delivered a 14.9% beat in Q4. DVN shares have gained around 201.8% in a year.
Chevron: Chevron is valued at around $321 billion. The consensus estimate for CVX’s 2022 earnings has been revised 27% upward over the past 60 days.
CVX beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, the average being 6.3%. Chevron has rallied around 69.4% in a year.
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Why are Halliburton, Schlumberger Pulling Back from Russia?
Halliburton (HAL - Free Report) said on Friday that it has decided to suspend future business in Russia with immediate effect, citing a wave of sanctions imposed after Moscow's attack on Ukraine. The oilfield service behemoth is also preparing to wind down its remaining operations in the nation to protest the full-scale invasion of Ukraine.
With sweeping international curbs making it difficult to conduct energy-related business in Russia — even with state-owned clients — this Houston, TX-based company took the public action. Halliburton added that it had already stopped transportation of “specific sanctioned parts and products” to Russia sometime back.
This way, HAL joined the lengthening list of oil and gas producers cutting ties with Russia as risks to finance and reputation mounts. However, it became the first energy services firm to unravel the Russian connection.
Larger rival Schlumberger (SLB - Free Report) followed suit by announcing stoppage to investment and technology supply to its Russian venture while closely monitoring the “dynamic” situation. SLB’s disclosure heightened its concerns about the war.
Like Halliburton, Schlumberger too raised red flags about the conflict and worries about the safety of workers, to go with the complications of doing business in the country as Western sanctions increase in scale and scope.
Halliburton and Schlumberger are two of the largest oilfield contractors offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial and government sectors. Both carry a Zacks Rank #3 (Hold).
Some better-ranked players in the energy space are Devon Energy (DVN - Free Report) and Chevron (CVX - Free Report) . Each sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Devon Energy: Devon Energy is valued at some $40.8 billion. The Zacks Consensus Estimate for DVN’s 2022 earnings has been revised 18.5% upward over the past 60 days.
Devon Energy, headquartered in Oklahoma City, OK, delivered a 14.9% beat in Q4. DVN shares have gained around 201.8% in a year.
Chevron: Chevron is valued at around $321 billion. The consensus estimate for CVX’s 2022 earnings has been revised 27% upward over the past 60 days.
CVX beat the Zacks Consensus Estimate for earnings in two of the trailing four quarters, the average being 6.3%. Chevron has rallied around 69.4% in a year.