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Halliburton Company (HAL - Free Report) reported fourth-quarter 2022 adjusted net income per share of 72 cents, surpassing the Zacks Consensus Estimate of 67 cents and well above the year-ago quarter profit of 36 cents (adjusted). The outperformance reflects stronger-than-expected profit from both its divisions.
Meanwhile, revenues of $5.6 billion were 30.5% higher than the corresponding period of 2021 and also came just ahead of the Zacks Consensus Estimate (by some $3 million). North American revenues rose 46.4% year over year to $2.6 billion, while revenues from Halliburton’s international operations were up 19.1% from the year-ago period to nearly $3 billion. Investors should know that HAL has outsized exposure to the North American land drilling market.
In more good news for investors, Halliburton raised its quarterly dividend by 33.3% to 16 cents per share (or 64 cents per share annualized).
Halliburton Company Price, Consensus and EPS Surprise
Halliburton was the last of the ‘Big Three’ oil services firms to report fourth-quarter results after rivals SLB (SLB - Free Report) and Baker Hughes (BKR - Free Report) came out with contrasting releases last week.
SLB, the largest oilfield contractor, announced fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 69 cents. SLB recorded total revenues of $7.9 billion, outpacing the Zacks Consensus Estimate by 0.7%.
SLB’s strong quarterly earnings resulted from strong activities in land and offshore resources in North America and Latin America. The company’s board approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid dividend.
On the other hand, Baker Hughes reported fourth-quarter 2022 adjusted earnings of 38 cents per share, missing the Zacks Consensus Estimate of 41 cents due to higher costs and expenses.
Meanwhile, BKR’s revenues for the October-December period totaled $5.9 billion, also underperforming the Zacks Consensus Estimate by 2.6%. The negatives were partially offset by higher contributions from the Oilfield Services and Equipment business unit.
Inside Halliburton’s Segments
Operating income from the Completion and Production segment was $659 million, 89.9% above the year-ago level of $347 million and ahead of the Zacks Consensus Estimate of $629 million. The division’s performance was buoyed by improving completion tool sales as well as cementing activity globally, to go with the strength in the pressure pumping business in North America onshore.
Drilling and Evaluation unit profit surged from $269 million in the fourth quarter of 2021 to $387 million in the corresponding period of 2022. The division also managed to beat the Zacks Consensus Estimate of $364 million. This was primarily due to a pickup in international drilling-associated services, testing services, and year-end software sales in, as well as increased project management activity in Mexico.
Balance Sheet
Halliburton reported fourth-quarter capital expenditure of $350 million. For the full-year, HAL’s spending totaled $1 billion. As of Dec 31, 2022, the Zacks Rank #2 (Buy) company had approximately $2.3 billion in cash/cash equivalents and $7.9 billion in long-term debt, representing a debt-to-capitalization ratio of 49.8.
Halliburton — the world’s biggest provider of hydraulic fracking — noted that the strong fourth-quarter (and 2022) performance is a thumbs-up to its solid execution and strategic priorities in North America as well as international markets. Looking ahead, the company expects this recipe to drive strong margins home and away throughout this year and beyond. Looking ahead, Halliburton sees international region to deliver profitable growth, while optimizing value in its core north American market.
Overall, Halliburton believes that its smart strategy, digital leadership, capital efficiency, and the global presence points to a rosy outlook. The Houston-based company’s cash flow generation capabilities and balance sheet strength should also ensure increased shareholder returns, as evinced by its recent dividend hike.
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Halliburton (HAL) Q4 Earnings Beat Estimates, Dividend Raised
Halliburton Company (HAL - Free Report) reported fourth-quarter 2022 adjusted net income per share of 72 cents, surpassing the Zacks Consensus Estimate of 67 cents and well above the year-ago quarter profit of 36 cents (adjusted). The outperformance reflects stronger-than-expected profit from both its divisions.
Meanwhile, revenues of $5.6 billion were 30.5% higher than the corresponding period of 2021 and also came just ahead of the Zacks Consensus Estimate (by some $3 million). North American revenues rose 46.4% year over year to $2.6 billion, while revenues from Halliburton’s international operations were up 19.1% from the year-ago period to nearly $3 billion. Investors should know that HAL has outsized exposure to the North American land drilling market.
In more good news for investors, Halliburton raised its quarterly dividend by 33.3% to 16 cents per share (or 64 cents per share annualized).
Halliburton Company Price, Consensus and EPS Surprise
Halliburton Company price-consensus-eps-surprise-chart | Halliburton Company Quote
Halliburton was the last of the ‘Big Three’ oil services firms to report fourth-quarter results after rivals SLB (SLB - Free Report) and Baker Hughes (BKR - Free Report) came out with contrasting releases last week.
SLB, the largest oilfield contractor, announced fourth-quarter 2022 earnings of 71 cents per share (excluding charges and credits), which beat the Zacks Consensus Estimate of 69 cents. SLB recorded total revenues of $7.9 billion, outpacing the Zacks Consensus Estimate by 0.7%.
SLB’s strong quarterly earnings resulted from strong activities in land and offshore resources in North America and Latin America. The company’s board approved a quarterly cash dividend of 25 cents per share, indicating a 43% increase from the last paid dividend.
On the other hand, Baker Hughes reported fourth-quarter 2022 adjusted earnings of 38 cents per share, missing the Zacks Consensus Estimate of 41 cents due to higher costs and expenses.
Meanwhile, BKR’s revenues for the October-December period totaled $5.9 billion, also underperforming the Zacks Consensus Estimate by 2.6%. The negatives were partially offset by higher contributions from the Oilfield Services and Equipment business unit.
Inside Halliburton’s Segments
Operating income from the Completion and Production segment was $659 million, 89.9% above the year-ago level of $347 million and ahead of the Zacks Consensus Estimate of $629 million. The division’s performance was buoyed by improving completion tool sales as well as cementing activity globally, to go with the strength in the pressure pumping business in North America onshore.
Drilling and Evaluation unit profit surged from $269 million in the fourth quarter of 2021 to $387 million in the corresponding period of 2022. The division also managed to beat the Zacks Consensus Estimate of $364 million. This was primarily due to a pickup in international drilling-associated services, testing services, and year-end software sales in, as well as increased project management activity in Mexico.
Balance Sheet
Halliburton reported fourth-quarter capital expenditure of $350 million. For the full-year, HAL’s spending totaled $1 billion. As of Dec 31, 2022, the Zacks Rank #2 (Buy) company had approximately $2.3 billion in cash/cash equivalents and $7.9 billion in long-term debt, representing a debt-to-capitalization ratio of 49.8.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Management Remarks & Outlook
Halliburton — the world’s biggest provider of hydraulic fracking — noted that the strong fourth-quarter (and 2022) performance is a thumbs-up to its solid execution and strategic priorities in North America as well as international markets. Looking ahead, the company expects this recipe to drive strong margins home and away throughout this year and beyond. Looking ahead, Halliburton sees international region to deliver profitable growth, while optimizing value in its core north American market.
Overall, Halliburton believes that its smart strategy, digital leadership, capital efficiency, and the global presence points to a rosy outlook. The Houston-based company’s cash flow generation capabilities and balance sheet strength should also ensure increased shareholder returns, as evinced by its recent dividend hike.