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Leading oilfield service firm Halliburton Company (HAL - Free Report) recently acquired Tulsa, OK-based Summit ESP.
Summit Buyout Terms
Summit ESP is the manufacturer of electric submersible pump systems that indirectly help boost the production of oil and natural gas by maintaining pressure of aging wells. During May, the company completed the installation of its 8,000th electric submersible pump. This marks an increment of 1,000 installations since late 2016. Another famous maker of electric submersible pump is Baker Hughes that recently merged with the oil and gas business unit of General Electric Company (GE - Free Report) .
It is to be noted that Halliburton has not disclosed the financial terms of the transaction.
Benefits
We expect Halliburton to gain from this acquisition given that devices manufactured by Summit ESP are in high demand and are being utilized by upstream energy players for extending the life of shale wells.
Investors should know that the deal has made Halliburton more competent in the North American oilfield services market by significantly enhancing the artificial lift potential. In other words, following the accord, Halliburton will be able to maximize the value of properties for customers and is now in a better position to compete with leading oilfield service providers like Schlumberger Limited (SLB - Free Report) and Weatherford International plc .
We can say that this development will help Halliburton earn significant cashflow for stockholders.
About Halliburton
Houston, TX-based Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors. We appreciate the company’s cost-cutting initiatives (like reduced headcount, consolidating facilities) in the wake of weak oil prices over a length of time.
However, the stock, belonging to the Zacks categorized Oil & Gas-Field Services industry, lost more than 20% on a year-to-date basis. Also, Halliburton’s cash reserves deteriorated from $4 billion at the end of 2016 to $2.1 billion by Mar 31.
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
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Halliburton's Summit Buyout Boosts Artificial Lift Potential
Leading oilfield service firm Halliburton Company (HAL - Free Report) recently acquired Tulsa, OK-based Summit ESP.
Summit Buyout Terms
Summit ESP is the manufacturer of electric submersible pump systems that indirectly help boost the production of oil and natural gas by maintaining pressure of aging wells. During May, the company completed the installation of its 8,000th electric submersible pump. This marks an increment of 1,000 installations since late 2016. Another famous maker of electric submersible pump is Baker Hughes that recently merged with the oil and gas business unit of General Electric Company (GE - Free Report) .
It is to be noted that Halliburton has not disclosed the financial terms of the transaction.
Benefits
We expect Halliburton to gain from this acquisition given that devices manufactured by Summit ESP are in high demand and are being utilized by upstream energy players for extending the life of shale wells.
Investors should know that the deal has made Halliburton more competent in the North American oilfield services market by significantly enhancing the artificial lift potential. In other words, following the accord, Halliburton will be able to maximize the value of properties for customers and is now in a better position to compete with leading oilfield service providers like Schlumberger Limited (SLB - Free Report) and Weatherford International plc .
We can say that this development will help Halliburton earn significant cashflow for stockholders.
About Halliburton
Houston, TX-based Halliburton is one of the largest oilfield service providers in the world, offering a variety of equipment, maintenance, and engineering and construction services to the energy, industrial, and government sectors. We appreciate the company’s cost-cutting initiatives (like reduced headcount, consolidating facilities) in the wake of weak oil prices over a length of time.
However, the stock, belonging to the Zacks categorized Oil & Gas-Field Services industry, lost more than 20% on a year-to-date basis. Also, Halliburton’s cash reserves deteriorated from $4 billion at the end of 2016 to $2.1 billion by Mar 31.
Zacks Rank
Halliburton currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>