Halliburton receives dividend for the first time in more than seven years Oil and Gas News

Oil tightening is proving to be a boon for the world’s leading provider of fracking services.

Shale oil companies are using almost all of the fracking equipment and crew available as the exploration expands, accelerating cost inflation and worsening supply chain disruptions.

North American oil drillers are expected to increase spending by more than 25% this year, while foreign explorers are on track for a more modest rise in their mid-teens, Halliburton Co. executives said Monday after announcing a seven-year quarterly highest gain.

The world’s leading provider of fracking services is already squeezing supplies of labor, trucks and raw materials, and in some regions 80% of workers are transplants contracted from other areas. What’s more, Halliburton is something common that explodes in sand pits to help break up oil-soaked rocks, which is becoming increasingly difficult to obtain, he said at a conference with CEO Jeff Miller.

This tightening is benefiting Halliburton, which for the first time since 2014 raised the dividend and said pumping gear demands have doubled. The company’s fracking business is working at full capacity and oil companies are paying higher prices for the so-called end-of-work. ConocoPhillips and Devon Energy Corp. members like last year have warned that inflation in oil fields was a growing threat.

“This is a wonderful set of conditions for Halliburton,” Miller said. “The demand for the current supplement tool has more than doubled since a year ago, indicating strong growth and profitability again in 2022.”

Oil and natural gas explorers are paying record highs as the economic growth that sustains energy demand bounces back as a result of a pandemic-driven collapse, the Federal Reserve Bank of Dallas said in recent weeks. In the Permian Basin (the largest oil field in the United States) supply chain secrecy is complicating, lengthening, and costing drilling projects.

Miller said there is little reason to expect things to change soon.

“I don’t see 2023 as the end point at all,” Miller said. “I think the road goes far beyond that.”

Expansion Cycle

Halliburton joined the larger rivals Schlumberger and Baker Hughes Co. oil field contractors to announce a new multi-year expansion cycle, though Halliburton was the only one of the trio to increase shareholder payments. Shares fell 1.4% to $ 27.15 at 11:03 a.m. in New York City as a result of broader capital market discourse stemming from geopolitical tensions in Eastern Europe.

Schlumberger said spending last week is rising by 18% to $ 2 trillion to prepare for the multi-year growth it expects from customers around the world.

As the largest oil and oil contractor in the U.S. and Canada, Halliburton will earn the most from a North American-led spending recovery, with Schlumberger saying his larger rivals should grow by 20% last week.

Baker Hughes is also seeing waves of growth thanks to the resurgence of shale drilling in the US. The Houston-based company posted a 28% increase in orders last week, leading a line of business that launches large turbines used to liquefy natural gas for export.

Excluding temporary items, Halliburton reported a 36-cent gain per share in the fourth quarter, 2 cents more than the average analyst estimate in a Bloomberg poll.

The increase in dividends was 12 cents a share of the company’s first pay rise since late 2014, when crude oil prices fell by more than $ 100 a barrel earlier this year.

On a sequential basis, sales in the last three months of 2021 doubled in North America and abroad, respectively. The biggest surprise in revenue came from the Middle East and Asia, with sales exceeding expectations by 8%.