Halliburton shifts focus as income rises in fourth quarter

Halliburton is shifting its emphasis to oil and liquids-rich plays in the US, as net income rose nearly 50 percent in the fourth quarter of 2011.

The Houston-based company posted net income of $906 million, or 98 cents per share, today for the fourth quarter. During the same period in 2010, the company posted net income of $605 million, or 66 cents per share.

Revenues increased to $7.06 billion, a rise of 36.9 percent over the same period in 2010.

“I’m proud to say this was a record year for our company, with revenues of $24.8 billion, operating income of $4.7 billion and with growth, margins and returns that led our peer group,” said Dave Lesar, Halliburton’s chairman, president, and chief executive officer. “Our business has nearly doubled in size over the last five years, primarily from organic growth.”

The company, one of the top sellers of drilling equipment and hydraulic fracturing services in the U.S., had record revenues in its completion and production, drilling and evaluation divisions, Lesar said.

Halliburton’s annual revenue increased to $24.8 billion in 2011, a 38 percent increase over $17.9 billion in revenue in 2010. It had annual net income of $2.8 billion, or $3.08 per share, in 2011, a hardy 57 percent increase over $1.8 billion in 2010.

While Halliburton expects to continue working in natural gas plays in Texas, Ohio, Pennsylvania, North Dakota and New York, it is following energy companies in moving its focus to liquids-rich plays, where it expects to benefit from higher oil prices.

“The shift towards oil and liquids-rich plays are a direct result of the stability of oil prices and higher operator returns for these resources,” Lesar said. “Completing these wells requires higher levels of service intensity, due to the enhanced fluid and completion technologies and creates an additional opportunity for us to differentiate ourselves from the competition.”

Halliburton fourth quarter earnings

25 Comments

  1. TheSouthWillRiseAgain

    Good for Halliburton and for capitalism! Keep up the good works, employing more and more Americans! Hide your profits or obama will try to take them

    #1
  2. disheveled1

    Good for them.

    #2
  3. mike

    Good for them!!

    #3
  4. SaltWaterCroc

    South – as I recall, Halliburton runs trucks on our roads, flies folks to locations here and overseas, and relies on our public education system to train both its workers and their children. Seems only fair that they pay taxes, and most corporations (people according to Mitt and the Supreme Court) pay less percentage-wise than most of us.

    #4
  5. Art Vandeley

    Good job to all Halluburton employees. Too bad our government is not run like this sucessful business.

    #5
  6. Peter

    I know that many on the left hate successful companies that assist in providing products required for this society, but I applaud their success.

    #6
  7. ron summers

    and your point Houston Comical?

    #7
  8. BigO

    I felt like hating on Halliburton, but then checked my 401k and realized they are pulling a heavy load at keeping it growing in value.
    Thanks Halliburton.

    #8
  9. Mayflower Girl

    Halliburton pays no taxes. They do hire Americans, but also a very long list of non-Americans.

    #9
  10. w00t

    SaltWater…they employ a bunch of people in Houston with high salaries who pay taxes and own property…I guess that’s not good enough for entitlement starved Democrats though. Always more concerned with what someone else has and we wonder why Democrat communities get worse the more money we throw at them. It’s a pathetic, failed culture.

    #10
  11. Now if I could only get that job I applied for there.

    #11
  12. AvailableUserName

    “Halliburton pays no taxes.”

    They paid $853 million in income taxes in 2010.

    #12
  13. txloanguy

    Croc – I’m sure you will be the one who decides who pays how much taxes. If you want more taxes – pay more. It’s easy. Or move to Cuba.

    #13
  14. Locked

    I’m sure Cheney’s portfolio is happy. Like we give a frack!

    #14
  15. I see a lot of people here commending capitalism and that is great but is capitalism where you lie about the shortage of oil so you can corner the market, drive up the prices and cheat your customers? Gas shortage my “A”. Some of the comments here are pathetic and look like posers of halliburton. I can’t wait until gas goes up to $5 a gallon and they make 200 billion next quarter. YeeHah, those exec’s sure need a full dozen 100 million $ mansions to feel “better” than us.

    #15
  16. Tom Wildcat

    JW,

    Would you prefer they be losing money and being subsidized by the government that wastes your hard earned money (taxes) on? Go look at solar and wind companies then come back. Besides, how un-American is it to criticize a company that is successful. Clearly, by your gas shortage my “A” comment, you do not understand how the commodities trade and what their prices should be in a global market. It is not a shortage of gasoline either, it is a supply and demand for oil. Oil is used for an incredible amount of products, yet you only consider it as a shortage of gasoline? I hate to be so critical but I see these uninformed comments all the time. Also, OPEC and Saudi Arabia affect oil prices much more than USA (OPEC production levels). Please be informed if you want to make poor comments. Every executive does not have “100 million dollar mansions.” That comment is just asinine.

    #16
  17. sack_o_cats

    What a small crowd of apologists… understandable, considering the black-eye Halliburton has richly earned over the years.
    Apparently, these people have forgotten about ‘no-bid contracts’, shabby construction of facilities that KILLED some of our troops, etc, etc… or they don’t care. Either way, they hail Halliburton’s profits as a fine example of Capitalism in Action. The irony that Halliburton is used by OWS for *the same thing* is lost on them…
    It’s not difficult to see exactly which ‘god’ these people worship above *all* others; they are o.k. with corruption, collusion, and environmental degradation as long as there is money to be made… and the ends *always* justifies the means.
    ==

    #17
  18. Trail_Tramp

    Winning!

    #18
  19. Tom,

    No I would prefer to be not cheated and lied to in order to obtain unsubstantiated huge amounts of profit. Funny how you didn’t address any of that while you were busy condemning my choice of words. Let me re-phrase it to where you can understand. Gas shortage = oil shortage, my bad. 100 million $ mansions is just a metaphor, try to keep an open mind while you justify the criminal activities of your gods. As for you un-American comment,is that the best attack that you have? Next thing you will be calling me a racist because I think oil execs have no morals. You and I both know the prices are being manipulated and if you don’t want to admit that then I will inject your choice of words here which is truly assiten.

    Water is a high commodity also with much more supply and demand, how much does it cost? Would you like it if you had to pay half your paycheck to get water for you family like half of the public does to fill up their gas tanks every week?

    I am not an ows person but I do feel that these exec’s living the life they do and manipulating prices is for the birds. Capitalism will fail if prices are manipulated just like the stock market, it’s just a matter of time before people have had enough.

    Obviously you work for the petro industry and can’t hide it very well, try getting your bosses some morals, oh that’s right, you can’t buy morals no matter how many billions you have.
    Keep spinning my friend and maybe you will even come to believe that nonsense.

    #19
  20. AvailableUserName

    “shows the pipe that is filled with charges that creates the fracture in the tight sands”

    That’s a perf gun. It’s used for punching holes in casing, not fracturing formation.

    #20
  21. Tom Wildcat

    “Water is a high commodity also with much more supply and demand, how much does it cost? Would you like it if you had to pay half your paycheck to get water for you family like half of the public does to fill up their gas tanks every week?”

    I don’t even know where to start with this, water supply outweighs demand on a large scale therefore you see the current prices you see. Are you forgetting your economics courses from school?

    As I said already manipulation comes in the form of OPEC deciding how much crude to produce per month, if they want higher prices they release less crude. I would guess you would claim that Chesapeake is manipulating prices if natural gas prices rise since they are cutting their natural gas production? Just because you don’t use it in your car it is not the same, right? Also, please go look up all the uses of petroleum products, it will shock you and maybe you can see why the demand is so high for a non-renewable resource. I am “condemning” your words because you only think of oil refined to gasoline and that is an incredibly narrow view. I am guessing you did not look at solar or wind companies. Go look at what ethanol is if you really want to be pissed at the government. None of these people are “gods” but I respect a company that can make a profit. They don’t control oil prices so why condemn them for making a profit because prices are up. Oil is a cyclical market, will you be saying the same thing you are now if oil prices drop to less than $25 a barrel? I doubt it.

    #21
  22. What makes you an expert on how much oil is underground? Do you really believe what they tell you? Why are so many wells capped off? Why would BP try to cap off a well in the gulf that spewed out over 5 million barrels of oil in three months? Do you even know how many wells have been drilled and capped that have vast resources, I don’t but I do know it is many. Everybody knows how many products are made of petroleum so beating your dead horse is getting old. You work for an oil company and you are supporting your own interest and God could point out the facts to you and you would still deny it. Manipulation comes from spectators, opec and mainly the good ole boys here in the USA. We don’t need opec, we have plenty of oil here in the USA for our needs, if not why do we export so much?
    Seriously, I think you missed your calling, you should have sold used cars or went into politics.
    Economics courses just teach you how to manipulate and have nothing to do with common sense. Later, now you get the last word because I’m done with ya but it was a good debate even though you could have left out the personal attacks. You have your view and I have mine.

    #22
  23. Tom Wildcat

    Fair enough, but if we had enough oil in the USA that we would not have to rely on imported oil that would be great. I agree. Tell the president to open up drilling in Alaska, Prudhoe Bay. Vast resources there.

    #23
  24. No facts for me

    Nothing like rpukes for ignoring Haliburton going into bankruptcy after Darth Cheney was CEO. The taxpayers ate another huge right off while the scumbags go on to destroy America. Facts? We don’t need any stinking facts. We jusrt watch Faux News and parrot the lies.

    #24
  25. olivia

    Halliburton: A war profiteer

    #25