Halliburton Warns of a US Drilling Slowdown in the Second Half of the Year

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Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published July 19, 2023
Halliburton oil well fielder

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Key Takeaways

  • Halliburton warned that lower oil and gas prices will reduce drilling in the second half of 2023.
  • Second quarter revenue missed estimates as North American sales slipped.
  • Rival Baker Hughes also anticipates a slowdown in demand.

Halliburton (HAL) shares slumped 3% on Wednesday after the nation’s largest fracking services provider warned about a slowdown in U.S. shale drilling as falling oil and gas prices have led to reduced rig counts.

CEO Jeff Miller said that he expected the market activity in the second half of the year to be “slightly lower” than in the first half.

Halliburton reported a 2% decline in North American revenue in the second quarter. It was up 7% internationally. Overall sales rose 14% to $5.8 billion, below analysts’ forecasts. Earnings per share (EPS) of $0.77 beat estimates.

The company anticipates current quarter revenue from well completion and productions to be flat from the second quarter, with drilling and evaluation operations growth increasing by a low-single-digit percent.

Rival Baker Hughes (BKR) also indicated it was seeing a decline, with CEO Lorenzo Simonelli noting that North American business is “leveling off,” with some customers even asking for discounts.

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  1. Halliburton. "HALLIBURTON ANNOUNCES SECOND QUARTER 2023 RESULTS."

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