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Ohio Utica Shale

Halliburton earnings drop in third quarter

By Bob Downing Published: October 22, 2012

From the Associated Press:

Halliburton Co. said last week its third-quarter net income fell 12 percent as drilling activity declined and costs rose in its core North American business.

The Houston energy services company earned $602 million, or 65 cents per share, down from $683 million, or 74 cents per share, a year ago. Revenue rose 9 percent to $7.11 billion. That was the smallest year-over-year revenue growth since the first quarter of 2010.

The results fell short of Wall Street expectations, according to a poll.

Halliburton is a major provider of hydraulic fracturing, or "fracking," services that unlock oil and natural gas from underground shale deposits. That technology helped boost natural gas production in the U.S. by about 20 percent between 2007 and 2011, according to data from the Energy Department. Halliburton's revenue rose more than 60 percent in that same period.

But the boom in production has squashed prices. Natural gas prices were down 29 percent in the latest quarter compared with a year ago as U.S. supplies remained high. As of Sept. 28, the nation's supply of natural gas stood at 3.6553 trillion cubic feet, up 8 percent from a year earlier. Halliburton said the natural gas rig count on land in North America dropped by 18 percent in the third quarter as companies slowed production.

Halliburton has a bigger chunk of its business in North America than its peers, so it's feeling a bigger pinch as customers pull back or turn their focus to drilling for oil. The number of on-land oil rigs rose 3 percent in North America during the summer quarter as oil prices rose 9 percent. But that wasn't sufficient to offset the decline in natural gas drilling.

Overall, revenue fell 5 percent in North America. Dave Lesar, the company's chairman and chief executive, said Halliburton expects "the next couple of quarters to be pretty bumpy" in North America.

Costs rose due to higher prices for materials used in fracking, and disruptions in production caused by Hurricane Isaac.

The picture was brighter overseas. The company's international revenue rose 2 percent despite a 2 percent decrease in rigs, due to strength in Latin America, the Middle East and Asia.

 

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Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.

Rig Count Interactive Map by Baker Hughes, an energy services company.

Shale Sheet Fracking, a Youngstown Vindicator blog.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.

Concerned Citizens of Medina County, a grass-roots group.

No Frack Ohio, a Columbus-based grass-roots group.

Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.