Halliburton (HAL) reported mixed second-quarter results before the bell Wednesday as weaker-than-expected results in its completion and drilling segment were a drag. Total revenue rose 14% year over year to $5.8 billion, however, came up a bit short versus analyst expectations of $5.86 billion, according to Refinitiv. Earnings per share (EPS) of 77 cents (excluding a non-operating loss on transactions in Argentina), exceeded the adjusted Refinitiv estimate of 75 cents. Bottom line Revenue at the oilfield services giant missed the mark, but strong execution in both operating divisions allowed profit margins and earnings to exceed expectations. Cash flow performance — which was well above expectations in the quarter — is arguably the most important watch item for those investing in the energy complex, given the industry’s pivot to focus on shareholder returns over production growth at all costs. On the call, management reiterated that growing free cash flow is a top priority, and they expect over 50% of it to be “returned to shareholders this year.” That’s consistent with the new framework outlined back in January. The more cash Halliburton can generate, the more we as investors stand to get back in the form of buybacks and dividends, which is why were are much more pleased with the free cash flow result than we are disappointed with the revenue performance. Speaking of cash returns, the company repurchased $248 million worth of shares during the quarter while returning another $144 million to shareholders via dividends. Looking ahead, management did shave its customer spending growth outlook in North America, but they said they continue to see a strong appetite for oil, citing “demand growth of 2 million barrels per day in the first half of the year compared to the same period last year.” The team also guided for full-year free cash flow generation to be above what analysts were looking for — a material positive for the stock in the back half of the year. This, in our view, outweighs the more conservative North American spending guidance. However, Halliburton shares dropped 3% on Wednesday after a strong run over the past month that we trimmed into on Friday for a small gain. HAL YTD mountain Halliburton YTD performance Management expects exploration and production spending to grow this year and into the future, noting discussions with customers that have plans that extend “into the next decade.” While maintaining our 2 rating , we’re nudging up our price target to $42 per share from $40), reflecting about 18 times 2024 free cash flow per share estimates or about 11.5 times 2024 earnings estimates. Both multiples are about in line with what we have seen over the past three years out of HAL and, in our view, are justified by the resiliency in energy commodity prices and the need for additional production to meet global demand behind multiyear upcycle management is forecasting. Guidance Management maintains a positive outlook on the global market, but they did slightly reduce their outlook for customer spending growth in North America to “around 10%” from their prior expectation for growth in the teens on a percentage basis. The expectation incorporates a view that the second half will be weaker than the first but profit margins are expected to “remain strong for the balance of the year.” Internationally, the team expects customer spending to grow in the high teens with “quality services and equipment to remain tight and pricing to continue to improve.” They added, “Halliburton’s strategy is to deliver profitable international growth.” From an operating segment perspective, the team said they’re “looking through any quarterly fluctuations and seasonality,” and fully expect drilling and evaluation margins to “continue to expand over time” Haliburton expects full-year cash flow growth of 30% to 40% over last year’s level. With 2022 free cash flow coming in at $1.43 million, this forecast amounts to about $1.93 million at the midpoint, above Wall Street’s $1.84 million expectation. On a segment-by-segment basis, management expects completion and production revenue to be flat sequentially, in line with expectations, and for drilling and evaluation revenue to increase “low single digits” sequentially, also about in line with expectations. Companywide Q2 results Here are a few highlights: Second quarter operating margin of 17.44% came in above estimates and 329 basis points above year-ago numbers. Management attributed the strong operating margin performance (a subset of the overall margin line-item) primarily to “strong international activity across both divisions, along with improved pricing” In completion and production, Q2 sales rose more than 19% year-over-year to $3.48 billion. Though, that was below estimates (as seen in the product segment column of the earnings table). Management attributed strong operating margin performance in the segment (which allowed operating income for the segment to exceed expectations despite the sales miss) “to increased activity from multiple product lines in international markets and higher artificial lift activity in North America.” In drilling and evaluation, quarterly sales rose more than 7% to $2.32 billion and beat estimates. The team called out “higher drilling activity and increased fluid services in key regions, including the Middle East and Latin America, partially offset by seasonal roll off of software sales across multiple regions.” Our other two energy stocks, Coterra Energy (CTRA) and Pioneer Natural Resources (PXD), report their quarterly results next month. (Jim Cramer’s Charitable Trust is long HAL, CTRA, PXD. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. 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Signage is displayed outside a Halliburton Co. location in Port Fourchon, Louisiana, U.S.
Luke Sharett | Bloomberg | Getty Images
Halliburton (HAL) reported mixed second-quarter results before the bell Wednesday as weaker-than-expected results in its completion and drilling segment were a drag.
Following approval from Transport Canada, EV startup Workhorse will be bringing the W56 and W750 model electric delivery vans to commercial truck dealers in Canada as early as this spring.
“This is a major step forward for Workhorse,” says Josh Anderson, Workhorse’s chief technology officer in a press statement. “Pre-clearance from Transport Canada opens up a large new market for our products throughout Canada, including with fleets that operate across borders in North America.”
Despite that uncertainty, Workhorse execs remain upbeat. “We’re excited that our electric step vans can now reach Canadian roads and highways, providing reliable, zero-emission solutions that customers can depend on,” added Anderson.
Canadian pricing has yet to be announced.
Electrek’s Take
FedEx electric delivery vehicle; via Workhorse.
There’s no other way to say it: the Trump/Musk co-presidency is disrupting a lot of companies’ plans – and that’s especially true across North American borders. But in all this chaos and turmoil there undoubtedly lies opportunity, and it will be interesting to see who ends up on top.
The new Liebherr S1 Vision 140-ton hauler is unlike any heavy haul truck currently on the market – primarily because the giant, self-propelled, single-axle autonomous bucket doesn’t look anything like any truck you’ve ever seen.
Liebherr says its latest heavy equipment concept was born from a desire to rethink truck design with a focus only on core functions. The resulting S1 Vision is primarily just a single axle with two powerful electric motors sending power to a pair of massive airless tires designed carry loads up to 131 tonnes (just over 140 tons).
The design enables rapid maintenance, as important components easily accessible for quick servicing. Wear parts can be replaced efficiently, and the electric drive significantly reduces maintenance work. This helps to minimise downtimes and increases operational efficiency.
LIEBHERR
Because of its versatility, durability, and ability to perform zero-turn maneuvers that other equipment simply can’t, the Liebherr S1 Vision can be adapted for various applications, including earthmoving, mining, and even agriculture. There’s also a nonzero chance of this technology finding applications supporting other on-site equipment through charging or fuel delivery.
The S1 accomplishes that trick safely with the help of an automatic load leveling system that ensures maximum stability, even on bumpy or rough terrain. The company says this technology significantly reduces the risk of tipping while providing smooth and secure operation across various environments.
The HD arm of Hyundai has just released the first official images of the new, battery-electric HX19e mini excavator – the first ever production electric excavator from the global South Korean manufacturer.
The HX19e will be the first all-electric asset to enter series production at Hyundai Construction Equipment, with manufacturing set to begin this April.
The new HX19e will be offered with either a 32 kWh or 40 kWh li-ion battery pack – which, according to Hyundai, is nearly double the capacity offered by its nearest competitor (pretty sure that’s not correct –Ed.). The 40kWh battery allows for up to 6 hours and 40 minutes of continuous operation between charges, with a break time top-up on delivering full shift usability.
Those batteries send power to a 13 kW (17.5 hp) electric motor that drives an open-center hydraulic system. Hyundai claims the system delivers job site performance that is at least equal to, if not better than, that of its diesel-powered HX19A mini excavator.
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To that end, the Hyundai XH19e offers the same 16 kN bucket breakout force and a slightly higher 9.4 kN (just over 2100 lb-ft) dipper arm breakout force. The maximum digging depth is 7.6 feet, and the maximum digging reach is 12.9 feet. Hyundai will offer the new electric excavator with just four selectable options:
enclosed cab vs. open canopy
32 or 40 kWh battery capacity
All HX19es will ship with a high standard specification that includes safety valves on the main boom, dipper arm, and dozer blade hydraulic cylinders, as well as two-way auxiliary hydraulic piping allows the machine to be used with a range of commercially available implements. The hydraulics needed to operate a quick coupler, LED booms lights, rotating beacons, an MP3 radio with USB connectivity, and an operator’s seat with mechanical suspension are also standard.
HX19e electric mini excavator; via Hyundai Construction Equipment.
The ability to operate indoors, underground, or in environments like zoos and hospitals were keeping noise levels down is of critical importance to the success of an operation makes electric equipment assets like these coming from Hyundai a must-have for fleet operators and construction crews that hope to remain competitive in the face of ever-increasing noise regulations. The fact that these are cleaner, safer, and cheaper to operate is just icing on that cake.