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.
After years of waiting and many falsestarts, Formula E is finally going to debut its mid-race charging system, which will give cars a quick boost of energy charging at a rate much faster than current road cars can.
For years now, we’ve been hearing about FIA plans to introduce charging stops to electric racing.
In gas car racing, some series allow mid-race fueling and some don’t. The World Endurance Championship, which runs the 24 Hours of Le Mans, obviously needs to fill up several times during the race. But Formula 1, which hosts shorter races, eliminated mid-race fueling in 2010.
But the FIA already had one electric racing series, Formula E, which had debuted in 2014. At the time, each driver had two cars, and would swap mid-race to a fresh car with new batteries.
Battery-swapping had been considered, but it would be too complicated to set up at temporary race facilities in city downtown areas, as many Formula E tracks are.
Then, in 2018, Formula E debuted a new “Gen 2” car which had a big enough battery not to need a charge mid-race, and later a “Gen 3” car in 2022, which had much stronger regenerative braking, capable of 600kW of braking power. Gen 3 also has an “Attack Mode” feature that lets cars unlock additional power for a short period each race, adding to strategy and mixing up the race order.
The issues involved building the charging system in temporary facilities and ensuring safety of the system (and of pit stops in general, which is always a concern when cars are driving rapidly near people). But after winter testing prior to this season, Formula E now says the system is ready to go.
So, once again, Formula E is ready to announce that mid-race charging is definitely, totally, positively, 100% certain at the upcoming Jeddah E-Prix, on February 14-15 in Jeddah, Saudi Arabia.
Formula E thinks that proving this high-power charging technology could help road cars to charge more quickly, which could have myriad benefits for electric cars in general.
The series is calling the system “Pit Boost,” and it will consist of a 34-second pit stop that provides around 10% additional charge to the cars (about 4kWh). While 10% isn’t a lot, 34 seconds is also not a lot of time. For comparison, one of the fastest-charging cars out there, the Ioniq 5, can charge from 10-80% in 18 minutes, which means 10% charge takes 2.5 minutes – five times as long as Formula E cars will manage the feat.
The stop will be mandatory for all drivers to take at some point in the race, and will mean new strategy options for drivers. Taking the stop means getting more energy, which means that your car won’t have to do as much energy saving to get to the end of the race – but it also means giving up your position on track, which can be hard to get back if you do it late in the race.
However, we’ve never seen it happen before, so it will be interesting to see what kind of strategic options develop.
If you’re interested in seeing how it turns out, tune in to the Jeddah E-Prix on February 14-15 to see what happens. It’s a doubleheader race weekend, with night races both on Saturday and Sunday, February 14-15, at 5pm UTC, 9am PST, 12pm EST, and 8pm local time. You can check out how to watch the race in your area by going to Formula E’s “Ways to Watch” section. In the US, Roku should be the most reliable way to watch.
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JackRabbit, the maker of pint-sized electric microbikes, is back with a new product designed to quickly recharge their batteries from pure, uncut photons mainlined into an e-bike directly from the sun. In true independent charging form, the Solar Charging Kit from JackRabbit keeps riders rolling even when there’s not a convenient AC outlet in sight.
Unveiled this week, the Solar Charging Kit consists of a single folding solar panel and a tiny voltage converter that is configured to output 42.0V, which is the exact voltage required by JackRabbit’s little e-bike batteries. There’s also an added USB-A and a USB-C charging port for powering other devices in addition to charging JackRabbit batteries.
“This Solar Charging Kit plugs directly into your bike,” explained the company, “letting you recharge without needing an outlet, but with a speed comparable to the charger that comes with the OG/OG2 (42V, 2A).”
That would mean the panel outputs around 80W of solar power, which the company says can recharge its batteries in just three hours. That fairly quick recharging speed is helped by the fact that JackRabbit’s batteries are a mere 151 Wh, or around a third of the size of most e-bike batteries.
If that sounds small, then you’re right – it is. But JackRabbit is all about going micro, offering barely 25 lb rideables that are easy to store and bring on adventures, even when they aren’t actually being ridden.
With small batteries that fit under the 160Wh limit for many airlines in the US, the batteries can be quickly charged and taken to the widest number of locations. And for riders that want to go further than a single 10-mile (16-km) battery will allow, extra batteries are small enough to fit a pants pocket. The company also offers much larger Rangebuster batteries, though they won’t pass by TSA and make it onto an airplane in your personal item.
It sounds like the Solar Chargking Kit should be able to charge up JackRabbit’s large RangeBuster batteries, though likely in more than three hours.
The $349 Solar Charging Kit is a bit pricier than building something similar yourself, but it’s also safer and more convenient than hacking together your own battery charger since it’s designed to work with JackRabbit’s batteries right out of the box.
Technically it’s only inteded for JackRabbit’s micro e-bikes (themselves technically seated scooters, even if they look and feel more like a typical bike), but it’d probably work for just about any 36V e-bike that requires 42.0V to charge.
This isn’t the first time we’ve seen solar charging kits for electric bikes, and it’s a trend that is certainly appreciated by outdoors and camping enthusiasts, festival goers, or anyone who finds themself and their bike spending extended periods in the great, sunny outdoors.
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On today’s episode of Quick Charge, Polestar hopes to steal customers from Tesla now that Elon is involved in politics, CATL revenue dips for the first time ever, and a whole new way to feed the orcas drops down under.
As above, Polestar is hoping Elon’s descent into politics spells opportunity for the struggling Swedish/Chinese performance brand, CATL has big news in Europe, and Scooter Doll shows off a new electric submarine that’s so expensive, they won’t even tell us the price.
New episodes of Quick Charge are recorded, usually, Monday through Thursday (and sometimes Sunday). We’ll be posting bonus audio content from time to time as well, so be sure to follow and subscribe so you don’t miss a minute of Electrek’s high-voltage daily news.
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