MW Halliburton's stock falls as weak oil prices fuel a drop in North America revenue

By James Rogers

First-quarter revenue in North America, which is Halliburton's biggest geographic segment by revenue, fell 12% year over year

Halliburton Co. shares dropped 2.9% in premarket trading Tuesday after the oil-services provider reported a first-quarter revenue decline, weighed down by weakness in North America, where revenue fell 12% year over year.

In a statement, Halliburton Chief Executive Jeff Miller acknowledged "recent pressures on the energy macro" but said he was pleased with the company's first-quarter performance.

The oil industry faces a number of challenges at the moment. Oil prices plunged recently amid uncertainty over tariffs and production increases. Last week Halliburton $(HAL)$ rival Liberty Energy Inc. $(LBRT)$ said that North American producers are evaluating a range of macroeconomic scenarios, citing tariff impacts, geopolitical tensions and oil-supply concerns.

Halliburton's first-quarter revenue was $5.417 billion, down from $5.804 billion in the prior year's quarter but above the FactSet consensus estimate of $5.274 billion. By segment, completion and production revenue was $3.120 billion, down from $3.373 billion in the same period last year. Drilling and evaluation revenue was $2.297 billion, down from $2.431 billion.

Revenue in North America, which is the company's largest geographic segment by revenue, was $2.236 billion, down from $2.546 billion in the prior year's quarter.

"This decline was primarily driven by lower stimulation activity in U.S. Land and decreased completion tool sales in the Gulf of America," the company said in a statement, using the name that the U.S. now recognizes for the Gulf of Mexico. "Partially offsetting these decreases were higher artificial lift activity and improved drilling services in U.S. Land and increased stimulation activity in the Gulf of America."

Analysts surveyed by FactSet were looking for North America revenue of $2.146 billion.

Latin America revenue was $896 million, down from $1.108 billion in the same period last year. Europe and Africa revenue was $775 million, up from $729 million, while Middle East and Asia revenue was $1.510 billion, up from $1.421 billion in the year-ago quarter.

"Our first quarter international tender activity was strong, Halliburton won meaningful integrated offshore work extending through 2026 and beyond," Miller said in the statement. "Customers awarded Halliburton several contracts that demonstrate the strength of our value proposition and the power of our service quality execution."

He continued: "I am excited by the strong adoption of our groundbreaking technologies. We achieved the world's first closed-loop, autonomous fracturing operation. I believe this unlocks the next big step in unconventionals."

Unconventional oil reservoirs require extraction techniques such as hydraulic fracturing, known as fracking, and horizontal drilling.

The company's first-quarter net income was $204 million, or 24 cents a share, down from $606 million, or 68 cents a share, in the prior year's quarter.

Halliburton's adjusted first-quarter profit of 60 cents a share was in line with the FactSet consensus estimate.

The Houston-based company's adjusted operating margin was 14.5%.

Halliburton shares are down 19.4% in 2025, while the S&P 500 index SPX has declined 12.3%.

-James Rogers

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April 22, 2025 09:15 ET (13:15 GMT)

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