Service & Supply | Quarterly / Earnings Reports | Oilfield Services | Fourth Quarter (4Q) Update
Halliburton Talks Improving Frac Market; Growth In Latin America
Halliburtion reported its fourth quarter 2020 results. Here is a link to read the full press release
North America
1. Frac Activity increased in the fourth quarter (see our weekly frac database)
2. Frac stage count increased in the oil basins.
3. Customers are focused on completing DUCs.
4. Rig Activity increased in the + 18% Q/Q
Internationally
3. Latin America rig activity increased while all other regions were flat to down slightly.
"In the fourth quarter, our North America business took advantage of the recovery in completions and drilling activity and delivered continued margin improvement even without improved pricing. Completion stage counts increased in the oil basins, but declined modestly in the gas plays. While the U.S. land rig count recovered from its August 2020 low of 230 rigs, it is still 60% below the pre-pandemic levels. Private and small operators added the most rigs, while large E&Ps and majors moved more slowly.
We expect completions activity in North America to continue improving in the first half of 2021 as commodity prices remained supportive and customers complete their backlog of DUCs. Customer consolidation will likely continue and we expect most operators will remain committed to a disciplined capital program."
Frac Market Improving, Consolidating
"The hydraulic fracturing market structure continues to improve. Utilization of our active equipment is higher than it was at the beginning of last year. The market has continued to rationalize and consolidate. We are seeing competitors either cannibalize idle equipment for parts or use it to beef up working fleets thus increasing average horsepower per fleet. This will make equipment reactivation to meet growing demand a lot harder for capital constrained companies and should only accelerate supply and demand balancing."
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