Leading oilfield service provider
) reported the closure of an investigation by the United States
Department of Justice (DOJ) on the company's role in the Gulf of
Mexico's Macondo well disaster. The incident claimed 11 lives and
spewed more than 4 million gallons of crude -- the worst oil
spill ever. Halliburton was in charge of the cementing job at the
Moreover, the U.S. district judge has accepted the guilty plea
from Halliburton of intentionally removing computer records after
the disaster. The court imposed a fine of $200,000 and also
forced Halliburton into a probationary period of three years.
Halliburton inked a cooperation plea deal with the DOJ earlier.
Additionally, the DOJ disclosed that the company has cooperated
extremely well with the court proceedings.
Halliburton believes that the investigation closure will remove
an overhang from the stock and benefit its shareholders.
Houston-based Halliburton is one of the largest oilfield service
providers in the world. The company operates under two main
segments: Completion and Production, and Drilling and Evaluation.
Going forward, Halliburton expects to benefit from its leading
position in the North American oilfield services market,
improving its international margins, and expanding market
penetration in deepwater and underserved international regions.
We expect these trends to result in a strong operating
environment leading to positive earnings surprises.
Halliburton currently holds a Zacks Rank #2 (Buy), implying that
it is expected to significantly outperform the broader U.S.
equity market over the next one to three months.
Apart from Halliburton, one can look at other oil field
service providers like
Oceaneering International Inc.
Core Laboratories NV
Subsea 7 SA
) that offer value. All the stocks sport a Zacks Rank #2
CORE LABS NV (CLB): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
OCEANEERING INT (OII): Free Stock Analysis
SUBSEA 7 SA (SUBCY): Get Free Report
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