Leading oilfield service provider,
) is planning to repurchase roughly 68.0 million stocks -
representing around 7.4% of its total outstanding shares as of
Aug 20, 2013 - for $48.50 per share.
CHESAPEAKE ENGY (CHK): Free Stock Analysis
GULFMARK OFFSHR (GLF): Free Stock Analysis
HALLIBURTON CO (HAL): Free Stock Analysis
UNIT CORP (UNT): Free Stock Analysis Report
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Halliburton expects to spend roughly $3.3 billion to buy back
those shares. In the Dutch auction, 100.2 million shares were
offered at $48.50 per share or lower. The company added that,
depending on factors like market stock price, economic
conditions, financial position of the company and others,
Halliburton might purchase extra stocks after Sep 6, 2013.
Following the share buyback, Halliburton will be in a position to
increase its earnings per share as the outstanding shares will
Last month, Halliburton reported better-than-anticipated
second-quarter 2013 results - the fifth outperformance in the
last 6 quarters - supported by robust growth in its international
business. Earnings per share from continuing operations came in
at 73 cents, beating the Zacks Consensus Estimate of 72 cents.
Houston, Texas-based Halliburton is one of the largest oilfield
service providers in the world, offering a variety of equipment,
maintenance and engineering and construction services to the
energy, industrial, and government sectors. The company operates
under two main segments: Completion and Production, and Drilling
Halliburton is among the top three players in each of its
product/service categories and is present in all major
hydrocarbon-producing regions of the world.
However, the new environmental regulations for hydraulic
fracturing (or fracking) in the shale plays could adversely
impact the company as it will force Halliburton to reveal the
structure of its fluids, and potentially wipe out its competitive
advantage in the high-end pressure-pumping market.
Halliburton currently carries a Zacks Rank #3 (Hold), implying
that it is expected to perform in line with the broader U.S.
equity market over the next one to three months.
Meanwhile, one can look at oil field services firms like
Chesapeake Energy Corp.
Gulfmark Offshore Inc.
) as attractive investments. Chesapeake retains a Zacks Rank #1
(Strong Buy), while Gulfmark Offshore and Unit Corporation sport
a Zacks Rank #2 (Buy).