(Bloomberg) – Halliburton Co. is idling some oilfield equipment in response to deteriorating demand among shale companies.
The world’s largest provider of hydraulic fracturing is forecasting shrinking margins in its biggest business line as weakening demand weighs on the prices it can charge, Chief Executive Officer Jeff Miller said Tuesday. The company plans to idle or retire some equipment.
“We’ll clearly stack some fleets just because we’re not going to work at uneconomic levels,” Miller told investors during a conference call. “The oilfield services market appears very different today than it did only 90 days ago.”
Halliburton fell as much as 4.8% in New York trading, extending the year-to-date decline to more than 25%. The shares have been the worst performer among oil stocks in the S&P 500 this year.
Miller’s comments came after the company posted second-quarter adjusted profit of 55 cents a share, slightly below analyst expectations of 56 cents. Total sales exceeded the median forecast.
The company now sees sequential margins in its fracking business — known as the completion and production division — narrowing by 150 to 200 basis points in the third quarter.
Oilfield activity is taking a hit from trade and tariff uncertainties, geopolitical unrest and the acceleration of OPEC+ production increases, Miller said.
“Multiple operators, even large and established customers, are now planning meaningful schedule gaps in the second half of 2025,” Miller said. The demand picture is reminiscent of “much lower commodity price environments.”
Rival Baker Hughes Co. is scheduled to disclose quarterly results later Tuesday.
