After the close of trading on Friday, Halliburton released a statement saying the release of full earnings is postponed to May 3 from Monday, April 25, citing the deadline for the Baker Hughes deal as the reason.
They announced the merger in November 2014 in a deal now worth roughly $25 billion in a bid competing against industry leader Schlumberger. The U.S. Justice Department has filed a lawsuit to stop this deal out of concern for checks and balances…that it will harm competition. One analyst at Jeffries wrote a note to investors that said the delay is a signal that one or both companies may terminate the merger while an analyst at KeyBanc suggested the deal might be called off once it expires April 30.
Halliburton, the world’s largest fracking services provider, announced preliminary first-quarter results that included a $2.1 billion restructuring charge that eliminated 6,000 additional jobs in costs reduction, an operating loss of $39 million in North America (its largest region) on revenue of $1.8 billion. Schlumberger, the world’s largest oilfield services provider, reported a first-quarter loss of $10 million (before taxes) in North America.
An analyst at Edward Jones in St. Louis stated the overall results reported were “pretty close” to expectations. “It does probably show that they’re trying to work on this deal really hard for the April 30 deadline, and they just don’t need any distractions right now,” says Luke Lemoine, an analyst at Capital One Southcoast in New Orleans.
Article written by HEI contributor Marcela Abarca.