Halliburton Pushes Q1 Conference Call To May 3, Cites April 30 Merger Agreement Deadline With Baker Hughes

Halliburton Company (NYSE: HAL) announced on Friday that a scheduled conference call to discuss its first quarter results will be postponed from April 25 to May 3.

Halliburton noted its decision to postpone the conference call is due to an April 30 deadline for its proposed merger with Baker Hughes Incorporated (NYSE: BHI), which has yet received the necessary regulatory approval.

Halliburton added that its total revenue of $4.2 billion for the first quarter represents a 17 percent decline sequentially. The company cited "disruptive market conditions" for its poor results and its U.S. rig count reaching a record low.

"Life has changed in the energy industry, especially in North America, and over the past several quarters we have taken the steps to adapt to that fact," said Dave Lesar, Chairman and CEO. "Operators globally are under immense pressure, and many of our North America customers are fighting to maintain some value for their shareholders. Our goal is to work with those customers to get through these tough times.

"From the peak in the fourth quarter of 2014, the U.S. rig count has declined almost 80%, setting a new record low. By comparison, our North America revenue is down 62% over the same period, again outperforming our peers, and operating income has only now slipped to a quarterly loss position. The second quarter average land rig count is already down more than 20% sequentially, and setting new record lows every week. Nevertheless, we believe we will see the landing point for the U.S. rig count during the second quarter. Once we see stability in the rig count, our cost cutting measures will start to catch up. Previous downturns indicate that there is typically at least a one quarter lag after the rig count flattens before we see our margins begin to improve.