Let the energy games begin! Halliburton
Halliburton, after releasing earnings this morning, opened trading up 4.5%, showing that its 30% YOY increase in revenue was well-received by investors. The great earnings report is especially telling because the figures include the $300 million charge for estimated losses relating to its supposed involvement in the Macondo oil spill that occurred in the Gulf of Mexico in 2010, spewing an unparalleled amount of oil. Excluding this writedown, Halliburton would have reported earnings of $0.88 per share.
The energy services industry has had a strong focus on natural-gas production, but due to 10-year lows in gas prices, the growing trend has been transforming gas rigs into oil drilling rigs. This trend holds true for Halliburton, which has put a large number of natural-gas projects on hold but is making up for the shortfall with increased revenue from oil-field services.
How will the rest of the industry fare?
Halliburton started off the first quarter of the year on a high note, but could this be a trend that will hold up for others in the energy industry? The answer will come soon enough, as Kinder Morgan
We still have to wait awhile to see how the large energy and petroleum companies performed in the first quarter, but Halliburton's rival Schlumberger
The bottom line
The great news out of Halliburton has buoyed the energy sector today, and as more companies release earnings, we could start to witness a turnaround in the energy industry. A strong earnings-season showing could be the injection a stock needs to start its run-up in price. While the energy sector has seen some disappointment recently, now could be a great time to purchase these companies while they are trading at a discount.
Every investor knows that the key to strong performance is an excellent basket of diversified stocks. With that said, you have to check out what our top analysts are saying in this free report and catch the "5 Stocks Investors Need to Watch This Earnings Season!" This spectacular report is available for a short period of time, and it's absolutely free if you click now.
Fool contributor Joel South holds no shares of the companies mentioned above. Motley Fool newsletter services have recommended buying shares of Halliburton and Schlumberger. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.