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Halliburton Quarterly Profits Fall as Operating Costs Rise

Monday, July 23, 2012 by


According to, Halliburton’s profits are falling, though sales are up, because of the recent fracking boom.

The company’s net income dropped from $739 million last year to $737 million this year.

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“North America’s probably finding a bottom,” Stephen Gengaro, an analyst at Sterne Agee & Leach in New York who rates the shares a buy and owns none, said today in a telephone interview. “International has been a little bit better than we think.”

Fracking capacity in North America was expected to rise 28 percent in 2012. The industry grew 42 percent in 2011 according to Spears & Associates, an Oklahoma based consulting firm.

Operating profit margins for North America dropped 4.8 percentage points this year, due to higher material costs. A shortage of guar gum, an agricultural commodity used in fracking, has driven up prices more than expected.

» Via: Bloomberg Business WeekHalliburton Quarterly Profit Falls on Inflated Fracking Costs

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Farm and Dairy, a weekly newspaper located in Salem, Ohio, has been reporting on topics that interest farmers and landowners since 1914.

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