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$NBR 1Q15 10-Q: Total share-based compensation expense totaled $13.9MM vs. $10.7MM at 1Q14-end. Total intrinsic value of stock options exercised during 1Q15 was $0.1MM vs. $6MM in 1Q14. Total fair value of stock options that vested during three months ended March 31, 2015 and 2014 was $1.5MM and $1.5MM, respectively.
During 4Q17, $HAL recorded an $882MM non-cash charge, primarily as a result of a preliminary provision for net impact of tax reform. Given current U.S. tax attributes, $HAL does not expect to pay any cash tax on deemed repatriation tax obligations. $HAL sees 2018 and 1Q effective tax rate to be about 23% based on expected geographic earnings mix.
$HAL said tax reform bill is a big positive and expects this to lower effective tax rate percentage from the high-20s to 21-23% range, reflecting the new U.S. corporate rate plus state and local taxes along with geographic earnings mix. This will positively impact future earnings and help level playing field with foreign domicile competitors.
$HAL's International revenue for 4Q17 increased 11% sequentially to $2.5Bil. This resulted primarily from increased activity across multiple product services lines in Latin America, and increases in drilling and stimulation activity in the Eastern Hemisphere.
$HAL's North America revenue for 4Q17 rose 7% sequentially to $3.4Bil. This was driven primarily by higher utilization and pricing throughout the U.S. land sector in the majority of product service lines, primarily pressure pumping, as well as higher drilling activity and completion tool sales in the Gulf of Mexico.
$HAL's Drilling and Evaluation revenue for 4Q17 grew 12% to $2.1Bil from last quarter and operating income climbed 62% to $291MM. These increases were primarily due to increased drilling activity in the Middle East and North America and higher software sales and services in Latin America.
$HAL's Completion and Production revenue for 4Q17 rose 8% to $3.8Bil from last quarter. In the U.S. land sector, higher pressure pumping activity and pricing led to higher revenue while higher costs and seasonality hindered profitability.
$HAL reported a wider loss in 4Q17 due to charges related to U.S. tax reform and Venezuela receivables. Net loss widened to $824MM or $0.94 per share from $149MM or $0.17 per share last year. Revenue grew to $5.94Bil from $4.02Bil. Adjusted EPS from continuing operations jumped to $0.53 from $0.04.
Excluding the impact of other items, $NOV expects consolidated results for 4Q17 to be at or above prior expectations. The company anticipates Rig Technologies will exceed prior guidance, Wellbore Technologies will be in-line with expectations, and Completion and Production Solutions will fall short of guidance.
$WPX closed the divestiture of its legacy natural gas position in the San Juan Basin for $169MM. This includes WPX’s operated and non-operated gas properties in the basin. This does not include WPX’s oil operations in the basin’s Gallup play. $WPX expects to finish 2017 with about $200MM cash on-hand and no borrowings against its credit revolver.
$NOG Chairman Rich Weber announced his resignation to allow him to focus his time on his responsibilities as Chairman and CEO of PennEnergy Resources. The Board appointed current director Bahram Akradi as Lead Independent Director and a member of Executive Committee. Akradi and the Executive Committee will provide leadership on an ongoing basis.
$NOG's Board approved a preliminary 2018 capital budget of up to $176MM, which contemplates 20-22 net wells added to production during 2018. Based on this preliminary budget, 2018 annual production is expected to increase by 10-14% when compared to 2017. The Board also sees a 10-15% reduction in general and administrative expenses from 2017.
$NOG now expects 4Q17 average daily production to increase by 4-6% over 3Q17, compared to prior guidance indicating flat sequential production at the mid-point. The company now expects to add about 5-6 net wells to production and oil differential to improve by $1.50 per barrel.
$NBR said it has completed the previously announced acquisition of $TESO. Nabors acquired all common shares of Tesco in an all-stock transaction. Tesco shareholders will receive 0.68 common shares of Nabors for each share of Tesco stock owned. With the completion of the transaction, Tesco common stock has ceased trading on the NASDAQ Stock Market.
$BGG acquired the assets of Ground Logic, Inc., a designer-manufacturer of stand-on commercial spreaders and sprayers for fertilizer and pesticides. Briggs & Stratton financed the transaction from cash on hand. It expects the acquisition to not have a material effect on FY18 earnings or cash flows.
$NBR and $TESO provided a status update of the previously announced acquisition of $TESO by $NBR. Tesco shareholders approved the Arrangement pursuant to which Nabors will acquire all of Tesco's common shares in a stock-for-stock transaction. The companies expect the closing of the transaction to occur by year-end.