Halliburton fills services gap with chemicals deal
SAN FRANCISCO (Reuters) - Halliburton Co (HAL.N) filled a gap in its offering of oil and gas extraction services with a deal to buy Multi-Chem Group LLC, North America's fourth-largest production chemicals company.
Halliburton, the world No. 2 in oilfield services, sees increasing demand among all its customers, including the leading integrated oil companies, for more services under one roof, Chief Executive David Lesar said.
"It has been frustrating pumping competitors' chemicals with our equipment," he told investors at the Barclays Capital 2011 CEO Energy-Power Conference in New York on Tuesday.
The acquisition of San Angelo, Texas-based Multi-Chem, announced earlier on Tuesday, was for an undisclosed price. It is expected to receive regulatory clearances in the fourth quarter, Halliburton said in a statement.
Multi-Chem has 900 customers worldwide and about 750 employees, and there are no plans for redundancies in the combination, according to a statement from Multi-Chem.
Halliburton shares fell 1.6 percent on the New York Stock Exchange to close at $40.87, while the Philadelphia Stock Exchange oil service index .OSX shed 0.6 percent.
Chief Financial Officer Mark McCollum told the conference that Halliburton's outlook had not changed, with North America set to grow more as clients base their plans on oil prices "substantially below" current prices, while the improvement in international markets remained "slow and steady."