U.S. Indexes Rise; Halliburton Net Soars 50%

Arthi Gupta
23 Jan, 2012
New York City

The U.S. indexes gained and Apache agreed to acquire Cordillera Energy for $2.85 billion. Research in Motion shuffled top management and replaced its chief executives. The IMF chief urged euro zone finance ministers to expedite setting up the rescue fund.

[R]11:10 AM New York – The U.S. indexes gained and Apache agreed to acquire Cordillera Energy for $2.85 billion. Research in Motion shuffled top management and replaced its chief executives. The IMF chief urged euro zone finance ministers to expedite setting up the rescue fund.[/R]

U.S. indexes and European markets traded higher ahead of a meeting of European Union finance ministers in Brussels today and between Athens and its private-sector lenders.

The International Monetary Fund’s chief Christine Lagarde urged euro zone ministers to beef up the European Financial Stability Fund to €500 billion and make it a permanent fund. Lagarde also struck an alarm and stepped up pressure on the ministers and added that the “firewall” needs to be erected as soon as possible to avoid a destabilization of the global financial system and sinking of the European Union into a depression.

Investors were also cautious after Spanish economy contracted and the Bundesbank offered weak outlook for the German economy.

Germany sold €2.54 billion of new 12-month Bubills at an average yield of 0.07%, down from 0.346% at the previous auction held on October 31. The bid-to-cover ratio was 2.2 compared with 4.3 in the previous auction.

Asian stocks traded mixed on euro-zone worries with most of the markets closed for the Lunar New Year's Day holidays.

Apache to Acquire Cordillera Energy

Apache Corporation agreed to acquire Cordillera Energy Partners III LLC, a privately held company with substantial operations that include approximately 254,000 net acres in the prolific Granite Wash, Tonkawa, Cleveland and Marmaton plays in western Oklahoma and the Texas Panhandle for $2.85 billion.

Sinopec Lifts Stake in Australian LNG Project

China Petrochemical Corp. or Sinopec Group agreed to acquire an additional 10% stake in Australia Pacific LNG Project, boosting its stake in the project to 25% for $1.1 billion. The additional stake purchase is in return for Sinopec's agreement to purchase an additional 3.3 million tons per year of LNG from Australia Pacific LNG through to 2035 from mid-2015.

Earnings Review

Entergy Corporation ((ETR)), the integrated energy company expects fourth quarter 2011 earnings of $0.86 a share and operational earnings of 93 cents a share.

International Rectifier Corporation ((IRF)), the manufacturer of power semiconductors estimated second quarter revenue will be between $229 million and $230 million. Previously, the company projected revenues between $240 million and $270 million.

Halliburton Company ((HAL)), the provider of hydraulic fracturing services reported fourth quarter revenue surged 36.9% to $7.06 billion compared to $5.16 billion in the prior year quarter.

Net income in the quarter soared 50% to $906 million or 98 cents per diluted share compared to net income of $605 million or 66 cents per share in the same quarter last year.

For the full year, net earnings were $2.84 billion or $3.08 per share compared with net earnings of $1.84 billion or $2.02 per share in 2010. Annual revenue surged 38.1% to $24.8 billion.