Dive Brief:

• Halliburton Co. has plucked a new CFO from its ranks, naming as its finance chief Eric Carre, who has worked at the company for more than 30 years, most recently as Executive Vice President, Global Business Lines, and Chief Health, Safety and Environment Officer. 
• Outgoing CFO Lance Loeffler is taking on a new role as senior vice president of the company’s Middle East North Africa region. CEO Jeff Miller said in a statement that it was time to “expand his leadership development and provide him with an opportunity to strengthen his operational experience” by leading the region and working with customers.
• The Houston-based oil field and energy services giant said the C-suite change was part of the company’s “robust succession management process” and that its financial strategy remains unchanged, according to a release. 

Dive Insight:

Carre, 56, last year received compensation with a total value of $7.6 million, with non-equity incentive plan compensation valued at $4.4 million comprising the largest chunk, followed by $1.7 million in stock awards and $800,000 in salary, according to the company’s 2022 proxy statement. That’s up from total compensation of $6.5 million in 2020. 

The appointment of Carre, who was cited as a key architect of the company’s capital efficiency strategy, will provide continuity, according to the company announcement. “We believe Eric’s wealth of operational experience, clear understanding of our returns-focused strategy, and strong relationship with our Board of Directors and executive management team will serve Halliburton well as he leads our Finance organization,” Miller said in a statement.

Halliburton's executive changes come as drilling activity and demand for oil field services is picking up with Russia's invasion of Ukraine pushing crude above $100, according to Investor's Business Daily.  

“Fossil fuel prices and oilfield activity continue to surprise to the upside and Halliburton is appropriately viewed as a major beneficiary,” according to an April 20 report from Cowen analysts led by Marc Bianchi. 

The company’s total revenue rose 24% to $4.3 billion in the first quarter from $3.5 billion in the year earlier period, according to an April 19 earnings release. The company also recorded a pre-tax charge of $22 million in the first quarter primarily related to the write down of all its assets in Ukraine, including $16 million in receivables and is winding down its Russian operations, which account for about 2% of its business. 

But Miller on the April 19 earnings conference call described a relatively positive macro outlook, saying that oil and gas demand will grow over the near and medium term even as supply remains under “structural threat of scarcity.” 

“While the war in Ukraine has created short-term dislocation in commodity markets, the fundamental supply tightness existed before this geopolitical conflict,” Miller said. “Current oil supply tightness and commodity price levels strengthen my confidence in the accelerating multiyear upcycle and very busy years ahead for Halliburton.”

A Halliburton spokesperson said Carre was not available for comment and declined to elaborate on the company’s succession plans.