Halliburton Co.'s (HAL) fourth-quarter earnings rose 50% as the raging U.S. energy boom brought the oilfield-service provider's revenues to record levels.

The second-largest oilfield-service company after Schlumberger Ltd. (SLB), Halliburton is the top seller of hydraulic fracturing, or fracking, services in North America. That service is essential in cracking open deeply buried oil-and-gas-bearing rocks, including shale, an area on which energy companies have been making big bets for future growth. Last week, Schlumberger said its fourth-quarter earnings rose 36% as a global drilling frenzy continued despite fears about the global economy.

"Our business has nearly doubled in size over the last five years" thanks to the intense activity surrounding drilling, said Halliburton Chief Executive David Lesar.

Halliburton reported a profit of $906 million, or 98 cents a share, up from $605 million, or 66 cents a share, a year earlier. Both periods included special charges of two cents a share. Revenue rose 37% to $7.06 billion, the "highest quarterly revenue in the company's history," Lesar said.

Analysts polled by Thomson Reuters most recently forecast earnings of 99 cents on revenue of $6.83 billion.

Halliburton's results come amid a drop in prices for natural gas, which has many in the North American energy industry scrambling to abandon dry gas drilling to move into more profitable oil-rich areas. The relocation of oilfield services towards these new areas is creating some logistical and cost hurdles, and ate into its North American margins, Halliburton acknowledged. The company also said seasonal issues and inflation impacted North American profits as well.

Analysts with GHS Research said they see "further weakness" into the second quarter due to these disruptions. "Our outlook remains tepid," the analysts wrote in a research note. Operating margin rose to 20.2% from 19%.

But Lesar's outlook was optimistic. "We believe there will be an overall increase in rig count in 2012," the executive said, as the growth in drilling rigs directed toward oil drilling will more than offset the drop in natural-gas-oriented rigs. Lesar said he expected Halliburton's North America business, and profit margins, to grow. "A more pessimistic scenario is priced into our stock, and we do not see that happening," Lesar said.

In addition to a ramp up in oil drilling, a drop in activity will eventually cause natural-gas prices to rebound, Lesar added. The first signs of dropping activity are already here: On Monday, Chesapeake Energy Corp. (CHK), the second-largest U.S. natural-gas producer after Exxon Mobil Corp. (XOM), said it would significantly curb its natural-gas drilling operations, sparking a rally in natural-gas markets.

In the latest quarter, Halliburton's North American revenue was up 56% and profit rose 77%. The company said Monday it expects strength in the segment to persist into 2012, with continued improvements in drilling and completion efficiency, as well as higher demand for services. In its international business, revenue rose 17%, while profit was up 9.5%, aided by growth in Latin America.

Shares dropped 3.40% to $34.97.

-By Angel Gonzalez, Dow Jones Newswires; 
713-547-9214;angel.gonzalez@dowjones.com

--Ben Fox Rubin contributed to this article.

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