The oil company reported better than expected earnings of $544 million, or 60 cents per share, for the quarter ending September 30. Analysts polled by Thompson Reuters were expecting earnings of 58 cents per share for the quarter. Revenues were just in line with the analyst consensus, at $4.7 billion.

Halliburton ( HAL - news - people) discussed their profit boost in terms of a shift to natural gas that has become a trend. North America, where rigs have grown from 40 in beginning of year to over 100 currently, is the only global region where the company's revenue increased in the third quarter. Central and South America lost operating income in drilling and production, hindered by the U.S. moratorium on offshore drilling in the Gulf of Mexico following BP ( BP - news - people )'s Deepwater Horizon disaster. The company estimated that Mexico would account for a loss of between five and eight cents per share this quarter. They are keeping the same projection for next quarter.

Globally earnings results were middling, the company citing challenges in the Europe, Africa, Middle East and Asia markets due to lower vessel utilization and reduced activity. Project delays in Algeria offset increases in the United Kingdom, and will continue to produce price strains in the next quarter. Iraq, it says, will contribute to profitability in 2011.

Tim Probert, president of global business lines says that horizontal drilling, a process in which a well is drilled down vertically and then angled around a curve to reach reservoirs from a horizontal angle that increases the well's exposure, is now 55% of Halliburton's total activity. The method is more costly, but also may produce 2.5 to 7 times the reserves of vertical wells, according to some experts.

Investors were unimpressed by the earnings, sending Halliburton shares down 5.3% to $33.94.

CEO David Lesar said in a conference call after Monday's earnings that volume increases will be steady but measured, especially in North America, where oil and "liquids-rich" activity have increased, particularly in the Northwest. Lesar expects 2010 capital expenditures to inch up to $2.1 billion.

"Our third quarter results reflect the successful execution of our strategy to utilize our broad global capabilities to enhance our market position, generate growth, and improve margins," said Lesar.