Last checked at 
* First phase of BP spill trial ended last week
* BP had sought to shift blame for 2010 disaster
* Excluding charge, Halliburton earnings top estimates
* Believes worst of fracking pricing pressure behind it
* Halliburton shares up 3.2 percent
By Braden Reddall
April 22 (Reuters) - Halliburton Co is in talks tosettle private claims against it in a trial to determine how toallocate blame for the 2010 Gulf of Mexico spill, the oilfieldservices company said on Monday, as it took a $1 billion pretaxcharge for a possible deal.
Disclosure of the "court-facilitated" talks helped pushHalliburton shares up more than 3 percent, even though thecharge pushed the company to a first-quarter loss.
The news came just days after the conclusion of courtproceedings for the first phase of the trial over claims broughtby the U.S. government and Gulf Coast states, as well as privateparties affected by the worst U.S. offshore oil spill.
While Halliburton is not the subject of direct governmentactions, BP Plc has tried to hold the company and rigowner Transocean Ltd partly responsible for damages.
Halliburton did the cement work on the Macondo well, whichspilled more than 4 million barrels of oil.
A BP spokesman would not comment on whether the talksextended beyond Halliburton.
Halliburton Chief Executive Officer David Lesar said thecompany believed an "early and reasonably valued" resolution wasin the best interests of shareholders, and its most recent offerincluded cash components payable over time as well as stock.
"Discussions are at an advanced stage but have not yetresulted in a settlement," Lesar said, explaining what amountsto an after-tax charge of $637 million that pushed the companyto a loss for the first quarter.
The charge is based on where Halliburton is in thenegotiations, Lesar said. It is on top of afirst-quarter 2012 charge of $191 million after taxes, or $300million before taxes.
The total $1.3 billion reserve estimate does not include anypotential insurance recovery. Chief Financial Officer MarkMcCollum told analysts that the reserve may be revised up ordown, but the executives declined to take further questionsabout the possible settlement or trial on the conference call.
'A SIGNIFICANT POSITIVE'
Shares of Halliburton, the world's second-largest oilfieldservices company, rose 3.2 percent to $38.39 in morning trading.
"A Macondo settlement would be a significant positive forthe stock," said UBS analyst Angie Sedita, adding thatHalliburton also got a lift in the first quarter fromhigher-than-expected earnings in North America.
The company reported a loss of $13 million, or 1 cent pershare, compared with year-earlier earnings of $635 million, or69 cents per share.
Excluding the charge and other items, it made a profit of 62cents per share, ahead of the 57 cents that analysts expected,according to Thomson Reuters I/B/E/S.
Revenue rose 1.5 percent to $6.97 billion.
Revenue from outside North America grew 21 percent, andHalliburton said it had delivered better growth internationallythan its two primary competitors over the past four quarters.
On Friday, industry leader Schlumberger Ltd andthird-ranked Baker Hughes Inc both reportedhigher-than-expected earnings.
Oilfield companies' pricing power, especially for pressurepumping fleets used in hydraulic fracturing, has collapsed inNorth America as the number of U.S. rigs targeting natural gasedges away from a 14-year low. But Baker Hughessaid on Friday that the declines in frack pricing were startingto taper off.
Halliburton weighed in on Monday, saying pricing in generalmight increase this year as customers adopt new technology toimprove well production and the "intensity" of services providedper well increases, even as the rig count rises only modestly.
"We believe the worst of the pricing pressure is behind us,"said Chief Operating Officer Jeff Miller.
