Halliburton stock (NYSE:HAL) was down more than 5% on Wednesday as the company has been one of the many oil stocks affected by a transport backlog at the Permian Basin.

Customers cite “budget exhaustion” as the cause for the backlog, words that were echoed by Halliburton CEO Jeff Miller at the Barclays conference in New York. In addition to these pipeline bottlenecks, Miller noted that the company is being negatively impacted by a tight labor market and inflation.

The end result has been a downturn in the Permian Basin that is steeper than analysts had predicted. Halliburton is also being negatively impacted by delays on new Middle East contracts, stunting the Houston, Texas-based company in recent months.

Miller warns that the company’s third-quarter earnings are slated to be below what analysts are calling for due to these headwinds. The period’s earnings will be about 8 to 10 cents per share lower than previously projected.

“This is a response to either budget exhaustion, in some cases, budget exhaustion along with take-away capacity,” Miller said. “Either reallocating capital somewhere else which creates disruption, or in some cases, pulling back and saying, ‘We’ll get back to you.'”

A lack of “customer urgency” has also taken a hit on the company’s upcoming earnings report, Miller added.

HAL shares were down about 5.4% on Wednesday following the news.