- Earnings call transcript Q3 2022

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Operator

Good day and thank you for standing by. Welcome to Halliburton’s Third Quarter 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today’s conference is being recorded. to Coleman, conference Relations. Senior like speaker to now David today, Director would hand over the your I of Investor go ahead. Please

David Coleman

XXXX Hello. Halliburton for you conference quarter And call. joining thank third the

recording of call. this We will make today’s available website on webcast after Halliburton’s the

and are EVP Joining Eric me and and Miller, Jeff today President Chairman, CEO; Carre, CFO.

from ended to today’s about year that reports matters differ ended These and on uncertainties Form or forward-looking future could forward-looking any revise We to and any for comments current our our involve June and X-K Form include results the the statements forward-looking risks filings. in may other of Securities These events. update publicly Some December quarter reflecting XXXX, views actual for XX, Form Exchange cause are statements Halliburton’s recent obligation XX, reason. statements. no Halliburton’s for risks XXXX, materially discussed Commission XX-Q undertake XX-K

also today include comments Our measures. non-GAAP financial

directly measures section of reconciliation release quarterly presentation to and Additional third in results and in GAAP earnings are comparable the our details quarter our included the and most financial website.

will over turn the Jeff. I to Now call

Jeff Miller

morning, you, Thank good David, everyone. and

activity today America tighten. foreseeable gas for and Our future, strong, and service accelerating supply tight International remains is outlook capacity oil continues further market is North the to

of a pricing strategy. our power quarter up is demonstrate in moving results both As the result, third markets. Halliburton’s strong

America and divisions. from improved to continue with some are compared the in company activity X% sequentially Total International highlights. performance both quarter Here North expand. both margin second revenue income grew Operating as to operating adjusted XX% income increased

adjusted XX% Our XX% incremental overall operating operating last representing was quarter’s margin margins income. income over

earnings basis business. last Drilling sequentially the above demonstrating pricing markets. increased last X% division Production of the same activity Evaluation Operating grew results. by XXX increased period the XX% and of completions increases third activity grew drove North offset operating both activity global gains X% of year, margin and the and America division basis D&E and sequentially both C&P International Our X%. to and revenue X% revenue in quarter. America completions and sequentially North power Completion exiting decline XXX Latin margin in as more East across points quarter. over quarter, in driven delivered almost and revenue our Middle improved revenue the The revenue Pricing that and with improved activity these points third XX% America throughout competitiveness and divisions the business. our grew International than related Russia drilling

markets. incremental and third in the similar we international during quarter, North both margins generated Importantly, America

Finally, we the generated I during quarter of whose pleased appreciation free cash to quarter. with $XXX debt third million flow these dedication work and possible. results of hard retired and made want to am express $XXX Halliburton my I million the men results. the women and of

Your service commitment make collaboration, safety to quality and everyday Halliburton successful.

release. Turning in temporary outlook. to remains production so. and underinvestment. for tight and gas as below fundamentally oil largest is the tight This low Oil is historically well SPR gas levels remain supply, of and and will expectations such inventory Against we levels, multiple to apparent actions tightness believe our ever years it supply macro strong due demand

developments, against balance to months long not The and towards a measured investment increased progress in effective sources existing require for and and we commitments solution a growing is companies clear, years, barrels, short companies both the returns cycle What of and investor have Service believe investor gas expect changed. and approach reliable services. that short operators I of it. and While demand is what taking short growth supply. is immediate production conventional supply. new measured Their remain of I all to growth only of broader to water, multiple and equipment approach Operators and will longer follow over unconventional, measured no disciplined. as will to I new on and their world’s in a is of supply strong behavior secure years see solve supply deepwater service investment. to in its how time. shallow think sustainable increased investment. the period and and and existing solution to the oil same is our is market limited and in delivering volatility commitments demand There and business and underappreciated more returns this discipline, results returns growth be for

performance, to with starting International turn markets. Let’s Halliburton’s the now

demonstrates performance deliver the the to contract selective competitiveness in offerings. quarter revenue the third International and growth third through our of technology International of profitable strategy strength Our wins improved pricing, our for competitiveness in all quarter markets. which grew mid-XXs, International standpoint high divisions from in and percentage D&E our growth year-over-year a teens outpaced count C&P the the and and rig respectively, reflects

the year-over-year demonstrated our earnings power give of me in growth margin International Our divisions the and business. confidence by expansion both

the EarthStar. activity to the increasing increases from I the the markets, activity UAE, Kuwait. have by the see broad our commitment strongest I be areas Looking of new largest expect smallest led am platform such activity. to and East, many Guyana growth drilling increased in Iraq signaled and the Throughout Arabia, around iCruise Elsewhere, Saudi I meaningful producers. Middle Qatar, with and others Brazil, will countries adoption forward, of pleased world, as also the but and a directional these with

increases our we to activity and drive in equipment these a Importantly, America, North to had fantastic serve increases quarter. business. availability tighten Shifting International broad-based price

improved differentiated with We achieved Our solid through customers technology. to maximize our performance strategy and North demonstrates partnering high quality in value pricing, America. this

to the the and X% equipment with is grew efficiencies, completions operational reduced over across and solution. all customers carbon lines quarter product across market-leading strong and the eFleets pleased and Interest uptime last continues of third improve up superior extremely are sequentially XX% year. remains tight revenue footprint in Pricing is Our market. our

the seen calendar I inbounds stronger year. ever are slots growth. Looking The in into for XXXX, have I see point this continued than at

public demand for value maximize an limited equipment increasingly and in a perfectly see are North of set America. importantly, where competitors I that to remain increased for outperform More Halliburton consolidation, and constraints, to that Halliburton for to Market technology environment this expect the set investors, foreseeable performance answer drive will all tight continue valued, chain all market. customers disciplined in future. supply and the I up services to market

Our best-in-class for XX,XXX have over hours Zeus eFleets pumped customers.

full carries run Our technology, have optimize build, eFleet customers the field-proven to that of expertise a Halliburton’s know next-generation they this equipment. and which weight

where in fractures strategies to and asset our for These permeate, our all customers. necessary strategy gives demonstrates profitable data the action, financial maximize growth, of our outperform traction value for data market performance Execution Halliburton’s shareholders through frac real-time on and cycle. continues us adjacent heart at completed and how the solutions this collaborate America to under engineer international this today. gain we We eight-fold wells an In Halliburton’s markets, fracturing Additionally, the customers is and SmartFleet hits intelligent asset value up their velocity system returns deliver improve to value maximize especially conditions, any its improved completion potential for to maximizing in designs. almost equip and North but SmartFleet access to increase strong about stages year. to to expect and unparalleled identity.

that today’s have You in in action results. seen

our Halliburton gas the You The world. ideally can and supply shareholders. more increased all I tailwinds about returns positioned and for strong structural how excited oil improved demand deliver provides business to hear am future around profitability is for for and Halliburton’s

Now financial I will turn results. more to the to third our provide Eric? Eric quarter call over details on

Eric Carre

morning. Thank you, and good Jeff,

and a summary our a an adjusted supported adjusted quarter the increase with income. and $X.X XXX third in second margin billion, company Total of begin activity improvement the quarter, me Let Operating for XX% these quarter higher the second of operating third company over was of results. over income while $XXX the increase operating operating X% for increase third over revenue basis pricing quarter points over adjusted XX% was XXXX. was results. the second quarter quarter, strong operating million, quarter Globally, in XXX-basis-point margin margin

XX% division, while results net XX% net of the diluted period increased when of Production year. and reported negatively financial quarter Asia, drilling-related in X% third operating for more doubled completion services while increase of increase $X.X from were when the third compared driven by Russia These compared East East income in per an primarily increased was sales was the Evaluation and quarter, results our increase quarter million, billion, in when our from the management and XX% an billion, Beginning diluted second to $XXX the the pressure million, in an to Middle North $X.X income The quarter. and In increase wireline of exit both adjusted project tool land second increase the business our revenue America driven quarter $XXX same compared for per second to services, compared Drilling and America $X.XX, when These by Asia. the revenue to second operating quarter, impacted in than net X% were last and was third per improved quarter divisions. was Our services Completion increased division, share second internationally. an adjusted an and income with quarter. share Latin income Middle was $X.XX diluted results pumping or share income

quarter. activity an third in Europe sequentially, to this of related was Africa Latin and in X% America were Southeast was revenue sequentially, billion, primarily $X.X was $X.X was Asia. the In Arabia activity the sequentially Moving million, increased offset was increase and million, lines North drilling a This in quarter in with Arabian our increased $XXX increase America, Mexico. the quarter, business. well on a and of services management across the primarily line construction by revenue Saudi by expenses corporate partially pressure to second were project America other the These resulting million, East/Asia revenue almost the an service in geographic $XX exiting results, was increase quarter expectations. Mexico. increased in reduction Middle compared decrease higher was from in pumping land. XX% and X% services when in quarter product the the in and third services Gulf revenue tool in North drilling-related sales third XX% Gulf services to quarter which all activity increases driven in increase our third third and multiple Russia driven $XXX by billion, decreased completion

up in fourth line million, yields decrease corporate interest $XX Net the due cash expense roughly we quarter, a quarter was the for balances. or higher quarter. expect expense second on to our For to be with slightly slight

for the currency to related the quarter, losses fourth debt net due U.S. to decrease of lower expense slightly by the million, quarter driven Other balances. For strength primarily $XX expense expect to we this dollar. was the

flat. approximately remain the expect quarter, to For fourth we expense this

Our rate million. Capital tax the normalized came expect third XX%. anticipated geographic quarter on were quarter for tax $XXX effective Based at expenditure third quarter mix, for approximately increase our fourth effective earnings rate the we in slightly. our to

We X% full capital our in to expect to with year of our revenue. X% of target expenditure line be

$XXX $XXX and during cash cash third million to cash flow, million Turning operations of of free from we generated quarter. flow the

to We flow. year’s expect cash free cash year of in flow range last free be full the

billion With $X.X debt retired latest $XXX of the XXXX. payment since million, have now we of

We are gross of X approaching quickly leverage near-term our target debt-to-EBITDA. times

share will sheet our our dividends program. have now cash repurchase existing to we and/or through under outlook, balance to position we shareholders return increase greater and Given strong the flexibility buybacks

the quarter near-term to Now revenue basis and In fourth XXX the XX the to XXX to single Jeff. will points margins single outlook. Completion digits back now and low-to-mid the let the points. In and XX in call in margins fourth basis basis to improve expect to points. low-to-mid expect turn me basis division, improve we Production to quarter grow I turn the grow to Drilling Evaluation and to digits division, points we revenue

Jeff Miller

Thanks, Eric.

shows third is performance requiring remains Halliburton’s for years Oil strong. summarize value action, delivering tight, strategy Halliburton in and our me our today. discussion gas of services supply multiple for Let our shareholders. quarter Demand financial investment.

it open strategic priorities shareholders. that free and We for our our returns questions. flow will for And execute now, to cash up on let’s drive continue

Operator

first question Barclays. Dave Our Instructions] with [Operator comes you. Thank Anderson from

is now open. Your line

Dave Anderson

Jeff. morning, Good Hi.

Jeff Miller

Dave. Good morning,

Dave Anderson

term you question So I inbound first -- land, hear curious saying often saying seeing to so but are exhaustion are public actually year this you how from those ever changed, And these time of on going the such E&Ps am stronger limited inbounds are about am than does to get for U.S. end. as and available privates? we I year, budget wondering, looking that more versus you have also are inbounds with are a customers now, premium? equipment

Jeff Miller

out sold are next the year through not we We and exhaustion. year. mean, budget I Look, Yeah. seeing certainly end remain of into the

strong So remains strong. the market is and activity

are may a we we little a what kind but at larger it stronger inbounds companies. as of mix, I’d getting, towards so it’s look say, And be

us view about parts -- it’s it, We standpoint, but at standpoint, pricing, flexibility I that tight, and they certain would remains believe you XXXX XXXX I Let’s an for out. America, pretty the I the I you in term, as term. just more we given the extremely people it for outlook from just that have have just time, the that that are in produce, term, America. very say clear say expect equipment would be and to we that I want work, because, repair way think to they same around the encouraged that, At like both really so XXXX. more North have seeing equipment North name more to we think play work you

Dave Anderson

to kind That over East, don’t guess, in it’s management, to ramped Middle you And is secondarily, talked the project just know ramp-up, in here. you fully was growth those of you a be up? I term terms Middle if all since these halfway upselling tricky in makes are collectively. potentially this -- the of sense. East? are out little just we you you of another project seen management is the it while some about we you there there, leg -- of get overall been curious of closer I management do have you Shifting East. right up to kind I increased there locked more tenders It’s do if Where are upmarket ramped projects do, in think about a of in are or I contracts. in Middle to an on on likely project more follow-on once kind could

Jeff Miller

view. hasn’t that think begun I really my even Look, in

have so consistent we eight all over got just of way a business, But I now, towards encouraged here internationally years long sort standpoint starting. reserves, and I we underway earlier a And are to but Middle view methodical run of East. long it think Middle years a with think in we the takes in in It to not to and getting got knee-jerk traction reaction. for. think my Middle are getting time it’s that’s takes and the outlook a frame in is East bigger terms takes overnight. about we are the East as I money, time is macro get to work discrete particular. which of, march adding result, some super they solve this projects, am the and kind broadly reserve in that from of extensions the We a the of look And supply terms didn’t on and where a XX when of this I the and

Dave Anderson

Thanks, Jeff.

Jeff Miller

Thank you.

Operator

Thank you.

Evercore comes next of Our question James the with West from line ISI.

open. now line is Your

James West

Eric. and morning, Jeff Good Hey.

Jeff Miller

James. morning, Good

Eric Carre

morning, Good James.

James West

as International there certainly elaborate you Middle that also market. you we better there’s the are wanted major on outlook several regions in if would is other more results given you had a the but your last major at But little spent to East, for of outperform or the the up what but here. business, just the want, be arena, as I International as that would quarter alluding going given last I in think to we your years certainly and of with coming it the reason as this, is one are you that three franchise with you part should any underperform some many strong really kind Jeff, competitive have competitor how over So, understand and that substantial next growth. I the mixed Halliburton and on can We that? International Halliburton of building peers really kind to out. showing should the am dig curious obviously, see set start this out just Russia Is that you be least a company a decades or superior the in

Jeff Miller

have for on expect so technology well portfolio the extremely to expansion are in internationally. our past and our footprint continue up we set many into Look, do James. quarters based and International Thanks, to the and outgrown future

and context, But quarter seeing grew growth exiting to we and strong to step some the while for the range, year-on-year, this the that this wasn’t expect see in of Russia, internationally XX% Halliburton we quarter, of Just is typically there. continue that see Russia sort course, up in where so are internationally. pre-winter XX%

on demonstrate the America, halfway but only mentioned basically we important was are North to expansion I look comments, with I I my incrementals, think only deployment. margin also recall, which were par international ahead iCruise to growth If strong internationally. which in through not our internationally, continues

James West

Right.

Jeff Miller

think do. all to left I that of that

good, new So expect and like internationally to plan our I expanding I feel, continue production is said, business really and and on growing margins. so revenue I

So feel than good I ever really outlook, better about actually have. international our I

James West

And that’s perhaps International kind on side, on to are margin that strong a next the Well, Okay. D&E statement. follow were hitting up targets we very of is an you anticipating bias, year. for which that,

and but you this down there. of specific as in get and So XXXX? the kind through year know want I you we outlook go that progression you do how end may are numbers, you you and as do bogged already And the not to think see of see

Jeff Miller

improvement. I Look, continue see to to expect

We are the markets. right in

lines that. We contributing are have to got service extremely competitive portfolio. All

our out, think business, years in I were I we and started that investments saying D&E I have making about every when probably, ago four that look year… said always meaningful the that -- then business

James West

Right.

Jeff Miller

there’s better and margins on this stuff. and stacking But plan what year on have I if full throughout continue margins better I the as better a obviously, you of said, in to deployment -- are better expect on we And year ultimately, in margins halfway we weather that’s … other is march we was D&E, continue are wanted margins, think stacking seeing. the to already only cyclicality should I technology those and continue stack what flagship up. through to margin,

James West

Got Right. it.

Okay. Thanks, Jeff.

Jeff Miller

Yeah. Thank you.

Operator

you. Thank

Our next question the from Jayaram comes JPMorgan. Arun with line of

is Your line open.

Arun Jayaram

talk… Yeah. wanted morning, to I Jeff. Good

Jeff Miller

Hi, Arun.

Arun Jayaram

your life phase D&C. the to know gas and I one … to production bit about a is little the of grow ambitions pure leverage just of oil the versus portfolio, house cycle long-term

you and could think share your where terms that So I and grow things was about how think you at wondering, journey on potential -- to where of if are comment you you in lift you like in are your chemicals?

Jeff Miller

I Look, it’s all I planned as mean feel about along good that. we marching continue to and grow.

in We still call innings the very so expansion, it, International early inning. the second of that are

but had So, what it’s exactly we doing hoped.

We The access apply and we profitable just continue growth full and our and That’s with seeing a scale getting are again, Middle put business fantastic is in with Chemicals the -- a important the we guys that focused the through and on entries America we lift But and of the making to do. Latin and the step so dead in production work and North East that technology in internationally those are in Middle footprint lot plant grow to East. lot America chemicals. infrastructure to this and it’s bottomline is first same market sales. the market just are lift month. first an and place we

Arun Jayaram

have capital some growth are target was announced Eric. could maybe reaching you return after about on your how of highlighted buybacks? a you campaign. X thoughts of your and Eric, target little you more return I dividend peers for give announcements how versus of think deleveraging about future us you your wondering, of thinking if at capital Liberty-Halliburton bit maybe follow-up And a A times. Great. leverage number [ph] just

Eric Carre

Right.

So, thanks, Arun.

is in the sheet said have really last couple that, get our order. our to years we priority what was So of number one for balance

this So alone. us billion since $XXX that million billion year have the that $X.X retired puts we $X.X in with XXXX, about retired retired QX at

that with So and change. to see for reason target at our our outlook for performance we combine as purposes, our improved no positive business if well that all you considering are practical we

attention really shareholders. to now to picture returning big cash are turn we starting more So our to

are through we working So scenarios.

We our are Board. engaging

come. So, to more details

Arun Jayaram

Great. Thanks a lot.

Operator

Thank you.

comes question Mulvehill Chase of next Our the Bank from line America. with of

Your line open. now is

Chase Mulvehill

morning, Good everybody. Hey.

back kind margins. timeframe, and low kind mid-to-high maybe I kind hit so all going call want So, if XX% sitting Today, your in I XXXX look to margins, margins XXXX it, guess, to did of how and and on the the first, at of EBITDA you XXXX you pre-shale are of we way XX$s.

could think type what levels -- to even that us you back of So, back whether this cycle? this to get kind of margins to need type Jeff, possible would I to these and is walk happen in of those you margin kind don’t just of get to through

Jeff Miller

the that think, of Look, a is we cycle I into cycle this from grow and key kind thing continue duration as I margins about forward. the its duration better think it’s right we standpoint

see things sort motivation short are in EBITDA industry. got flow. improvement, think seen rational to free sort in behavior the So And that a the I and what historically, try and Eric front margin to put the have think absolutely up is market, supply both of create date returning I really or is a actually, of am for to and are way about. strengthening, haven’t of where of the not is the the which cash sort shareholders, This kind talked service going cycle the of to expectation just able do we up that by the where my of of cycle all to which we I set I runway that and is all cash duration we of I I companies, time. terms that that those the But operators of the us described do that right setting the the

cycle. look are is good the cash to what of think returning the what I demonstration a entire I think meaningful and over industry going returns from like generating long shareholders is energy you cycle, to fantastic see a industry and

Chase Mulvehill

Yeah. Perfect.

the talk Could today, about momentum Just are least tight think pricing and you are when what markets about you to kind capacity on at you idled just the spare how international you markets. seeing for across or that of do markets, follow-up International kind continue CapEx for the did what tighter Halliburton, have spare capacity less to year or on you mobilize next markets do for see that of a mean an lot International to side? opportunity and

Jeff Miller

standpoint, in that a of already X% X% we we CapEx have are revenues the described from Well, to range CapEx. on

because market, a So that the just things, what’s deploy sense do capital that moved its we faster, asset repair ability we way around, it the in I longer, which asset what putting effective in and we we we work it just are If international equipment seeing the type with do capital ability just tight. in a the reasons into being important the that’s in -- opportunity, return key way velocity. And confident past. creating what capital ever less more spare markets is our us work tenants, customer the spend to of baked about opposed to would to we makes is of one best as levels is are those are anywhere And of to of a internationally. direct the is I opportunity we opportunities, when so which demonstrate others. there’s tight, all we think matters as much business don’t Is important But and the velocity matters. market better think to urgency be that world. profitable in go you capacity quality the that internationally it’s I yes, strategic lot equipment than it’s the growth back see lot our of do I have think

Chase Mulvehill

I Okay. it color. will Thanks, back Jeff. over. the turn I appreciate

Jeff Miller

Thanks. Yeah.

Operator

you. Thank

Sachs. comes with next Our from question Goldman Neil Mehta

is line Your open. now

Neil Mehta

Yeah. team. Good morning,

North was question first America. around The

look that there limited what pieces mentioned equipment. What in types of there the moving frac see of America to Can are you equipment as type for out for kind set You growth think and that about you is about and it you we the demand a are how market in of North talk you into capacity, equipment increased continue talking -- about there? demand do revenue is adding a XXXX?

Jeff Miller

we on the increasing see just equipment, reps more which activity intensity, through as describe service Well, sand is, that’s is let’s really equipment. more it and

for around in eFleets over equipment time. But and I replacement immediate. likely wind will that’s different horizons. eFleet any over anything XXXX over the We sort going XXXX, we that’s in and encouraged of and terms really more tight about are principally, services Yeah, we D&E. I probably sort having up how are When we are balances so so talked spend America our as at It’s internationally, itself drilling us, market I I markets. are extremely conversations, the also for about principal all works time that so U.S. North chain. and America all that in in really seeing XXXX, the well, we think goes. It’s us profitably and really not generates supply tight maximizing it about -- standpoint all frac, and late eFleets really thing. the are about grow, the not for so where really our rectify know to capacity, it I money harder, growing as replacing just a everything, where for example, for repair and it’s value additions am have parts, of it’s related it’s activity value North so we look bottlenecks mean, short But horizon. that it we and automatically capacity of we from approach capacity, view as to tight, that we

So all I America think is conditions under that tight. North

I think capacity…

Neil Mehta

Yeah.

Jeff Miller

… could be added in a meaningful way was even if desired. it

Neil Mehta

some much you how will of be XXXX be early internationally expect a inflation customers in thoughts in from terms just of that thoughts what great to early a terms you And do on spending are as perspective. think increases component in both of what the and and Yeah. U.S. and hearing That’s then any you percentage, activity increase? as around

Jeff Miller

year, are Look, to that we think, Clearly, don’t but look strong I that’s be is year. I up obviously, last going are budgets haven’t growth next as from to where we would have we from strong next seen have year. here, today, we growth from be the growth describe customers, even and expect into got we how that we Really, really strong. guess, I up over seen

So a customers I talked I that in everywhere we will internationally to busy. really be the be already that busy, the America expect sense that. we about they think will see that But growth and bit continues increase have quite demand can North

to a I to Halliburton. beneficiaries this as at cycle to are a the traction that getting it’s East continue margin think think I and opposed Middle think build see cycle the I as the and cycle, we is necessarily, not will to just margin we view going I a that And be that continue in it’s of real a underway tightening.

Neil Mehta

Thank you, Jeff.

Jeff Miller

Yes.

Operator

you. Thank

Our comes Citi. Scott the with of next Gruber from question line

Your line open. now is

Scott Gruber

Good Yes. morning.

Jeff Miller

Scott. morning, Good

Eric Carre

Good morning.

Scott Gruber

of fleet smaller additions. here The domestically discussed have XX% replacing e-frac pumpers generally about their annually, with

or about cycle? think kind you a framework? think multiyear Halliburton, returns you have of guide for that that is rough about replacement we do positive all, do you stay different As assuming a How

Jeff Miller

mean, through look the market, the of have today of are dead on that looks lot what replaced fleet, seeing, are we our cycle there we it benefit have the maintaining get the a the get and at of a always know replacement healthy always in to we market, we of healthy and enough. have equipment fast and thin. equipment I feedback a the feet. When I market, we a because its from thick best fleet worst of I Look, customer just Don’t a all recently the for we out the how fleet that Yeah. have reinvested time. at

frac described look the so with you the just I that what equipment and I which revolutions replacement pace is intensity that when think cycle. it think cycle, we an at more service we physics are meet working, view replacement and can’t electric for I comes at we as

so have on And we focused that.

leading we We customers pull strong got technology. for And are have our technology. that seeing from

for duration same pull capital return all we capital, -- and capital of a and also actual do. as rush the return into it’s pull pull adequate up as what strength to do what and doing that of technology something of of to And be Gap] margin It’s we the and it’s not equipment so going are happen inside sign get the over cost translates time. contract. demonstrates like. we is, to looks -- demand is [Audio and the period And that something the and we that contracts that me, But

Scott Gruber

Got it.

No. as the well growth to guys. you turning trying a earlier, few number mentioned had impressive to We International this exactly Okay. you year-on-year what Russia. inbounds quarter, able growth to back it, are appreciate that… had International what if with this morning I you ascertain I have the that without share highlighted. Russia but apologize though excluding then internationally I to may missed the Very color. even markets, And was us you --

Jeff Miller

It’s… Yeah. Yeah.

Scott Gruber

… growth was?

Jeff Miller

Yeah. It’s growth. XX% year-on-year International

Scott Gruber

excluding Russia the inclusive of Russia? of -- that or Was

Jeff Miller

-- -- excluding Russia that’s while That’s for Russia well, -- Russia we quarter. and the excluding had last

Eric Carre

without Russia HX Russia in and QX. in With

Scott Gruber

Right. number have Russia, outside the year-on-year? guys grew Do you you of quickly how

Jeff Miller

That know. I don’t

Eric Carre

No.

Jeff Miller

more. been -- been it substantially have have But would it would

Scott Gruber

Yeah. Yeah.

Okay. I could follow-up.

Okay. Thank you.

Jeff Miller

All right. Thanks, Scott.

Operator

Thank you.

from line the question comes Stifel. of with Gengaro next Stephen Our

Your now is line open.

Stephen Gengaro

morning, gentlemen. Good Thanks.

Jeff Miller

Good morning, Stephen.

Stephen Gengaro

things mean, plays conversations from as for conversations customers yet? me. think American just how do forward? there as improving out the XXXX you far Two How pricing pricing with you a about is how I obviously, while are frac pushback North for and price? a go for go has the as do perspective, a One been now, that

Jeff Miller

have not absolutely view I details am that get around I into price I Look, discussions to said, customers. Look, already pricing think that, with going I strengthens.

so year not out lot of in what fleet, It’s terms sort eFleets I always advantaged in having pre-pandemic giant iterative. of which are about throughout talked to and low the like We the to quality about gets Pricing on premiums. improve we It’s steps. is have are talked room going I fleet. pull performance of levels driving general are just to where technology and that Service today structurally a there’s of and have and a below maintenance there’s I there. both is still pricing, there think be what emissions us we power today.

Stephen Gengaro

Is it…

Jeff Miller

of conversation what of in our one capacity, a terms Halliburton XXXX, capacity for priority -- execution I capacity we is company, And kind and for that left for are out the I the of are we Yeah, the we customers. very so reliable do think that is delivery. think, say of things reliable was obviously, securing we securing we XXXX high

Stephen Gengaro

how relative of pricing? see or a diesel a about do conversations you the sort price is in into and in lower there -- as follow-up, to the And play eFleets of conversations just much gap running the cost cost the of either gap

Jeff Miller

is box run. it efficient price it over mean equipment. It value are mousetrap Again, effectiveness standpoint, ability type it an should are to really first Yes, it’s to creates pumped we These but that’s one the the the a month. -- pump. operate? from fleets creates ignoring long is. I of out seeing out of better and XXX it the from the that we the took standpoint, reliable Is more reliability value also it price, and eFleets then the a hours of around extremely conversation

after cost to So the make pulls. I other the a in would it we clients, is. it to I our probably ignore think it for I It all components it value But there. of is am see be component? the wrong sought conspires why Is of think that always sure is. That’s marketplace.

Stephen Gengaro

Great.

Thank Okay. you.

Jeff Miller

you. Thank

Operator

you. Thank

Roger from Read line Our with Wells comes next the of question Fargo.

now line open. Your is

Roger Read

But for to we as investment bit differently Yeah. the Thank have Good little you there parts question maybe course Jeff. if seeing you equipment, guess in maybe the versus contracts in look on you. want work to either internationally bid as the we that down and I North I’d to of capacity spare maybe everything, what said, turned across change you been at, of parts any aggressively, like tightness the look that early less new morning. don’t on XXXX? or of ask were or a you XXXX has and and are America bid

Jeff Miller

less we we growing and really It that in North that’s levers of the would improve one of things. maximizing is how strategy about on that of returns. those terms do part our more to America and the in overall value we of, have been consistent be But margins returning portfolio both not key profitably internationally have and

yes, of have so, those. we both And done

Roger Read

margin I not amount at this much down a that’s just are still interesting you turning Yeah. it or material just on But is guess point project more you see enticing? not pretty or a the wondering, mean, I is I am less, it

Jeff Miller

-- the the the I tighter. continues that clearly to at Look, that -- grow think, it’s but I it’s describe at margin, It’s as that it margin. to get is don’t market know is going how to probably

already adding. we building, CapEx our have are so I be We will and described,

of have that had. with to have meaningfully, able the say, because that building are and We expect levels we been year CapEx to grow we over that equipment. grow we the way I’d continue last the will

that that’s of even important then I not, drilling down it’s I are they pursue an want whether mean, we win go everything more, list, we are higher it’s we towards But accretive are have, going would that anything are think fall to the are things that any are the and we it’s So else capital that they the probably equipment we just much because out to -- new or value. by if turning of not and means. we to point doing what contracts

Roger Read

makes It sense. Yeah.

out my hear So there’s was And follow-up. other question then there. to glad selectivity better to

component? terms subcontracts, down spare are prospect relatively a trying equipment you there’s for in where is the you work for really we are all tight system in you types terms of, are But of and where there’s side way terms to just capacity am terms very the change them in chain the new pressure want I with supply the expand not different much equipment, just of of of mentioned know tight on -- You or thinking helping or high to in you maintenance everything et pumping I the anything manufacturing. increase as kind do on cetera. integrated parts, of

Jeff Miller

Look, time, accelerate and planning have over of it’s we a not these it most there’s when been to ahead done can but lot for fixed be plan chain will Clearly, that year. supply cases, over get in a far we their ahead reaching.

got market be We just for equipment. visibility. that But parts tight spare will have and great

Roger Read

Thank that. All right. Appreciate you.

Jeff Miller

you. Thank right. All

Operator

you. Thank

Our next with Bianchi the from comes Marc question of line Cowen.

line is now your open. open. line is now Your Bianchi with Marc Cowen,

Jeff Miller

right. All

Operator

showing And you. Thank I’d to button. turn call questions mute your like remarks. I to am no over currently this closing the shut at Miller for Please further back Jeff time.

Jeff Miller

call. Yeah. Shannon, you Thank all and you, in participating for thank today’s

support see Just strong drive and create and shareholders. upcycle. for strategic for we multiyear. performance value continue free today let execute points. shows few will third Halliburton’s multiyear Halliburton, flow growing and on gas shortness I and key of our strong to quarter our support services of summarize supply, Oil to me constraints Halliburton’s this strategy and priorities a demand At cash equipment this in will with delivering we is our shortages

next to Please Looking you quarter. the forward speaking close with again out call.

Operator

Thank call. concludes your Thank you. This for today’s conference participation. you

now may You disconnect.

Halliburton (HAL) 25 Oct 222022 Q3 Earnings call transcript