Earnings call transcript Q4 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2022 Halliburton Company Earnings Conference Call [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, David Coleman, Senior Director of Investor Relations. Please go ahead.

David Coleman

for Halliburton you Conference Quarter thank Call. and joining Fourth the XXXX Hello,

the webcast of Web will recording We make today's this site call. available after Halliburton's on

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

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

non-GAAP today also comments Our include measures. financial

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

I'll to Jeff. the over Now call turn

Jeff Miller

power in finished demonstrates in and both power XXXX and Halliburton and execution morning, hemispheres. everyone. operational strong strengthen our of divisions I year and expect Thank you, this Halliburton's solid David, performance with earnings good in the strategy, to the both financial XXXX earnings and beyond.

operating $X.X Adjusted year revenue of improved divisions. company billion. total $XX.X with performance grew right jump full to in operating highlights. the both into income and delivered Let's margin XX% XXXX of We XXXX billion compared income

the second Russian exit increased I despite income over demonstrated international margin our year and and am international each business. quarter operating a progression and in full year grew Halliburton quarter our XX% XXXX. this growth from XXXX, Our revenue pleased with revenue

an completion improved revenue by year. and our and margins competitiveness full increase and points margins Our generated XX% this full and steady of D&E XXXX Both global year gains. XXXX. of drilling North increased business. The of activity division operating XX%, evaluation expansion of basis over production driven our D&E divisions and margins pricing America with the Evaluation and Drilling The XXX over revenue year demonstrates grew margins

Our points, of cash activity billion improvements. spending posted X% of free $X.X by division within cash year capital and year-over-year basis on We hand. and the XXX ended with Production Completion $X.X operating of XX% billion, increase to driven generated a maintained $X.X pricing margins, of and strong full billion X% of revenues flow year debt, retired

by over our to a the are performance superior the our X% Finally, quality service XXXX. and are drove our service employees' continued Execution to business. testament XXXX, highest who ever which excelled uptime heart results time improved across our at Nonproductive in we quality. of commitment is

XXXX, and annual business, XX% capital customers, demonstrate flow of shareholders that sequentially. return income XX% in outlook. I'm and operations Margins through pleased the Board our following the Board Halliburton's and $XXX Revenue our in finally, flow to totaling in results. and the of D&E free fourth C&P first quarter from execution, our actions: hemispheres. share increase first, existing increase at representing last our to approximately pleased of our shareholder confidence we share approved of quarter under framework fourth with and XXXX, least Board a bought we announce industry operating forward per dividends was strong our expect billion authorization in actions return of return to the divisions quarterly million. grew $X.X on grew foundation today, and free X% cash am a I buybacks. XX% the flow an shares the back second, in employees cash to have going These in billion in Building dividend from and $X.XX $XXX was both resumed increased both buybacks year; quarter approved $X Cash quarter million;

to take thank employees I and world continue, we a the Before moment who want these made Halliburton around results possible. the

throughout hard you was for quarter work customer a result XXXX I this focus operational of thank collaboration service dedication. your quality direct and success your safety, on and performance. and Our execution, relentless

the Now let's gas turn today where points see to oil macro everything outlook continued tightness. and I towards

the yielded XX% almost spend the of a On about XX% production X%. US, of supply in increase nearly activity growth side, increased and of an

required international to quotas, the being service to their goals. activity despite expect spend remain Given side did indicator members I the that several challenges same production, increase OPEC's supply to intensity strong replace see markets. XXXX. the grow One and production not increased through in and I XXXX meet

the of resilience demand even rates the oil throughout saw central interest banks and inflation. side, I we combat as gas XXXX, expect gas to to strong. demand oil On demand remain and raised

unique I is believe in start also services. that and for of investments clear I of multiple will I years drive cycle, demand by and XXXX, longer increasing China's I additions up operators companies, increase service these return for it, and duration in supply. short as years stemming expect oil gas drives of next oilfield and cycle both the Halliburton we translates see increased services for is supply expect short declines both the As further reserve to will into me investment driven which demand. solve discipline reopening and several only feature years. to It's The demand investor this a

confidence and most from East divisions. wins. successfully strong grow with In with strategy. our to our to We expansion we and international profitable selective technology strategy the expect in with Middle me turn from America. competitive activity activity performance Halliburton, markets. both to earnings revenue let's Now international contract international XXXX, in year-on-year least improved Latin This gives growth the International XX% through power growth international at deliver mid-teens executed margin coming grew and our starting offerings, the of new pricing

by we increased markets. and the substantial for Halliburton. spend our revenue that news see and both will I growth development in believe offshore, activity markets, international at is cycle continues, excellent wellbore. comes international As this half from all up This About led onshore

product positions and leading lines adoption technology key construction opportunities geographic excited new strong footprint. I'm well have the of platforms. a the profit with in our We come that drilling growth will about and

while benefits. and technology, Our logging capabilities. LOGIX and iStar drilling Each automation we technologies stages iCruise implementation, platform different seeing of drilling of in are these already are

It while about to key Our steerable iCruise of directional increasing a global drilling contributor half international is rotary profitability. drilling system of our represents about XX% footage. our fleet

now and Our iStar platform bit delivers logging high into while the measurements deeper formation. to the drilling closer definition

iStar system. only the iCruise drilling rollout its in logged, platform early directional complements While with XXX,XXX directly the feet

reliably. drilling more plus drilled X platform iCruise countries With iStar. with and automates million LOGIX and risk LOGIX Finally, feet delivers wells the than operational in reduces XX

We Turning to terrific had North year. America. a

America demonstrated related In high while value in North to sequentially XXXX, performance our through downtime quarter quality our technology revenue grew the Our North flat XX% capital alignment America year. with pricing, late year-over-year, the in customers. strategy in due efficiency, to maximize improved weather and revenue differentiated was fourth

disciplined. new least Looking ahead, market to is activity equipment spending long and companies we remain in times at expect service Lead remain strong tight. for and replacement XX% equipment and for customer grow The XXXX. anticipate by

our maximize calendar service demand a additional several Halliburton Against is across with design track with We Zeus completions all market for lines. e-fleets backdrop, contracting constructive repeat pricing this strategy value. a to product outperform see fully proven strong our Our customers continues strong Zeus fleets. booked with to will improve and unique operational is record.

Our automates fracturing equipment and life. extends new platform, component Optiv, automated fully maintenance operation, reduces

proven it rollout, the having in this to innings it expect I over capital of efficiency. early are higher We and stages, XX,XXX drive

is system capital either cost presence cases, to example in answer both the Each of improve markets, velocity unique increasing strong depletion, fracturing examples only America company SmartFleet Halliburton existence or few parent-child a services how and a completion significant key such a culture intelligent delivers helps data differentiated gaining both. to performance SmartFleet maximizes North flow better customers. and many with performance. as execution These all our have North in and technology America. of is Finally, interference, in traction technology. capital international margins and value reducing well questions the strong is integrated and barriers, are by customers

We proposition Halliburton's is Halliburton for the long oilfield in sharpen our services in best am strong This have our customers. outlook setup and I and will and that confident asset collaborate maximize to seen solutions outlook. to value term time. engineer for long value continue I very to market a

this America, deliver continue performance year value our growth to a financial and international exceptional expect efficiency. execution drive profitable Our deliver to I strategic North the capital financial result to of outperformance. priorities of Halliburton in is maximize clear

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

Eric Carre

Thank you, Jeff, and good morning.

company billion, the pricing company for by income. while was increase a an increase the and XX% Operating sales. fourth our end was primarily in third of summary increase point the a with the begin third quarter global million, of a $X.X XXX results driven quarter revenue over operating Total for activity, margins me operating year and increased quarter XXXX. quarter was over over the in margin These fourth operating product quarter basis results. $XXX software fourth income XX.X% were of quarter, Let X%

income net or quarter. XX% quarter increase $X.XX diluted fourth the of $X.XX, Our from per was share third reported an

the of increased third demonstrates in of margin compared in global XXXX, North markets. XXXX. late in to while pricing, the an $XXX increase operating D&E business. of Drilling fourth of Evaluation our weather XX% quarter, XX.X%, was quarter. compared America fourth $X.X increased XXX a revenue doubled Revenue year was basis per operating the since Despite competitiveness compared end the Beginning full downtime mix billion, delivered XXXX. was income the the third This These highest well to and to XXXX when income division. when by $X.X million, international year, which above land due with X% in activity uptick billion, Production when increase as an in net million, Operating X% an In an related activity. income our Our of division, increase third XX% income and adjusted was to as and higher diluted efficiency operating our from margin quarter, to was nearly international and income share quarter QX improved operating third sales an results were service quarter. margin software the while increase year C&P points Completion when the in driven compared quarter activity $XXX the

geographic on results. Moving to

decrease lower sequentially $XXX end region. and activity by quarter Our These billion, the across fourth quarter was region. decrease the and revenue America, higher sales, a activity revenue to driven $X.X by due million, Mexico when by weather a to and in revenue resulting in increase fourth revenue were intervention well gains X% offset and revenue sequentially fourth due from $X.X a in was increases quarter Europe/Africa America in in completion increased the the to $XXX driven in pricing the North in primarily services In solid quarter the drilling increase sequentially international activity America primarily fourth and the third the related billion, Latin Norway. quarter. increase North higher services This Middle land. million, was downtime XX% East/Asia X% evaluation compared tool was region. drilling year sequentially, activity increases. sales, a across partially software sales XX% higher was X% across

I'd fourth quarter, expenses other items. additional and the $XX some was Now cover corporate million. like In to financial our

higher a first slight corporate retirement million, September. Net lower. was slightly interest on expenses decrease for the quarter quarter, and to expense the expect we to our cash balances due debt in $XX be yields For

quarter, this foreign unfavorable to expense expect remain for expense $XX quarter Other flat. approximately primarily net million, we to the exchange was For movements. related first the

expense to slightly the be this For we first lower. quarter, expect

roughly points. rate the effective full our earnings quarter fourth our Based to effective Our Capital for $XXX XXXX increase approximately CapEx totaling geographic rate mix, tax we our basis normalized at tax first the expenditures for billion. in anticipated year quarter XX%. were expect $X came with fourth on million quarter XXX approximately

to flow. Turning cash

operations year, $X.X and $X.X of from of flow. delivered free full billion cash approximately For billion generated cash we the

billion $X.X we result, a year ended approximately the cash. in with As

provide few return about a I'd capital framework. like more Next, to our details

supports our several pillar maintain growth to and an over flow framework appropriate of capital earnings the X% the cash our important level of revenue. generation between next free I First, CapEx X% years. is and believe and spending is

minimum the of dividends shareholders in to expect of free flow return a to and cash XX% buybacks. we form of share our Second,

$X.XX March to of Board in Our by effective XXXX. a dividend quarterly our with increased Directors XX% dividend per payment share,

the cash goals and about returns Finally, to and quarter, shareholders, visibility sheet. us return our in $X believe repurchased $XXX investors I the to and authorization announced flexibility of were clear fourth of and remaining strengthen and we these I am pursue billion. pleased million for that provides We we debt acquisitions shares reduce actions the increased to capital approximately affords we've today. have framework Halliburton's balance

you Now let see quarter. on how me with the comments we first provide some

As is be typical, roll-off end mostly will product to the subject international our year impact business. weather of sales, our related results seasonality which and will

As the points. anticipate while to be in down and are low flat will we while Completion XXX a In sequentially margins and quarter Production essentially drop expect result, we digits our fourth sequential mid single to revenue the to to revenue Evaluation XX between our Drilling XX expected and be division, decrease in division, basis with basis points. XX to margins

now call I Jeff. turn the to back will

Jeff Miller

Thanks, Eric.

how of solve only Services. dividend increase, which Halliburton's shareholders years tight cash and new is is continue strong strategic will flow Let return and I framework capital share clear discussion deliver demand me shareholder consistency to return buybacks for announced returns. of short multiple to result execution increased with summarize years priorities. shareholders. exceptional expect supply, clarity financial Halliburton a and our gas of into and investment outperformance, Halliburton's increasing translates financial cash free our to Halliburton provides to This The Oil on we today. expect of and performance

for open let's it questions. up now And

Operator

[Operator Instructions] with comes Anderson Our first from David Barclays. question

David Anderson

of XX% been East that growth the Halliburton's is overall part a years, was it revenue. So international up big now quarter. over business Middle of this half has

of bit could us just over that more a kind of your market if into insight of kind little give next on you years. views couple wondering the Just

term, to these next trending also, And think it quarters? on, So sort at how it's is the growth near based is of is I levels best on growth of where of the the terms product you up you ramp activity and the countries the East? stay lines in if reasonable should going guess, most several footprints or Middle where of years, could positioned from the coming think some several highlight you over next see you're of kind including the in in the

Jeff Miller

Look, international I'm excited about really growth.

said think XX%, the internationally, that get north get it be north over to it of and things I because which I just actually should I in few I expect we next of continue will my contracted. traction clearly, takes expand, will call, -- years to think, longer

business out. our being indicate our have excited as of that it's half we described, really footprint or about we demonstrates so see. what And about that sort strong With technology, we international everywhere business our rolling of today, think where important and I

the of East So it's clearly, this saw year but strong in that's same which it's world. applicable got all application the technology and America, of kind in corners the Latin Middle we

early going the rollout And our technology strengthen only so we're that's in a of I lot international think help to business. this and

As we of margins see grow we expect grow, profitable international growth. share as activity and improve our focus I that to on

David Anderson

of some count also levels how slowing a been budgets down been in weather, talk E&Ps The US. the recent natural and rig the could some on has there's about this in as out bit weeks, if drifted US down there also lot the a I gas highlighted, market. shift in announced side, And there's over have recent concerns know any spending any I year. you activity

how in pressure XXXX? of see capacity and And do that of into the Kind of out saying pumping of So bit out is I dynamics tightness help sort of activity spring? us kind on visibility for based can about you play the was that, to what you if a wondering on the customers then your market. with little the just kind terms market going are of of how

Jeff Miller

view, to, the going my in to Look, North America will upside. surprise is

growth. you of outpaced that year that year. clients said outlook -- -- they grow, growth north is that Clearly, any all smaller, and that's in plan Our have don't what we I last market I that America even XX% are last the to order get given work plan North I -- not the to are And to to more maintain grow. the a more of dynamic curves. that decline think the has the more has

we up. extremely and the I see frac so service likely for the tight chain And expect still equipment intensity 'XX beyond, is backed market throughout and supply increased

And I on sort I see the being discipline I unavailable. marketplace more discipline of so don't -- equipment and in importantly, see required based see

activity the So price ultimately, more we see the then more we see. will

And so positive on am very 'XX America. I North

actually down. I as misplaced DUCs likely think are rig count So blown moves the up the concerns get and

Operator

from comes Our from Jayaram JPMorgan. next Instructions] question [Operator Arun

Arun Jayaram

clearly, Jeff, the Halliburton's last? competitive the inflection do this well could position positioned the about East if offshore? and you cycle both portfolio versus of as spending you're East as think how in offshore. one Middle wondering, Middle this earnings in in in talk you was season themes I Jeff, been and has And

Jeff Miller

as I better that. we've positioned market we've the of But a not Look, got technology from described technology both we're and ever today a of from in Halliburton, the than that been standpoint. perspective clearly, footprint all examples that's

that and of it's build done there to prior was out lot a still So cycles, go. ready

very we've So internationally. team strong technology geographic made our and about got mean advancement feel footprint, our that I exceptionally team. we've today good just an I our

when is us. certainly we good So our feel perspective. is, very offshore for confident look at that I from business And where

international that today. think our is of about I business offshore XX%

activity place a meaning And I that allow leading the maybe a producing sooner, fluids, next in completion we that beyond, year, discipline I us from so prior happen, a out think we've of to which as emphasis certainly where number to in opposed so drilling seen that service leads And for tools. and of look is that's very the barrels consistent sort that more good development And as likely development. another a think are that's just operators and we is where positions And lines exploration market standpoint us. with nuance to into on capital have cycles.

to even for market And so is I Halliburton. a going better think this great be

Arun Jayaram

And support thoughts follow-up the some of growth NOC customers? Eric. just -- XXXX. maybe international on just for wanted to And thoughts this a needs working international wanted on about particularly just think to your get your Eric, for to year? broad collections, conversion cash I in And any capital and

Eric Carre

generation So being mean, to looking similar the speaking, in we're I fairly as cash XXXX at XXXX. broadly profile

So quite back of bit weighted half a toward year. the the

the mean, in things significantly big at in overall, net growth see revenue, we'll margins. our income by buckets, our improvements obviously, I Looking driven increased

to calls. CapEx in things, element on prior to some X%. the range finished supply of chain our on at I about when lead side were business end in we be see the consumers will XXXX working essentially to On X%. range, low capital, of time working primarily driven of business of by we we supply continue bigger and continue will that and also the end internationally, of in that higher 'XX, X% we in our When America. the grow, constraints our the headwinds at which of talked look more our capital North We third of we chain terms be And at to will of tends impact working capital than terms grow so again, growing extended

little is is of in north going So way free to of XX% performance. all flow our a of XXXX growth terms over the cash that land

Operator

from Evercore West Our with question ISI. next James comes

James West

what's years? constraints next it's thinking to don't grow, the options, plan market, there your you can shrink, North do to do to and they want whether you you think really majority they're customer your given in really you you can but the some years, at can the years, operators some you have America. and there. the North of wells surprise do -- the couple to be you American international. going five inventory three in with could about I a shale conversations America, In three and of America, North earlier, years, at here, especially mentioned over in know what bigger on the seven upside Jeff, point How point So go base North start see, Where we be customers think

Jeff Miller

of capital the is growth path shrink, really Well, discipline commodity difficult, for I levels, growth, expectations these very very of most very, expect option. that within And international the expect companies. not I within supportive, really sort and an -- of sort only price

increasing increased So I see clearly increased and intensity, first that benefit that initially intensity. service that's -- think step service we'll we from the

confident that's second, impact America the a technology bet oil in that's against want is not make. will already of technology bet North of go There a lot in mean, willing I'm and we're years, we The and XX I I how then harder an more work fact, out as more in if one to to very operators expect a do. of about seeing what that's I'm lot, but more example, the reasons tools productivity. make SmartFleet, and talk start that's that also Halliburton producing a barrels it to barrels. time as can And the solve to I of over and the take. one

what And we're lot so kind a impactful. dollars North of into those try think in we as unique of and most dollars into to America, invest are we that R&D put we fashion

X So bigger is a Y smaller And a the think and that really it's more time. function unlock technology tools kind a what of will I I productivity think thinks in company the not they incredibly of getting over those road And of hands but like. unlock are think I tools it's of looks deep. hands allow them to mean, I to the in down our XX smart, years technically competitive, a or operators, what matter their the more

James West

if now have a the point, switch that is price then just are we of that's market At could I about this driven perspective switched or And to market Okay, side the there. great availability where in and service international a it's business. to still quality? we

Jeff Miller

of very and James, more We expect service good. that important other, quality day, our quality a having drives is my equipment, quality view and deliver service I and the every service -- is and we lot equipment, without well. execute prices one how have feel but you think don't I quality Well, spend ultimately would focused time more on

a beneficiary of that. are we so And

the to market that to to starts they and that expect but gets the I As certainly bringing benefits are, the very we to market and we've the pull equipment portfolio we're out, tighter, sort where equipment good a of get all that got market us. -- of technology start

Operator

question next Neil Sachs. comes with Goldman Our from Mehta

Neil Mehta

for Can about returns, questions here of capital you my kind talk definition at framework today. the want XX% -- was that Jeff, that's talk you of the how around right free Thanks, flow why about where focus of calculation. thought And and I least number? then you the to cash

from I capital think cash we're on to sure cash will CapEx make it same minus be -- flow flow from before the operations working page. inclusive of but just M&A,

Jeff Miller

Eric. Go ahead,

Eric Carre

is And gives lot I think in to continue to We think our And optionality over optionality going the continue nothing business. certainty are sheet. continue giving XX%, a I give that business, on of to to or also what your a level balance we're to in that to view correct, line that yes. of to to there's shareholders the invest product in it's of return per us our XX% se. years to while acquisition terms next make mean, make acquisitions the complementary some our work bolt-on number few us to magic strengthening

Neil Mehta

was that around follow-up returns. And capital my

are be that And things? countercyclical do you see want to the at be M&A, as it? scale looking where want or could buyback, about prosecute about that talk a you way transactions do you a to you about are -- talking do think take larger you when or approaching think of type we about ratable scenario more it? Do in the we you bolt-on how approach So you

Eric Carre

let So M&A start me maybe. with

there is extremely So on our focused technology. philosophy adding

what's technology it's bit that the approach time bit we at It a have. So opportunities on available build a opportunistic to buy our of and complementing is versus a depending budget.

the that years, easily complements add Over product in to like lines. smaller businesses also we've existing invested we can

to in. this on So strategy that let jump terms I'll of general want we at an the have overall But we to in kind businesses we stage. the technology. of and From be we standpoint, are where view Jeff need compete in that's

part So around going question, the to Neil, other buybacks. of your

look So generally in make I'm go a more. -- of target through into obviously not will being XX% of to terms going off order top at lot meet we as our but or details, to which loaded level we buybacks overall XXXX, that sure in speaking,

as our So a to buybacks not trying really we're shares. thinking shareholders. really about We're mechanism to cash in return to trade

Jeff Miller

that I will our think I changed, Let the surprises it on M&A outlook us, no -- stay add me from mean way. just and that to as hasn't well.

it As at current market that gives we want continue, we that to -- add believe we the things mentioned, to things only kind that our meaningful Eric we -- we out it, that in I of also look around by be what we clarity minimum, minimum It's want expect the take the capital make the about to return opportunistically to do company. clear the marketplace through don't want allocation, that sloppy We that returns the are as be debt. to think but but was. to see, crystal have that would opportunities company, clearly for we we'll do work that. will returns setting I But

Operator

Luke from Piper with Lemoine next our comes question Sandler. And

Luke Lemoine

Jeff, there range of hopped hitting the of on which us levels, but firmly that in kind XX EBITDA end basically in basis cusp annual the was on in target here, margins margins are that higher 'XX, for low XX% 'XX. sales skewed you're an your XQ, XX there XQ some totally at get year

couple maybe could the And refresh just this it You next outlook of if two gave see to you and two or years? you and a Lance how I year evolving ago. almost of wanted upon us years over expand kind see margins

Jeff Miller

too we did a published we estimates, of at years clearly, we looked that couple When when they low. ago, thought were

and And to so commentary that. we've an effort some made correct clear

Now they at REIT the published as seem right. estimates we about today, look

is that here 'XX, I what years outlook and in I don't of were I estimates the I'm wanted right am I try been. And Street said, And QX as both for that and business as today, Margins felt future to in from over ahead, so top I super just our estimates. have to be excited we to about be published over. was revenue out in continue clear, the Street we our we outlook. about missing And ever up. as pointing our want want are profitability. to do But today confident to and think up, I line what clear are is

Operator

from question Bank Mulvehill with Chase Next America. comes of

Chase Mulvehill

a a this year a growth and growth. on guess, another spoke a 'XX we growth growth continued can you a expectations on guess We of saw about in continue are international and what dig quick maybe on multiyear Obviously, lot year you little get at side little we the of question, international more post speak gives we you kind Jeff, will around could that for dinner, bit the confidence strong on side, what confidence I questions in follow-up past to of the you once kind growth the I a international last international we to year? side. this of or but see for get strong side. see

Jeff Miller

eight with that. with start we've just that underinvestment haven't roughly the the seen years and really for would I Well, last up caught

of renegotiated in get years replacement partners. a just at in of a availability, and different I underway, It lot be up And that early recovery portends that to we're so lot the lot stages takes to look reserve with of has of a and if of projects kind broadly time international ways.

enough confident internationally. sort building and the is year, and that recovery a produce what's slower and the year a to think that's are tender typically of that with that backlog go required we oil tender we beyond And what meet But recover basically well beyond so in demand. to these that I'm see spend backlogs that's see I consistent

that specifically produce certainly that countries certainly us. that, with by outlooks indicate all clarity does get have which dialog set that above international about customers, in Beyond which there, actually are countries, for they nearly of target really more is get activity they where there, oil how terms today, they intensity service targets are how less more

Chase Mulvehill

But demand. that America the there's pressure chain you America pumping, If of constraints, pricing you've to around high of asking questions. about don't upside pricing. upside unfolding questions and I lot follow on North talked the about little lower of bit kind some really, of has stated revolve to kind to probably we fleet. end a pivot around risk questions Obviously, do tier end fleet those probably see who a lower supply and can North investors get pressure and fleets pumping the the you here, in pressure of up And of kind

to know I are if see take -- of X talk pricing percentage So you many some see what just would if don't Tier and you your pressure, about maybe of you you how kind where diesel if it where were a see moment that's any? could fleets would

Jeff Miller

I Look, today equipment. our don't that of business at see level any in

environmentally Clearly, that's called as over the higher low -- a we price the price is time. strong even have all at probably equipment well equipment fact, end of In the of equipment our for. systematically -- But at fleet emissions replaced a deck, bottom deck. we've end

and it's And strong I have that think mousetrap. we just it's I strength have strong which that equipment but the is and customer proven, seeing see the all pleased technology, of the repeat our a going fleet technology. of demand, quite think fuel frankly, customers, market two the with is and are a to same in is be of one most our very with where most X to continue even fully actually what it's we really is dual And We've not e-fleets. strong portfolio pull a indication we better that's I proven especially believe to contracted. IP terrific, important. around an But And got I'm demand Tier that impressed I'm sort customer certainly. so we're

Operator

Roger question with Fargo. Wells from come Read Our next will

Roger Read

some the and like quarter. your well back expectations for of done to come market. to I'd international Congratulations on and the guidance

As of, of to say, just in we I at upside than let's that bias least was of the but sort we finished look in 'XX, maybe expectation 'XX. what at mid-teens kind higher international about curious year said that. strong of think XX% 'XX, feeds you the to and as expectations into better what

Jeff Miller

think all throughout than busier 'XX. backlog we've pointing of product strengthened the form in maybe it's comes customers, of sort everything a and customers, seen that sort intensity barrels the is I I backlog more of 'XX. 'XX, in at of Discussions tender pipeline, like -- That sort increasing, of view Look, than mean It's of favorable year busy of sooner the it of very later. of sort to of that that point form with all points 'XX comes even and staying into producing rather market.

from in of And sit footprint. our our and where it 'XX and we standpoint lot with global particularly confidence so outlook the gives me technology for just a

Roger Read

something call not the as Any on industry. at one just slow in the continue side, project 'XX? we see have, but look to the or for headwinds 'XX, then think And supply acceleration let's just you that would development you areas chain yours, it, broadly

Jeff Miller

don't of things the don't gets we're have Are anything that see getting of that. down. lead slows But I meaningful extended I still through times think there things some Yes, that way today, in started. anything working

in I think we inflation the still marketplace. see

of those that getting one But be to There I see it's of work a done, of be back. to will some I So will some said, clearly, lot I get and inflation some that a come starting ways be as as don't headwind to for around customers getting think see but the there ready all going that's things. places. rigs that necessarily. don't we motivated saw -- headwinds. those in We're But

Operator

comes Our next Gruber Scott Citi. from from question

Scott Gruber

to legacy that to fleets the My the lined jobs? need be fleet quick would fleet to, US. keep very that a e-frac the bid new A on in or fully pertain fleets in the deployed on to here replace. there calendar topic. question those mentioned that will that Does completion new relates you to full Jeff, already coming be work up question is

Jeff Miller

for not, do no, initially. I it Look, but 'XX, or as in got don't replacement everything whether fleets, time, we've spoken replace e-fleets, over they think

And place in what we 'XX. but not busy period time in fleets, ‘XX, where take that's fleets so everything of of we see see the be some there'll legacy

Scott Gruber

to year color they margins, that over our tailwinds there. you those then overall, initiatives And And a internal D&E And there? think about turning to willing also number think I you but some last today back encouraging. the of was and structurally margins, medium to this term. obviously, we How margins longer that's where provide mix. incrementals you’re at match you you, how have D&E have guys Got should basically lift were any model where should could margins pricing to looking cycle. it's we take your from about D&E expansion another nice had year of

XX% can XXXXs about that late So get think to in guys witnessed you up cycle back plus margin the you whether if this the sustains?

Jeff Miller

Look, I've in way. a always I technology in invested said, that think meaningful we've and D&E

up. margins those move to to expect continue We

are, As and you of moved we or just back they we have up today consistently on technology we I beyond to where footprint continue expect trajectory that the last are and where cycle. that's were and mentioned, and where

would so the that And continue last outlook are than better to the be quarters stack to year. year-on-year

our And of so have for and 'XX go a where lot I beyond. confidence they outlook could in D&E

Operator

Stifel. question, And next from one our moment, from Stephen Gengaro is

Stephen Gengaro

sold we you I overall the fundamentals market you for if know guys just I for look guys take lack you pulse side. two on don't year. out, supply? market the as your curious you bit I new Can four, pressure what the is mind. talk out are What your thereof you demand So on domestic much you the in things three, finger build seeing as because are got supply Obviously, the far -- know in five or pretty pumping I'm are growth me, little think quarters there, as on a

Jeff Miller

And Look, way I every if through got think the think part doesn't but happen the at industry I the the XXXX attrition And fleet it happening of undersupplied that necessarily was certainly in happen consolidation. today. at even it does is day market level, solved is that unit level.

in one and that's we've about of equipment. 'XX, capacity bringing electric. in attrition as of is is a strong portfolio are very with And we proven that mean, record, being method realized it field what's the inventory looks. I we think throughout to out additions then around the the So dealing I we technology and IP other, track a look all is harder frac. And technology, I more do the heard our have have And with year, from have than perspective, half electric

so a also gives where And we that that oversupplied. in confidence, a, are think market be me lot of I won't and the combination

Stephen Gengaro

a we've consolidation space. follow-up, pumping seen And just in as pressure the US

general, well the doing are vertical seen right, or competitors to different higher themselves larger obviously, any site, the competing have is are well But change has site Halliburton? way change in you mean, competitive types Have now in of at things of landscape your any some at site? the busy. a content integration. I been just well kind And competitors everybody the make there the revenue integration in with of

Jeff Miller

have are sand, competitive about advantage. them. We then any want when advantage. And competitive think create an input, view sand suppliers well I when see we in where advantage. things we've software, where time, And I business. on business. I it in good sand mean, pumping the things clearly and this about case, then with sand, competitive you're sand to clearly of think as think drilling advantage, we that have competitive No, we I need real technology about What clear we dollars same work to our don't I change there. but advantage, I is want -- do don't input, competitive about that talking and important part things an spend in do to very access to at the which overinvest it's technology, got we the

Operator

turn to Thank to remarks. the back like for you. management I now closing conference would

Jeff Miller

Catherine. you, Thank

In you services, market this its quarter. today's that priorities we oilfield deliver let financial speaking Halliburton look close outperformance. for close call, confident on to next out strong and out me with will execute this. I strategic As forward am just with I

out close the can You call.

Operator

participating. This concludes you call. today's conference for Thank

disconnect. now may You

Halliburton (HAL) 24 Jan 232022 Q4 Earnings call transcript