Earnings call transcript Q1 2023

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Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2023 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 first the XXXX Hello,

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

Joining Chief Financial and Chairman, Eric Jeff Executive Officer. me Officer; Carre, and Executive and President President Vice today are Chief Miller,

events. in could from today's future discussed cause and risks Form results materially may Commission differ our Exchange forward-looking the December views comments risks statements. year are filings. involve of Securities other current XX, forward-looking statements actual matters Some Halliburton's XX-K for XXXX, and our and These X-K reflecting reports Halliburton's include about These uncertainties that ended Form on to recent

We revise forward-looking update undertake for any obligation publicly or to any no statements reason.

Our comments today also measures. include financial non-GAAP

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

to the turn Jeff. I'll call Now over

Jeff Miller

and again execution David, customers. you, position good and in for Halliburton's earnings performance strategy, competitive our the Thank of demonstrated first strong everyone. quarter our morning, the power

company Here Total the grew North with and activity both highlights increased XX% first from of first strong in quarter. to XX% XXXX Operating markets. year-over-year. are income international America quarter compared some the revenue

year-on-year basis expanded margins, Evaluation year-over-year. than and across while increase grew with growth The with a basin. year-over-year Operating year-over-year strong first XXX XX% basis and basis points points. activity quarter the all more margin over grew XX% was strong posted The every XX% points year in XX%, North margins the revenue revenue International of to XXX start division an and revenue America grew XXX last division Completion of markets. nearly year. Production XX% Drilling

do more of macro. the employees development. business. you I'd oil continue, recognize validates gas, results. to few duration day sources, start dimension customers and you. multiyear service strength outstanding their comments and we this matters Before Thank execution I'll shareholders. Everything The our from safety, economic quality on of on driven growth work every the each requires financial today including I a to and with of Halliburton energy and our world the for all see like population The by and upcycle.

structural Multiple in gas by does next strong be of quarter underinvestment volatility our in years can the price several and only first market. experienced and view over supply The oil a activity commodity not services addressed tight customer years. demand of change the

XXXX world Our this, and in expect beyond. customers grow we the spending around and recognize to their

this My great up demand investment development products of will directed as we our and it which be view much of activity, Further, is this outsized towards expect for services. Halliburton for drives our long cycle outlook the the The is by both and see gas in hear strong. customers for what confirmed and Halliburton oil is term markets. I world's and year current the from

with the in performance Now international markets. let's start our

beyond. pricing commence for and revenue have deliver I in America. grew XX% allocation. because the most Halliburton am outlook technology from growth of grow will confident Asia this offerings, year to to this strategy international teens with the disciplined later profitable regions. and strong year Middle Our spending activity high we strong East, expect last capital in international Latin new that through of awards pipeline in improved its coming XXXX, a and executed all period reflecting compared year, the same the to activity leading quarter I first

first regions. delivered current pricing which to XX% Our completion international XX% within on in I'm the generated in offshore represents quarter of We our lines revenue tool Today, I'd order nearly our all product excited trend business. provide about finally, work international color And like all in book business. generally more continues our year-on-year to year. from business. first of our the up segments offshore the all grew quarter, for

service of iCruise delivered few level and examples combination reliability differentiated with a LOGIX, single iStar automation customer quality in drive customers. for drilling longest platforms, a are our that in higher technologies of Here for the reservoir and platform, logging drilling a intelligent section our offshore and Norway. run performance, while Halliburton's a

cost latest and Our digital estimates campaign customer efficiencies. STRATA wireline technology, borehole Sea. increase Halliburton's the to recent Examiner, increase delivered allowing solutions exploration resolution, our high data, customers to in reserve a Mediterranean imaging a per reduce barrel imaging allow during

and Landmark's XXX applications Repsol recently powered iEnergy Petrobras, Hess, DecisionSpace Halliburton all by selected Cloud.

and remotely trusted with delivers More construction production-related customers subsurface, Sea direction to minimal decisions. in quarter science North learning offshore optimize the and jobs enable cementing were than Halliburton's and cement completed human XX algorithms Cognitive well automated system this Our machine jobs alone. cement intervention.

excited change our this subsea on I'm cost progress TechnipFMC about believe will Finally, time, substantially the electric all the performance over I alliance of technology of deepwater and completions. infrastructure. completions and

and our XXXX at business. excited about am I As beyond, international I look

motivated clearly produce more are increasing. customers pricing tight Service and Our capacity oil gas. is is and to

business. our Our differentiated technologies growth improvements margin and our execution international and drive across

to North Turning America.

know achieved results on on and value to with your priority differentiated commodity North expected, efficiency, maximize it's Halliburton volatile strategic I in alignment despite strong through technology America our As delivered minds. high-quality customers. prices. capital We I

gas discuss briefly markets. the me let So natural

comes months. that be day believe additional billion cubic feet solved firmly of the market in per the capacity export LNG will next I the online softness gas First, X XX

response from to to Second, satisfy X fleets to demands. we gas oil moving in are basins conditions, basins customer specific market

exposure efficient XX% will our and maintain X North believe expectation At spending that actions activity in retired prices, XXXX. our near-term gas customers will highly I e-fleets. Tier diesel reduce execute and oil market America which for market and maintenance fleet Halliburton's returns. reiterate equipment accelerate my I XX% quality financial will their we tight. Finally, about and These costs today's at customer that services to grow remain least our the by will plans X reduced transition

North in America. value maximize to is strategy Our

what crystal be clear like. me Let that looks about

we and value who high-quality customers fleet efficiency performance our our the with and align improved operational execution. we First, utilization consistent and existing of

Here's than performance. me. your better Halliburton's performance competitors, are past but what the customers even only different, not own better your telling is than

Our step comes technologies, efficiency change in crew our improvements. from in training safety new investments and and operational process performance,

result, see since we today, America land a fleet pumping XXXX. North across improvement XX% entire utilization in a our As

service deploy attractive capacity only we return opportunities. Second, to

are We improve always returns. finding ways to average fleet

we services differentiated asset improve that Finally, in products invest velocity. and margins and

e-fleet structurally and patented and examples values Zeus Halliburton. asset for customers Our SmartFleet returns they maximize are improve for our

to outperform than our first more a Our delivered and smart quarter is fleet in accelerating. Zeus ago. Xx customers continue the e-fleets fleet year stages about We adoption for smart

strengthened contract business. for map performance, e-fleets, Halliburton's and strength technology The deploy to e-fleets. and efficiency. road in deliver contracting better North of contracts e-fleet duration and Halliburton's Halliburton's structural create our total uptake technology America is lower operating and position for cost by of America structure outlook in our proven the we future, is increased only which the multiyear North on ownership

For to mandate value a international North priorities with strong technology confident differentiated over collaborative I we that maximizing uniquely and of in is Halliburton customers profitable our culture, approach driving and value I America, the returns e-fleets the advantage. strategic by am and customers execute self-evident. strong give delivering efficiency. positioned their maximize us our dollars, barrels competitive To execution growth shareholder will with to the deliver portfolio capital summarize, and financial attraction deliver produce investment long term, outperformance, the believe to is

I'd over turn to like financial I it you leave points. Before to X Eric, with

deliver First, I my given growing will flow. execution the our of free outlook, expect strategy significant cash and

shareholders to flow return minimum back to I today while of Second, shareholders, it the in free share XX% provides see our framework cash cash more of previously cash shareholders. to the buybacks. flexibility points more us towards form announced a to also gives capital Everything return

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

Eric Carre

Thank and you, Jeff, good morning.

the by XXX first with activity, billion, the for increased and our over quarter company is Total These of product summary while begin Operating which quarter first a basis seasonal quarter pricing global XXXX. me increase million, year results XX% over increase of last company results. operating for improved a were an Let income software first an margin XX.X% the of $X.X $XXX sales. in driven XX% primarily the year-over-year. was first was and of points quarter of the revenue increase quarter strong was

quarter period which more diluted than per same year. net income $X.XX, doubled last from reported the share Our was first

quarter first $X.X billion, quarter driven of America. was our first of Completion $XXX an of In with Beginning increase XX% revenue increase the of international globally quarter quarter efficiency was the increase income D&E to million activity, $X.X operating the increase our and division, $XXX the operating compared to first compared a operating of income compared delivered wireline, and and Production in quarter Evaluation and when of driven to XX% XXXX. first margin XX%, income and increased and by XXXX, drilling-related the by to Drilling improved first an C&P was million, of strong quarter service services billion, compared division, activity. was operating revenue North testing when XXXX. an margins in an in delivered income an while uptick when when of while first XX% in XX% XXX% pricing an of the XXXX

to on results. geographic let's Now move

and Latin tool in million, the product compared of increase as XXXX when $X.X activity lines product XX% North quarter Our increase and This the XXXX. across lines the first land higher first the Argentina, by as multiple due in quarter multiple was to activity compared when pricing higher driven North America, America Mexico across XX% product international first services in sales, Gulf well in region. gains to efficiencies, increased was increases revenue revenue activity and was well Mexico. higher increased activity first America to activity solid quarter construction due of across In increased quarter product the our revenue a year-over-year in completion to XX% and a lines. and construction quarter across primarily of sales increase first the stimulation well stimulation $XXX billion,

improved the Europe as quarter was a result and construction of of lines activity was $XXX Asia to activity region. billion, when compared and Africa by lines first a project across Norway. completion sale tool partially $X.X service first quarter along increased our increased with XX% throughout operations, stimulation revenue well revenue higher compared decreased multiple XXXX sales, Africa. Middle services in primarily This Arabia, product quarter was when product in offset the in East decrease services to first improved Russian X% million, the first in a well across activity decrease across activity of the service XXXX management to multiple Saudi construction due the the of increase quarter

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

expect up corporate million. to we expense interest the our Net quarter, second expenses was million. the quarter be For $X about for $XX

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

quarter, second the to expense For approximately we decline $XX expect million. this

XX%. came effective Our tax increase approximately anticipated the we mix, for second quarter points. quarter earnings in rate to effective our basis geographic rate Based on expect tax XX first our about at

that first anticipate for approximately the increase of be expenditures X% and into Capital of We were expenditure year. full expenditures year capital our million. for remaining the quarter revenue to capital end the $XXX the will total quarter-over-quarter our

cash Our million. from investments flow These a seasonal free capital. was million, results by first operations and primarily use were was in $XXX cash working $XXX quarter driven of flow

business, we the year. be loaded flow typical cash for for our back-end our will is As anticipate

cash generate of for to flow expect strong We the free rest XXXX.

at Halliburton's capital shareholders, first least flow stock achieving return approximately policy of step toward XX% $XXX common returning million of repurchased cash to quarter. annual of the during a we free As

Finally, turning outlook. near-term operational to our

see expect Let offset we we and some in improvements further how on activity. you second decline me Drilling sales Evaluation the the with unfolding. global in be provide partially our software drilling division, In seasonal quarter to revenue by comments

digits mid-single increase improve mid-single basis anticipate As to to we basis margins to digits decline XX sequential and XXX to XX revenue margins revenue sequential and division, points. increase In a Production low and to anticipate result, points. D&E Completion low to we XX the to to

turn will back the now call Jeff. I to

Jeff Miller

Eric. Thanks,

And of the in for cash let's questions. is strong. Halliburton earnings performance North high our Halliburton's outlook finally, quarter for I power today. shareholders. growth year-on-year XX%. demonstrated the discussion the expect excess My points strategy. international to everything teens up more towards And our in see first summarize in open it me I Let today now America of growth

Operator

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

Dave Anderson

the softening you firmed the numbers poised just let's and So bear the in guide America this it. into quarter The second North pricing case right count get strong during a come Despite suggesting rig put the up we been quarter, up is everything. with for down. bit. has kind quarter heating to up of A&P

companies other that slowdown. from you, hearing service hand, other don't you On this we're see the

wonder the Is the the prices should the keep to equipment the if in second a In during of rise. I land just your us market help I be thinking kind up continue of pricing to start the quarter. differentiation difference about we you Does disconnect highlighted weak. fact, line and mix? and particularly I'm you of know here. gas the rhetoric help wondering just how half. trends U.S. lot customer activity

Jeff Miller

moving frac Well, Dave. are hasn't comments, we improvement demand up. in still hard do. I think aren't market, to demand much done frac quite bifurcated inherent Look, business the deliver. we've and the comes in Yes. I've the I from inflation prices cost what There's mean what frankly, structurally thanks, And plan our told and down. as very engines And you Overall of moving the changed. described, to from today. are services high-quality for you margin

connection So there's not a there.

-- I And needs at year, pricing. the stacked, retirement delivery these through retired. out be And then retired, rest finally, bifurcation, of so of of sort be fleets, to it efficiency around of as but the we fleet repositioning to not clear, better of the power look earnings and our improve continue

Dave Anderson

continues But continue pricing move would And assume fleets? from your through that last mind, still to year pricing your to in I roll higher.

Jeff Miller

average. I would say on Yes.

Dave Anderson

had if Are the being X a East. the as could you wondering big bigger could side, see doesn't And despite ton should what is finally, that this kind ramping relative in actually year you but gears talk you Middle kind your if year levels guess, over progressing next alluded prepared on see I just this credit on the year? Middle outlook is a seeing a of to East? you're in about international the you also activity based margins I East I -- East of peers on I was And just think up we on in activity D&E street, to this in upon on contracts? year sense, what as of business how the remarks, of the your lift what in pace your still expect get pricing your Middle in of shift tenders Middle

Jeff Miller

pricing is Look, Yes. improving.

improve that. in still our along and innings I with expect D&E I of would I'm early -- margins And so to growth. East pleased increase Middle would with the argue activity

lot So thank continue peak. pointing I business. it's But first then everyone And beyond we that that continuing counts QX you think for out. And a with see the was got to I And reminder this rig to opportunity to near a in aren't of Russia of in to run. necessarily we've of broadly, Middle 'XX, East, saw growth quarter. the X% international, just the our pleased at that

And really growth. strong so that's pretty

Operator

Jayaram Arun JP a We question from have with Morgan.

Arun Jayaram

in I think wanted more is segments U.S. you get seeing resilient drilling-related this conditions do in your service And things the thoughts of do just over out see thus year? Jeff, case? you versus playing observing frac to digesting far, of balance Sperry America and at the are why terms your we in on prints the North outlooks how or drilling.

Jeff Miller

I North Look, wells a America function Yes. of think DUC in really count. drilled

wells the down, more drilled. DUCs get as So have to drawn be

they you that terms see I that it's think is more of fracking think but at fluctuation the margin. And fluctuation a without cost of produce in interesting I is but steady wells. And some march very don't managing the in drilling, so And drilling. in fact frac.

that. I'm so And to see not surprised

seeing confident I on we're what remains think America strong. in there. D&E business our North

part sort are other gains business. of make would the I lines And strong. in service say the the drilling continue very We of to

Arun Jayaram

Great. that was Great. my you could partnership? FTI on I you follow-up, And just relationship maybe if mentioned of more have on us give with Jeff, the you some that some side. sort details wondering electric

Jeff Miller

all completions well. X working X overlap, of really where years TSMC. that. And We've we're on Yes. of companies advantage Look, X what up and the mine X opportunity which signed with taking for we another for this just and is do is particularly is areas series a electric they're to -- of and about things an been years we

really this in the this we revolutionary some synergies think, all-electric it bring of opportunity solution. is a ultimately us to partner They -- be, area. develop we've unique to great I not either X narrow really only So But our What delivered it's and for, of will takes bulk solve fact in X technology. of the the space, businesses.

some that marketing and relationship jointly very so we're and solutions and today. And up to making we're selling with the progress including the pleased

Operator

James Our next ISI. West from comes with Evercore question

James West

of So with on where their cycle could lot customers and thinking sense customer probably guys, you XX-plus kind to the with spend, is, that the a describe hearing takes conversations maybe this if where they about of you're internationally urgency, ground. what that road how pricing? it of -- at you Or And time the of is know your majority concern the Jeff, percent here. I there as just is the of point hear the from are availability off on about any, we're curious more pushback seeing

Jeff Miller

of discussion that planning is capital to resources in mean, provide around today Thanks, for up tools we 'XX of to it's now deep committed 'XX expect more that Yes. concern that. even importantly, are more so And enough that doing planning and -- availability The significant Whether activity services for availability ramp availability today I anything there's solving the people. and we planning, else. a around lot we're than James.

work of So that of a lot runway and won. I've amount we've internationally the the got in confidence

James West

XX% think much how there the you're the rig or anticipating just much how in forecasting hear. of could guess, And of North That's on you Okay. describe count year for rates -- -- activity costs, pure America, That's kind plus good that -- stuff that that I of inflation it's this is whether or in the rig then versus you growth great. kind growth? market, is fractured to led

Jeff Miller

I -- It's But look the sort you James. forward, you type and certainly take Yes, if look of production of for, X% sort replacing last X CapEx year-on-year I of operator to XX% around just in published XX% if more I more it's combination outlook see. a think year, the into back the is activity translated know us. today 'XX, at growth year, X or about estimates production for so. growth And the last least say, or have, I revenue let's I think growth.

it higher think couple one, of a says more meaning services easier, Number producing and quality demands of things. I it services. doesn't oil get our

And of think north confident and activity delivers North XX%. is combination I value price going to we're so the of that in what that I'm maximize And America. and

Operator

Our comes next Read from Wells question Fargo. Roger with

Roger Read

Congrats on the there. quarter

Just follow on, a to couple Jeff. things of up

about XX% potentially bit Does opening a was curious Your times little of should growth mix? visibility we of comment than maybe think of others. your And about on 'XX, percentage how offshore coming a it visibility, that and just about margin planning I international offshore, and see as enhanced of lot line in how increase you in changing. expansion? the obviously a that for talking greater top terms from which

Jeff Miller

work. as our pleased that about to I we to grow technologies growth we're the work in on Yes. it drive offshore help our the continue and types Thanks. amount in Look, of think the out doing. or basis Look, talked continue bring a I position percentage of growth expect our to offshore continues I with of position offshore I'm

business yes, lines and all are this levered And see line offshore, so grow, I growth. top is expect, is does but think higher requires that think to I levered we what's clear as into also it it and to though, that And heavily offshore. offshore I growth we that to And work. service do service equipment it also intensity, translate margin more or

people. growing the double of the margins, and but rest additional of in a a of revenues by and terms of consuming So backup it tightens shifts virtue it has effect also business tools of bit up

which offshore And has again, margins that so to on tightening as better effect and a everything, helps better drive grows, really growth.

Roger Read

on then follow-up And mine Okay. related that.

the You a quite up had mentioned Smart in frac picked U.S. bit the

thoughts sort goes that forward? year I positive, Xx forward, think as terms versus up growth anticipate in should we a was what any of Any negative roughly rate unchanged? And ago. to change or of is that going it margins

Jeff Miller

think sort the important is as that, continues This I that at to becomes is Look, growth of particularly X provides solutions productivity operators that Yes. and pace. affordable foot. of per very and focus that those scalable data

where where of more the a way, the measure way sand meaningfully the And And of complexity, of what goes. only as efficient solution. is the block the the maybe better sand, result so really that, produces what's this that's best building to what's most is

it becomes very us because sticky it of as to expect to that the it's And that continued in very and grow scales, ultimately our target becomes things we've a so technology is of more have once you X pace it part over in that those it so sticky that and view, it's is -- fast a solution to then I and very of my efficient X to things time. solution more becomes around valuable process, that those at solution introduce deploy And that be continues and working the data, most easier marketplace. a it's to this

Operator

from Our Sachs. Goldman Neil next with comes question Mehta

Neil Mehta

for First whether is trend? to moving of potential this greater the comments of with gas oil about switching associated is see talk some to happen? Can And What a question basins. this you the fleets more X from frac are about costs that? about beginning the you

Jeff Miller

think don't we demonstrated prices think something look, are that's I is solve. today. economics gas what Clearly, And going challenged service Well, it's that to we're what I do.

moves incredibly the and see the even for way, as demand built get think and we we the we and in opportunities oil, LNG But the that I And that is I expect described. in continues. capacity into we've gas build made stronger it here important, unmet But so U.S. -- gets along

of fleet, way. requires as which our the fleets to overall along We percentage also that retire accelerate we a want our fleet

our And so from that the we is path perspective, that take.

-- I and think really to to end, continuing operator. gas e-fleet it's just an with are that working placed actually operate, basin Now and into an operators a gas they are

there's an recovers. So that gas clearly outlook

Neil Mehta

can return the comments. talk then capital you about And of

excess You the flow free had to in scenario see of mentioned XX% go of cash back could you a shareholders. where you

So how about Talk buyback create a about you're thinking as the value. using to tool

Jeff Miller

outlook Well, as our I strong. described, free expect generate lot do cash cash as be yes, I flow. we I we more that to that, we'll of shareholders. is believe And a able to return

And But so the to buybacks. the we share took there a step obviously, to flex is be going ability in QX. with

Operator

question a from have We from Gruber Scott Citi.

Scott Gruber

show attractively above higher you Just do is Or the priced? fundamentals foresee? and understand appetite as there wait to buying until tied is year the pursue cash up later bigger stay risk is flows price buybacks XX% Jeff, you line quite this threshold, to the at of stock the inquiry that a an if near with the here when same given to term appetite go

Eric Carre

Yes, Scott, it's Eric.

the cash we continue go we small through bolt-on along. how as today, we year. think is technology-driven as -- is the to We just bias dividend. debt as acquisition, towards type do increasing returns well to But So chip at continue today we speaking, acquisition, generally intend to the clearly, obviously, go about raised the mean, buyback I

yes, directionally, that's So correct.

Scott Gruber

price technology, operating And offshore I and then it. I if around significant is would at your fair would D&E, here guess with year-on-year already largely an juncture year-on-year looking quite incrementals the is at D&E and I'm mix is guess having contribution impactful strong. margins? just ahead. and at given driven a pricing less a assessment? look pricing unrelated just by Or appear leverage today in Got this of And previous impact And that commentary. potentially years follow-up. XQ a they in more you this in Is

Jeff Miller

It's that in improved Well, from get away the think And of to is point technology depth importantly introducing I want a year-on-year. of that. time. sort has But pricing is we're duration. the the I more don't not the certainly

improving, I terms technology. time, think the the happening got capital we've same substantial pricing we've but at in got also efficiency of

So we capital we in clear capture flow that over the more -- that driving the we've about the is cash of which pretty technology investing and are time. value means been efficiency,

And I expectation each improvement quarter expect that is way. got expect that so I of continue ought think our this think there's is in D&E. say to that in key of to we quarter Obviously, look always And stacking cyclicality. terms And But incrementals. we that long I saw margins ahead by to we happen. said would improvement see intra-year to terms year improvements quarter-on-quarter. if D&E. then the the each to I've be you margin runway in year-on-year stack some continue a And at in that of quarter, it I we've us

Scott Gruber

more than fair, today. technology sounds asset turns your mix But it pricing just kind and like the that Is it's more you around made Jeff? and of of structural driving investments

Jeff Miller

reasonable Yes, I is say. think that to

Operator

question a Merrill Bank with Mulvehill of from Lynch. have We America Chase

Chase Mulvehill

international imply was kind Jeff. bump free outlook, maintained. it your I about cash that so your we looks I'm hit like guess maybe your outlook. kind if bumped of outlook think would a flow probably your cash guessing North up outlook we on flow. you can If free it of And to America

cash think be should thinking America. I North with you at flow better Any it seemed should we about international you last quarter, maintain free XX%, so said flow? free conservative cash still when on updates and outlook grow XXXX least how a gave which

Eric Carre

it's -- Eric. This Yes,

did HX outlook the profile and directionally, with meaningful we to free -- flow. in start kind cash done business, the in in you confident in free So we're capital Typically, as directionally, buildup of right. the the generating very QX working said, of as going we're we're of QX. of you're And cash flow

right it more of was in outlook is now XX%, XX% Our QX. north then

we're up. yes, our revising So projections

Chase Mulvehill

in press then prepared your wins And highlighted unrelated your release Awesome. you digital lot Okay. and today. in also remarks of follow-up, a

chance give that starting So catalyst for going digital And X revenues been you how adoption are question I'm this, to what's speak material you could to try the customers? so, to Halliburton? for adoption today and digital to are any and this accelerated if around see in more by your

Jeff Miller

Yes.

be going go think adoption creates And going customers. think to what unsuccessful. was just to business I cases I has always we're around for idea that the proven the and digital is stopped and because it value started

what more is real but solutions is one now as business automation so the software it solutions spread sort around a it's well. business, and adoption -- one not of And it's that's see meaningful big we throughout -- solutions,

it terms -- the on the to a Even business of tools our have do has it of meaningful drilling will X as probably in it and do to automation outlook, to automation tend I today. technical think can so X sort that, the offshore capacity in another. We And equally to same think And but our by standpoint. about tend the it's fleets do in in generated North terms that it's And that do going buckets. thing automation, margin are we about the is I activity both drilling effect of performance software think from of and same as is and to continue from in America of of and with business. it business efficiency tools of many performance very software onshore we rest buy resident sort a in scale, and Landmark, type which capacity throughout the maybe the see what can performance lot not something differently a then inherent software and X necessarily we of at It's the the advertise, of mean that frac the being maintenance that. we

Operator

from Lemoine Piper Sandler. comes next with Our question Luke

Luke Lemoine

have confidence this bit? Jeff talk at in? to what and year what's you about just you high changed, reached international And accelerating you a Can outlook unpack little from this teens. least more maybe what's your growth mid-teens

Jeff Miller

Yes.

I things of at But like that One, profit have meaningfully Again, and in and seeing really improvement we're at awards indicators that focuses time, winning. of of internationally success around say, well, which the about is tool markets. We're all strategy same a confidence one. meaningful -- think emphasizing pricing growth. another on seeing book, world would success pricing and we're international I just the finally, And awards number X tightness selective more lot in sort that the growing. I equipment are looking we're the things. and around has the completion we we're year. seeing, then we're our order different that is statement. part this profitable winning we're grown

we path high of to that, see of And a so sort because teens.

Luke Lemoine

Good Middle it. market, And you but then earlier, of and what the America seeing you expand Latin in on geo Asia maybe Got touched on the on deal. the the you're year? balance for growth East could

Jeff Miller

in terms work, clearly, pick right Asia, Yes. is activity we development obviously there then wheelhouse. in also America, I'm in And up, economies seeing America. again, the in our really particularly the region, imperative growth gas throughout of Latin see Brazil. Latin the which of an important and and is produce to see But of And we more part gas. type oil clearly, oil

motivation and of lot oil But a we more tax think to by to for there's I'm revenues. so And effective partly and I see. for be and gas, really economic deliver what more reasons encouraged

Operator

Gengaro from with Stephen question We Stifel. have a

Stephen Gengaro

to it in at How the look impacts competitors site. integration how as at lot expanded integration. eyes we of your have things site vertical and well your pressure U.S. the are all when at well going I how, mean seeing how pumping pricing profitability world, services the it it impacts the from through business you So from wellsite. far curious, as a

Jeff Miller

the we're returns, long-term of returns we strategically very we in of looking advantage. competitive terms and view Well, at where in value this sense create all of

necessarily we're vertical do value, that integration, on is business so frac the integration space not we're doing where every in sake And the really, focused in technical differentiation. creating in and of is what we -- don't we create vertical view, for more my in

for So Halliburton. advantage competitive creates what our

fleets, what are done are we've I inputs electric The fleet smart create may when others. with But things. done and where we the for really meaningful advantage. to about think inputs what so are places business businesses with to we've good the those competitive business be And the there the

really we So where volume and create can for capture volume wellbore. around It's can it's reason, we that how not just competitive advantage. much the capture

like in to we I are so our And it. where approach

Stephen Gengaro

are the that and And profit in that in follow-up, of over sand? as you any center And a last quarters? for material is then seeing couple just quick a tightness movements you

A –Jeff Miller

fluctuate and the quarters. of to movement it world, a I in in lot few business. at And like sand a lot view last the No. It’s times, to it’s again, going different quite of inputs our all Not different available. There’s levels.

that just and don’t the as anything view do producing about impediment to So I to availability given that to go long-term a we’re trying really how it.

Operator

And turn remarks. to to Miller Jeff closing that's call all back any I'd like Mr. the time we have for for questions. the

Jeff Miller

for you, thank in and all call. participating you today's Yes. Thank

call of the out close comments. couple a just me with Let

strong next everything our then in power for quarter forward you earnings of performance first demonstrated Halliburton's And my with shareholders. today to points more I secondly, quarter. outlook is Halliburton to and see cash First, I the the towards look speaking strategy.

call. Let's the you. out Thank close

Operator

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

disconnect. now may You

Halliburton (HAL) 25 Apr 232023 Q1 Earnings call transcript