HAL - Earnings call 3 2023 | Halliburton Company

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Operator

Good day, and thank you for standing by. Welcome to the Halliburton Company Third Quarter 2023 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.

David Coleman

Hello, and thank you for joining the Halliburton Third Quarter 2023 Conference Call.

We will make the recording of today's webcast available for 7 days on Halliburton's website after this call.

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

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

financial today include comments also non-GAAP measures. Our

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

call Now the I'll turn over Jeff. to

Jeffrey Miller

good delivered Thank morning, you, everyone. third David, an quarter. Halliburton and impressive

Our the pleased and with margin of strategy. I international business stability America power am the our North of strength the our growth. our profitability of demonstrated

strong International Let's grew year-over-year, while and down XX%. into increased XX% revenue X% America jump income geographic grew year-over-year roughly the right operating markets. all flat year-over-year highlights. Total company activity with North was in revenue revenue X% sequentially.

operations, driven international margins basis points. flat XXX by expanded Margins approximately last North and Completion while margins quarter. basis revenue division Production points XXX year-over-year, Our to American remained sequentially, XX% grew expanded C&P while

revenue XXX Evaluation margins points. Our expanded grew division while year-over-year, and Drilling X% basis

outstanding repurchased and the XX,XXX To million of of $XXX stock of debt free another thank of over quarter. million $XXX approximately cash $XXX we Finally, operations, from our globally, for common million cash million and you $XXX employees during quarter. flow generated

of the and is reflected expects security. activity oilfield growth in growth of the in center for production, this and macro more strong strategy XX meaningful continued remains barrels further execution demand growing global demand. OPEC our from million barrels economic oil beyond. plans. Consistent challenge the strategy as while free to excellent performed strengthens end what this in Oil conviction in World of and delivering very and through long-term at delivered and most our supply today expect with investment Maintaining XXXX margins deliver of the short- customers' outlook, recent growth development growth levels affordable The expected, environment. Reliable executed we Outlook adding exactly meet America. I long begin with future North shareholders. Starting incremental I and This to America. results. flow, and financial duration this requires I'll before Against services see energy our see the North decade the backdrop, of my will upcycle. both in long-cycle Everything demand demand XXXX. to maximize Halliburton believe value I in strategy cash and I cash our returned You with

Halliburton XXXX, Despite changed delivered has and XX% changed. prior market quite of performance in structure operating cycles. Since this we That's Our and during the North result period. decreasing U.S. different count since strong XXXX, what delivered business our around the changed. model rig QX strategy, have would from revenue we changed Halliburton America margin a our

over electric Executing our automation Our in strategy technologies, differentiated Zeus few this to our is many last our decision strategy years as crystal America in diagnostics. value. and the such our fiber fleets, clear, downhole decisions and made North of optic invest value-added including fracturing to maximize

value. value, must you competitive create We in a know capture that market to first

than things when only that doing and lower free to returns cash pursue retire the And contracts. finally, sufficient share. long-term to returns derisk and building decision returns fracturing equipment our value things rather stop the means decision under just Do that maximize that. to market flow old them. improve Our by are Maximizing equipment not

our Next, XXXX. in cost changed of we and Those in were reductions fundamentally our structural today. remain operating from fixed removed place $X We business model. billion cost

more result, to less today, cost returns a fixed. have we market the than one rather As our of structure it's the variable is and reasons flexibility And pursue share.

in delivered continuous in improvements in improvement hours in last a we significant per XX% just resulted Our changes to way commitment years. drove X operations. pumped efficiency This improvement the our work, crew in the which

has and Finally, is We Customers to on industry market of flow cash more the cash generation. profitable the the investments efficiency rewarded more focused business growth. Never returns is North see aligned change. and generates to our consolidated, come. the for more returns focused America success flow customers the fundamentally benefits before more that business value rather value the Services deliver with and the Today, long-term of E&P I the free free expect combination better for this service and of than our technology significant region. will changed. who more Markets proposition and success on of strategy assign a been years in make our

Now grew in compared activity Production let's year. in though, divisions, we quarter turn division. last Completions quarter, XX% In both the to the international our increase same of particularly saw markets where to third Halliburton's revenue and

for activity our asset-intensive as execution. Halliburton's and customers, growth our strategy approach profitable strategy of our which will strong clearly collaborative tighten our profitable expect build increases. for contract and the quality our service the growth. We I unique leader demonstrate services technology foundation with in global in market divisions oilfield and on execute as a offshore all competitiveness successful wins both selective offerings, execution international through of Our results differentiated further

a profitable mechanism market returns about to equipment. expect I its and importantly, growth great are scarce serve on international that strategy track teens to as allocate year-on-year deliver More is This our execute XXXX. will international the excited Halliburton I'm for to pricing growth. we high business, in for

range. I'd market see directionally activity, to talk like more take with and business. I view about our to and minutes expect a again, few double-digit XXXX is international higher ahead, global offshore Looking the in coming into growth

XX% outside North of America of me represents generated than of land. is Offshore offshore. C&P Let than business some is start About revenue of with revenue More more color. offshore. D&E generated our XX% our our XX%

our regions to contribute of All revenue. offshore materially our

rig enable proposition differentiated narrow-margin offshore drilling fluids many deepwater spread costs we and some multilateral strong well Alliance, ultra-deep of delivery offshore areas, The rates our offshore tailored and Halliburton top performance their the of Halliburton product construction is of lightweight offshore many construction to to matters to has develop IHS collaborate even high-pressure efficiency leads our technology. solutions lines a business, in of from our and in choose of services This consistently what All value provide product deliver our performance. junctions, our we and market provides Halliburton leading are most design including operate maximize Norway, development. Customers example reserves One LWD Aker results. because customers well our product in lines leading technically-complex of the and solutions deliver key for created We their and cement. These and customers, according industry. by and impactful drilling reliably offshore rising. With collaboration our completions, customers. our value in through lines more results wells where data, reading the in is superior a complex drives where well BP the underpinned tools, quartile represents where Rushmore Execution efficiently combination assets.

Our been of and ability offshore to never the compete business, development in including intervention all parts exploration, has better.

the Let excited upcycle, our The the and clarity execution. with and outlook our duration business. of of for this me this. our strategy and of I'm close both the confident in depth strength

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

Eric Carre

Thank you, morning. Jeff, and good

the billion, while operating XXX over a diluted flat QX XX.X% income QX, sequential net $X.XX. was of Operating was Total for quarter $X.X Our was the was reported $X QX sequentially, XXXX. basis in increase point income share a increase X%. revenue company company margin per for billion,

driven by with activity the Production C&P revenue increase were while completion million, and activity of fluid services Africa. $XXX management Europe, sales an $X.X QX North East, $XXX These higher flat while in was America. In lower delivered sales sequentially. Eastern stimulation project Completion in increased were services, and which increased division, division, activity offset Beginning revenue our flat drilling-related income in XX%. Hemisphere flat was points of by year. These also cementing changes wireline higher were from operating of in was and Asia last QX pressure activity services These in due Latin America offset income software globally. decreased internationally, Latin million, Middle partially operating lower primarily Drilling to and QX tool and America by Mexico. increase X% an $X.X delivered increases an operating XX%, in an QX. was and sequentially, D&E results our billion, was margin basis of over income and Evaluation billion, were sequentially, income in Sequential improved margin XXX operating pumping

Now results. on to let's move geographic

and QX. Latin lines. Middle completion and primarily service Brazil was increased completion in These QX Asia. In in software across and higher intervention was These driven and Colombia pressure sales in Our and pressure due services sales a partially product increase tool lines pumping management by in $X.X lower was Gulf was by Asia. improved Mexico. Europe/Africa these a land increased the North to completion activity primarily increased lower revenue sequentially. well services QX tool completion billion, well in Ecuador. product Gulf $XXX These the Mexico. revenue in services Mexico. higher X% X% increase in and revenue revenue and and completion services, well offset intervention management decreased in by construction area. sales, QX in lower fluids increases well in drilling-related East/Asia QX and Caspian were drilling-related Iraq, in pumping activity Qatar services a in offset billion, increase U.S. decreases was services improved This higher improved were project well higher This project lower was $X.X and Africa which decreased $X QX in in in driven X% America, and in activity was X% in America tool pumping decline the Argentina, sales were multiple increase drilling and flat sequentially. revenue was wireline Norway service and was sequentially. offsetting in drilling, by results international testing these driven billion, offsetting tool India services pressure in tool construction decreased services million, construction sequentially. Partially Kuwait multiple of improved by Partially higher services decrease in sales primarily fluid from of lower This and sales were

other and million. our In to on $XX items. QX, were corporate Moving expenses other

a as results. million million expect we special $X.XX of is included by we result expense QX, migration, For our $X per spent to SAP corporate S/X or QX, on our share in $XX In timing increase about and about which items. diluted

For we the planned. million expenses was quarter. be million which approximately makes $XX $XX which Net the these from was our flat expect as spend for interest million, expense XXXX to approximately for quarter QX, $XX prior

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

remain For flat. QX, approximately we expect this expense to

for QX that will XX%. came expenditure We approximately were rate approximately tax on tax capital anticipate year, rate for our Based QX expect effective X% we be anticipated of Our earnings the our million. to revenue. at expenditure geographic in remain full effective $XXX mix, for QX flat. Capital

was million $XXX $XXX cash QX was Our operations and million. flow free from cash flow

We expect year of the $X cash full to free for XXXX. over flow generate billion

capital policy common our of cash return at flow of repurchased shareholders, of XX% QX. least $XXX free approximately our returning with stock we consistent during million Finally, to

million debt. $XXX Additionally, repurchased during of QX, we

near-term Now our outlook. turning to

operating expected operating provide division, X% me the to with XX XX XXX how see sequentially, X% land QX completion tool and turn to revenue as increase and global due XX while In basis X% sales. our to Evaluation we Jeff. activity you efficiencies, sequentially, to anticipate year-end division, unfolding. anticipate are are to while and partially of we lower North Completion to decrease back to to decrease sales winter now lower comments expected holidays margins to Let by higher grow Production offset points Drilling seasonal X% and basis some call points revenue we to to software higher on by activity. I America In our month will by result a margins due

Jeffrey Miller

Thanks, Eric.

Let Halliburton me today. quarter. impressive our an summarize delivered discussion third

the of demonstrated power I growth. am strength our stability strategy. pleased profitability of Our America margin of the North and business our our the with International

North our Our North performed value I America to in maximize as expected, business America. exactly delivering strategy

both been a in our divisions strong the Our and it International all for the demonstrate global growth. questions. and Execution created results our never successful compete has let's profitable proposition in our now ability of has better. And strong offshore Halliburton's of to for value clearly strategy of up business, competitiveness execution business open parts international

Operator

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

John Anderson

in Jeff, work the capacity internationally very expansion story offshore talking that you Middle duration were offshore So East, with the FIDs is and about. compelling

XXXX? translates has I a start growth see if talk should been of MENA wonder in just months. that about I'm looks XX cadence how into next accelerate was the So but international you over bit slow, I flat. little could a XX this bit little we sluggish a to know Kuwait the quarter, the International sales to wondering, region

Jeffrey Miller

for I frame teens international our digits. XXXX double Dave. Thank digits look, And growth. year. And will. next grown about profitable is XX% just you, in -- to expect 'XX, we've I've year, And this it growth strategy high let's But that, double that Yes. talked

growth expect margins. certainly market I'm comfortable strong we growth. But and will above to margins So with while the and improving expanding see doing continue that growth, we're

so will beyond. continue our There's plenty about. do crystal strategy to do that and what think we of that we're going expect that to And and in market clear I there around 'XX is

John Anderson

Exxon, And to this America. if I topics M&A, out big is in kind could one a what consolidated of Can to bit the Chevron, just talk about shift you means North there over Halliburton. APs of

on really hand, their should one I'm significant this the provide On programs. development thinking visibility you

kind a perhaps levers your customers. of bit what might about just big have large other it's your if compromised only please? business, you be pricing you handful hand, picture, a to of, the meaning talk Could On

Jeffrey Miller

Yes, big picture, good for Halliburton.

I we're things. long-term it demonstrates a think of Certainly, work importantly, we're of and through of the are -- long importance long-term kind specifically, big North I and seeing and more view, oil it really What the customers the what and couple clearly the players long of mean worldwide America. a more cycles. does that seeing. take these are gas that importance

we'll of privates think large clearly is mix and a very stable I see with I biased. more like so today our really customer publics. position And work is much North with our our America Most

Halliburton. then we And so of -- are care I work on these like importantly, And our position we customer that about there. are these things more customers -- kinds the at

in efficiency we -- approach in productivity, all work important on, X I those. we're about I I And think, So our we like well, And things and the those business. think talk of recovery. we unique way that

I good think Halliburton. So it be for will

John Anderson

adoption of accelerated this you e-frac, with was customers? think, And X of those both

Jeffrey Miller

I Look, I say of XX% seeing have are want like think good their tool in adoption. repeat that's customers. customers and exactly to the we're business this kind that would of our pretty hands, today north of

things these that So science This aren't is into are baked projects. being workflows.

Operator

Neil Mehta Sachs. comes the It from of line with Goldman

Neil Mehta

out could your XXXX? was One of the up the just repurchases. the setting about notable we you go share frame framework Maybe how you're capital, strategy and thinking quarter your return us of repurchase million the for for share as about into $XXX things the of market,

Eric Carre

Yes. Neil.

billion at look we're year, in directionally, has So our XX% part that if to far clearly us, policy our or right dividends shareholders. this returning and mean overall of we already returned into and flexibility return buybacks it's get we've But our next of so free what about the we nothing now, we year, like cash strategy. this I to done thinking year. XX% flow of over similarly give as shareholders changed we've $X

well. higher As returns get our these be would to our that as margins XXXX. I continues we expect grow and into would as overall continue business to improve

Neil Mehta

quarter color some bit I the could little you're of but any if of wondering you about a think keep need thinking perspective? guidance what a on next regional to XQ, a appreciated about that we mind we And And unpack was that we of bit talk helpful. That's from kind Okay. little more, as in comments sequentially. about

Eric Carre

Yes.

giving leave way is I which that. numbers, a I think the we're it will think, we typically report and guidance Neil, at basis, division we on

Jeffrey Miller

America, to a few tailwinds some more helpful color as there tools color. really normal strong QX clearly, sales just going then in more be seasonality. activity that would into of expect the had sales hopefully, it and And as little there this seasonality North describe help. year, see we'll probably years. we've see described completion last maybe probably I We've I what around Internationally, would we're see in that's And bit QX. software will QX, other and more we'll pricing. in and Well,

Operator

Evercore the with And line West James from it comes ISI. of

James West

about talk one that love, you big the It would that competitive are If non-oil kind of front and a the one duopoly in gas seems leaving in returns. last bit you businesses you main moving yourself a other now. of focused or I is we've could, competitor. But decade on me with you of over so the little I'd back, as the of overall and competitor a Jeff, both dropping to into and side gas your change environment market oil see somewhat had for so and kind

And game, or let's so hey, generate a kind shareholders. back it's free generate to of, not pricing in share market cash it's we're the cash, fight, get to flow same let's a fight

or up you Let's kind Is get 'XX, environment? 'XX see different my mistaken that competitive got of a for am in pricing unfolding view, returns. how I 'XX, we've

Jeffrey Miller

really our marketplace. strategy it's competitive on at about are James, been And the Halliburton. in clear that. I've And we Well, highly absolutely focused

value standpoint, of are independent And the maximizing North what from Halliburton a we America. marketplace so anyone does in in

you see you strategy and to of that profitably efficient. the are is And improving flows think R&D efficiency. cash I driving capital more and develop internationally, capital out fundamental We that is flow driven that cash see growing our of some

ownership X cash -- drive probably underway has things. total for X outcome And And basic with that. that lower a years, is strategy. or the customers, cash a from our starts been customers marketplace. continuing it for X the competitive of free to flow, clearly more today, strategy the And to of that so that, fruits outcome of cost highly flow we're we're clearly the always seeing perspective, also maybe and competitive longer. And of return But this better but

James West

Got Right. it.

with the Okay. in some pricing kind everything North about it kind we're here as America just I of anticipate that cash do think you And this period. quarter, you we Or in harvesting holds then about continued if do machine, here as think seasonality you and degradation? guys, think for up of this fourth

Jeffrey Miller

$XX look, think clearly that the to is North bigger America smaller environment that consolidation is, important it's activity today, we hard into to I we're than Well, a America, how for me want the operators imagine that the seen $XX, look as kind of commodity demonstration in we've of price. forward 'XX, given rather North and be

drive think I So of that certain here. will activity from amount

a see North margins. perspective, clear that better described service a market and are every diesel it, on retiring our America. From focused -- and got our -- fleets to very we and largely from and quality, strategy just you technology, And We've around electric. get those think we partly steady drive transitioning believe day, they because performance our as we we

They I order think performance technology. So drive important to investment service deliver this and is quality, in understand our customers an level the of margins. And required component.

don't this service operators. market that equipment not looks -- not for burn we low not reinvestment, good probably outcome returns seen a it's we've up also allow outcome -- what very when but for we've certainly that, seen that that's good companies, for that's for a like So at

XXXX. the mostly me of we're of this. think for that's gives I'd stability So point, to I in And contracted sort what mostly say, that confidence

Operator

the Securities. Roger Wells It line comes with Read from Fargo of

Roger Read

a of Yes. Probably been the asked, up just on follow slightly to questions already maybe couple differently.

maybe the you're 'XX, outlook cautious curious of of As properly to here just you come the sort where I'm you some right? quarter attention cautious, being maybe the you pay what and of quarter to the overly as to feel maybe of think slightly things actually think unfolds. through fourth about and sort guidelines for first need where was half looking like do the just to I hit for numbers,

Jeffrey Miller

what I Look, a America, to you clear, expect continues fairly -- I something that look it's think confidence we've already to got looks And our grow, certainly out described, continues what way the of seen like. the before the lot to and sort guidance we've and international expect in of we business as market. at we I we is we've looked do and laid year North seasonality like. we've in know given this

And we go customers' of But I question. that is as the sort of America. up also, not we're into we're and but rates America in here. that, next wasn't the that's think terms of outlook. confident answered North terms decline clearly when just in feel where that And first Maybe So half the in really from dependent see to on the year, in North as price our also plans. seeing last commodity of what clear going I I the color

So to the order flat. have work reality more to you in do stay is

And see well. so we'll suspect as that that of some I

next folks plans. North the that budget operating rest have out, early the to customers numbers execute are As call year today But We kinds of their America it's don't the customers. that. in too from plays of

plans will those executed. that's so be And helpful. hope I

Roger Read

question My of adjusting gets off the follow-up But Halliburton comments is. incremental more way thought with back to your variable, different measure in service a tack. fixed, about cost companies bit it margins. we've your typically is it some of opening performance Yes, to little less the structure,

margin. But costs see we change but more fixed to in maybe pay variable, margin, attention still don't same the the the quite are we'd if the incremental then becoming absolute

there. to with about any quarters, mean way last what expansion expectations margin the or margins I go these over a here? relative the seen it where to growth as absolute you can from we've ask think is just margin revenue maybe So several

Jeffrey Miller

And lot I business. margin been think think the also reductions that we're of expansion Well, And super of cost just off look, critical I because but strong the the to which of we think that's America I the will back seen. And that's how But have partly those incrementals, that. don't of important. to we've about -- we've have much equipment sort tend type a run we're said, market business. operating that core North more I've as as is of to always our putting has fundamental what strategy, translate expect value I been because seen maximizing away, into I anything. it's the But in and the as in gone how

so electric, but And I in as -- go of as are quietly, drilling also we same America. I those doing expect equally the continue tools what stronger say to to important pivot would into to North with we're from marketplace, diesel would sort over time see incrementals. about the

we our and around together it's been business, So better efficiency drilling traction. put able much to capital gaining have

that are low of drive a even incrementals those So the base. off things kind fairly of fixed cost

Operator

And it Citigroup. with Scott comes Gruber line from the of

Scott Gruber

U.S. Jeff, Halliburton. for seem positive in certainly the the trends

to XX% a just in get Halliburton numbers peak experience so recovery in we fleet the to count back year. Can just say U.S. get close in can we rigs about peak if lost scenario? get back activities, market to the from In earlier frac this back that scenario, that let's is question of half we my So close operating you your that

Jeffrey Miller

Yes. Thanks.

the America. North -- I And good couple asymmetric So a even position a think of I we really in we opportunity mean, 'XX, America. look have activity beyond view got at North we've is in of sort the as I look, things,

given up, expect described not is down as as be we said, we activity the and see demand 'XX, you I we to e-fleets. are it. around for But opportunity go where I've So just into

an we're that to that's is unique the that. terms way approaching of largely in opportunity us So

that is uptake for to America. equally And opportunity own given fundamental will just think the I equally And technology that change our from in work any Halliburton on ability asymmetric and accelerate the the growth drilling to so, technology. just in North in maybe but benefit from only its count the that on rig will technology, business certainly, an put

Scott Gruber

you And Can the has in of and it. the internationally share unique you the Halliburton outside chemical the for facility in business, the gains another U.S. within production outside business the production update the take East. outlook Got for on side just U.S. Middle build Summit opportunity been of as continued of in the XXXX? us on particularly

Jeffrey Miller

Yes, to America is is its the grow. its mean, same And reasons execution we're reason because and internationally. business continues are leading thanks. technology. technology. I The And the lift of in North seeing it's growth those fantastic that this a the

a And of so Middle get of and contract leading is that. lift variety others. And they becoming the getting becoming has are actually where look, our technology really -- Kuwait countries, resilient, quite Ecuador in and in expand ESPs continues -- including also at trials initial The the Latin similarly, we in more lift that is -- to traction bit success improve. Summit edge team in solid opportunities meaningful America, with an continued and East the to had a of

North yes, look, very that, for And again, Halliburton, opportunity for independent so that growth the expectations resilient is, unique of another continues pace. go of it the Middle to on where We're on activity. very rig international would -- plant is chemical I sort -- plan, count get America high We're traction. have expect they we say, the activity the business and East. then in And in with

what doing it's do. we it expected So to had

so are. we pleased And where with

Operator

Piper Luke Sandler. line it from with And comes Lemoine the of

Luke Lemoine

on would your about quarter you update how Zeus of give too. customers record last XQ. signed us displacements, if I Zeus you then shaping from for incremental Zeus equipment up could a conventional helpful, talked be and in And you provide interest 'XX? maybe program on that qualitative fleets you a you see number see wanted could to that any commentary if Jeff, fleets

Jeffrey Miller

I We've work, continued new quarter. to see unchanged. we've the Yes, we've the on track of We a trajectory were is put very couple fleets continued signed believe strong demand. that on. this -- Look, up we

so pleased they're that the And see performing very we around well. trajectory very with e-fleets and very,

to that that market the technology. of up build continues So the of confidence sort and

they we why equipment. this pleased is And said, are diesel fact the second we're technology, but we I've standpoint, that fleets, the we've think of what component year we've which to marketplace. important always And as successful. From the not existing that of science confidence described come an opportunity in had effectively repeat equipment has they retire equipment, perfect than I part a are lower electric out I think And TCO X:X, that's to back would a a diesel an retire customer. accelerated for of by bringing that a we've really a described. one. customers And displacement big see it's doing

Operator

line Stifel. the of Gengaro Stephen from comes It with

Stephen Gengaro

things for me. Two

when you I level, -- you earlier, but under do around that Are a do think production activity needs we keep over. U.S. first, mentioned levels, where think bit be? think, little or fleet you this to The frac production about you you flat when think to Jeff, think

Jeffrey Miller

the that the super different certainly see a efficiency of Look, was Look, suspect are. is operators that's busy lot and to to I we year, levels the lot year going be a we'll and year by of first the that right -- know in Clearly, broad think getting production year saw levels many North into start a other different more strong this year next benefit -- I activity XXXX. things. of America part early private unique and think to was and the market where the as of lot of now. There a operators and go I

got wells really we is into You would. late the saw time drill summer, we that as normally the group which not

said, probably I as we've will got that that probably into go supportive. That production we on quite think weigh market is a commodity so And 'XX.

of big production. to terms it's That XXXX, would those before, on added that could here imagine not what production And 'XX from now seem I've see chunk I for said was more. But into right less, a which so in in as weigh up, activity repeating it'd of down going is hard be not think -- we'll it reasons. said, not

Stephen Gengaro

does follow-up America, and that pumping the across it acreage sort both on there efficiencies also pressure maybe the then side. And sort from was of but has far around of Great. completion slowing how's Do the C&P in lesser help? my out as you are -- business think impact Tier North think you on X the question as it

into intensity how or of well So basis. a demand on sort and of per per that play service sort phenomena of does production

Jeffrey Miller

without a critical having what and block those that's things which our question. of my solving call placement, sand the think foot in productivity well it Look, which that, I for downhole think technology. I production, that's addressing do why introduced view, in all also tools I to SmartFleet, things in SmartFleet. service reconciling technology which precisely intensity design Halliburton. that's And that. But that efficiency, good diagnostics, for up marketplace building form And mean terms drives of between like seeing drives of the of we It form uptake in the comes per to is we the and on we're

as oil whether for is what it's of North that do smart, I I in gas done industry improving also So do see producing recovery competitive. of back America methodology -- ever. or or It think this that reps will drive very But and Halliburton. lot down is more of of will or for years factors, in we've drives the process physics the many cases, that so things. on the more very come are in that good, this to customers that continue bet the I never think breakeven does it expect, our against actual cost America we'll wells I through just automation sand I broadly technology. a cost many very and in industry science. And mean would and North history And

Operator

of Marc It comes with line TD Cowen. Bianchi the from

Marc Bianchi

quarter. of there we we the usually about Is that guided of are quarter? the some fourth be it? to in explaining be XXX third If the as it elements decline would margins quarter, C&P I is as for was original where sort then guidance growing to completion look points. Or quarter, here to from at basis the basis quarter. for for some pull the fourth look and Was there forward by performance that third second outlook other fourth about And XXX thinking bridge kind should the to we occur flat, ended we of quarter that wanted tool points. a were they ask in I sales but up in

Jeffrey Miller

you're I helps and clearly saw enhancement, around that production and I the tools. tight, executed Look, that is as beyond. strong some I equipment seeing C&P, important And happening to that's the world. position. completion expect it think what is it's you moving got quality the is very think very seasonality. certainly, I've up. internationally a quantity leadership whether Look, performance QX really America and We've And North then development see mean, from well. described in of well, I work But the several things which cementing C&P,

flat So we've margins rig seen down. being count the despite

Marc Bianchi

Okay.

one was of other on growth. international The I the kind had

Are all expect East thinking curious digits flat you're and Or regions of the type for So we're to if the to look that and a similar I'm going year. them get double about other rate? this any regions was if that? your low at leading Africa, at maybe a to how I region it would Middle quarter. you sort grow

Jeffrey Miller

finished high I digits, this digits. we said, I as year low double expect Look, at not double

And so I see set growth, on to mean, grown we're everywhere. region to we've It and day overall, expect happening any depends quarter, in quarters. But expect 'XX. lumpy XX%, in but this can given particular what's look, at on a would or be I growth seeing growth see would different of times. say growth solid we

all strong year. but about concerned this and very for where at be in year, We've that region, am seen growth East earlier quarter-to-quarter happens I will the so be. growth not And to growth full probably we'll in see broad Middle

as put measure work them. a year-on-year. of that the is we and best that think I trying to on see And assets we impactful not where them I think to sort set we returns as take quarter-to-quarter, of So

you're some those seeing are that of margins of C&P root And at that. the

Operator

It James. James the of comes with line from Rollyson Raymond

James Rollyson

had question. just one I Jeff,

margins you cycle recollection your kind I'm international of curious inning pricing just a to a you relative strong on this what think that we're cycles of over. front, think about to the since if few historical roll And takes from talked truly pricing already. are from quarters. impact we're in what duration how past and obviously, over pretty cycle is in you've pricing about longer kind historically margins the my this, On here -- perspective you longer think

Jeffrey Miller

to I that I'm continue try time. strengthen. going Look, one continue The -- to more think this to strengthen.

X/X, We move expect margins they to continue to X/X, because to strengthen X/X. internationally tend

However, in what's we're is seeing offshore important the same at growth also time.

comes got it offshore because a rate we've capital onshore. higher from so sort more it a work than of just requires does capacity And that offshore of tightening at

I type into activity And clearly we're continuing of just type pricing is activity well planned that's or see time, that either that And so At being to the of being that the market. large so pricing. driving decade drive the seeing degree. serve that to is is think the tighten to same a going tendered underway extends or planned we the our to

Operator

It from Hallead Kurt Benchmark. with the comes line of

Kurt Hallead

And a kind fleet front, So given business, my curious your you driving positive et -- on of and here, the cetera. right, quality, Jeff, number domestically. domestic right? your That's mix, service both I'm different -- technology, mentioned right, factors, of internationally

comfortable could -- activity overall dynamic XXXX, of or flat right, your that mix, kind suggest enough grow North with revenue are America think So confident if in is even you to that those with down? you or with that and

Jeffrey Miller

mean, I I again, some we've got opportunity. think unique Yes. Yes.

positioning in to produce to described, Halliburton for broader market grows that for the that. drilling as technology wants Halliburton. an can again, I've also, Asymmetric be, and that terms Halliburton that of will won't that with electric our that fleets sort be in probably do of of piece North able is And that unique we're growth we consistent America, across opportunity that as the

has will am grow. ability -- to So confident yes, I that the Halliburton

Kurt Hallead

Okay. Great.

Now I have a follow-up.

conversations, e-fleet understood that by prior you're correctly opportunities. this I customers being I when about if think to talk in approached your

You at looking X that Is of long as guys kind case? be contractual still could commitments the years. that maybe are as

Jeffrey Miller

e-fleets think very of look, in talked good is That maximizing the technology value that, by technology. Yes. a we're we're building talking are customers low kind Look, an And to working. doing. of want We've North -- about about is value what I and fairly operators that America. that this customers. America creates realistically. And for in will is that operator operators North it's equipment decision value the for have always a part maximizing that risk The

all. and the much is point, there why fleet Then cost cost reality be no It this fracking describe gas, at cost. is lowest lowest you least want large that first scenario one becomes, scenario the working at it's burning is fleet less your to a will is it's it fracking. it the fleet. is And the is answer where easier a operating performance. At won't because to wouldn't at extremely high where lowers their The be question that be that a operator and you emitting it natural becomes because highest it's efficiency overall operating discussion not

And we've of as return a something get term are and I to business. value been of that capital customers got hurdle our so sudden, earn that part commitment in customers. huge a type all the maximizing for over that's And to experience. committed should a for value, long And isn't that of think this that new creates

Operator

now the Thank call will Q&A you. to back concludes Jeff over answer the And Miller. this turn period. I

Jeffrey Miller

Carmen. you, Thank

And the strategy. this duration out, impressive of margin strengthens our quarter. close our today I demonstrated Halliburton we see Everything power long third conviction Before of my and upcycle. an delivered strength the

look forward speaking I out with let's the close call. So next you to Carmen quarter.

Operator

And for Thank you that, today's with in you. thank we conference. participating

You may disconnect. now

Halliburton (HAL) 24 Oct 232023 Q3 Earnings call transcript