HAL - Earnings call 4 2023 | Halliburton Company

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 Halliburton Company Fourth 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 Fourth 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, September 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 fourth & 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 was and we their billion Thank in decade, highest a morning, achieved you, shareholders. over to everyone. operating divisions year David, a for returned Both our XXXX and margins of Halliburton. great $X.X

of of year year-over-year; are an highlights. We billion, revenue and of increase compared an billion, Here of adjusted the operating $XX company total operating income. increase full delivered income XX% $X.X XXXX XX% to

high Russia business strong growth. from XXXX, year-over-year August in growth years teens exit demonstrated international our of of Our X with XX% our up despite revenue completing consecutive

and business X% declines. expanded XX% and margins America Evaluation North with year-over-year up grew Completion Drilling basis expanded count XXX year-over-year basis Our strength revenue rig grew points. points. margins XXX revenue Production year-over-year X% showed and despite and

Production Europe-Africa which strong QX revenue supported lines finished margin XX%. the by and almost than the delivered year-over-year, Halliburton North grew basis sales completion where grew weather XXX of year region, high-margin product and QX, to XXXX. multiple across higher XX% tool exceptional America. Completion by led in points performance margins performance better-than-anticipated revenue favorable now Turning globally, International

during free fourth quarter, generated $X.X stock $XXX we billion cash of flow billion debt. cash repurchased million common the approximately of $X.X of $XXX of Finally, and and from operations, million

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

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

me views my on the strength services with Let the of oilfield market. begin

and the As we services remain look new for volatility, fundamentals cycle near-term past oilfield price the strong. commodity

X are Here reasons why.

more longer intensity develop everywhere to in not First, we North laterals in require customers it's America, fewer. fields resources, their Whether we offshore smaller in increase see mature services service operate. more an or and complex deepwater, reservoirs

economy demand continue remains oil I into long-term Halliburton's world. I technology global outlook, critical positive for leading Halliburton's of to gas demand and will of the the growth well the and of Second, component believe expansion macro approach and strong the future. drive demands forms expect create collaborative this around energy. products will services With execution, mix all energy with on global enormous a

international where year-on-year compared delivered year. markets, divisions the quarter same XX% full year to XXXX, grew quarterly improved Halliburton's international to performance last turn profitable another year-on-year. region Halliburton's XX% growth. both growth revenue international revenue let's Now year delivered Each of and delivered and throughout our of year-on-year, grew revenue margins

activity years expect XXXX, growth global strength foresee of power proposition our to pace of XXXX Halliburton's growth. profitable international of competitiveness demonstrate and spending a the customers. In effectiveness E&P in we strategy, across with grow and our double-digit the product lines results at international the value Our of multiple sustained low

other XXXX, in region greatest will in East/Asia likely experience activity growth differences we with anticipate we increases believe the closely Middle Although rates regional for the behind. regions

expect we and XXXX, look to Africa among we above-average out others, Europe, to growth. demonstrate As

we me through extending duration which in the XXXX, of end of active the tender the gives see decade, scopes Beyond confidence work with this pipeline an multiyear upcycle.

most DecisionSpace well of to capabilities These While Halliburton systems also the and reservoir autonomous reservoir overall deliver service. technologies Xaminer and LOGIX' XXX, our small our gather construction consistency lines, We now and to to worldwide, and our of product This in real enable our these value subsurface formation we continue well unified is portfolio. above-market activity their overall used identify I within on is platform, to formation reserves advanced evaluation which platform, modeling drilling reservoirs, reservoir also see and develop operations. drilling improve where expect such time. requires iCruise growth customers target technologies Halliburton's such expertise ensemble uncertainties, properties customers as the choose reduce testing rely formation like within to XX% expect reliability, runs growth, worldwide. Customers drilling our on efficiency will reservoirs. iStar bypassed we systems customer increasing of today's growth technology complex One and see in lead complexity evaluation logging

increased technologies we artificial Production, like also completions, multilateral our and expect adoption lift. Completion of and intelligent For solutions

like expect America, solid enable foundation intelligent control market. In Latin produce, artificial performance critical East to our differentiated inject outpace and our Our strategy completions is footprint where and which customers Middle multiple offshore and growth. a for a wellbore, the create targets developments, to segment existing lift, the for profitable multilateral zones markets and in we overall a

for design, storage, demand to strong where carbon leading reliable in a Halliburton's services expect barriers capture capabilities our role. and and validate play crucial deliver also We

them equipment carbon cement growth, the challenges this of activity customers personnel remains designs long-term tight. our casing technology storage, and availability unique experienced of equipment our As sequestration. With invest in the tailored enable to address carbon and

activity which to increase, further tighten We expect offshore market. asset-intensive the will

this excited our and over performance future. am about outside America for improved activity am I half margins As in offshore in expect for XXXX represents into I to of strategy well business international drive profitable growth, our the North and pricing Halliburton's land, higher business. we confident our and

strategy results strong America. XXXX. in to Halliburton's yielded Turning North

land quarter revenue quarter-over-quarter North year in margins full was despite compared despite a Our count. lower lower X% $XX.X North when billion increase revenue. relatively America flat were Fourth rig to America XXXX sequentially of

and demonstrated North business Our market to quality elevated fourth well and productivity. with demand perfectly the execution full Halliburton's dynamic larger and our to value greater quarter evolution our technology maximize successful proposition. recovery value. The stable results of to strategy This improve evolve differentiated fits programs, the continues of America and year and strength customers with expectations for

our this solution pull of demand frac, provides Zeus electric technology measurements most Zeus' our the our address in to lowest the capacity. approach uniquely for XX% be North XXXX This Zeus delivery with represent it plan Zeus market, fleet. adopted customers. believe and this highly in in incremental combination return where The services adopted commercial fracturing our value Zeus has of the has seamless I to requirements. it's generating existing been XXXX Technology return sought maximize in rather our transformed will cost during The We how only e-fleets because by rapid and for and ownership value for Zeus multiyear fleets in of meaningful market. one on repeat replace total and market customers contract over the market. The our and is of is when contracts real-time and XXXX fleets combination tells North working from and solution is reliable of we electric when strong. right works well North solution Our Zeus these the field half deliveries us only their the automation electric the for America. subsurface on fracturing and new over after of for and fleet with both capital of America creates contracted America. all of completion expect beginning, transformative strategy is proven its the in terms. Consistent than fleets customers, rate shown Zeus growth be is at it today of adoption, fleets customer initial our full we add

XXXX Turning North to outlook. our America

the combination nature a expect business market the of We of portfolio. contracted strong the Halliburton's and activity with of levels in stable continued

represents cash over free our free our shareholders XX% during pleased flow approximately which $X.XX increase our and million repurchases cash to We and growth of in an approved of debt flattish technology. We of maximize the that of power $XXX billion of year, strategies of I returned per margin am the our in results of in profitable $X.X close to Halliburton strategies, out, internationally. expect I differentiated In the XXXX, generated quarterly of America dividends, announce value these Halliburton. To to and a Board our Directors of the through billion am execution dividend and revenue environment consistency flow. Today, demonstrated cash this stock share. retired value to $X.X North for confident about for our and

we strong, our flow. proposition will and Our and deepen cash services oilfield free outlook expect for generate remains strengthen value significant I and

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

Eric Carre

Jeff, you, and for demonstrated business important of business our the worthy overall in performance recent however, strong of operational was financial which Multiple Halliburton. strategy. any morning. highlighting. effectiveness the a memory, best good Thank than are the of performance year XXXX metrics metric, showed and More any one single

structurally the growth despite X and XXXX. XXXX XXXX are the strategy since geographies. and highest decade. to and risk the rollout changing C&P fleet In were value of across contract all XX.X% activity was were few and our terms of and improvement margins profile margins XX.X% our In the Revenue division, our margins is of a Here America, steady strategy in margins our drove highest of division, lower through over business. Internationally, profit of We last the since our our a Zeus our the about D&E highest the construction year highest highlights. In their maximize well of revenue delivered profitable our the XXXX. were in driven North years, margin return by our business. associated the strength

our this pricing result of in across activity, Beyond the is the multiyear drilling multiple investment and business technology lines. differentiation product and

revenue of $X.X capital our last Collectively, while billion these spending years. on remained revenue. Our cash capital flow, of free within cash in X% X% generation highest to range focus this generated the structural XX growth margin of and improvement, the about allowed results efficiency target

results. now Let's fourth our to quarter turn

Completion operating XX.X%, QX basis XX margin income $X.X our was $X.XX. diluted a currency company income the million, Net fourth income reported the diluted $X.XX. was $X.X was Revenue was XXXX. Beginning for Argentina of Total with over operating Operating $XXX point in and billion XX%. to revenue was increase net losses $X.X the due billion. in primarily the was and billion, adjusted was and devaluation, income QX per for was Production quarter share division. margin operating per XXXX income QX Our share,

product increase income Eastern multiple lines Hemisphere the increased driven better-than-anticipated sales North favorable tool basis income These was driven best Hemisphere. division, were in the in our in Evaluation year. sales, margin weather an was management services over completion $XXX expectation in Our X in point and international and results across Drilling million, of revenue operating software quarter strong XXX last the operating years, the QX line our XX%, of activity project and billion, by and results fourth America. In QX with $X.X in higher Western was were and fluid performance by

move on to let's geographic Now results.

sequential a revenue QX Our activity tool the international QX multiple which of upweighed typical strong product market overall growth. East a activity Africa across led by and consistent improvements following driven activity offsetting higher activity QX international in was revenue demonstrated highest Latin quarter Europe. revenue X% driven the sequentially ] very X% North quarter, XXXX strong completion the slightly product was international with quarter a sales declined of lines since year-end reduced where by decline the activity in revenue sequentially, sales. Europe/Africa U.S. America, sequential holiday-related as land and third lower fourth primarily improved [ year-on-year slowdowns. with tenth by growth America quarter completion-related region Middle in in decreased increased in growth revenue Caribbean. In consecutive in our result

expected. than experienced we events fewer weather-related However,

were higher As expensive than more QX America anticipated. our land North this than downtime margins downtime, weather-related planned means is

in years. Gulf quarter delivered completion X the strongest in Additionally, of sales tool the Mexico

items. other to on our expense other corporate million. Moving was In QX, and $XX

For first of we expect quarter XXXX, corporate to the expenses be flat.

and SAP share per on in migration, in results. budget our deployment QX, In SAP on included $X.XX spent on remains $XX million about conclude XXXX. we to S/X which diluted or schedule is Our

million, share for buybacks. slightly the interest due with expect these higher expense in approximately million premiums XXXX, $XX timing was For associated of to $XXX the due to per or $XX be expenses to we we rollout. primarily the quarter debt quarter the XXXX, In expect accelerated XXXX. Net phases million $X.XX first than associated $XX and to spend million with expected

the QX expense quarter net net million XXXX, expense expect Other our we treatment lower to $XX roughly prior of $XX million. interest first than for devaluation. the peso Argentinian guidance non-GAAP to be For was due the

first this be to expect the we million. XXXX, about For expense quarter $XX

rate. Capital remain effective deployed ratio for million, our CapEx XX% to Our be in to offshore geographic tax for our QX XXXX, expenditure to approximately adjusted due was first Based expect earnings mix, markets total tax year was effective to tax were $X.X discrete rate of expect we and this billion. anticipated which anticipated international expected full and lower QX to slightly XXXX items. in than $XXX effective lower on brought than XXXX. our XX%, rate full our year XX.X%, we our Approximately quarter similar CapEx

capital revenue. approximately expenditures remain For expect the to XXXX, year we of full X% of

flow was $X.X and full cash flow $X.X cash billion free $X.X cash billion, operations our Our to about free QX bringing was year from flow billion.

to we free cash For directionally XXXX, expect flow higher. be

provide Now our on let with quarter. some me expectations you the comments for first

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

points. division, lower XX and decline expect to will revenue and in Completion sequential turn call we and basis X% basis X% flat sequential to by Evaluation result, XX and division, by In be As XXX to Jeff. Production margins lower back we down X% between be to to Drilling to revenue our our to margins the to points. I now a anticipate XXX

Jeffrey Miller

Thanks, Eric.

over XX% our year discussion free was today. XXXX. flow free for shareholders a to over free $X.X cash summarize through stock We to Halliburton. about We're repurchases. cash generated great XXXX return returned of to our flow cash XX% billion and of me dividends flow and shareholders of Let committed in

and our business, competitiveness For profitable of In low growth driven we value our expect across the growth proposition, all North double-digit America, global power our lines international expect strategy. technical by it up business product Zeus increasingly questions. position the activity, business. And stable by solution differentiated electric our strong a our open driven of and nature continued frac let's with our contracted for we now

Operator

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

John Anderson

bottom holding the could on does the was Tier sense the So about in said growing operating of it X little I that was how U.S. wondering if your costs, you We e-frac trying -- C&P diesel and land flat a fleets flat. say how equipment margins you could bit you is. compared talk on quarter, line. the advantages, a a dual get was your influence question to, but How terms impacts fuel, accretive held during the talk say, financially. e-frac, about I know operational the of hoping the new and just of to pricing fleet

larger e-frac say, that, secondarily XX with these the we E&P consolidation with underway to multiyear you operators under would months, XX And on well out, of look expect majority your sort and to of contracts? be fleets

Jeffrey Miller

Number reasons. a They're our of couple operate standpoint. highly Yes. accretive. Well, for e-fleets are Dave. one, to Look, from thanks, accretive efficient

a are of and marketplace. Clearly, value in clients, that thought so them the the accretive. makes differently lot and priced bringing therefore, more to they're about And

the think value And contracted future. But so into expect important sticky, of look, it's of a it's which the is most and over things is sticky that, continue pricing I fleets, one, the time also. the about. what's contracted Number because will that that but nature thought mean is the I couple

what model think work and well created. But go so to the procurers that term. market with have at customers these look in a through at the to think those over thing, And where aren't that types deliver of have of second and about that model to vision value it sophisticated that, look technology mean we e-fleets cycles, can willing comfortable that as spot needs the and are as I clear can are e-fleets, long companies are solution. business their programs, and a to interested steady I the the commit we

we the think seen electric before. never efficient, an it's obviously, that drives also system. entire lowest-TCO fracking around it's precision an and level it's fleet, -- of automated, solution, an but electric I've it's really, so If And -- about which

then clients what measurement. But that finally, it they're fleet Dave. what than more is all the so and hope I therefore, bring a market. which up creates return to helps, that's that and different conditions, profile Tier part into accretive And go value, a X a also the clearly; it being we of assets drives I set lot of diesel they deliver, then these of changes the subsurface of a, accretive: the expect know also as because delivering more that

John Anderson

there. clear A does. differentiation It

point you're with the lot the collaborations during coming And noticed good in announced MPD. one So like about a in collaborations from waters you to the your if maybe new why service we acquisitions, your of collaborations I to X few pretty here. more testing on wondering number product hand effectively It my it mean, guess, of other without release, portfolio. a separate think sort a hand, question of of bit, on the talk current fills recall enter other you companies: the spending analysis, the many spots of fill and saw I reservoir view, years? to -- but lines way too cycle, last weaker one of I would one seems there. I it's a your could I I And in don't capital. but a just the a you it's if cycle. different back out expect the on was strategy other,

Jeffrey Miller

with to core the evaluate partner analysis entire our of have but a cores buy we that way to some around them We'd technology space. who we trying into rather the premier we things example, company developed think core we've digitally, -- and for ability think it's function Well, the look, and see when I digital is. the more

so we our And and how believe to that. And technology able know to where it's things a Core effectively, we've the that fantastic strategy make obviously, better complementary we're company. to developed bring we And doing returns Labs a is do.

value than of And that to something trying a we're believe more to rather bring enter able creates type that, so arrangement. we to into different

-- can don't the returns to much the You would we but their really I to technology, closely thing, with absolute Halliburton. Yes, joint is subsea But that work was another IP, got mentioned world. electric for TechniqueFMC, developing terrific State. who generate And kind that subsea TechnipFMC Oil rest in the we of do believe premier on we try throw type capital business. know where I into want Similar is we similar thing plow in company with the outsized delivering one completions, electric other all of completions. we know them,

our And things is I of our we to without what so others fit. to aren't broaden into can or mine with where core that helps, Hope do things trying a lot competency advantage are way there think really Dave. strategically along that competitive able we're

Operator

Mehta Our question Goldman with next comes from Neil Sachs.

Neil Mehta

question first production, oil one to which things were. the exit that exit more of is came U.S. is last The above, surprised which question, of was the expectations year where I think, us around macro consensus a in

about U.S. visibility completion think do growth? talk U.S. maybe do you including you the DUCs. there? You about we as think rate think happened unique exit volumes. XXXX, of about into pieces, moving And And have What how and

Jeffrey Miller

about function intensity. is of thinking Yes. a production growth I'm service in production 'XX, Look, if

efficiency own service throughout are sand, really more the are in that year, probably to reservoir. a think in lot would some -- their time, of intensity comes latter that half. what more But market a in of part comes first the at brought delivering that put, exactly to simply forms. of this the I is at game. of levels market. But plays run point. rigs for lot same year, think I we of think DUCs that E-fleets the at peak I because point And operator of every out last last that me to see the on that the be barrels. And also this some next hard we sand and operators technology for because that And in we'll we half saw on sense I more that of and So some the over of will we it's forecast do

effort customers is, I what market production. think only take plans. are I'll delivering of But see ramp the only coming to I their think production smaller would up we as to because the whatever you a it the into because the what we take only under don't really an under lot see stable companies in

our that obviously, will to is But incremental from stable Halliburton, production we unfold, to matter it think rate sand clearly be as how of be much with they market. add standpoint, a at watch when I decline from So what perspective it a fall going very gets pumped barrels rapidly. overcome we off rapidly, a comes

Neil Mehta

color And decade. comment made through the there expand the then more confidence you about like what the international post market like? feel a Good you XXXX-XXXX looks Can visibility the have there. you little end file give that you a of help and

Jeffrey Miller

seen tenders today really markets. think mean the Africa following we We've I I XXXX. we strong are and I mean working about what's the on look, for think up with when I to talk wake year. North those all West in Really, happen. of until don't even going and customers, Sea next year work Well,

real growth X- things However, X-year-type and of individual And start efforts. mean even we're that. places working until These today are the these 'XX. all programs. these on I in wells planning aren't like are doesn't

we're client for with -- just 'XX-'XX contract of on actually logistics And spent so the on we working beyond. planning a and

that may got not more on it be just hand, tendered. It's of are be in just a matter we've what confidence got that that tender the in and in pipeline And terms customers done. beyond. or and of a lot clarity of pipeline planning even then the may we see of I've with we work will 'XX so And

Operator

Jayaram Arun from comes JPMorgan. question next Our with

Arun Jayaram

on 'XX. model sense your will could going year for that has the if Jeff, we more you efficiency Zeus questions sharing a give how And is fleets your I is in us of generated. Zeus you significant between things industry mentioned just company? XX% the commercial that one XX% evolved. be or And and gains get amount wondering of this E&P contracted the was is to that of of of completion service the what

Jeffrey Miller

trying these value, creating, contracts the customers automation, all they create different evolve, develop because different very our rather let drives And equipment that think, one, contracting Well, like America, as we that as number of value I will couple that, for by meaning a I efficiency the North develop we was one. that and the nature that look, nature. more just more because to technology become unless value started, market in it's It to of X-year-type continues the what the or much into When well. And we is started going things. order build created do that is contracting back, we A number quite demonstrated the had it's I created And how from aren't with to Zeus, to Zeus to to our meaningful push efficient. believe to integral is dialogue the our volume then system measurement, value maximize and standpoint, want while market. said, -- contracts, to what's value we standpoint the we so think, is it value, an around I to Zeus than like it view really and customers. of longer-term think things we enough thing pull is that drive special. And

horsepower trial from not to go that this simo frac zipper we customer, in to, is with as the frac requirements. increase So case, one-to-one a frac in

is and ability it's for X more we those unique one. but So of one become a though, scale efficient Zeus to up, feature, volumes as that its up. not also go But

so also Halliburton gone in we than fashion. at it for equipment perspective, we And clients create less Halliburton and using we would a outsized because had value from traditional do our for we're

a lot reliability I the fracs also automation, There combination more whole happen. So to fracs -- those larger, think important. precision of gets as of things but are that get the because -- it's that as start

with And collaborative super a so work, trial the really do of utilize with type that very In it clients technology. groundbreaking our to efforts excited customer. frac, to case this

Arun Jayaram

Great. people's is in on North minds Jeff, natural gas follow-up, my America.

given of XXXX a dry give was you picture the earnings in some Just of the is gas for risks year? the And a to I much sense just contango is X from what to your us the activity XX. if soft of above wondering market, gas. levered market could how are this just

Jeffrey Miller

Look, we've then we've a our the very gas and But the other significant overall our Zeus of work -- got we portfolio. of a somewhat part solution little business. I contracted in that is gas that bit sort exposure is exposure look, is have we the ones -- do under the Today, guess, little got, of not have things.

plan And so we for see. what we can

our say the outlook maybe America, North LNG one more comes we upsides haven't America. a to into think would I that's North today. of than baked I legitimately, gas But on. there could to be downside on it as But upside so equal clearly

Operator

Read Fargo. with comes Wells question Roger next Our from

Roger Read

a actually, tribal And frac to e-fleet. last saw visit the to site week and

setup. pretty So impressive

guess, think was of things One this going does customer? of there is traditional different, a about that we in the is how enlighten versus on from structure. slightly right contract contracting you're kind of lot the that. for sort standpoint, on I like margin of Looks a you doing mentioned of us on price-to-value anything the But can customer on, thought kind us What's fine pumping about it how price... with to the of sharing kind a through? a terms pressure gains What way of spot and mean exposure maybe

Jeffrey Miller

you. value for our won't customers. our We Roger, Look, create -- from our thank standpoint,

be to customers I order for meaningful have to customer. partner think and you in to value create long-term a supplier a

maximize maximize returns, in start And into under which contract term. which position. value, to We that we're for said, our very this long types from means focused the So do us on you view, over able as solid we went environments. these of

on And a operators kind of side either That a game. game strategy the the -- is the market. stay than getting of And lose it's a other losing. intend out spot we lot. sort win-lose When companies probably play the play to so of going -- our spot when tight, spot don't service is direction, the market of rather to it's that. Really, are is

uniquely And and that, terms are to of value lot deliver And so that think right a pumping with our I value value. view, of in do customers contracts in and that. we're also both recovery fair positioned

with or customers have a that long-term to and game. the customers future And foot the work long-term improving issues foot about production real with, and we long-term are on And to we play per America of ecstatic want try to so that recovery the per think game, game North in is we what who we're that pressing are frac. solve get working we

don't be And That frac it's play to our game. so that get to do successfully played if sure. clients allow doesn't and get need us the that part to We is game we that. of process,

Roger Read

the What here think Appreciate flow the but as What us But to you is uses of that. of to and this quarter, maturities? raising repurchases of The between, thinking question us for do kind we're of follow-up then dividend. free the I sort opposed repurchases. in way about the pretty unrelated, you to the free flow? debt to think it's fourth as about want cash share is think as debt, morning fixed dividend elective way have, your I cash return of right critical announcement did

Eric Carre

It's Roger. Thanks, Eric. Yes.

fairly in a except way as similar XXXX, about it higher. we think what in So did

we the about We're where of now back to XX% were X%. pre-COVID. dividend we So increased

to intend share. In terms of buying we continue buyback, back

the we share Our is to time, to balance strengthen debt did back than and intention we to today dollar terms continue intend in XXXX, sheet. in did to XXXX. At in retire as we continue also buy more same in the XXXX

structure similar higher. fairly did 'XX bit in as kind but we what up overall, of in everything bump So 'XX a

Operator

Our next question with comes from James ISI. Evercore West

James West

are What seems your cycle? of about -- And So systems with unprecedented. wouldn't -- derail -- and are not until you to could price just for the lot customers Jeff, up board industry course, least range go it But the if the recognize, awakening deliveries kind events are it your be is conversations West how locked macroeconomic going getting like be in, offshore to we're tendering with consistent about 'XX-'XX. A how curious at 'XX. is rig how this to I happen all Sea for cycle that's 'XX. seems partners I'm things Africa, time. playing long are we 'XX-'XX. with talked mean things. North they're of long of The for that somewhat and me FTI it on it's some into now, bidding view know 'XX or companies, of conversations visibility I your going. Because a like of this on a oil behaving that until

Jeffrey Miller

well. I this, that's I'm But for say over the businesses all Halliburton, precisely including speaking our return very good we long for industry. as term, careful returns for strong I for I -- which think would us what clients the have on good Look, and do. entire focused running And it's is

inconsistent with around to not that well. level make that's visibility of doing we're how shareholders. is for companies a And planning what so as money And future

rest proposition this think us we allows setup to so a maximize around value of demand; to because, this and just our the is how to value quite frankly, type for solutions it's setup whole for a, we decade, there's of -- very customers. b, that. do able we our collaborate engineer And And I know are asset good

The business don't other happens, we in run business. thing a we though, that for returns the when overinvest is

of and will fall you we've we're CapEx And looking so that told our where growth kind at. of level

growth very the And about growth firmly because keeping so international hand. we're in profitable are thoughtful we

are tight our think for reasons their think And that we're businesses return, contracts of And cash that's clearly for CapEx, doing. then I an for industry reasons. I economic it very natural what very also level the and manages which structured that It's of level thoughtful tight is remain And investment running those they'll so to shareholders. and maximizes win returning the way indirectly. we that drives assets

my in environment view. a it's good So very

James West

is here. Where 'XX? anticipating? go anticipate we and leverage from, that operating D&E where going and volume we for for incremental it one. you you improve But with that. to are margins, come seasonal. so potentially, and more the this Or seems certainly talk towards levered if know be through into natural going should this have Where going to know maybe however -- agree but that's are maybe the growth to I It margins? you I to D&E from And want a to is inflation. which take international, you of That's gave cooling do Okay. don't quarter should lot then 'XX and going you somewhat a to certainly as forward you're guidance, know me I want you follow-up discuss if Eric -- about incrementals,

Eric Carre

Yes, Jim.

to QX, look you So just effect. get at you point, your seasonal if obviously

So the the at year-on-year -- more and general but of D&E the trend margins. importantly, looking

think Jeff we margins in I worth the that mentioned XX first, script, as in had years. noting, best our D&E So it's

that done So a paying few in are lot it years investment means of the off. we last have the

watch us, general matter invest continue we in returns in the in business. margin, a really the as to margins it's of trajectory of to for what D&E So growth, business. in is improvements And revenue the balancing improvements

of to up XXXX. expect to say as to firm in our were all materially than margins higher 'XX. margins get they D&E be So And XXXX in in into to continue that we're expecting we that

than be were next, parts. the Now cetera. XXXX some business a moving there they quarter along et the But might of that margins XXXX. directionally, be road to It's from tends bumps a typically higher in have X will in to lot

Operator

Our comes with Gruber next from Scott question Citigroup.

Scott Gruber

part deliver business the in in your step than more cash U.S. flow the for I back portfolio. about establishing as free that's a it investment to across Jeff, think that investment we've business, will appears e-frac and the that So and given better consistent you're outlook seen a years the ahead historically, pathway on

kind wondering 'XX. CapEx the some doesn't reduction if I material color color a So give the of domestic correctly, you'd now. CapEx suggest in If just consistency into I'm around seeing heard that. We're

kind consistent that's more model curious helping much overall So this bending business just of curve and around of that kind lower of kind and less ultimately. CapEx-intensive

Jeffrey Miller

And precisely playing and to is set now. out that's we that Yes. Thanks. what's do, what out

intent of through our cycle, a in all flow along. cash so that's and business And consistent generates been free that strong the terms

play North by that execution quarters With precisely out term we've our delivery invest seen nevertheless, the we bring that we as last And way maximize are X in drumbeat in of Halliburton. cash because we fleets North the I in and America continue strategy. expect market over is way think moving long But to I broadly, how steady around. you the flow very deliberate Zeus to we the the that saw America. And about market, value

opportunity, certainly so capital comes to budget, not capital we it pull, remember, that strategy. with And that of fleets. But our those a see when to going our flow, demand allocate that's where cash Zeus see to which we allocation it we're a things push

we don't have contracts we build for fleets So fleets. until

free environment that's going we've would a so from and be will we market drilling have America. But to overbuild North margins -- but And good, our in for flow prior do going in consistent It's else Like America. take Halliburton, seen not my cash a market it. about of it, North the the is delivery view, lot in into very different excitement America. still we're North some developed maybe we to it than cycles completely it. different anything as approach technology selling We're of fit-for-purpose in

market, sort the of us that And stack And the at fleets we do see march means I that put e-fleets and bottom to continue that retire you'll think so the that. continue forward. of we in the are

Scott Gruber

Got it.

down. to about we here. just that basis? Okay. continues a to move it free is cash see. walk us a as time, a your M&A, on of shareholder Leverage as return that now, sounds more like thoughts higher the any percentage be Can of Appreciate bit. which free follow-up generate of you'll step through continues, the good you cycle should flow leverage Unrelated return up is to in about kind will somewhat the down Outside think And trending moving cash you forward flow, could Xx you come given cash on leverage go-forward color.

Eric Carre

free over flow be think just 'XX. yes. Yes, you free at I flow, with expect I to that least can mean cash cash XXXX XX% starting

basis. returns So going increase basically dollar to that a on us is return help --

guided the would it of terms overall in what percentage, XXXX make return. did still by in we'll shareholder. sense we're that at terms least return in But the Now of do directionally, believe XX% we our percentage to to

Operator

Our Piper Sandler. Luke question Lemoine with comes from next

Luke Lemoine

fleet, the customer in Mexico. 'XX of Gulf most in the the U.S. 'XX, any rig more some But about that quality, stable your America be land And I drove count you then service and And in rev 'XX. factors Jeff, significantly North a for pickup would outperformed count guess Zeus with U.S. rig down the were base of North in you? could could you think this? other land likely talk up do revs America factors

Jeffrey Miller

the just of I the as is business outperformance the Look, Yes. described stability it.

part of And so of by our the steady fleet That end is contracts. creates big environment. long-term a that XX% a under 'XX

business is and what move our does, North very but very offshore the is business, going America largest reality other and our the is Mexico count Gulf environments. around part big. rig the it of saw to stable. And of do growth So We

some out expect America go And business that. going same business into However, -- performance North land our of sort stable of is rigs the of America do. we as kind North business large, of a what I of very spite mute to in 'XX,

stable-type say in largely to run Now a business the very And required DUCs wells air. around supplying their smooth, And I than rigs repoint our down. of drawn numbers down, we'll a think turning plan do I it's see I inventory count production where because DUCs would do increase believe that they business. they're the more customers are rig largely into drawn of only

very goes wells. on think of that there's stable a completing of I planning a lot business to And so deliver

the but would But point. to I won't upside try forecast stable. it upside, say a returns. obviously the But come 'XX? think think I participates I there's business I'd the I expect that Like I or we don't and that think that at out of We happen we so they being this this and pull at we're -- to think plants planning could we'll year. count, plan gas And that take see, activity can Is at is said, online, 'XX North on see what know pace count which this the around LNG Halliburton I one clearly reasons in that will. event I over that and rig push that think are we and to point, would do point I But there for get there it be could that America. rig in factors the business up.

Luke Lemoine

with ascribing follow-up business? you stable more 'XX talk And you with American see North margins in this of that in guess this flat you're Okay. business, land your XQ. stable a how about North progressing American you I talk kind Could about

Jeffrey Miller

leave it Well, moving just stable at steady forward. and look, let's

PE, benefit other of where to our standpoint, and cementing, this get we I Clearly, international expand that as we've very that U.S. we're And to there's we think, a cycle, that do and business. business where market C&P I But think grow got positions think well contributes, strong do wanted flattish see a really and the I we is through and things in are. But that pleased with from any around revenue baroid upside. continues I expect going to world. the margins. leadership margins we're

think, to think our don't we're I is that So key in that a demonstrating margin standpoint. that stability now. continue And cycles. going participate meaningfully, I I in But again, through demonstrating America from to know North particularly we're -- I we're think

Operator

Stifel. comes with next question Gengaro from Our Stephen

Stephen Gengaro

Can and me. are in fleets. pricing question should dynamic being versus prior of around sort the openers on there's but Zeus how the C&P and bit? that market? honestly, any contracted, little Wanted sort assets think price the term pricing to quite you just a competitive capacity about from -- And about in for some, in talk about assets these margins Two up matter When there pretty we the of an the a cycles difference Does talk near where older sort as maybe environment stable? of follow prior quarterly? is maybe assets excess you assets those just in not for pricing it

Jeffrey Miller

of into asset long-term that needs the to return what we and these cost knowing the knowing be. deals go are Look, the

duration. a becomes problem just around it now a bit math So of

other of whether sand in variable and are the competitive own. we to through equipment and is create for try for just We opener market we price fix there so sort over these for don't costs all don't down vehicles. There's for what to don't change That advantage customers, need go no we of Halliburton, literally and things. But forward. that for We and reason control time. client, sit is then return we and cost it's long-term our where -- And that into we many pass and work doesn't through return it. jazz. We the that move

all, market at a the market of the to what long -- math of not say, all. it's differentiated, free just kind does But And different, makes the North we it in when very approach in clients a do. on to I of in It's as And view so value market. in the particularly America. It's what it's the for it And I result, the would spot does. if is important, what creation, that's to foot. That's can That's going game. where I which that's do all rest spot-type that's cost so market, But most play, going working our we well, is do. think total market, and lowest a per of is ownership game. that think a on, think, take productivity I a both want of different how that which and technology-driven, long-term

Stephen Gengaro

capital flow one models, working statement. of or Great. it's And know cash versus probably for then that would we Eric, cetera? payables, quick kind we much DSOs whether out in the different the about on et parameters be 'XX build as 'XX just should Anything one,

Eric Carre

No.

think efficiencies expecting It's of I working flow improved free important capital. what's is, cash be the free on XX% cash be mentioned be as the going around income. going back is on flow over 'XX. also That's at I back around to we're the earlier, to to least improved of

don't of mean spend speak we when I mean DIOs. lot working different initiatives. So implementing on the organization, I just pushing DSOs, And working improving this, time improving I like on a

integrated couple services. of you on For on lot a a example, time of automating spend the We give process I'll examples on invoicing DSO.

invoicing complicated. example, service For is on extremely integrated

of the ago rollout inventory months when in can increasing customer organization, different our improve while demand the multiple to that reduce a remove so have software, reduce rolled company-wide and which you us a lines, totally XX to multiple combined plan that S/X We then with out parts of to automate time. lot And product it operation extent not time, organization, business perspective. -- going give risk the the just of cycle you from an DSO. planning We then is our takes and future capabilities

things basically of improve spending of these the to our where So a efficiency are lot we're structurally working the time capital.

component flow going improve expecting free to why to next cash So that's other the our we're year. be of

Operator

Our next Marc with comes from question TD Bianchi Cowen.

Marc Bianchi

America North from the comment flat. to Is rates you on That's outlook correct? year. for clarify first that that comment it a where provided the for to a wanted just I run full Or was be that are today?

Jeffrey Miller

we from that Look, think up QX is QX.

that to comes back seasonal So there's QX. activity in

think as There's we as that what 'XX, we nevertheless, -- we that the see expect look of there we returns plan we that, that's plan lot kind variables -- what and 'XX may year, to business generates do the business are see. to what at levels have I the that? largely we As of happen could clients I that, positive. if think, a But we I can that's up. balance for think production got to are that the speed that know. Are we of generate, if contracted low, a out and factors the of for you I are look think to add are we fleets may to there our visibility

Marc Bianchi

Okay.

The first other question I here. the had was quarter on in D&E

sort in have there in outlook continue prior case Or year the quarter. that first on onetime And versus second base years? that could this historically, margin the D&E there quarter. unusual think the Is of for going be down is here? then I sales been the some something

Eric Carre

unusual. nothing there's No,

seasonality line back saw to XXXX. that were very to COVID, 'XX QX 'XX we prior XXXX, to look the it with typical think you that to over -- the just at is QX if you QX XXXX, I actually, if and we go back you gave, go so QX much in guidance

and software having seeing in lot here influence we're maintained we're historical of business in Eastern terms in Hemisphere that's in of issues that typically But fully D&E But really the of side, have unusual. Sea, we margins. had historically weather-related what our guidance a So as in the in the very cetera, et is is influencing in line quarter-on-quarter a QX is happening much the nothing North trend. What's line business, D&E with QX. sales our on again,

Operator

[Operator Instructions] with from Our next Hallead Benchmark. question comes Kurt

Kurt Hallead

to Jeff, A make. appreciate that to lot stuff here good of color. digest all

I see how with -- think impact company. a have in next again, of which as here, you one things seeing what And AI kind you as course of The years? the the was, do of a was maybe -- that dynamic piqued that release, how customer your do adoption couple ADNOC. context that of of base kind for tool press you put which my of are the a you tool in evolving evolving see the the on one question of AI-driven financial curiosity of you that you with of how the my going And start over for couple that? a the

Jeffrey Miller

is over X, it's costs, as that to expect X also have it's will adopted, improve a which service Kurt. it's into capability and move I AI for strong how customers. Internally, the on next to ways to as reduce in service we meaningful as that solutions, AI I those of things improve going enterprise generate automation we Thanks, long-term going returns. forward. all of will and And a will and fundamental And lot of are it because drive generative to impact. think I say we continue software and and to create business our Yes. Look, so Probably [indiscernible] our tools service adopt demanding. years, sort X to it efficiency way think I adopt that which going AI tools, will is the quality, delivery, think I and and software and automation, just focused actually

Kurt Hallead

Appreciate to entered Also that direct that a Labs some color. venture lithium extraction. Halliburton just into

you Halliburton in curious involved So process to see well. how that might as as

Jeffrey Miller

$XXX,XXX. It's a Well, excited one here. them join labs, make look, that's companies to investment companies. our in very, have that very small around but it's We small. our of We're labs very

companies for of my Series We're it's doing careful. continues is not So venture corporate their B, quality them. in we're tiny -- lot industries, time. watching some a As, Labs different we're we're Series excited investable enter Series journey. piece and But a We're B. And cases, attract, to Hal them in This a it's more which clearly capital. but over view,

that We are member we that stake the the companies X% not them provide small than investing Hal Labs. in to services X% generally join other get we that Labs a Halliburton for to as of them from

on to that about But continue going. So we its let that's own. excited just progress where super need to

Operator

the now call would to back like I remarks. Jeff any for over to turn closing

Jeffrey Miller

you, Josh. Thank Yes.

flow this: will Halliburton services I is Look the next cash XXXX. speaking shareholders expect I'm you significant oilfield mean call to for quarter. in for generate and close me Let excited free our outlook about with XXXX. I strong, with forward

close the Let's call. out

Operator

your for you participation. Thank

You may now disconnect

Halliburton (HAL) 23 Jan 242023 Q4 Earnings call transcript