HAL - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the Third Quarter 2024 Halliburton Company Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I will pass the call over to the Senior Director of Investor Relations, David Coleman. Please go ahead.

David Coleman

Hello, and thank you for joining the Halliburton third quarter 2024 conference call.

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

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

include may These our forward-looking events. risks actual comments today's to involve of forward-looking reflecting differ about matters could Halliburton's that uncertainties statements. materially statements and results future views cause our Some from

June in ended for Exchange discussed no are other Halliburton's XXXX, ended December the for update or XXXX, risks for and year to any Form obligation reports These the Commission current forward-looking any XX-Q XX, Form quarter X-K undertake on statements XX, recent XX-K reason. revise publicly filings. Form We and Securities

Our also comments today include measures. non-GAAP financial

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

to the turn Jeff. I'll call Now over

Jeffrey Miller

and highlights David, you, good today's I'll third begin the Thank from with everyone. our morning, discussion quarter.

total X% We of was by margin was grew and company adjusted North Middle increase a which revenue billion, $X.X X% of X%. decrease billion delivered International operating America billion of East/Asia, an XX%. and led $X.X revenue delivered year-over-year. by year-over-year, of $X.X revenue

our $XXX stock. the third free of quarter, approximately of Finally, of during from we million common $XXX repurchased flow million $XXX million generated operations, cash cash and flow

financial condition results. cybersecurity August operating a event material The or has our not on effect had

lost However, of quarter revenue. earnings for $X.XX the due per delayed roughly of that in adjusted or event, our with reduce Mexico, together the effect to did Gulf storms by the share

to us billing during on we our impact repurchase to and the program the the an collections had quarter free our also event. caused of event cash impact cybersecurity assess share while pause and flow delayed due The

free both for cash the remain and shareholders unchanged, accelerate expectations returned year to quarter. we and cash expect flow to full in our Importantly, fourth

their for moment take on, this employees thank navigated the cybersecurity we would event and like our extraordinary move I work to we quarter. a while Before

celebrate operational through I their this maintained my employees I work close grit their conditions, through would and time. customers and thanks to and event. our effort Our also and like collaboration support extend as continuity they under to appreciation for challenging the

geographic with the international led Turning by I'll grew Halliburton's Middle region. results. X% our revenue to where begin the markets East/Asia year-over-year,

line year, full overall the market international of For guidance. expect below and growth continued business. am growth with performance our and in revenue pleased with be our to I I our prior the the

see digits. global I directionally, for year, Halliburton low see projects Next we and opportunities I'm and am our I customers. mid-single from lines, the business value and international our on of in in and growth the portfolio, us will value our encouraged by both pipeline, create the depth that to the technology reach confidence breadth international of of our power these our deliver of confident the proposition. the comes strength My largest

through our backbone a lines, international largest our Halliburton's their each technology market. quality positions legacy these earned leader completion developments. the spending business digital We've development in and execution, and globally, drilling service oil form of and fluids, and is leadership of consistent tools and gas cementing,

iCruise The competitiveness international tools product ultra-deep highest the technology profile. a our of create Sperry line. Halliburton's has operation and impact change directional the and return platform growth on of business business. remote and ahead and tools, transformation international Sperry step and have Year-to-date, automation organically resistivity The clearly in LOGIX our of any developments our Drilling success drilling developed and demonstrates logging look revenue major delivered iStar

development areas, potential. well as with future is major today all Halliburton as promising present in frontier Further, basins international select

operations. on revenue of offshore land outside our earned Our of North XX% and America international with from business both offshore, operates roughly

value asset value our approach collaborate Finally, proposition solutions creating customers for maximize to drives Halliburton. customers engineer to our our unique and for to value our and

and approach deliver collaborative Sea industry-leading and integrated the alliances projects. performance our pioneered on by elsewhere. North consistently wins These of in customers is new exemplified with to ways our working Our alliances have

confident confident continue because portfolio, our that value international our international am of strategy, our I our growth relationships. experienced and technology business. deliver and franchise am the I I of workforce customer in deep clear proposition, unique strength returns. Halliburton's our will expect to

for I Halliburton a These unconventionals, and like Two few intervention. and I beyond. outsized international would describing spend some areas time are artificial in to are to Today, lift where expect me. XXXX things clear growth

will Two, expect execution, Halliburton both and market as role and than in becoming next to Halliburton are the is over the they expect U.S. developments more and unconventional other clear the important, in technology leadership segments same internationally I faster One, play leader unconventionals, have the we grow years. I few in

hydraulic market Halliburton's Halliburton fracturing opportunities which see several where Elsewhere of up unconventional fleet, Halliburton East, both in contract important emerging this see unconventional We evidence services grow of awarded the a share strategically the customer was asset. growth and started other Middle in for in a unconventional we drilling an in region, multiyear plays.

of Halliburton's business. growth XX% year-on-year leading over international saw lift this artificial quarter, to technology to the and portfolio. on the expect revenue market Turning We outgrow our continue strength we to

North its permanent which induction of be deployed especially a the Middle realized where demand, economic hybrid is motor can motor, scale. the at reliability America anticipate Initially we technology an our motor. East, such with and of strong magnet the America, in in One benefits international efficiency Latin combines TrueSync

pumps performance. wells year. this year, the international is key which a in the ESP our remotely XXX,XXX over saw optimal real-time interventions expect remote Intelevate similar increase value to we as process XX% Halliburton we installed since start performed Another Intelevate base. North America, to of monitored our technology uses In service, internationally and expand We deliver manage AI and data for

another segment, intervention the outgrow overall Well will market. believe, is I

long at of focus twice have the rate been grown production has has with which organic our We investment business. seen international area already Halliburton's overall development. alone product this of an line, this and for technology our Well Intervention solutions year

of This end-of-life For the means economically Halliburton's deepwater alliance equipped riser technology for with world's full can and intervention that wells first requirement without a intervention Halliburton rig. thousands tubing in can of marginal riserless achieved now could subsea or deployed be suite service. Customers services example, well be the offshore serviced. intervene TechnipFMC coiled not otherwise

opportunities a the are few These Halliburton. examples that unique growth above-market describe see we for

the technology of drive summarize XXXX. markets, value I profitable our international business. believe will confident in am I To in strength and portfolio, proposition strategy growth international our

Turning to North America.

the and result budget land. primarily the at prior Our low the full in third year declined exhaustion of quarter, second due revenue activity end I hydraulic lower combination a quarter seasonality will guidance. expect X% to fracturing compared to our in revenue decline of U.S.

in value unchanged, will to remains expect outperform Our North America continue strategy and competitors. our we to I maximize

means to Here's I Completion and value how maximize I In business, America North expect maximizing look XXXX. technology, service to our deployment. efficiencies quality as value and leading unique in capital disciplined

is differentiators The I the deploy success our for work of of completion committed our Halliburton clear. strategy XX% customers. are pleased we in key fracturing technologies this Further, multiple the for unique are And that today, market remaining in fleets am opportunities with XX%. this and for XXXX,

workflows. platform, measurement. and of and Zeus seeing the Sensori pumping is commercial, technologies Each Auto these into electric subsurface are comprise accelerated they units, we customer Together, Octiv Frac adoption

commensurate our extensions We several on XX% we the and and also of which of existing of this for their for we e-fleets prices leading with year. secured X our the performance This signed contracts components with will e-fleets at of quarter, exceeds equipment, platform believe integration unique to expect our other fleets next new performance platform. active continue Zeus the drive demand fleet

Turning of e-fleets expect Since to of vast in expand in months. our Auto XXXX, Frac contracts. at e-fleets we Frac and majority with Customers this to expect Auto to remarkable QX, a XX% XX% contracted launch deployed next the Octiv operate we've automation on Auto Frac. to the our have X technology In pace.

I am for building our per the deployment also progress for provide improved foot blocks Sensori customers. diagnostics, of recovery fracture the with which pleased

technology third expect expand to this base fracture our workflows in we embedded customer further Halliburton's customers' the our completion and unique Sensori a quarter. number fourth quarter, During well of the monitoring technology into for

see and recovery. create technologies, path an technologies consistency, these will the a ever expect Looking improved to believe I ahead, environment, adoption. Zeus' higher together real-time fracture automated greater in I ultimately platform to seamlessly continued working and its levels constituent efficiency of

to related creation value technologies potential is these The significant.

accomplish. are operators the today several working to platform. of just what We technology are Zeus the this market-leading with advance we integrated I will beginning of application this at believe

Drilling Shifting and to Evaluation.

unique business XXXX. count of decline North over demonstrated expect a despite the period. I continue drilling growth rig growth services America nearly quarter, to this year-on-year same Our X% in this XX%

in platform I this further next each run. a commercial sales tool and revenue basins, unconventional models, curve rotary In delivered steerable full and our expect sections LOGIX reliably year automation deliver our and service, year. lateral We and growth drilling of in rental, expansion iCruise single

In Halliburton's preferred a portfolio improved these has which leading magnetic access as gravity oil is technologies, strong for of well future runway producers in such the our midstream solution infrastructure ranging service, wells. Aurora Canada, drainage market ranging Expanded technologies. Canada, steam-assisted for for creates

the and reservoir unique our and well We projects unmatched extended and as the see North deliver drilling next years. In for customers, the area reach resistivity performance increases multiple services, wells significant on ultra-deep logging few our EarthStar insights over service growth mapping in for drilling opportunities Alaska, directional tool Slope. activity in drilling

Across revenue growth driven expect applications, returns, a further unique meaningful broad customers spectrum XXXX. for America and that drilling and insights our Halliburton's technology and strong have precision performance, North of in delivers growth I share

North thoughts America. To finish on my

is and America for focus the create The execution this has quality deliver I believe and and share. of Our we of service and our unchanged. strategy value value returns, differentiated strategy we that We strategy transformed technologies develop Halliburton's to leading North resilience our business. not maximize customers efficiency, Halliburton. profitability means on

for see close across business with Halliburton. and Let me lines this. geographies solid I opportunities

in execute return the flow and As America, to cash North international profitable deliver value to will strategies, capital allocate returns. maximize growth prioritize value, opportunities we target on shareholder and we free highest unique opportunities generation our and

call With that, I'll details financial over provide to our Eric more to now results. turn Eric? on the

Eric Carre

you, Thank good and Jeff, morning.

share Our QX $X.XX. per diluted Adjusted income $X.XX. diluted net was net reported per share was income

buybacks our I turn want and stock to to Before detailed a the event free the discuss cash SAP cybersecurity our to of results, on deployment. moment take impacts flow, this quarter earnings, we

resulting by share. earnings, the the Gulf diluted from approximately storms impacted of cybersecurity our adjusted in $X.XX and event Mexico the revenue with lost the Starting per results

expect cybersecurity from incurred event. incur event of not addition, related which In we excluded is million results. do In the to significant related to adjusted $XX we QX, expenses, expenses further our

We QX. which by expect of cash ability full affected work the amounts quarter. during receivables was year maintain collect growth last closely than to flow expectation our free and customers our impacted Our collect free to XX% in system those invoice flow in year. and We our outages, to compared cash with greater

paused quarter as repurchased the and event our shares the targeted. program impact We than assess stock we fewer of this repurchase

plan catch Our on is in to buybacks QX. up

the and million more the our Based Finally, this and completed our than delayed SAP initial approximately quarter, estimate. implementation be cybersecurity event, project to expect successfully S/X cost there $XX on the first million X to we country. learned X now months $XX in lessons of I to

now company $X.X XX%. QX million, results. operating of margin $XXX revenue operating was Turning our decrease to a Adjusted company was billion, Total and income adjusted X% was 'XX sequentially. for

million, sequentially. results. Operating Now Latin services U.S. operating $X.X margin These were and with revenue our XX%. turning decrease was was segment in QX billion, X% $XXX sequentially, by and America. lower Completion Production in land to division, decrease a of income results X% was driven and fracturing income the of a hydraulic Beginning

income sequential QX operating our million, was $X.X in flat. billion, and margin increase In while of basis Drilling both points. was XX%, division, a Operating XX sequentially Evaluation was revenue $XXX

higher offset These improvement in East in globally, North in activity greater-than-anticipated reductions count well by and construction and Sea, fluid markets. Latin results rig were America the largest delays project driven the X in of Middle by sales software our

on to geographic Now results. let's move

the drilling-related was and primarily tool sequentially. million, offsetting Sea decrease flat lower X% QX in to decreases sequentially. was decreased Sea. in This higher cementing Our completion QX in in the North were these services due West Europe/Africa was decline of $XXX revenue sales international activity Africa. North revenue Partially a

increased wireline was revenue an higher fluid of improvements Asia. these services services East/Asia the East tool completion the and pumping $X.X increase in in QX sales Arabia, in pressure due X% Middle Partially lower and This was in Middle were services drilling project East. to higher billion, Middle and in management Saudi sequentially. activity primarily increase offsetting activity

the lower decrease primarily increased in improved management sequentially. billion, project due revenue in fracturing hydraulic X% a to was This services by Latin America partially activity decrease offset QX activity was Argentina, region. $X.X drilling-related and in

North was of $X.X storms. land, primarily lines a to partly pressure This in X% the across Mexico, decrease decreased driven billion, sequentially. America, addition QX product U.S. by service services was Gulf impact activity In of multiple revenue the due in in pumping decline to lower

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

corporate our $X.XX $XX we per million. included spent As expenses results. on to about or a in In result, expect QX, about $XX our QX diluted which SAP S/X migration, is we million share increase

increase For million. $X about QX, we to expect SAP expenses

Net $XX was million. for quarter interest the expense

currencies. net than QX $XX For million. QX, anticipated, $X we interest which exchange in by expense foreign multiple expect expense for Other driven unfavorable to net increase higher was about was million, movements

be this For expense QX, we approximately $XX million. expect to

QX was our for our our mix, we geographic rate tax effective on QX was and XX.X%. anticipated Based approximately tax rate tax Our XX.X%. XX%, normalized expect be to rate effective earnings effective

for were $XXX Capital expenditures QX million.

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

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

XX% to For free be XXXX. at least XXXX, cash the full higher we year than expect flow

be sequential margins for we basis you X% Now to basis with XX division, points. expect to margins Drilling be to Production comments Completion anticipate our our decline flat on and points. X% sequential to QX. me In X% our and up XX XXX In to to division, to and expectations and decline let revenue Evaluation up to we flat provide revenue

turn to Jeff. now back the call will I

Jeffrey Miller

Thanks, Eric.

the key you take today. points our like would are away discussion to Here I from

expect in I'm growth excited confident are strategy our the of deliver trends And will technology clear strength we around believe Zeus keep I business. the our am business. believe our the America, and moat drilling international in about I in unique proposition and value continue the growing I and emerging portfolio, to growth. demonstrate international returns. market to our unique North Halliburton will where widening platform

now questions. open it up And let's for

Operator

First Instructions] line Dave from [Operator Anderson question is of the with Barclays.

John Anderson

with obvious the out you that buying just of questions But activity the think and kind Is first, maybe impact is let's start of going permitting there, might asking thesis to higher business. obviously, election regulation, how market onshore So your result going later? sort the reduced in faster forward. the

which onshore market of that you how the valid impacts you're could way about Gulf North for couple Mexico, certainly in the red But I think in seems a that mired next Is thinking how the compete to Is assumption? America years? this tape. business? be see of do you your

Jeffrey Miller

It Dave, Look, only be only it's positive. positive. could

optimistic In why. and fact, here's I'm quite about that outlook,

I and of what common incredibly important are development, reflection of sense a a was you country. economics this which saw resource view think in

is majority importantly, more that the about out. then it's of a rational people have reflects way was the important it view how energy And rolled our It country. to

invested I that, I rather for is the being absolutely Halliburton's so this business. debating in think that and about but every defending industry, think are spent good not when And dollar industry,

John Anderson

to of and you I Mexico? been you a know -- What think could could could potentially that things Do there's out permits that about start you activity this getting in free think pickup there? see Do up? Gulf like issues some the kind that. of

Jeffrey Miller

Yes.

acute of in I even and industry, of I the by lot long the of nature been the think and are term risk, painted decisions it's get there's risk regulatory Mexico think that more the made yes, types -- look, this given operators. particularly in that over probably a that's Gulf that of significance Dave, investments

creates day. derisked the I And we operate I what regulation digesting this are runway. think Operators extremely think was an They place through energy directionally, better a in every important. don't -- be with are I more legislation no even good hey, risk vacuum. that either in is that And a There's those reason absolutely we should in saw country. anyway, think we're development energy or

John Anderson

here but specifically It of pressure of quarter. clearly year-end. of onshore. We've and down all as the kind faced you sort kind down And ton kind approach of in Understood. a does moving little just more a fourth to could we the far, if maybe the this. guiding and U.S. seen of look now so shift slowing bit you're I pricing of kind like margins It's

Zeus? talk are widening about if your wondering you could accelerating happening of that of conventional does was spread if Tier say, of pricing sort diesel, you X Are about spread and I you -- kind seeing potential of amongst, here? And e-frac. this thinking kind so,

talked platform, wondering, You forward? Zeus higher accelerate does going drive into this I'm program that because that differentiated. kind which did for pricing sound therefore, really about should, of you very just

Jeffrey Miller

our Dave, for for that we platform. growing Zeus demand Zeus Well, demand still platform and see

of we've So that we'll customers is quarter, in actually the seen terms be them. and this seen that matter of acceleration renewals. with contract we've see And consistent more value a and

really feel I So confident in that.

it market making of pedal think to you the do. in I will And and means acceleration, by put opposed it push when think virtue and as work more to opportunities accelerate spend almost to having that that just available and we the

I customers. really is as will entire think to move platform with also and stick more That as diesel the value outsized retire be with let outside important frankly, the creating our And approach that going the electric. quite an the country. is, electric maximize -- replaced we're for value or

Operator

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

Arun Jayaram

you to want next your on Completion see thoughts America North trending Production and of get year. how and I Gentlemen, kind

committed 'XX. be Zeus to of XX% fleets that perhaps, of could And XX% mentioned fleets. is You up for that frac your capacity that

like RFP you of lot sounds a got season, committed. and of through equipment the you've it kind navigated So of kind

that's fleet than Zeus bit some maybe on extensions some announced you've thinking. that we're a mentioned earlier also little You

that's I'm non-frac out year? trying just next could what's how about given was So XX capacity margins outlook your to next over the just been of And committed, think that wondering, months. I amount for play

Jeffrey Miller

talked and planning same I the are to customers look, day, XXXX, to clearly about and be and talk -- Well, work. improve feel they time. at also customers they're recovery good to to planning we every more I efficient But

into directly plays about value, silo about I that's obviously when longer laterals, Now maximizing seeing -- solution. I so frac, moat I the outsized more and think XXXX, drilling platform, wells for widening platform. strengths, better it's think whether that described the the our our faster and our and I've Zeus and that drilling performance Zeus solving recovery, the hardest means unconventionals with we're problems around that the adoption

XX form or of about going as XX% we're I've committed doing view committed consistent -- that you've to having that yes, fleets fleets are and be now. our And the market XXXX, today those with till seen performance does a described things the in

think we are market I that XX tools approach So about and in today, for will the downturn been we've that take. the the have the And a taken and tools arguably we months. approach

Arun Jayaram

us Fair completion think of is are Maybe North dynamic Okay. side -- companies day This fact doing the Jeff. consistent 'XX. question more we've completed that is pumping enough, per about help day? that buy footage like does frac in more Jeff. gotten, hours kind it the Halliburton a American Is per

equipment. fleets coverage do in And for X so 'XX. fleets in X example, my So they that use using E&P lot Does to frac -- could frac could the 'XX, they a that mentioned is highlighting sense? of less make ability, do did what X now operator

amount impact footage, does if through lose of impact frac question does does example? margins And this maybe X doing or a is, how how that But you similar your business ourselves impact these your using some Halliburton? revenues that that base We're how pass-through. the fleets frac some asking profitability are thinking we're

Jeffrey Miller

getting equipment, leading less on of based means number on which in one, reps. most get look, that sort Well, edge we're that And our more capital. we reps efficiency, of at more cases, the we're

from So maximized Xx doesn't a frac. it standpoint, do to take value a the simul equipment

fact, takes In less than it half more.

equipment why more so way equipment build is that do. same revenue positive we and And or less the the generating the with we strategically

better. the more front rather I'll And me how time, operators same tell end to I and part be on than get creating else. just solution of somewhere Zeus which the the also that's platform, the by much At you, value would pumping, the takes this of

charge this creating be. more to want leading value. opportunities So where create keeps is we to busy It and us

it about thinking Yes, you're gets way. right the more So efficient. industry this

and it here. think at the of as to more gets leader. plays from But a I front efficient I Halliburton get harder expect end that

look we're at we're successful look, does which that forward some ultimately capital how And future, are and it. the in and there's know to a environment, operate we -- in it, doing capital efficiency, driving support where the today. are So ways, we I efficiency, we we're into margins. If

I to I Tier But becomes think catalysts, whether other happened that X. be X positive. X are future ignore becomes also that things it's rock unreasonable Tier There would Tier think

Operator

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

James West

So quarter. a on highlighted you lot this intervention

you I capital, investors yours. closely or not of would out amount but building following that you business know or as done of Dave aren't think work a strength in maybe myself the as and that about big have as Arun tremendous guys just R&D

of -- the highlight you of strength you've talk Could and maybe how kind view kind as then of and are today through one I you been, that company. now? first, the huge guess, where where I of guess, of where kind you you were, why

Jeffrey Miller

business and Halliburton that entering stimulation, baseload gas it's for the has Look, the James. production world. whether Yes. are oil of always an markets wellbores, it's Thanks, around intervention, important maintain been this the those and

important in the would base that that want we've to effort characterize of how in but highlighting we're in predicting R&D so to and like is business, I I that And how around terms anyone I'm But that putting that. much don't generates. forget also because been load work that it partly

history, at us. some for it's invest when sort a And look over so Halliburton, if important I in contextually -- go direction, of we over

unconventionals, years. back what thing and an we've talked the for intervention. creating R&D mass critical we've Sperry number Drilling done done from same number it So then of a about And I you bigger we've with doing if think and years, a a around go business, of

the for riserless going is like intervention of and it see forward today, in things, developing terms TechnipFMC talked X a We've making years, hard about on we probably, worked with to step an economic. incredible for decade we're you're it here. now described wells However, call on us

those the market of expect for bigger, kind us see create us. more of are a to But and do I growing things

see from growth so will this perspective, internationally. we outsized And our is where

James West

to Jeff, Very the make then, the than And part in higher previously therefore, hear. cyclical a been Okay. interventions earnings growth bit the good of less business they've little perhaps and, a multiple.

Jeffrey Miller

so. and completely think I kind away. part of curves of the generate it's I decline growth and with we invest never agree reason you, the that These, want But to it's to continue growth. go that outsized

everything And always Therefore, so is as there obviously described. intervention for declining. we is demand

Operator

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

Roger Read

get in you happening products about and not Jeff, talk everybody North Could talks of you that's just the opportunities your can international. about contrast obviously, lot it? the globally, efficiency little productivity give that here services I take? see us what bit America. a You And on a going of improve and your a

what to by now business, question impacts were X, what just your earlier, customers of how and in productivity crews goes think, I your you to affecting are? you right, X that's think if asked But efficiency, Arun, frac right the say terms getting are

front there? on that of So as productivity the think does headwinds the What you opportunity compare? are how facing about you internationally, kind

Jeffrey Miller

way. behind Well, of application. look, terms fantastic internationally, I would North say implement technology where we're a you fairly resource, fantastic as straightforward in place much technology market further a and that operators America, know, in can

will are moving some where and into argue, would I more in more. just to fact, see start In we maturity Argentina

cresting East, so much before see there's Middle terms but that of example, worked to work a opportunity think I efficiency to equipment growth point, we in consumption the But we'll of the for because actually well has see just do. --

And the get of I markets of, that creates benefit technology those Halliburton, is better think a wells. what the particularly lot with

have, that make the back that the technology back well refrac. lot with like we'll wells a they're would But armed believe in go we better to designed. are There wells. If we and time go you in today, I of U.S.,

that But point reducing we're get close efficiency, internationally. specifically to to say your -- to but not that question, to even of demand

it we're add, of We're U.S. let's fact, do that. days, opposite Hope add, at the In more. in where looked the back Roger. that end helps, like early

Roger Read

Yes, kind we I does. way, but the the about experts similar what look seems say to it I'd wanted at, evidence that just to it. of talk

The U.S. steerable to accelerate drilling things the other the about Might we a hear potentially question expansion forward speeds type I be rotary drilling types advanced greater in other had, is and devices. one going of of way of

that mentioned in the North call do was coming penetration part of as years? curious introductory America. you -- your that's just Latin to how roll in how You over to out the that I But of something in America see terms additional

Jeffrey Miller

steerables. a I'm Yes. Look, to crystal rotary in continues is Thanks. clear that that this market grow

trend is rotary the in terms Just over are the of see that the Everything I North precision, steerables are America says, efficiency, types that wells time, being drilled in of length, tortuosity. bigger lateral. to and in in curve the drilling ability of and length, but from also part both terms of of terms bigger a complexity market, the the execute this speed the

reliability getting I has around we're same -- And North drilling lateral. our thing see curve internationally. the And that's traction where so really iCruise been America exact tools that in the with much

that for In fact, contract -- we've the the we've thing. won Sperry, already we're in Middle described same of East type

would I the the a It's the market and is growth really what's is terrific any iCruise tool. expect that -- performance around unconventional in in see growth share. to CX world causing

so And are. pleased we where very with

are in directionally that market but types the in that growth go being the to sense But the think to of in to that, in also I of spot lengths standpoint terms wells has we're order is in secular time, the from a right get the where continue and drilled. also better both

Operator

the of Sachs. Our Goldman next line with question Neil comes from Mehta

Neil Mehta

contend that companies a is had lessons learned Fortune-XXX are, all What items around are cybersecurity with? of couple Jeff, to here, the that around something having I certainly incident. company-specific which

But a help do what ensure you going this us delays to create Can system were? could little talk those And bit you It protection rollout. ERP forward? about how it. of impacts the understand like some it sounds

Jeffrey Miller

learned lessons with a standpoint, I the from in in the importance absolute overemphasize preparedness professionals contracting terms think of I desktop the Look, best Thanks. Yes. drills, industry. of cannot

And companies Mandiant is that. the important would I'm prepared so advance is absolutely us, the one say But that and of in probably of appreciative most be others. have supported I for company any can do things

Eric Carre

terms in rollout, couple Neil, a ERP So of really the there's things. of SAP

So They to once folks the directly incident relates went our the of the systems what the rollout. participate and And were to obviously, first the in helping on incidents. everything. cyber IT most unavailable, to restore one there, fix continue started, to problem, is obviously, the

when catch-up and a were system in restored, is operating the in we And had that mode. restoring were were that basically mode went done finance what when the transaction systems manual the organization in and procurement was a to or made you the

a so ready of send ahead second we was the of a the system differences, roll we for time which from country, particular get a specifics the and roll like we differences fact team of system this, when any we as events, And go understand and tax new really given everything statutories, big we called do a out country. that to impact that incident the in details out the what's localization

S/X. it We that, and around to rolled on was everything. manage that, We on parallel system different of X first October Canada processes S/X. closed around in rollout things But as we successful. the systems out all structure in of our did what we to few in closed in learned our quarter country. means a training that then the the had And the We we

the we of X a now replanning all resulted rollout, initial to X which is in of that be months going So to over think about plan. the

into HX get we'll XXXX. So

Neil Mehta

did this I'm Again, is closer was $XXX and And just in around The Great. June. and you to million stock buybacks. Okay. $XXX March quarter, you navigated. $XXX the it then explained you million guys in why. glad follow-up million,

$XXX it and and share lean that to really to flow share? I'll drive repurchase price, But is million the is environment, else as the given run the argument equal, all on it And level turn take per think there an in pullback the about given XXXX? macro cash that. into right the we rate, share really free So over you guys another to

Eric Carre

Yes.

address your million lead that's from of something $X significantly So would XXXX. the to the quarter. billion to per ahead, first year, we for average to what $XXX around up question, an guided That part plan

in two ways. in we So mechanism share, do what we QX that to go and happened the use back is parallel it buy

XXbX-X one, open purchase plan; market. in the two, we do we filed a So and

when investigation basically cyber end stopped incident we discovery of want to to because where So didn't MDI. the open the we the started, would a lead situation and up purchases the were in we cautious all

XXbX So with we paused continued plan. that, the

initially. targeted a was in that in in on we remarks, all is intent landed And catch number were we So what up of QX. to the as a the bit said that below that

Directionally, on We to systematic cycles. we a your cash the shareholders. through second return mechanism at to as question, really part buybacks view of look it

current again, to short-term to point, tried but be might your more as return view, to there buyback mechanism through not per while So be opportunities, cycle share around some stock we the prices, cash. a se, opportunistic

to to want we've done more. as bit so we be a look But up steady. be fairly general would our in through, worked while we the in weigh next XXXX. what we far into might year, haven't plan directionally, view we So And

Operator

next [Operator of Instructions] Saurabh with America. is from Bank Our question Pant

Saurabh Pant

one on of have couple offshore, on maybe North Jeff, questions, one I America. a

optimism, Let start and me structural one optimism. side because lot place there of a just short-term of is things not the that's on where offshore optimism just

projects in 'XX, amongst conversation offshore I general. Africa talked But to maybe to offshore come I the just all in is be want Norway there anything know given your back delay and we for West the mindful we of side and have in think in drillers business and contracting, from delays, delayed you due things, driller the macro offshore particularly those headlines of about XXXX? as supply upside side the on the obviously some offshore being past should that. of the of chain to about in

Jeffrey Miller

markets, we [indiscernible]. see Brazil, in stability of Gulf look, Now, biggest the Mexico, whether Guyana, Norway, our

As those. we morning, this described elements there's positive of

our equipment we rigs. from perspective, And move between

rig not we're in -- the so actual business. And the

rig continuing lot status resources, and to operators -- contracted strength of that. to the really is is focus So not we us. on develop which rigs see offshore The around of key drill impactful a

foot, impact and back contracting so in Gulf managing that forth timing, of of probably terms it's there's us. in lot rig a of in a gaps Mexico, just the Whether doesn't the XX,XXX and lot and there's and business of but

and They the rigs quite available, work and a work have of with really around bit executing planning working or world clients. they Mexico. either are exciting work and Gulf of We're the in

Saurabh Pant

XXXX. Okay. about fleet really Fantastic. your committed you jeff, I the No, that's impressive. for clarification good color, Jeff. made XX% in comment of And remarks on, prepared then just That's think one your quick

least well think the activity my those know is, we fleets? sight as the are do those asked. But going fleets Arun profitability have on like, we right? basically, line just pricing versus in I followup on roughly look do what at on to So of the Q&A

Jeffrey Miller

to things the that have do in Look, I we work the as we've we say What -- is work. of without that, details see through as our we're to well. market some size fleet with we spot because that I we've market, about stay won't, but been obviously strategy, sticking of into which to getting getting yes, and successful out the described, would

We But the which to told vacuum. reflects technology I obviously at the Halliburton, Halliburton, we and exist us in high performance market, same day. time, get the that I a the know of that end at bring range, the every I believe single the puts and and don't

the executing strategies are confident we're us So I'm to our on that's perspective, gotten place, from here. where well and of but aware we in that that strategy

Saurabh Pant

Okay. No, fantastic.

where what the decides leader, you that As goes. market in market do a obviously, industry,

we to know So it's strokes, that. about X% next can one. good may, quick very revenue you're hear year? But CapEx yet. And 'XX I broad I for not still guiding to of Eric, if think

Eric Carre

Yes.

Operator

of Benchmark. question next from Kurt comes Hallead the Our with line

Kurt Hallead

as constant OPEC at crude, as the weighed price about you're markets, the right? been of cohorts And of concerns the on all with know, growth, Jeff, -- capacity. your right, there's broader right, communication gas demand oil about noise, you in in we and that's companies, excess obviously, concerns a lot and oil

So in bit the a customer relative or the constructive conversations more that your you've had of market. late, has equity right, outlook that market it the sounds maybe a to commodity like or optimism base there's

translate some call. to give them you conversations, have this give So and to you're what on sense changed could potentially insights those just that on you us the may what people help hoping assessing seen of how you've can optimism

Jeffrey Miller

the serious, I Look, players this that around And in Certainly. think types are very of well-capitalized of large, some is today. the these market operators.

of efficiency. want that of E&P as sense so the part consolidation, it's gone clearly in technology as And customers and the expected sort

larger work They have work. create terms and in of through players fleet Zeus a stable. the large opportunities to contractable These Zeus cycle. It platform. plan does They're us baseload for more of

that execute build run These customers a, kind hear But plan, that work us I aren't think that that pleased are commodity to these to some of customers plan. short so because ever business. pricing. swings I'm And in is, a the with react clarity optimism our you a helps of these operators

today so hear do a price And of some at is range productive, better getting go they've and And more be got are the we consistent paths probably it. see that is I well that to commodity activity. to optimism think do. you we within what drives capital clearly They

a and us, grow and just this for interest in gas and think of and I that for and and more industry. continues range our -- becoming profitability that so effective, -- creates oil lot keeping clients in profitable a more to there'll profitability that And get industry be productive,

Kurt Hallead

color, appreciate the Great. Jeff. always I

for CapEx going looks fourth in you for right? if is $XXX rate. math just run the CapEx, than Now which be question, like million in that Eric, you're higher million maybe it about $XXX quarter, about been to out followup what a had maps quarterly the on correctly, So

couple a new mentioned of e-fleets. You

to e-fleet toward that, bulk we X% the then X% next assuming connect any as or the additions? the e-fleets of an can that and CapEx -- -- the next are CapEx just to rollout? And that year. for additional In dots you revenue So is e-fleet year, referenced many extension going suggests you of incremental of for go that is how

Jeffrey Miller

Yes, I'll that. take

in at from E-fleets, going standpoint. forward. that take me Let again, push standpoint, a e-fleets not pull a that terms we of look

XXXX. So expect deliveries we do in

and planned -- of some already got expect and we've to that, anyway. those We've do also

So that's where are. we

Eric. to the going hand I to think I'm forecasting the CapEx,

Eric Carre

earlier, lot look, of had it's As the we I the a still year going flat. revenue -- the had we mentioned revise equipment intended higher beginning and to to little is this to at X% compared year, of as projection and X%. the than It CapEx a as -- we be be we

X And equipment it's year, C&P, It's But into capital time next over look and we We're between more North to still dealing internationally a we the continue that evolves evolve between balance have D&E, overall with and in lead months projection revenue on pieces big of becomes international. business year. and ratios the for balance a as weighted. our more X%. between and America as

Operator

call all is for back comments. today. the And his we have Q&A will final that time to I for the Miller Jeff turn

Jeffrey Miller

Yes. Carmen, thank you.

for I geographies. I As lines to we across close see growth this. opportunities today's solid business with Halliburton just call, you out our leave and want

and to North growing services platform, clear in value around our and moat strategy. expect keep business portfolio, I'm strong proposition the and technology in we And our we unique confident drilling America. Zeus its In our business widening international North are America,

forward look you. I to speaking Thank quarter. next So with you

Operator

for we that, you today's with Thank And all participating. close conference.

disconnect. now may You

Halliburton (HAL) 7 Nov 242024 Q3 Earnings call transcript