Halliburton (HAL) 23 Apr 242024 Q1 Earnings call transcript

Good day, and thank you for standing by. Welcome to Q1 2024 Halliburton Company Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

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

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

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

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

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

include also financial non-GAAP measures. today comments Our

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

over Now the Jeff. I'll call turn to

Thank good morning, of delivered again the results Halliburton you, David, quarter strength demonstrated power and strategy our and our solid that execution. the first of everyone.

are highlights. the Here quarter

XXXX. $X.X margin We year-over-year. margin of X% over XX% increase. demonstrated company was billion, and International revenue billion $X.X operating by of delivered Both the XX% a divisions increase revenue which revenue total XX%. year-over-year, grew delivered a of $X.X billion fourth was led America, and improvement Latin North quarter America

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

where is industries, demand to per people million reliable X.X their services life. more the on economies. they views and production with grow between the This powers XXXX. crude their we market. barrels oil with of projected me is Let capita and discussion consumption, not rise countries, as moves economies hydrocarbon of Globally, begin million in non-OECD Global demand per secure, use develop energy the less, energy expect today's oilfield X.X improve greatest day in and growth on quality my strength advances

In grow electricity nearly demand by gas, more for demand a supplied the XX% States' expect and base the United by decades, well as into it XX% to expect we XXXX. natural for natural U.S., after we Today, of stable is now future. over electricity than X gas fuel strong

our less, plans services. The the and outlook in gas decades My types. than not across I'm growth activity that convinced for by see come. mix world global markets ever more towards requires multiyear oil fill I and multiple more for energy, to a customers' critical energy will long-term Halliburton's asset and confirmed is role points Everything

technology the industry and and it services make multiyear capital our culture. for is outlook time This My the our focus investment, not basis oilfield our this for This and our focus a strategy. allocation together upcycle, sets execution, with new, strategy for drives Halliburton. is on successful great

consecutive XXth of growth the revenue Now to of another each Halliburton's year-over-year our let's with where International growth delivered international international quarter. solid year-on-year in by This quarter region. strategy profitable grew business. demonstrated turn growth markets XX% marks

see full expect therefore, the Equally in remains year. equipment and for market year I XXXX, For expect the people, important, revenue low international double we digits. tight to last expansion growth and over margin

that as and insights systems The and Halliburton. growth evaluation customers create me for advanced Drilling the well our for measurements provide Halliburton. drilling our X profitable Reservoir of unique EarthStar for drives our creates tools about both is of growth meaningful excites service international sampling Xaminer division, the logging our and system increasing levels and formation see and adoption these our above-market the strong that business drive customers value demand. things such many technology leading One for Evaluation our formation In

Completion and our lift international division, artificial Production regions. each throughout profitable the of continues to generate In technology growth our

in in American market electric to a be international competitive the results proved North time the over portfolio market, submersible markets. to and pump Our leader deliver we similar expect

solution, and XX% and remote Kuwait, with pumps at surface which systems example an end-to-end is A ESP to with automation, we and provides ability includes share over downhole captured years, the complete than installs. less Our great scale. a motors, solution in where XXX operate in monitoring nearly X market

in X scale, want recall global scramble point move significant a can to decade as I'm over is on, by what possible achieved ago, find more North seeing share of others. outside interest I drives to serves markets unconventionals limited an interest which America success. we Before observation. proof Today, for unconventionals. consistently global the I and with a

the markets in XXXX As technologies throughout international North duration as broad Halliburton fantastic makes confident and the America applications decades, last in reservoirs am in processes this the the upcycle over leader this for Halliburton. developed unconventional global the I opportunity which a beyond. of grow, X have and world, long-term to

Turning to North America.

quarter revenue over grew first Our last X% quarter.

in and North bottomed holidays. last America quarter the activity completion customers expected, year of As operations first as the rebounded after the quarter fourth our land in quickly resumed

for ahead in XXXX levels of activity expect North the rest America, Looking Halliburton. we for steady

eventual our natural will consistent and execute is America. throughout year in planned. to be revenue approach customers anticipate as gas full Our Overall, by expect expect America we a for expect term, the compared This demand XXXX North recovery. expansions, an industrialized and will we the planning flattish are driven this LNG with while long with I more development work levels. plan recovery margins And asset North they that not in activity XXXX does from year

them. it want to multiple is maximize do about talk two North America. value in ways. We Clearly, of in Today, our to I strategy

its the first Zeus diagnostics drilling continue automation North advance. new is and is our system. The the electrification, and to platform, platform, directional second The Zeus America-focused subsurface

cost-effective measurement operations. and we our automated easy-to-deploy, subsurface fracturing introduced an which subsurface system is the measurement generation for ] This Sensory ], Sensory real-time [ latest provides quarter, technology. [ of of

Zeus highly every are and technologies operations, it's its our customers. and platform demonstrates at And capabilities, of deployed efficient importantly, Additionally, day. creating heart Halliburton trimul-frac and for continue simul-frac scale. uniqueness our The value they at expand their to our the automation

allows innovation. widens Zeus Our the fracturing rapid scale This outsized platform technology for in Halliburton to improvement moat the market. position value the our our creates Each for leading around customers. and technology

system, new the I North am rotary we America North engineered lateral And see pleased line, performance than product our North of CX system iCruise iCruise in services with the our year, The for results which footage in North new unconventional our America. launched version applications last America steerable drilling is drilled quarter, year. in more system's the for late market. over challenging last iCruise specifically curve strong from and uptake. doubled America The is this designed driving a

We with asset-light full-service how model. and participates This both also in CX a its an is that system high-performing coupled model the increases market sales to penetration. increases compared segments market rental iCruise addressable of and new when this market speed

trend the key these is America I complex excited move drill the and in for about see is CX in North performance I laterals economics. specifically and more to North drilling am designed growth wells, The is iCruise applications, longer that its drilling customers to market. why America improve Halliburton's which

of customers means to our regularly your employees. to done. our thank much work I'd and our from our To close them competitors. how differentiates like from hear value execution it Halliburton I the about you out, proposition Well how do,

will outlook excited strategy oilfield for strong execution that I'm our Energy and demand cash generate and of and about shareholder the our expect so on growth demand services. Halliburton. free flow for services business is returns. I is our focus strong

of our million a forward. to stock, Halliburton the This for common solid start expectations going $XXX quarter, good year benchmark repurchased and a our

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

Jeff, good and you, morning. Thank

reported XXXX was $X.XX. diluted share net net was share company $XXX first income was $X.X million income operating was quarter operating was for QX to Our Total XXXX. billion, income per Adjusted and XX%, of flat per margin revenue the compared QX $X.XX. diluted

$X.X Revenue partially operating to and land, were X% Beginning driven income And QX pressure from QX Production in international margin markets. offset down was division. U.S. pumping QX of $XXX XXXX. compared these services activity by slightly in by reduced when Compared Completion income to XX%. year, results QX up XXXX. was last billion, in our higher was million, with primarily Operating

Evaluation Operating income In XXXX. division, to was QX primarily increase up East was and and XX of basis revenue in Latin billion, by our Drilling lines X% as And America. points drilling-related $XXX QX compared well $X.X across in multiple North over operating These last million, Middle X%. product XX%, an of higher an increase was the America as results year. services improvements in QX were margin driven

geographic let's Now on to results. move

increase quarter and driven Caspian completion year-over-year. of in and Europe/Africa year-over-year. was revenue international the was QX Our increase increased services $XXX sales the an in of by first XXXX revenue Norway in million, This fluid primarily the tool higher region area. XX% XX%

in in revenue revenue quarter first related Kuwait, Saudi the East/Asia was This of and billion, $X.X fluid increased to of services activity an Middle the X% lines in was in and XXXX in Latin improved primarily product was of year-over-year. services to software multiple $X.X service higher lines and billion, increased pressure related Brazil and sales and an service increase in drilling-related in improvement Mexico, in This of XX% was year-over-year. product improved activity primarily Arabia increase increase service multiple Oman. quarter pumping America Ecuador. XXXX Argentina first

decrease X% quarter. but in America, by In X% pressure year-over-year as last the services year-over-year pumping increase was land representing lower a was an wireline as well This lower billion, revenue activity. from decline primarily driven North $X.X U.S.

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

of corporate second our quarter we to For approximately the be XXXX, expect flat. expenses

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

expect For the we expenses flat. be second quarter, SAP approximately to

were $XX for quarter million. Net interest expense the

expected net XXXX, second the be million, quarter flat. than primarily expense $XXX an investment QX expense Argentina Egypt. currency interest for of net was roughly to devaluation higher to in in Other For impairment we and due expect

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

anticipated QX million. Based our our on effective tax second approximately to quarter we adjusted basis for Our Capital XX increase effective were for rate mix, rate XXXX XX.X%. QX expect earnings $XXX expenditures geographic tax points. was

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

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

of $XXX stock. repurchased we million quarter, the our During common

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

division, XX our for to X% basis XX to the Now quarter. our comments provide Evaluation you let points. points. some division, margins to basis and me In we by Production increase XX expectations up and In sequential Completion X% with X% by on and revenue expect to X% we sequential anticipate second increase Drilling to XX revenue increase margins to our to and to be

back to call the turn Jeff. now will I

Thanks, Eric.

delivered in summarize Halliburton me results. the I and duration strength our of Let am discussion today. confident first solid upcycle. quarter this

We deliver lower North margins despite levels. America revenues to business flattish expect our and year-on-year activity

digits and international I'm to the Halliburton cash Halliburton our shareholder at expect and year-on-year. grow business also We low outlook to revenue excited for deliver free strong double expect returns. about flow

up questions. open for And it let's now

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

to in ask couple your wanted on that And prepared remarks. of the about a about talked you I is you things Zeus first fleet. the

e-fleets an supply, pretty impressive big rig to customer out. efficiency partly North exceeding years. X% It's in step-change this and next demand flat these quarter a the in for there's had clear your to have despite being of to sequential least I think count. You America couple be it's at seems for the increase attributed rolled

from can You're the how first technology? on the to the question your you differentiated seen few out? competitive I as years. over this there is, you've I you talk is advantage But market, on Is is really guess industry it moat prevents building question established about and maintain the business, more what relationships? about today guess but that? leadership, next And the

with dynamics automation Thank and you, system a point really Clearly, the but and electric. most uniquely the is that it Sensory Yes, the Look, [ the platform. this is important comprehensive then how of also embedded in changes measurements Dave. actually it subsurface are ] is embedded it's Zeus the performs, a efficiency, platform. embedded. Yes. drives

And equally important that the I at so is scale. moat. being widens And think

thing. a So it's project one to thing around do a research

But in are these that when be we're point pushed at platform the any solutions can working at time. scale, to

the on existing as ability turns new the to equipment well moat really grow as it as on forward. any the goes science it's So

the it's excited super moat. So TCO, as that widens obviously, Yes, well it. about but lowest technology the differentiation

towards the touch has to on from Jafurah. those been in unconventional the just then unconventionals, talked Saudi international you about, year this that something And Clearly, markets. big specifically stories one CapEx field had offshore shifting of the on

understanding that mud just have on toehold development. facility, starting tenders My with it's way, the bunch liquid but coming. You of there's field more a a in is that plant

you field you growth term, And tied Can you in in sort do as talk these this set in the some Halliburton tightness you building think You opportunity Is the near there? the for is 'XX? see other fleets really field? conventional do equipment you maybe bring some Is this to a capacity of build-outs? to on capacity market in in to about how how out support incremental that it maybe region? Or the there relates said about market. diesel

the ways thank The of lot address around for really of how we've opportunity a I'm as got about lot including address and we've of Look, it, there's And excited we it, technology some you, today. David. it, know. you talked about to Halliburton unconventionals, a

got to particularly with that continues there with technology position in but good more grow, We've advance. to I think a drilling opportunity even

other be where in it of mud, mentioned You competitive. but very aspects also that we'll

So forward. move a that's I think big

of that as decade And outside with I more different I the see X broadly, was least I that think in because today And at truly a for unclear ago, U.S. -- just what the more think think today. think we're you are for good around internationally, But a really be at recall. serves broadly scale. a it are can bit unconventionals Halliburton. unconventionals you that discussion that how But a as template so place markets I done

more this is a would that, hey, in in discussion meaningful play additional and hear around, markets. possible And role do Halliburton so how we more

So super encouraged.

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

drive talked higher. free about you've Jeff, wanting your to flow cash share per

And that's see Can share quarters capital million use to share at a think talk great number to couple it's in going the why repurchase mark. for allocation? you about you right does of the the how rating forward? this so repurchases And of it run seriatim $XXX

Yes. Neil, Eric. it's

we that to of we shareholders. flow framework XX% return that actually quarters So over at several the to ago baseline XXXX. in that just XX% announced cash of about use is a minimum We the free returned

at So at be cash we mentioned the year-over-year, to when improvements about free which flow look we XX%. in

think So that good of be when we we think through million the a buyback to repurchasing $XXX for base that, us is shares.

then we where overall should So did dollars, yes. return percentage shareholder expect close we'll dollar-wise. what lands, see overall kind pretty more more of last to in it be And buybacks year, expect the but to

consolidation, Okay. we some That's on but more are I'd of curious driven thinking the go as to struck well. you helpful. really an is in has certainly forward us M&A as follow-up services, as And then in we for about be more than the to plan see seeing business, signs organically you're but start services of how industry Halliburton E&P business.

change no Neil, strategy. Look, to our

more really research? move get to of so it quickly M&A technology more that think it correct, in terms something development. we Is it quickly? You're advances market bolt-on we like M&A research acquisitions. Does about We and that

in organic that we're the we see in. businesses significant But growth

and like we we're the And we generates the where see other channel. and small seen we like -- plenty in in and we value shareholders. growth. develop we're like push we things space acquisitions for able we've are we how done organic so And compete, and to past then believe that our that we we've we But I of through where that grow technology more And -- that. growth terms also with that of

you so shouldn't Halliburton. expect from any And change

Jayaram from comes line JPMorgan with the Arun And Securities. it of

time? OpEx you thoughts about of talk wanted to go-forward organically And future like your to you your is leverage grow or an the this on production? the strategically on D&C and OpEx Can a could over the either area versus if basis. current cycle prospects see Jeff, I characterize to you'd inorganically

Yes. Well, second part organically, terms of that yes. in I want answer to first of the

see So we don't our markets. to approach to strategy a change or

intervention in the growth done strong We're the for business in And a quite as pretty the mean, strong we're of bit today that part And we And develop do to business big chemicals lift got technology in a OpEx we we've the today. business -- to continue today. we're We've the in market, see similar business yes, today. organic So in of us. I way. past.

cycle, for have as and exposure that so to we've And had. got my outlook of OpEx plenty

Now I it want D&C to also. grow cycle strong I be to careful continues say and grow, and the to and is that very continues suspect

exploration, Again, past. we've bigger across whether that well today and we're done balanced this, businesses. I OpEx it's smaller the in elements drilling of and things into businesses we So of think all some grown the bought development we've really

works And shareholders. really the so organic that for good it for that again, growth delivers we strategy is believe us, and a our

And to Saudi question to perspective potential you little which how shallow impact a of bit second looks Jeff, more wanted a little you your could from the the Arabia, to MENA, us give lower I at changing in seemed be see expecting. just any Great. were is mix than on talk X% bit if growth about could year-over-year versus onshore maybe water. in which activity we

take the growing, part 'XX way. me still that of growth, by Let is first Saudi of terms the in

gas in aspects 'XX. tight We very unconventionals onshore good and for strong got of is a expect rebalancing for And Saudi Saudi Halliburton. remains that business We growth in And Arabia. all the We've market. equipment. in very that in the participate market

of good of only we're part the is for I'm The gas in in Halliburton. good that feel again and confident that and -- market. very market to will and I be that market, So long-term growth about that the expect rebalancing players meaningful

XX% overall. grew Pivot to one, growth, things. look, Number of a business international couple

profitable more here's the pipeline do We focus. see be I want what doing. I to that primary I'd good to has So want of opportunities. been a region. Clearly, start really But our clear we're growth in expect growth there.

to foundation means we're expect growth. our MENA. we expanding same technology, a to And That the mantra. we and delivering in certain time, continue that's the of for want we're see that the while We make at growing. investment margins growth sort making But building been to are

Our strategy is what we profitable international quarter. and this growth, that's saw

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

growth. on get in like international to I'd the Jeff, back

or much how of How Wanted double or digits you're how double stuff So the new -- describe in, would you headed. where markets as driving new where and delivered, get and you're digits, that you've to products due or growth. about guiding kind you much of services it of this a what new talked to putting of just lot underlying of expansion? you're in to this is effective just some products

Thanks. Yes.

in the things So but I at an that are participating technology we're of time. broad-based, matters. larger market. is think I growing, past activity one products. It's but the A growth than based new not Yes, maybe It's couple some the of necessarily described. actually the share in technology is on expanding growth of a happening

So and a we're differently part competing get of technically, that bigger so growth. we

things, added overlook markets, in but then like all better whole for product. well that improvement That's the yes, it's lift that's market us. drilling around. But rate a of for at particularly internationally much the new larger market helping would more we're and helps of growth to a as a business, importance access new because and technology, in it's internationally. obviously, in We've the a And that's progress growth, return the tight because growth product just making. new a It's not pleased pricing some with really I

the right technology, technology improvement tools. capital-efficient XX% more is legacy than over the about new legacy efficiency capital the the of Given

bigger growing efficiency. getting So better capital better dimensions along pricing improvement several there, and of sort market, share,

America. And just back to quick real pivot North then to

rig for to and was you 'XX recovery close could a you're Presuming built an 'XX. of not really have mentioned increase haven't we a about to anticipating that third or market but this of in the having thinking not you seen Like improvement, we quarter to point kind books what the expectations chance about say think certainly in any that year your think count I the that way the well completions at in maybe if there into gas that's a the activity year. expectation? on gas should You spending could it, would an to we outperform you see outperform, improvements get

Look, Yes. thanks.

what's leg think expect going think no growth that's America. North to built, is forward really drive and timing every of overlooked, question, of what's The is North it next lot the to the growth a in beyond. timing, question look to meet fleet new and big not the happens the today, I I It's attrition market growth, coming, demand market current and And shrunk there a in I but is, through for Equipment shrinking being equipment. that's America. 'XX of will the look has drive fleet. And day. it that

to it get we time, tight incredibly point an when market. in be that will So

to America excited so market. North And confident what the about quite I'm means actually and gas

it yes, There'll saying, offtake happen, Just just number LNG. that the that the of given for no will will be that There's well that. the leading contracts has be meet things question invested but indicators capital be gas will to happen it of be the side. on export been construction, developed sort will of a

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

Q&A to have cycle, going in kind more Halliburton of of profitability. cycles, you while. a we and the And think discussed 'XX? areas growth. know Brazil in probably you is enhancements some really as detail seeing be now kind I But though you you for curious guys biggest we're But right we go kind yet prior been in into surprised deepwater, 'XX share, we puts have relative other you're happened I So position and unique places. to where Jeff, that you've an I'm the the the think that think have one even haven't a do position where technology strong to And better there where this in of advantaged -- of

'XX will and surprise be Look, and I Sea Africa terms West in beyond. of the North think

are clients There we planned planning long-term-type opportunities all that as full a we that meaningful now. being will step-up think the and into are are expectation work of go great 'XX extend the with And end by see that decade. beyond. the into I we're these really, today projects

So -- that's a I do where see lot of think but we'll activity.

Okay.

just dead you then North sense. pricing? a pivot utilization are may makes pricing? to where outperforming just of in but beat you And And to that And on -- of America. are down want to give the do horse, to the I keep you Okay, where willing be a back market it sacrifice peers North it discounts do up guys ]? line, that utilization our there. is I vision a maybe back dramatically to you little -- Again, high [ some America do hold kind bit? just guess, don't your to we'll some -- Or Is you in we give keep

we not terribly we're keep America. is do James, central XX% than affect customers. pressure. And real our our exposed see in not. you technologies see that where would answer does of create North contracts, under some strategy we pressure? add Look, delivering want, that maybe value equipment I it's a We've but Yes. value we is as more some for that strategy do Yes. that contracted that and But our Absolutely got important think unique I strategy? think long-term

two alone things for that's solving and significant Zeus looks and value lowest create we're think what And those [ so for with platform that's also recovery work ]. Sensory like, TCO customers. We why

central. we keep so And that

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

potential starting AI call, needed. I'll is the this power to around that you give the later Well, the Or demand in discuss few off not years a from customers still over gas additional pull it's has so for few development it's times, world? data this think do And forward a to global centers? getting But horizon? to are mention the you chance the additional next

way the certainly fuel. gas most -- the being we gas the that demand power that prepared think in look, and and deliver for effective gas today critical And yes, reliable. is and think growth the or I in a mentioned electricity to remarks most I

that don't on things of think this I is one of So almost I that it's top demand those becoming see -- until think that is you it's And top on that now, it you. us. of right

And be consumes clearly, question be so that power can I no traditional more to think additive I centers. AI have will data demand. that only additive. And than

demanding be not industry So all Halliburton. it's that only is combined, for power, good there's and towards secular of that I more for can our almost, and it a trend think almost --

will it Yes, watch. interesting to be

Just turning Latin America? type America big to this in from our you drove year? versus back you of outperformance the the was overall, more Latin Can near growth details expectation. some term. the the provide geo-market outperformer on just color what a what of And would anticipate

and in performed Look, of America really very geographies several types so growth Argentina, Ecuador. Latin markets, well. It's America, broad-based Latin at whether Mexico, Caribbean,

and as economic and Latin economies. oil that in critical is appreciative are to that and and oil require America So oil things it exceptional to job. an very and that I the critical work we important team gas pleased gas. also America. saw gas They how strong Latin are has growth demonstrates view with in all over. And important I'm security team to economies say think Those done both growth, does. And our

come. there's expect I more so And to

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

and on your reiterated then went margins about What year basis? specifically and you've Jeff, look with digits unfolding full low year. products as maybe a you the D&E margins see more international up year iStar aspirational kind how talk services you expanding full double roll also, the over the But as targets kind next couple here unfold, like in international iCruise. D&E? we new of are of to continues you out this of years could And

we we've be then to example, businesses. able is where technology But that while Yes. profitable. business, trajectory business because I And that say pace like solid opening, growing there. kind D&E. out reach the got know of Look, for and a seeing can but from growing at profitability in we in foundation the new building in it use I markets And we're the the the balance growth margins we're growing of clearly, that we're that's a

that's trajectory. So a while profitably. D&E part of And the opened think growing of we've new our foundational few I markets sort

businesses continue actually that more So expected I flooding the continue continue quarter, see expect it I of we to the would sort in though. to saw up along come expand others, all go that to expect spite and in and we of are the first quarter-over-quarter, that some trajectory aspirationally, We of year-on-year. And to weather than saw on markets. maybe things open. in it in expect some we have

to see we expect that up. So continue to should moving

Stifel. And it comes with from Gengaro Stephen the line of

Two for me.

in the iCruise you The mentioned in North first, strength America.

double you I that Can replacing Is offering? growth? that year color around said Is competitors? that you're Is displacing more some a all give technology organic think drilled. footage than you that? that ago

it's has strong. Well, and very uptake performing look, the been well,

it iCruise what in past. is designed this It's technology It's the than had built for different on market. platform. so the we've ever And

America So there's for all how part We've it's time. it internationally. it's to And on driven. some we've -- North in gets it's effective to platform of worked terms ourselves. We just been uptake organic been technology it market, the gotten the that very built it. it's technology itself. Yes, now more on a customer the really we developed of has -- And

uptake mean days, that we're the early I stay it's really customers will it's the advancement with but drive that. But really making. So tuned. it's pleased for

the in curve customers is that increase technology, lateral. particularly indicative of So performance of confidence in the the in footage drilled gaining

and when to my directly. it's would would think on deal imagine we may have for this harder going I question chemicals, But know answer X chemicals and in amount production what little went an about if I And over last, production of you. guess, replicate of is that the that bought really, business. you But I a interest road? years-plus strength to the Summit built that success what's be X, can you that in that in Great. area CHX-SLB you something had you and Is great a down the you with

Look, We to grow of like business back I revert a kernel we own think a things I'll organically. to there. strategically,

is progress. the We've make East. got filling the up to continue We Middle the in capacity plant,

it to generates when the So a and has this, also it's think lot it is trade-off, we from our shareholders anyway, believe go value speed, of about our I this trade-off for know but how the way. been we we do perspective --

around to some that continue built chemicals ourselves. to going the on the we're we grow of back our world so And business assets

so And pleased. I'm

for of areas. organic lot a organic in growth intervention, I and chemicals, opportunities think growth there's whole growth different in strong

line it of Bianchi with Cowen. comes from the And Marc

just circle on to not days, to the your comment after on sort have evolved share competitor to the changing the market North just had if but comment America, some softening wanted I you're price. has We how you they're Could saying made pricing for discussion back going because that last you've a you at strategy. expense that has of the over anything XX there out go changed? of the seen

we changed don't part I a of we're And perspective, what is efficiency, sort and And like comment doing. from efficiency Look, we are. of strategic today. on But our a focus fleet also big haven't competitors. record-setting We lowest where I delivering on contracted TCO. top-notch

stay plan to primary And is, where focus so with and that's that. we our

gave we should you there? we outlook, contemplating assume quarter America? be that that's second profile the anything on Or and international that a then the And Should and Great. for D&E. North C&P similar Okay.

terms of... In

-- see yes. can Go ahead, Jeff. I So

think think Look, in I We're I solid. C&P of don't I margin a I terms I I growth, we're -- good mean around growth, continuing And also continue. the C&P. And in to and about expanding talked D&E very of margins. number is expect will businesses margin that look, we've think grow.

Yes.

was Okay. more Maybe on clarify, just revenue. to the question

digits is I X international, of all growth get seem healthy for remaining that sequentially. I'm remaining, the would you double So year quarters it what a low wondering the to the pretty need guess to in

sorry. yes, Oh,

talk Could from? where coming about that's you

Yes.

completion production around So that's broad-based. that's enhancement I the C&P, for so around mean world, tools that's world. the and pretty --

from number in it things we see the where strong very lift. -- that of like equipment sit growing, of it least I of see position, a I things be a we would middle So and fairway, And heavy today. and some the see so again, very lift, is example, tight. as very doable as for -- don't which not that, a

well, pricing. think expanding see there margins strengthening continue I that we'll as to and

comes the Benchmark. with it Kurt line of from Hallead And

long So Jeff, at you've been time. this a

on increasing to opportunities You other -- referenced of especially the not in just the one international to more extend front talking decade calls, that the and today of the level than but visibility, on could about out end occasion, about decade.

wanting you and inside the the conviction get with a with of think you, lot you duration. same respect of room get are have will, to if try kind I of investors to sort to that

for? Or So or much customers just and your are this underpin -- And on how that effectively, those of is extend things? the you you asking and curious if that what kind end how lead are conversations through are decade? time could going how confidence insights place, two us give you're some continue three taking seeing the this cycle to conviction of to perspectives

work it's the some to in through planned of decade. end 'XX go Yes. that will Thanks. begin Look, the that is of

So Others the that work with that again, clients types that I are of on projects confident very about extend we're far. are feel planning that. working that,

-- demand of and a we've clearly, it in and the a clients oil confidence. starting get to work the time tightness it return gives work oil that just we're its starting, price started places. -- And seen and importance for commodity and the gas the time rising type gas think a I lot But takes to confidence and bit the and the that me of gives type do. long takes of of the and to of is offshore a we're our

similar I the in of outlook call. resilience gas, a seen I talked about and kind feel are in seen we've very decade-long -- demand X. quarter very for would in this North is for the North include of that the that the the terms America America broadly. And gas is that so These about investments this leg cycle. duration. And that's I mean And confident for next happen. we've anyway, that on confident are on already investments of been this not or

Appreciate That's that. great.

other I international referenced know, margins, X So that improving years X tend right? on to don't market. average the contracts you you've was last, to booked dynamic in the So

and year through year roll those into this next So so on.

Just technology it curious If of is margin in you of the to you How context of sense value can how you that? it, it the on that order What's try us rank how proposition? to much margin improvement How it it, see give of right? much Just volume? improvement? is from additional is driving is is kind some here, pricing? that much were

Look, I it's a those. think of combination

of that's that it investment that margin some capital in drilling all we've our the margins about also, drives return. And been our technology time, in deliberate in our certainly we've efficiency. capital R&D last years a made Zeus same practice frac and directed But been talked But same margin over evident And time, that's and these better think most is So technology. or at tightness But to down business. in the the market are improve drilling drives business, our drives evident, efficiency choices drive businesses. pricing. probably I that and our all in in has at to X our the at that of

so of we're better that efficiency anything improved returns R&D. and capital be has And its producing sort of criteria today, first to out

had really success pleased we've I'm with the there. And so

opportunity sort are on all would access, technology. And addition to more today so compete improved contributing of market to back more the of say having I in

the with from Doug of comes One. it Becker Capital line And

margin XQ. really, more And last that margins in drivers declined expand you D&E? the would years, behind sequential XQ several question the just function bit a actually on Jeff, the the in a maybe expansion little is from

building I'm to that the Look, back I again, described. foundation that, think I

foundation, foundation also more continue sound expansion better grow business expect broader-based ability see from then to stronger, work, as profitably a got that but us I certainly that we've gives the gets year-over-year. a to base. to and So so And

in software our business. here, that QX. means it's drop in QX taken way Eric essentially recognize with I think, the QX we our Doug, in The the business happens reduction typical in it's and margin that in software revenue in

a we a see drop there. bit So of

You see D&E the and Indonesia. in were significant softer the and as because, much mentioned, muted the Alaska QX in Sea were in as had flooding that than being North expecting in more over year we margins this more Jeff weather Norway, then we issues

QX of the QX and that here. traditional software going impact margins more moving and muted the So combination results effect to from up

talking Last XXXX. about where suggest in a makes switching deployment? there there would a outperformance The specifically. to were this for year, case e-fleets all that That or by XX% of would Is the be or results quarter, you to sense. end in, probable scenario might America, going represent Zeus Maybe U.S. maybe accelerate about North more you XX% the realistic certainly reasonable that. the

we The e-fleets customers them. not to ]. the they're us behind change clients technologies And pulse they're demand in [ and on hand. that we don't to strategy plan demand built build see spec, plan been market best a we And therefore, for whole is this has And that for that. build it. the Look, No. use built

North to maximizing And so a we we're America. things is have When build central value going in some ways, North in in not maximize to that value home. America, don't that

have But to 'XX, market that And And delivering remember already forward. actually approach important hand, is units our the is so already it's have equipment. go as see that's and the I They I contract. we this that some XXXX more deliveries, actually to we'll for in continue in think I expect build-out homes. themselves. to to we that see just demand expect

it our comments. pass Q&A we will session for conclude with I today. And for final management to that, back

you, Carmen. Okay. Thank

Let out next and forward I close Halliburton, with call about excited deliver me Halliburton returns. Look strong this. cash speaking expect with shareholder you flow to the the to am free outlook for quarter. and

the out close Let's call.

Thank you, for everyone, participating.

disconnect. now may You