Halliburton (HAL) 19 Jul 242024 Q2 Earnings call transcript

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

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

for Halliburton you Conference Quarter thank Call. and joining Second 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

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

comments Our measures. include financial today also non-GAAP

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

Now call to over Jeff. the I'll turn

good offerings. everyone. Well, the David, and of and international strength America quarter of demonstrated morning, thank our business second Halliburton delivered North differentiation our results you, that service solid the

Latin decline $X.X Here revenue to compared in which $X.X revenue America margin by same X% company of X% delivered XX% quarter was grew North We XX%. a an over increase. was $X.X revenue are America, rig period. the the billion decrease delivered led a total year-over-year, International highlights. XX% of and operating billion, billion count year-over-year and

both Production demonstrated and division Evaluation Our Drilling and and Completion division margin year-over-year. improvement our

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

strategy I'll in year-over-year XXth This year-over-year, business. discussion our markets, by revenue quarter. solid the quarter growth International begin of Halliburton's growth with consecutive profitable region. marks grew where the X% with delivered of growth demonstrated another international our each international

look expectations I throughout ahead of activity our and of international for all major services, In demand growth year. this Halliburton equipment with outlook the remainder the our year, of at steady the the high we my strong consistent for levels see Halliburton XXXX. expect basins. As start for tightness remainder today across is markets, I

our expect growth XX% We year. the business to international deliver revenue about for full

growth I ones we specific I our profitable are lines, across detail. am in product with pleased and like seeing the to highlight more would today, three

our I It innovations successes Landmark customers attended we Landmark first Athens, share where The business. Greece. our event is an recently latest annual future software opportunities. share our is LIFEXXXX, software and their in forum, our and

earth to scalable excited the tools driving how change While the Athens, modeling, by opportunity they offerings, they customers, from like our model asset-level and and production. latest customers learning. through developments latest meet way unified efficiencies and planning I in in AI ensemble told were dozens of work had our about machine me with These

transformation customer Halliburton their conference of The and tools. Landmark's business their that included presentations showcase use

seamlessly which create workflows. innovation tell XXX with that DecisionSpace into and integrates our I customers' add our Landmark's and platform, customers journey. expand iEnergy us we confident value Cloud am to Our productivity unique their will

bring rate product of double our strategy international is at in leading lift of our business. markets into line M&A It artificial growing bolt-on portfolio. successful technology Halliburton's Next, overall the the embodies our that international acquisitions

global customers technologies collaboration solutions through through new with assets' to our maximize and their grow footprint value. engineer organically that We our

abrasion and line, corrosion. engineered GeoESP scale this we launched As is The cycling, extreme the thermal geothermal quarter, which harsh for line solves one environment. GeoESP our example, for development,

sees in technology to scale. advanced substantial the bring to applications has Europe, While where geothermal globe, geothermal technology require across Halliburton customers opportunities growth ESP

another had our advancements that to key markets. deployed records and autonomous X We unconventional drilling We quarter several rotary platform. strong steerable during and interval improved Finally, are Halliburton's speed LOGIX and our drilling drilling system services the quarter. in our in drilling success iCruise with international reliability the set

in performance and growth. strong and we differentiated to our drive above-market technology, execution drilling invest reliable expect We

drilling For look example, in revenue to about international services strategy our pleased our additional deepening I the profitable delivering am grew year-over-year. business Middle growth. East, our with and XX% forward and

Turning to North America.

revenue as Halliburton's quarter. the results we declined largely Our expected. first second quarter were half X% XXXX to first compared

activity have quarter. However, counts as declined through we service and rig seen, overall the

of to half year, I XXXX revenues last North second of second activity. America driven full expect of look year XXXX, lower that the I the now by to decline I versus half low As to while in give levels X% expect X% directionally cycle. will activity XXXX than expect the half specific point second North I America, guidance too be near to for XXXX. be this of it's And the to activity early higher

Here's how I this. think about

in after E&P and an their expect activity increase establish I plans. First, companies new development complete acquisitions

work. be to them to who operators will divested of will some merged Second, smaller assets the put

Finally, gas I recovery some expect natural activity. in

our this ago, like today, rigs a I North by value C&P see North the America Six over may the strategy last market. our demonstrate to shareholder in when XX strategy the strategy. North our power results We're and is earnings our understood market we to take that right strategy margins where and delivers years am value strong strategy because pleased future. maximize in and set that it this America XXX in period, to margin for it resilience I I committed am the value months, it we declined strong will to Halliburton America, activity maximize deliver of delivered confident through in

leading a For Halliburton. markets We resilient end, strategy returns for America this America requirements over capital unique lastly, through And share. margins. more We superior expect Halliburton, market. market and performance to and allocate deliver business we to that quality North returns. customers prioritize I efficiencies drive improve solve focus the few our a technologies that for will that customers service returns developed fleets and the We differentiated for products retired those we And North on we execution. for the of our technologies, and this structurally quarter.

in we deliver this about our ZEUS a is technology technology. latest how to Octiv investment strategic excited key large and part Octiv, platform. cornerstone addition the of how I'm of pads multi-well do we Today, of component consistency. is the unmatched is A key a One with precision

operations. As delivery ever-increasing completions by trimul-frac control side delivered and and with provides [ our for more intensity, customers execute better automation, as ] and effective Octiv, simul-frac

During the AutoFrac. second trials Octiv latest the of field called of completed level we quarter, automation

ramp-up intervention. frac end, to gives level single click it frac exactly the design, fracturing button, reality. from With at job ramp This autonomous execute new how automation start AutoFrac control executes to a the without at entire the customers of the of want human making a the they down

trials, is excited and Following technology AutoFrac I'm our customers what ready scale, this about means for to commercial for Halliburton. and our

North rotary the reduce rapid steerable consistently by system. America XX% our see times in has system number almost value. running of of We we the of start significant since adoption our customers for Permian drilling year. create the rigs Basin, increased and iCruise Lastly, In this the

We the I'm this drilled North iCruise. America are adoption about market in triple pace on our of excited year, and footage to

the services is in America world. largest the oilfield North market

value maximize we how in North on clear crystal are America. We

confident we why works, I We continue returns that's am to have will that demonstrated and that this cycle. strong through deliver strategy this

future. a our flows strong, this of performance Europe/Africa. What weeks from is and competitiveness quality saw cash and the our of strategy, our a of world. microcosm pipeline around To and all me of with our step The am just pleased segments clarity the depth back, the the Halliburton of our are incredible give I back opportunities quarter. I'm in of in few people, Halliburton's our leading I confidence returns Halliburton's technologies, business

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

and morning. Jeff, good you, Thank

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

was division. was and X% performance Completion Operating softer was margin by North QX operating our These with billion, compared America. sequentially strong up to XXXX, and results Revenue and in in primarily flat. XX%. driven were completion production QX income income when international $XXX $X.X results million, Beginning offsetting Production

region. Drilling XXXX. the $X.X billion both was XX QX while points. basis sequentially and margin QX results was our increase which strength seasonal division, roll-off in operating $XXX These was affected Operating million, flat software in the from business reflect In income our despite of revenue every of D&E XX%, sales Evaluation QX a sequential global of

on move geographic to let's results. Now

sales driven increased activity $XXX West activity an million, QX of completion and quarter was and Africa. XXXX along X% X% This increase in well Europe/Africa wireline sequentially. was by of Norway, second the activity with increased revenue tool higher higher international in stimulation sequentially. revenue increase construction in improved primarily Our

XXXX related to services Asia. X% in $X.X increase quarter East revenue was primarily of Middle $X.X sequentially higher billion, higher in Latin and the lines sequentially. East/Asia XXXX of the Middle multiple quarter product revenue activity fluid America an was the second in was in This across second increase of billion, flat.

tool $X.X was Gulf land representing decreased of a in X% in Mexico. decreased testing sales revenue sequentially. was decline America, U.S. This services completion primarily by billion, North In and pumping the pressure decrease driven and services

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

slightly. quarter our to we XXXX, increase the third expect For of expenses corporate

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

third expenses to quarter, For we SAP expect the slightly. increase

for expense interest the $XX million. quarter was Net

expense for anticipated, million, movements. $XX favorable expect was to expense the quarter Other FX For QX roughly lower interest third we which flat. net driven net by was XXXX, be than

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

due third approximately Based tax earnings was expect rate XX.X%, of to mix, items. to X%. we anticipated geographic quarter than rate increase for lower tax effective our Our expected discrete on XXXX our QX effective

QX were for expenditures Capital $XXX million.

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

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

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

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

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

will the back call turn Jeff. I now to

Eric. Thanks,

key I XX% would take today. of like are free flow the you about $XXX I away million cash from in our points our Here to discussion am with and pleased a few second quarter. margins

on this over cash well to free are XX% We flow year. growth deliver track

it our continues strategy North am confident value business, I about I'm stronger. been America deliver our never portfolio expect in returns. to where and that is working, has maximize international excited our strong I technology to

Finally, I performance. approach am are customers our convinced drive from expect that with how differentiate value competitors and us proposition aligned collaborative our improved and our directly to

for And now questions. let's open up it

Our Instructions] of will from the Anderson line Dave question with first Barclays. come [Operator

So lot is with North bit. Not surprise. of a America's A softening a e-fleet. under your contract though fleet little

so, continuing I out you're or to think and it's roll around XX% equipment.

recontracting So wondering just I'm the of those. about

X like I X/X typically have think X-year maybe like of to like or something would you repriced that I assume that. gets year contracts. each

So like what assuming now contracting? I'm right I that outstrips think terms supply in still here. demand look of -- does

e-fleets. So still kind repricing deals around Just of more? extend the doing who is and Are that on some to with there? color you blend customers the higher able little pricing a want move of

of let's this it's a -- technology, Well, for some clearly, we rolled quarter we more out and e-fleets. signed a couple lot contracts. and Yes. leading see I still a demand mean

into that a and year the And so see of end runway we today. 'XX this that's through

contracts really year. any next expire that We have until don't

good the process a customers, call. going that through a that's that value they're pretty to this is But through. we're up of not so which with creating. that And I'm on go signing working we're all repeat indicator

feel that but really the confident to on we through So don't go about call. process, it want

existing would But fleets understand. customers? stay you expect that Totally with the those most of

and second fleet. yes. these are -- some Yes. customers, beyond feel Still mean, same are in I signing that up I cases, even the the that -- Yes,

clearer so the on to gets clearly well. as reason And I not. in XX% every we're believe 'XX they And trajectory no to day. I would mean, that think XXXX path and that

XX% makes international within here. up that over how you of this growth? I here? X% sense. Can story highlighted you the quarter of for part East the you accelerate sequentially. lot talk and see Should And that growth, of you to that growth just international Yes, if a And start Middle to your revenue shift kind story

other don't East, wrong know that, talk I start about to the into really mean, growth even to -- in. I unconventional I contracting am in There's big know accelerate well? I as know next any if over play opportunities But the you with I you're Middle within you there should But that think can XX%, meant. involved that that. year

wrong. to to talk you're the confident work fantastic typical very around We've our obviously, lot not Middle and got going a about gas exposure I'm but our a business in in East. operator. No, Aramco, the we've And exposure, things. got lot not unconventional of services, of as is new you And I'm sort Look, Saudi creative Arabia. of some the say, even and contracts, both a

So around I'm bullish, very Middle actually optimistic, East.

line with come the Jayaram of Arun Our will next question from JPMorgan.

first Jeff, my question's North America. on

pricing lower impact X% down it, levels to year-over-year. You characterize How call X% from expect of declines now would impacts? versus, you the terms in activity revenues

year, look down. think this actually a it fact for I take that's, to fleets up, but really it quarter come a this is and activity the expect as down at But didn't the we primarily, well. took either. market gas is I The we that didn't leg then a we activity, would and leg based. during retired -- it's Look, activity few as

And that broadly. flat. time think activity not some takes an on to so and impact it's M&A I So digest has

the but outlook. got efficiencies catch more that And the up leading we activity doesn't time, at and clearly, change technology. Glad really makes talk also all the we've terrific about that mean, of performance technology, we're edge efficiencies. I value, We Halliburton it the rigs. but

been you've Understood. road obviously on Understood. quite internationally. the a bit Jeff,

You for how you is quantitative growth XXXX any next this or if give wondering prospects year-over-year you was year? expect industry, could how growth even I qualitative think international XX% on year. trends us internationally thoughts and in spending

going that being year I next while projects in see now year. up Look, tendered mean, into either to just of the get takes for a a activity some internationally. and going. cases strong they look lot we next it And international are or --

And extensions where in that and would which engaged, probably for obviously Middle of soonest be some a East. activity negotiation the where IOCs NOC-driven, contract so of that up them. Others, lot are picks will takes the sort it's cases like the look

talked what's And so America see to Still I'm possible there. trip seeing my just meaningful work. I Europe/Africa, there. excited I step meaningful and about up and Latin about

confident really industry's. And 'XX Halliburton's so no, in the outlook I for feel both and

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

that the building I alluded North you on What M&A those is unpack And are think the in America. guess seeing be really you activity? more. bottom? maybe the would points around Jeff, of question, think just to customer to suggest shoots that do conversations natural green first going the bottom in any you gas, driver but that XH that is some and you I forms can

see Yes. a structure are because from where I let I really services customers, now. plans Look, think cases, of and and capacity that I give a And you that's lot standpoint. for XXXX think important in me of just step back working maybe kind through industry

new this attriting. think I being about and I of across that much The board. -- real got sort is retiring I that's is time, in pretty think, mean, talked -- And built. quarter. is capacity happening shrinking this not of I equipment fleets We've the availability, old equipment

I here. gas some not in least which of America I a increase in year, entrepreneurs. plans next leg to end next expect year, never activity an That I expect that of do get clearly, And down North will in the bet at happen. companies up do look I that from I say pickup teams, new expect in say, against we sort all as hands is assets around new at place.

a firm So And would point leg expect I activity of I'm it the the up. up, is don't takes think clearly, lot think, I to things I here. making

of a follow-up. quarter good been company just of consistent cash And a million around then capital. And for the return flow. $XXX very was has It very free

to how think commitment parts to working the the And capital in two So how is we there's question. returning should your do year? think capital of probably shareholders? One to balance that about about we

Eric. it's Neil, Yes,

more headwinds two had significant the the we flow We capital between delta way efficiency working XXXX, our we in years. so to overall the evolve terms of consistent as working on as year. whole. capital the is that mean, of I a capital with free being as up organization, over in said will an So a in focus cash to a working that's And compared last XX% continue capital, guidance working of overall the of

QX. In in of in we terms of to a terms bought million at for kind this what it's guiding speaking, stage of QX, do back in intend cash think, million good of $XXX XXXX. remaining I return. And generally We point $XXX the

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

than think and which they beat about and from gas Jeff, demand you with bullish year, both North don't want 'XX we prices pull industry. the about tech where fully and oil the are, been. horse the -- and -- have aligned power rebound with But is the So dead a if industry outlook more increasingly huge probably certainly tech 'XX oil industry to this I as we're nicely. think much. for it's And too ever on I'm gas for America next prices coming I should you And think

your are conversations evolving a that natural to power of demand. constructing or and data ready surge to about So gas that nature I'm in do size crews gas-fired for size generation about this equipment kind get up conversations, be how with How of things we meet and How get how there? your curious what's going more we kind do to market? And pair and customer they're AI thinking up demand? centers of

gas. to what discussion Look, there's a lot of with do around

centers lay correct. point pipelines. data I alignment that my for than think such it's -- some think I gas is country absolutely the fantastic at for in lines around -- and point. view, a And will resource that our be takeaway seems directionally to fuel I think It just, and this data gas easier is gas your

timing, of terms come I think In that will on.

early mechanics in together. that's which that plans oil for what gets only to but And away, I creates taken all think degree the of I that coming the gas it's Basin. to runway to Permian work through more the expect means

AI in at and and seat good industry your data So to excited. share our And of for watch I'm a that excitement we've takeaway. natural closely, -- got pretty it centers what around am mean get and gas really terms

Got it.

Okay. That of iCruise, how makes but mentioned I you're technology now. what iCruise's mean, a it with sounds adoption seeing getting maybe and highlight great lot Could And the U.S. you kind then like of better unfolding? adoption in sense. well. you internationally, the as that's you're we adoption had

the Yes. direct Thanks. North tells with about America. to pleased Look, we're technology way full and sales I am own We're selling services. three the in rentals. the me And going we're I some things technology. like And going to market really our really market it because with that also with services,

in more this And drilling adopting up the a, kind adoption really are way. it. because in pleased demand. of And that wow, It tells that very say, organizations, it's We view, with standard customers B, I'm that we drillers. my in really, performance. it. high and of my really because, sell are That me, reliable the good it it -- delivering tool tells pick it's view, it's gold is this it they want could c, these of, like we me

a few America, in really it's rooted believe we've investments there made think today. of like said, But years. North quite we've good got over so I a And sort all I drilling we're and around in runway I

North for flow a it. Got cash nice you machine America's guys.

line come question from Piper Luke Sandler. next will of Lemoine Our with the

the of kind push for 'XX is that You takes this revised bit this the a international of little Or Could have into walk of some just spend? year. outlook you through unfolded? a and some on the us puts

year the we've Look, on halfway visibility through of year. and we're really balance sort the the got of good

that high end we up didn't I hit look wanted for guys range, we'd out. of think so so you the the to And as tighten

earlier, QX and will sales. very to software international be typically out, focused grow, and And But we have, the and tool day we're we're quarter as I continuing growth. with day highest saying march on continuing oil profitable says to sales that that. in my is My I saying clients a price see expectation own are the growth. that, project think alluded internationally is we of that. inventory our And

one you it. way where narrow would get So I thought can describe about sit it I worthwhile we a know But to just done, if it be and as bit. we push, from today, that's that think what to a

X you you X bit Okay. develop then unconventional walk little or but earlier, And a over some opportunities years? of the you're through various could the touched it on international seeing next

middle Certainly. are so it the We've all think, And right you Look, got and -- way. this. -- Middle have really lot that's in Saudi, of of way and I in from are executing. long Saudi the being think markets -- to Arabia the today heft a and if about, is activity lot excited Middle think Mediterranean back know changed we're there's into The place the about I East meaningful talked But the those and in that East, what and terms those I'm of a sort Argentina middle has a we're of don't pretty big experience discussions. about. of rest think of in I a the of

the sort days to is ability activity the I the of sort early what's today And what testing different think this. of is, accept of

and then lot a contributor we to production. of through a stops we've you a have seen model now proven starts phase it of sort and international the meaningful in two becomes get but markets there's initial internationally, where think I

get and very that's through, it sort other where of good to thoughtfully think, working think I pragmatically they rock, seen and reservoirs, good B. I places by take been And have A from what's to

world. sort long that taking over a view. serious the operators much a than of are that's of a move better from These And scramble, are perspective, wildcat so discussion very my all sort

of next of comes Bank Pant Saurabh the from question Our with line America.

start I'll just international-driven a But third should Jeff, right, Maybe, quarter. you beyond think about expansion I not as know we just quarter opportunity? should how talked the uptake? on the think this but to guided us we Landmark, right? Obviously, question about opportunity pricing little D&E with primarily margin fourth expansion that, margin. Because a about business, bit Eric, How 'XX, you in with margin is but from technology impact help think net a D&E. improvement, the you

Yes.

I D&E tends recognize think way a year-on-year bit difference around margins at mostly There cetera. look the to we QX, is of software really the basis. different quite et progression as be revenue between a quarters on to QX, impacts,

to So that to by year-on-year you it. need progression attention the it's quarter pay really

perspective, progression adoption the the get international drilling From improve as of directional we progression drilling talked technologies into believe in margins that that see continues continue firmly new Jeff America, next business. as the markets we We of In and we the in D&E. it the to about continue well. year. to North

in very growth we be of directionally, XXXX. go our to So we continue as confident the into margins D&E

think than a our Maybe because -- more drilling of lot feet BHA. XX%, that about our has our we've where we're I And then the out penetration our fleet are is a we probably grown rolled is we're that today. tool, legacy business, color tools, iCruise that XX% iCruise, drilling which little the drilling to when with more on

basically an less. it. or is performance sort LWD iStar XX% actually adoption -- is which actually the around of I range. implementation much equal that And technology that our want us that and for step-up technology, say, what efficiency, goes margin the to in is follows with in on But

D&E. structurally things margins a improve of very glide path both got -- we've So good that for

of around, old with look, the confidence And just is and retire part structurally new, continue that need we and so the capital I to time to see improving it replace that a efficiency. our my as as

that's a And you the production things. prepared faster market for side growing much international see on artificial Fantastic. at pace know I Okay. the lift. international Good to remarks. about No, lift of in helpful. than talked your overall one just

know But of if you we the on side chemical Athlon. I focus production things, acquired

Maybe You the to for that Halliburton? on production been chemicals expand Jeff, and and does investing us have sit just update side on where just time business, opportunity what's money the that right? that,

portfolio, business, Look, sort of it's clearly inherently also it's we're than our business. in balance but of lower-returning our part of an it's that the business --

business, of chemicals it with focus a pleased execute sales plant the Arabia. our that run But we profitability I'm we're continue that. returns. at in we has know So pace cycle. and on like about a our lot to filling all and Saudi long And a business

question next Citi. Scott with from comes Gruber Our

there's prices bit come natural diesel up curious, recovery little have I'm year. a and hopes for price gas next

you So in would don't describe gas... of just you. of overall, curious, how close what I even and with fuel CNG an e-frac Jeff, when $X e-frac healthier the diesel? cost gas I'm using would economics, or think price that I it's traditional between check delta $X environment gas. want And to

things. if way still X than sort diesel a times A higher X, of prices. couple that, with. long you're lot I from It's BTU we just mean, of use X start to at a

mean, isn't understanding get there this. and that just well what can't platform another it's a a just doing of beyond the to lot say our value with and is of that's thing with really in of of runway we're I terms in a recovery, available around but it mousetrap. trade-off other economic economic that the creating are gas. gas, e-fleets efficiency the not trade-off The lot is with And of Octiv, AutoFrac, they whether not clients itself form. that's provides technology Sensori for -- better-operating in machine, That's

different reservoir. with what precision the help what and so in all was platform. solve ZEUS That's planned placed was but for in a it's performance And measuring fish, delivering to of able kettle attached we're to a of whole

that together. And so all of runs

happening which achieve that gas able importantly e-fleets the is customers. up. we're So said, a there go But about technology is gas for arbitrage, I with to think long And like that think is when way on to I more comes all yes, what the I before broadly, time. arbitrage ever our

like your and hit. sounds ultimately any for it mean, going of to Octiv extend I the of ultimately, ultimate e-frac be penetration And further sense. with could of and kind kind lot help of saturation that customers a are AutoFrac Makes type

out, Just a develop a a operation, years goes think think efficient when as for get you as e-frac more of you as these do few of Halliburton's percent you do build up where you softwares fleet? there? And a kind and platform

the about allows we're the to in talked to we think itself the we then a talking -- systems, then both are we're over XX% placement I and we're extend continue us recovery technology -- that at whole We'll look, year. affect eclipse that And I year. focused and that on, my operators software this pump power is of around both scale once and time. view, improve to continue or lot XX% Well, things really the the expect and about next and what productivity this. that today, addresses, invest in which also

every And so we're that day. technology that moat extending around

confident time. things that effective I'm path for make as the yet we even future, of more will a again glide that ideas so customers And and into got over continue we've that quite

pleased there. where are we with So

Becker Capital with next Our question comes One. from Doug

me? hear you Can

can. I

North the rig Halliburton's revenue regularly American outperformed North count. So America has

calibrate key just some you might next and Just outperform wondering if count expect North really asking rig the that that outperformance could forward? you try revenue year. Halliburton's of going drivers to highlight the And of how America

The e-fleets is efficiency performance continue we that in that's our it I of and differentiates leading is technology of key things. a That's And business. the large and of the one in think part a Well, to invest technology, -- Halliburton. contracted. lot terms are of

means on can those technology And North and to know of things what a create technology, direct it's we consistent value technology very maximizing and invest is that spend not our targeted measurements, for that the our those back mean, we automation, we're will do, America sake we But And differentiation. can to technology subsurface areas. solve clearly, with in we targeted that but what for one -- for I'll minute. for understanding about we in, solve key measurements. just want strategy. of where that I pivot strategy money

'XX maximize the side terms in market. outperform revenue at a strategy to on beyond is again, confidence gives And of so lot hasn't value, me that And into of focus Halliburton of changed that allows where all. and the in the And that. us

that I is is growing a X% America North environment, year rig in revenue aggressive about, to in next of it type think too still flat environment? Halliburton's mean, count

position unfold to got early it the provide mean, in and I is again, And we be. we market solutions on look, watch performance confidence it our to I've our customers I us Yes. in 'XX, outperform. unique. to in But need to mean, It's could technology are outperform. the that next puts I'll go that year. going the the for but that back

even sense. makes Completely dedicated quick fleets. been on We've e-fleets. contracted And talk a one or then space just about on white more hearing the

Just risk on And there wanted little any e-fleets. your to the returns. Is fully any of get But a contracts. that for contracts better white you about thinking sense those white risk their long-term space? bit space just appreciate and potential justify

case. the not No,

customers fleet client use with with these matter no committed and again, the -- ownership, It that's what. that you always these contract -- space, is working and cost It if delivering the were is e-fleets. lower -- keep that's to will technology white is that contracted always the the long they fleet, when will are delivering to you're the working. They're fleet are -- going of the there clients this programs. be Our

not that. no, so And about I'm worried

last TD Our come Marc Bianchi today with question will Cowen. from

from on is the second this uncertainty here revenue. price some the following activity. guess look about talk versus that it like maybe you Or The you're first And of revenue, price about things hard on talking the of call outlook. main one sounds uncertain short is maybe 'XX. was when of -- thing? I stopping it the I that But mentioned improve to you question. about to half activity revenue had are top Jeff, could or Doug's how around X at Like it X, X

No.

the even really And of that here. second had work and customers next we've they year and I driver the year, they're think the half look did uncertainty with up at to later caught around the year. maybe we we again this them. still And go -- some plan customers activity is to when

my no, So not that's concern.

do value. of to got pivot to I'll We've And allow in back of terms us I again, strategy -- tools our that lot that is a It it's maximizing technically. think things will it's view, setting of my or XXXX. just -- other a But of clearly plans second of the whether happening 'XX things. be, in question half than pacing, in higher

Okay.

Okay. reduction seems Great. at sequentially driving that for And getting. about steep the pretty some just had, of the guide you What pieces reduction then margin this maybe the I maybe looking margin quarter moving for C&P. third be we're one other weakness? revenue Could one there? for But might is the talk The Eric.

mean, margin North QX about than of the international we a guidance going combination QX what well. actually be in are business the margins America. I Yes. is as to But lower talked really, for

there's not as parts it's just there's product this, a just much too moving well. North to not America, in business. read multiple lot line It's except So of into the

is So North America. related not it to all

concludes That today's...

Thank you.

you I and few know a a ahead I'll of call. give Let's you next minutes have back day wrap all here. up of the call you, very before maybe busy your

we to remember deliver as free it's this. today's and quarter. million track call, flow well of year. in free margins But this delivered on second cash important and We're the flow to XX% cash out step back about XX% $XXX growth Halliburton close

business is stronger been to its technology portfolio international value working. America maximize Our never our have and strategy in North and

to strong share, committed and value, strategy that are expect continues to deliver maximizing market I We returns. not

speaking Look quarter. forward you to with next

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

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