Derek John Podhaizer's questions to HALLIBURTON (HAL) leadership • Q3 2025
Question
Derek John Podhaizer asked for more details on Halliburton's frac equipment idling, including the number of fleets idled, permanently impaired, and expected to return, and its significance for market attrition and 2026 supply/demand. He also inquired about Q3 2025 free cash flow being light, working capital trends for Q4, and early indications for 2026 free cash flow given reduced CapEx.
Answer
Jeffrey Miller, Chairman, President, and CEO, reiterated that Halliburton idles uneconomic equipment, contributing to 'attrition in motion,' and believes North America pricing will tighten quickly with minimal market recovery. Eric Carre, Executive Vice President and CFO, confirmed Q3 FCF was lower due to higher revenue, slightly lower collections, and cash charges, but expects to meet the $1.7 billion full-year 2025 target. For 2026, he noted $800 million in additional liquidity from cost reductions and lower CapEx, but mentioned a potentially more conservative approach to cash utilization due to market volatility.