7e4596b29fbf16832fc4837568bcc8845b2699e67084d2408f5b8b1e5772785f

e78e7e13e0dae5a1896b7d9bdf1e3d5353fbc880944f14fe24840de4f20ef325

Halliburton Company is one of the world's largest providers of products and services to the energy industry, operating in more than 70 countries. The company is organized into two main operating segments: Completion and Production, and Drilling and Evaluation. Halliburton offers a wide range of services and products, including cementing, stimulation, specialty chemicals, field and reservoir modeling, and precise wellbore placement solutions **[0000045012-24-000043_hal-20240630.htm:16]** **[0000045012-24-000007_hal-20231231.htm:5]**. In 2023, the Completion and Production segment significantly contributed to the company's revenue, with a reported increase of 18% compared to the previous year, while the Drilling and Evaluation segment saw a 7% increase in revenue **[0000045012-24-000007_hal-20231231.htm:43]**. The company also focuses on sustainability and energy mix transition, aiming to reduce emissions and support clean energy initiatives **[0000045012-24-000063_hal-20240930.htm:20]** **[0000045012-24-000015_hal-20240331.htm:16]**.

1. **Completion and Production** - Provides services such as cementing, stimulation, specialty chemicals, intervention, pressure control, artificial lift, and completion products.
   - **Artificial Lift** - Enhances oil recovery by lifting fluids from the well.
   - **Cementing** - Secures and supports well casings and provides zonal isolation.
   - **Completion Tools** - Offers tools and equipment for well completion.
   - **Multi-Chem** - Supplies specialty chemicals for various oilfield applications.
   - **Pipeline & Process Services** - Delivers pipeline cleaning, testing, and maintenance services.
   - **Production Enhancement** - Improves well productivity through stimulation and other techniques.
   - **Production Solutions** - Provides customized solutions to optimize production.

2. **Drilling and Evaluation** - Offers field and reservoir modeling, drilling, fluids, evaluation, and precise wellbore placement solutions.
   - **Baroid** - Supplies drilling fluid systems and services.
   - **Drill Bits and Services** - Designs and manufactures drill bits for various drilling applications.
   - **Halliburton Project Management** - Manages complex oil and gas projects.
   - **Landmark Software and Services** - Provides software solutions for reservoir management and decision-making.
   - **Sperry Drilling** - Offers directional drilling and measurement-while-drilling services.
   - **Testing and Subsea** - Conducts well testing and provides subsea solutions.
   - **Wireline and Perforating** - Delivers wireline logging and perforating services for well evaluation and completion.

97d283aaeb020f9944d32ee28e765d7c8659ad0b71707690f758cbf74119968a

| Geographical Segment | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Q1 2024 | Q2 2024 | Q3 2024 |
|----------------------|---------|---------|---------|---------|---------|---------|---------|---------|
| North America ($B)   | **2.611**  **[0000045012-23-000006_hal-20230124.htm:1]**  | **2.8**  **[0000045012-23-000024_hal_03312023-ex99.htm:0]**  | **2.7**  **[0000045012-23-000046_hal-20230630.htm:21]**  | **2.6**  **[0000045012-23-000051_hal_09302023-erex99.htm:0]**  | **2.4**  **[0000045012-24-000003_hal_12312023-erex99.htm:0]**  | **2.5**  **[0000045012-24-000012_hal_03312024-erex99.htm:0]**  | **2.5**  **[0000045012-24-000040_hal_06302024-erex99.htm:0]**  | **2.4**  **[HAL_3406579_5]**  |
| Latin America ($B)   | **0.945**  **[0000045012-23-000006_hal-20230124.htm:1]**  | **0.915**  **[0000045012-23-000027_hal-20230331.htm:21]**  | **0.994**  **[0000045012-23-000046_hal-20230630.htm:21]**  | **1.0**  **[0000045012-23-000051_hal_09302023-erex99.htm:0]** **[0000045012-23-000051_hal_09302023-erex99.htm:1]**  | **1.0**  **[0000045012-24-000003_hal_12312023-erex99.htm:1]**  | **1.1**  **[HAL_3380245_4]**  | **1.1**  **[0000045012-24-000043_hal-20240630.htm:17]**  | **1.1**  **[HAL_3406579_5]** **[0000045012-24-000061_hal_09302024-erex99.htm:0]** **[0000045012-24-000061_hal_09302024-erex99.htm:1]** **[0000045012-24-000063_hal-20240930.htm:25]**  |
| Europe/Africa/CIS ($B) | **0.657**  **[0000045012-23-000006_hal-20230124.htm:1]**  | **0.662**  **[0000045012-23-000024_hal_03312023-ex99.htm:0]** **[0000045012-23-000027_hal-20230331.htm:21]** **[HAL_3247141_3]** **[0000045012-23-000024_hal_03312023-ex99.htm:1]**  | **0.698**  **[0000045012-23-000046_hal-20230630.htm:21]**  | **0.734**  **[0000045012-23-000051_hal_09302023-erex99.htm:0]** **[0000045012-23-000051_hal_09302023-erex99.htm:1]**  | **0.767**  **[0000045012-24-000003_hal_12312023-erex99.htm:0]** **[0000045012-24-000003_hal_12312023-erex99.htm:1]**  | **0.729**  **[0000045012-24-000015_hal-20240331.htm:15]**  | **0.757**  **[0000045012-24-000040_hal_06302024-erex99.htm:0]** **[0000045012-24-000043_hal-20240630.htm:17]** **[0000045012-24-000040_hal_06302024-erex99.htm:1]** **[0000045012-24-000043_hal-20240630.htm:23]**  | **0.722**  **[0000045012-24-000061_hal_09302024-erex99.htm:0]**  |
| Middle East/Asia ($B) | **1.369**  **[0000045012-23-000006_hal-20230124.htm:1]**  | **1.3**  **[HAL_3247141_3]**  | **1.4**  **[0000045012-23-000046_hal-20230630.htm:21]**  | **1.4**  **[0000045012-23-000051_hal_09302023-erex99.htm:1]**  | **1.5**  **[0000045012-24-000003_hal_12312023-erex99.htm:0]** **[0000045012-24-000003_hal_12312023-erex99.htm:1]**  | **1.4**  **[0000045012-24-000012_hal_03312024-erex99.htm:1]**  | **1.5**  **[0000045012-24-000040_hal_06302024-erex99.htm:1]**  | **1.5**  **[0000045012-24-000061_hal_09302024-erex99.htm:1]**  |

b35c0d6fc557df73f87396aaaa803fb5c0f8248b271b8ef9a57b8963526dc7a4

North America

Latin America

Europe/Africa/CIS

Middle East/Asia

Total Revenue

925e812368528d8275983db2b5dd9809e116fbf6080c0b94f2b61211494a70b6

1. Despite your guidance of international growth in the **low to mid-single digits next year**, how do you plan to accelerate growth beyond market rates to meet investor expectations, especially after acknowledging that full-year revenue growth will be **below prior guidance**?

2. Given the **9% year-over-year decline in North America revenue** and a full-year revenue decline expected at the low end of prior guidance, what specific strategies will you implement to reverse this trend and improve competitiveness in the North American market amid ongoing challenges?

3. The August cybersecurity event negatively impacted your adjusted earnings by **$0.02 per share** and affected free cash flow due to delayed billing and collections; what comprehensive measures are you taking to enhance your cybersecurity infrastructure to prevent future incidents that could affect your financial performance?

4. As competition intensifies in your core international business lines like **cementing, completion tools, and drilling fluids**, how do you plan to maintain or grow your market share, and what innovative solutions are you offering to differentiate yourself in these mature markets?

5. With plans for over **50% of your active fleet to be Zeus fleets next year**, what potential risks do you foresee regarding customer adoption, technological integration, or supply chain constraints that could hinder the deployment of the Zeus platform, and how might these challenges affect your operational and financial goals?

d7ce3f230af499170757e8d28bcfa0d0e7de2bb2954c8a5a94c2988f8a8e0dab

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: Q4 2024 and FY 2024
- **Guidance**:
  1. **Corporate Expenses**: Expected to increase by about **$10 million** in Q4  **[HAL_3406579_6]** .
  2. **SAP S/4 Migration Expenses**: Expected to increase by about **$5 million** in Q4  **[HAL_3406579_6]** .
  3. **Net Interest Expense**: Expected to increase by about **$5 million** in Q4  **[HAL_3406579_6]** .
  4. **Other Net Expense**: Expected to be approximately **$35 million** in Q4  **[HAL_3406579_6]** .
  5. **Effective Tax Rate**: Expected to be approximately **23.5%** in Q4  **[HAL_3406579_6]** .
  6. **Capital Expenditures**: For the full year 2024, expected to be approximately **6.4% of revenue**  **[HAL_3406579_6]** .
  7. **Free Cash Flow**: Expected to be at least **10% higher** than in 2023 for the full year 2024  **[HAL_3406579_6]** .
  8. **Completion and Production Division**: Anticipated sequential revenue decline of **1% to 3%** and margins to decline **75 to 125 basis points** in Q4  **[HAL_3406579_6]** .
  9. **Drilling and Evaluation Division**: Expected sequential revenue to be flat to up **2%** and margins to be flat to up **50 basis points** in Q4  **[HAL_3406579_6]** .
  10. **International Revenue Growth**: Expected to be in line with the overall market and below prior guidance for the full year  **[HAL_3406579_1]** .
  11. **North America Revenue**: Expected to decline at the low end of prior guidance for the full year due to seasonality and budget exhaustion  **[HAL_3406579_3]** .
  12. **Capital Expenditures for 2025**: Broadly expected to remain at **6% of revenue**  **[HAL_3406579_21]** .
  13. **Stock Buybacks**: Planned to average **$250 million per quarter**, leading to approximately **$1 billion** for the year, significantly up from 2023  **[HAL_3406579_18]** .

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: Q3 2024
- **Guidance**:
  1. **Corporate Expenses**: Expected to increase slightly in Q3 2024  **[HAL_3393632_4]** .
  2. **SAP Expenses**: Expected to increase slightly in Q3 2024  **[HAL_3393632_4]** .
  3. **Net Interest Expense**: Expected to be roughly flat in Q3 2024  **[HAL_3393632_4]** .
  4. **Other Net Expense**: Expected to be approximately $35 million in Q3 2024  **[HAL_3393632_4]** .
  5. **Effective Tax Rate**: Expected to increase by approximately 1% in Q3 2024  **[HAL_3393632_4]** .
  6. **Capital Expenditures**: Expected to be approximately 6% of revenue for the full year 2024  **[HAL_3393632_4]** .
  7. **Free Cash Flow**: Expected to be at least 10% higher than in 2023 for the full year 2024  **[HAL_3393632_4]** .
  8. **Completion and Production Division**: Anticipated sequential revenue to be down 1% to 3% and margins to decrease by 75 to 125 basis points in Q3 2024  **[HAL_3393632_4]** .
  9. **Drilling and Evaluation Division**: Expected sequential revenue to increase 2% to 4% and margins to increase by 25 to 75 basis points in Q3 2024  **[HAL_3393632_4]** .
  10. **North America Revenue**: Expected to decline 6% to 8% for the full year 2024 compared to the previous year  **[HAL_3393632_2]** .
  11. **International Business**: Expected to deliver about 10% revenue growth for the full year 2024  **[HAL_3393632_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: Q2 2024 and FY 2024
- **Guidance**:
  1. **Completion and Production Division**:
     - Sequential revenue is expected to increase by **2% to 4%**.
     - Margins are anticipated to increase by **25 to 75 basis points**  **[HAL_3380245_5]** .
  2. **Drilling and Evaluation Division**:
     - Sequential revenue is expected to increase by **1% to 3%**.
     - Margins are anticipated to increase by **25 to 75 basis points**  **[HAL_3380245_5]** .
  3. **Corporate Expenses**: Expected to be approximately flat for the second quarter of 2024  **[HAL_3380245_4]** .
  4. **SAP Expenses**: Expected to be approximately flat for the second quarter of 2024  **[HAL_3380245_4]** .
  5. **Net Interest Expense**: Expected to be roughly flat for the second quarter of 2024  **[HAL_3380245_4]** .
  6. **Other Net Expense**: Expected to be approximately **$35 million** for the second quarter of 2024  **[HAL_3380245_4]** .
  7. **Effective Tax Rate**: Expected to increase by approximately **75 basis points** for the second quarter of 2024  **[HAL_3380245_4]** .
  8. **Capital Expenditures**: Expected to remain approximately **6% of revenue** for the full year of 2024  **[HAL_3380245_4]** .
  9. **Free Cash Flow**: Expected to be at least **10% higher** than in 2023 for the full year of 2024  **[HAL_3380245_4]** .
  10. **International Revenue**: Expected to grow at low double digits year-on-year for 2024  **[HAL_3380245_6]** .
  11. **North America Revenue and Margins**: Expected to be flattish compared with 2023 levels for the full year of 2024  **[HAL_3380245_6]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: Q1 2024
- **Guidance**:
  1. **Corporate Expenses**: Expected to be flat in Q1 2024 compared to Q4 2023  **[HAL_3370580_5]** .
  2. **SAP S/4 Migration Expenses**: Expected to be approximately $30 million or $0.03 per share in Q1 2024, with a total of $120 million expected for the full year 2024 and $80 million in 2025  **[HAL_3370580_5]** .
  3. **Net Interest Expense**: Expected to be roughly $85 million in Q1 2024  **[HAL_3370580_5]** .
  4. **Other Net Expense**: Expected to be about $35 million in Q1 2024  **[HAL_3370580_5]** .
  5. **Effective Tax Rate**: Expected to be approximately 21% for Q1 2024, slightly lower than the anticipated full-year effective tax rate  **[HAL_3370580_5]** .
  6. **Capital Expenditures**: Expected to remain approximately 6% of revenue for the full year 2024  **[HAL_3370580_5]** .
  7. **Free Cash Flow**: Expected to be directionally higher in 2024 compared to 2023  **[HAL_3370580_5]** .
  8. **Completion and Production Division**: Sequential revenue expected to be flat to down 2% in Q1 2024, with margins lower by 125 to 175 basis points  **[HAL_3370580_5]** .
  9. **Drilling and Evaluation Division**: Sequential revenue expected to decline between 1% to 3% in Q1 2024, with margins lower by 25 to 75 basis points  **[HAL_3370580_5]** .
  10. **International Business**: Expected low double-digit growth in 2024  **[HAL_3370580_6]** .
  11. **North America Business**: Expected to have a flattish revenue and margin environment for 2024  **[HAL_3370580_3]** .

2ad4ae2d7032380f128717303ecc37fb7ba31bb5e6410e979971c24dd482aa11

Completion and Production

Drilling and Evaluation

- Services

- Product Sales

57b9b5d51618a01018e5c89abaf90f08a430bd526032dab38248669ff88473a7

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

f3978d28dd2fd106cfc6862180b303bf735078ad06c9d4f17fce2a78520b2569

| Name                | Position                                                      | Start Date       | Short Bio                                                                                                                                                                                                 |
|---------------------|---------------------------------------------------------------|------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Van H. Beckwith     | Executive Vice President, Secretary, and Chief Legal Officer  | December 2020    | Van H. Beckwith has been serving as the Executive Vice President, Secretary, and Chief Legal Officer of Halliburton Company since December 2020. Prior to this role, he was the Senior Vice President and General Counsel  **[0000045012-24-000007_hal-20231231.htm:13]** **[0000045012-23-000011_hal-20221231.htm:13]** .               |
| Eric J. Carre       | Executive Vice President and Chief Financial Officer          | May 2022         | Eric J. Carre has been serving as the Executive Vice President and Chief Financial Officer of Halliburton Company since May 2022. He was previously the Executive Vice President of Global Business Lines from May 2016 to April 2022  **[0000045012-24-000007_hal-20231231.htm:13]** **[0000045012-23-000011_hal-20221231.htm:13]** .   |
| Charles E. Geer, Jr.| Senior Vice President and Chief Accounting Officer            | December 2019    | Charles E. Geer, Jr. is the Senior Vice President and Chief Accounting Officer of Halliburton Company since December 2019. He was Vice President and Corporate Controller from January 2015 to December 2019  **[0000045012-24-000007_hal-20231231.htm:13]** .                                |
| Myrtle L. Jones     | Senior Vice President, Tax                                    | March 2013       | Myrtle L. Jones serves as the Senior Vice President, Tax at Halliburton Company since March 2013  **[0000045012-24-000007_hal-20231231.htm:13]** .                                                                                                                                           |
| Timothy M. McKeon   | Senior Vice President and Treasurer                           | January 2022     | Timothy M. McKeon is the Senior Vice President and Treasurer of Halliburton Company since January 2022. He was Vice President and Treasurer from January 2014 to December 2021  **[0000045012-24-000007_hal-20231231.htm:13]** .                                                             |
| Jeffrey A. Miller   | Chairman of the Board, President, and Chief Executive Officer | January 2019     | Jeffrey A. Miller has been with Halliburton since 1997, serving in various leadership roles. He has been Chairman of the Board, President, and CEO since January 2019. He was a Board member since 2014  **[0001308179-24-000414_lhal2024_def14a.htm:22]** **[0000045012-24-000007_hal-20231231.htm:13]** .                                  |
| Lawrence J. Pope    | Executive Vice President of Administration and Chief HR Officer| January 2008     | Lawrence J. Pope has been serving as the Executive Vice President of Administration and Chief Human Resources Officer at Halliburton Company since January 2008  **[0000045012-24-000007_hal-20231231.htm:13]** .                                                                             |
| Mark J. Richard     | President, Western Hemisphere                                 | February 2019    | Mark J. Richard is the President, Western Hemisphere at Halliburton Company since February 2019. He was Senior Vice President, Northern U.S. Region from August 2018 to January 2019  **[0000045012-24-000007_hal-20231231.htm:13]** **[0000045012-23-000011_hal-20221231.htm:13]** .                                                    |
| Jill D. Sharp       | Senior Vice President, Internal Assurance Services            | January 2022     | Jill D. Sharp has been serving as the Senior Vice President, Internal Assurance Services at Halliburton Company since January 2022. She was Vice President, Internal Assurance Services from September 2021 to December 2021  **[0000045012-24-000007_hal-20231231.htm:13]** **[0000045012-23-000011_hal-20221231.htm:13]** .            |
| Shannon Slocum      | President, Eastern Hemisphere                                 | March 2023       | Shannon Slocum is the President, Eastern Hemisphere of Halliburton Company since March 2023. He was Senior Vice President, Global Business Development and Marketing from January 2020 to February 2023  **[0000045012-24-000007_hal-20231231.htm:13]** .                                    |

0a47f8c3b9f11328a7e34175b2d97099b0cf986b306d83b6167fe0a72c4143d5

| Program Details           | Program 1       |
|---------------------------|-----------------|
| Approval Date             | February 2006  **[0000045012-24-000063_hal-20240930.htm:35]**  |
| End Date/Duration         | N/A             |
| Total Additional Amount   | N/A             |
| Remaining Authorization   | **$3.4 billion** as of 2024-12-21  **[0000045012-24-000063_hal-20240930.htm:15]** **[0000045012-24-000063_hal-20240930.htm:35]**  |
| Details                   | Systematic mechanism to return cash to shareholders, targeting **$250 million per quarter** with an aim of **$1 billion for the year**  **[HAL_3406579_18]**  |

153a455296e26d8fc2f58fa2e89a778645ae77141fcaa251b345c651ae508a6d

**Quarterly guidance for Q1 2025:**
- **Corporate Expenses**: Expected to decrease slightly from Q4 2024 ($65 million)  **[HAL_3413009_6]**  (no prior guidance)  
- **SAP S4 Migration Expenses**: $25 million  **[HAL_3413009_6]**  (no prior guidance)  
- **Net Interest Expense**: $90 million  **[HAL_3413009_6]**  (no prior guidance)  
- **Other Net Expense**: $40 million  **[HAL_3413009_6]**  (no prior guidance)  
- **Effective Tax Rate**: 23%  **[HAL_3413009_6]**  (no prior guidance)  
- **Completion & Production (C&P) Division (Revenue)**: Decline 3% to 5% sequentially  **[HAL_3413009_6]**  (no prior guidance)  
- **Completion & Production (C&P) Division (Margins)**: Decline 175 to 225 basis points sequentially  **[HAL_3413009_6]**  (no prior guidance)  
- **Drilling & Evaluation (D&E) Division (Revenue)**: Decline 8% to 10% sequentially  **[HAL_3413009_6]**  (no prior guidance)  
- **Drilling & Evaluation (D&E) Division (Margins)**: Flat to down 50 basis points sequentially  **[HAL_3413009_6]**  (no prior guidance)  

**Annual guidance for FY 2025:**
- **SAP S4 Migration Expenses**: $100 million  **[HAL_3413009_6]**  (no prior guidance)  
- **Effective Tax Rate**: 25.5%  **[HAL_3413009_6]**  (no prior guidance)  
- **Capital Expenditures (CapEx)**: 6% of revenue  **[HAL_3413009_6]**  (no change from prior guidance of 6%  **[HAL_3406579_21]** )  
- **Free Cash Flow**: $1.6 billion  **[HAL_3413009_7]**  (no prior guidance)  
- **International Revenue**: Expected to be flat year-over-year  **[HAL_3413009_2]**  (no prior guidance)  
  - Excluding Mexico: Low to mid-single digits growth  **[HAL_3413009_2]**  (no prior guidance)  
- **North America Revenue**: Expected to decrease low to mid-single digits from 2024 or remain approximately flat with 2H 2024  **[HAL_3413009_3]**  (no prior guidance)  
- **Zeus E-Fleets**: 50% of the fleet by the end of 2025  **[HAL_3413009_3]**  (no prior guidance)  

fb7b63e53a7372568a804c6299bcce7c43513c34bec3e839797af016b344307b

| Name     | Start Date | End Date | Reason for Change |
|----------|------------|----------|-------------------|
| KPMG LLP | 2002  **[0000045012-24-000007_hal-20231231.htm:62]**  | Present  | Current auditor   |

a2b7a797e02a805aa295202fd7b35109b2128138f1661a7dda86b14b5124b119

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

23ab09fce5cedc459993e7c555a3309f8629749f62d4ec4627d302711603d350

7ad7fe221bac1e6caa2ae229f18a093a771b2673b357b6d973c31f598618489f

9e32c47628094b10112a1f8fefb80dfc46b46d4f9b731bf93caef2c1712af01c

Number of participating companies and alumni in Halliburton Labs (companies)

Average rig count for U.S. Land (rigs)

Average rig count for U.S. Offshore (rigs)

Average rig count for Canada (rigs)

Average rig count for North America (rigs)

Average rig count for International (rigs)

Average rig count for Worldwide total (rigs)

a47e7eb171274fae8ae7be921cdc95c84f2872f19b2f258f46df907e11836e2b

- Halliburton expects **strong growth in the Middle East market**, with significant exposure to both unconventional and gas projects, including in Saudi Arabia, and is **"optimistic, actually bullish, around Middle East"**.  **[HAL_3393632_7]** **[HAL_3393632_15]**
- The company continues to **invest in differentiated technologies** that allow them to outperform in revenue even in a flat rig count environment, giving confidence in their ability to outperform in **'25 and beyond**.  **[HAL_3393632_21]** **[HAL_3393632_20]**
- Halliburton anticipates **continuing international growth**, particularly in unconventional plays in regions like **Saudi Arabia and Argentina**, and sees a **"continuing march internationally of growth"**, supported by oil prices and client demand.  **[HAL_3393632_14]** **[HAL_3393632_15]**

45b78fb98d3bd8e0bb969bab23531c0a60b9743349a7b5a175c2b2cf4fcafbb2

1. **North America Revenue Outlook**  
   **Q:** What drives declines in North America revenue, activity or pricing?  **[HAL_3393632_8]**   
   **A:** The decline in North America revenue, expected to be down **6–8% year-over-year**, is primarily driven by reduced activity levels rather than pricing impacts. This includes factors such as retiring a few fleets during the quarter, a downturn in the gas market, and the time it takes to digest mergers and acquisitions.  **[HAL_3393632_8]** 

2. **International Growth Prospects**  
   **Q:** How strong is international spending and growth outlook for 2025?  **[HAL_3393632_9]**   
   **A:** The international growth prospects for 2025 are strong, with many projects being tendered and activities planned for next year. Expectations include meaningful work in Europe, Africa, and Latin America, with notable optimism around the Middle East due to National Oil Companies driving activity. Halliburton is confident in both its own outlook and the industry's growth internationally.  **[HAL_3393632_9]** 

3. **E-Fleets Recontracting and Demand**  
   **Q:** Will most e-fleets stay with existing customers upon recontracting?  **[HAL_3393632_6]**   
   **A:** Yes, Halliburton expects most of its e-fleets to remain with existing customers. Demand for e-fleets remains strong, as they are leading technology platforms. Contracts for e-fleets do not expire until next year, and the company is signing up repeat customers, indicating the value being created.  **[HAL_3393632_6]** 

4. **Capital Return Plans**  
   **Q:** How should we think about cash returns to shareholders?  **[HAL_3393632_11]**   
   **A:** Halliburton generated about **$800 million** of free cash flow in the second quarter and remains committed to returning capital to shareholders. The company bought back **$250 million** in shares in both Q1 and Q2, with a general intention to continue similar repurchases throughout the remainder of 2024. The focus remains on delivering over **10% free cash flow growth** compared to last year.  **[HAL_3393632_11]** 

5. **D&E Margin Expansion**  
   **Q:** What's the margin expansion opportunity in D&E segment?  **[HAL_3393632_16]**   
   **A:** Halliburton expects continued margin improvement in the Drilling and Evaluation (D&E) segment, driven by technology uptake and the rollout of new drilling technologies like iCruise and iStar. The company is confident in the growth of D&E margins as it moves into 2025, focusing on year-on-year progression enabled by increased adoption of advanced drilling technologies internationally.  **[HAL_3393632_16]** 

6. **E-Fleets and White Space Risk**  
   **Q:** Is there any risk of white space on e-fleet contracts?  **[HAL_3393632_22]**   
   **A:** No, Halliburton does not anticipate any white space risk on its e-fleet contracts. Clients have contracted these fleets with long-term programs, and e-fleets are expected to remain continuously operational due to their efficiency, technology advantages, and lower cost of ownership.  **[HAL_3393632_22]** 

7. **Natural Gas Demand from AI/Data Centers**  
   **Q:** How are customer conversations evolving regarding gas demand from tech industry?  **[HAL_3393632_12]**   
   **A:** There is increasing discussion around the utilization of natural gas to meet the power demand from data centers and AI. Halliburton acknowledges that gas is a fantastic fuel resource, and while the timing is still developing, the company is excited about the potential demand pull and the alignment with the tech industry, which could translate into greater gas takeaway and a positive impact on the Permian Basin.  **[HAL_3393632_12]** 

8. **C&P Margin Outlook**  
   **Q:** What's driving the steep margin reduction in C&P segment guidance?  **[HAL_3393632_24]**   
   **A:** The margin reduction in the Completion and Production (C&P) segment for the third quarter is due to a combination of factors affecting both North America and international operations. Specifically, Q3 margins in the international business are expected to be lower than Q2. There are multiple moving parts across various product lines, and it's not solely related to North America.  **[HAL_3393632_24]** 

9. **iCruise Technology Adoption**  
   **Q:** How is iCruise technology adoption progressing in North America?  **[HAL_3393632_13]**   
   **A:** The adoption of iCruise technology in North America is progressing well, with high demand and positive customer reception. Halliburton is going to market with full services, and the technology is delivering performance, reliability, and value. Customers adopting iCruise are among the leading drillers, indicating strong market acceptance.  **[HAL_3393632_13]** 

10. **Unconventional International Opportunities**  
    **Q:** What are the unconventional international opportunities over next 2-3 years?  **[HAL_3393632_15]**   
    **A:** Halliburton sees significant unconventional opportunities internationally, particularly in Saudi Arabia and Argentina, which are meaningful markets currently executing. The rest of the Middle East is also exciting, with discussions focused on pragmatic approaches to develop good reservoirs. Serious operators are taking a long-term view, learning from successful models to create meaningful contributions to production.  **[HAL_3393632_15]** 

f4495fea4d617eb47502f5f22882e7c99c45eceb9f8a56621bdc4ad2caa8d341

- **Halliburton has 90% of its fracturing fleet committed for 2025**, indicating strong demand and future revenue visibility. The company stays out of the spot market, sizes the fleet appropriately, and leverages its high-performance technology to command premium pricing.  **[HAL_3406579_20]**
- **Significant R&D investment in intervention technologies**, such as the riserless intervention service developed with TechnipFMC, positions Halliburton for outsized international growth. These advancements open new markets and make wells economically viable that previously were not.  **[HAL_3406579_13]**
- **Leading edge in fracking efficiency and technology**, exemplified by the Zeus platform, allows Halliburton to achieve more with less equipment, driving capital efficiency and supporting margins. The company is at the forefront of industry efficiency gains, helping customers be more productive while maintaining profitability.  **[HAL_3406579_12]**

a14839c3b804f475c4749eb89047e5e86d54396c45c20f7857b2654e870f1a48

- **Halliburton expects North America revenue and margins to be flattish in 2024**, indicating limited growth prospects in their largest market.  **[HAL_3370580_23]** **[HAL_3370580_17]** **[HAL_3370580_24]** **[HAL_3370580_20]**
- **Anticipated delays in activity upticks in regions like West Africa and the North Sea until 2025**, which could postpone international growth opportunities.  **[HAL_3370580_15]**
- **Reliance on collaborations to fill gaps in their portfolio highlights weaknesses in certain product lines**, suggesting dependency on external partners to remain competitive.  **[HAL_3370580_8]**

cf9b5ae9fd52a54854b99952aa4ae46e8361896b49ca59d3da40827cd607419f

- **Halliburton expects to generate significant free cash flow in 2024**, with plans to return over **50% of free cash flow to shareholders**, enhancing shareholder value.  **[HAL_3370580_26]** ,  **[HAL_3370580_17]**
- The company has **strong visibility and confidence in international growth through the end of the decade**, working on tenders for work in **2025 and beyond**, indicating robust demand and long-term contracts.  **[HAL_3370580_15]** ,  **[HAL_3370580_10]**
- **Drilling and Evaluation margins are expected to be materially higher in 2024 than in 2023**, as previous investments are paying off, leading to higher returns.  **[HAL_3370580_16]**

39a99beb20ba17b18de7c4287722bbf77f22adab1f247bf1cc92602a9adb0e9e

- **Uncertainty in Fleet Pricing for 2025:** Despite having **90% of their fleet committed for 2025**, Halliburton has not provided details on the **pricing of these contracts**, raising concerns about the **profitability** of their operations in a potentially challenging market.  **[HAL_3406579_20]**
- **Increased Efficiency Reducing Demand:** Operators are becoming more efficient, with the ability to use **four frac fleets in 2025 to perform the work of five fleets in 2024**, which could lead to reduced demand for Halliburton's services and impact their **revenues and margins**.  **[HAL_3406579_12]**
- **Limited Room for Further Efficiency Gains:** Halliburton acknowledges that the industry has become so efficient that it may be **harder to achieve additional efficiency improvements from here**, potentially limiting future **growth** and **margin expansion**.  **[HAL_3406579_12]**

e706db70cfab5ec43e9906275edacf31a54bda03cf96985524ed4d796ce31fac

- **Halliburton expects a 6% to 8% year-over-year decline in North America revenues for 2024**, primarily due to lower activity levels and an unexpected downturn in the gas market.  **[HAL_3393632_8]**
- **The company anticipates a steep margin reduction in its Completion and Production division for Q3 2024**, both in North America and international markets, indicating challenges across multiple product lines.  **[HAL_3393632_24]**
- **Halliburton revised its international growth outlook**, acknowledging it won't reach the high end of the expected range, suggesting potential delays or lower-than-expected spending in international markets.  **[HAL_3393632_14]**

0ca392812561dd4f7891c8b4e5a4c6db31a2ad1a73448795d1023de997581ed2

1. **International Growth and Margin Outlook**  
   **Q:** What's driving your international growth and margins?  
   **A:** Our international growth is broad-based, with activity expanding and we're capturing a larger share due to our technology improvements. We're focusing on delivering profitable growth by building a strong foundation and expanding margins through better capital efficiency and pricing in a tightening market. **(Citations:  **[HAL_3380245_13]** ,  **[HAL_3380245_24]** ,  **[HAL_3380245_26]** )**

2. **Capital Allocation and Share Buybacks**  
   **Q:** Why maintain share repurchases at $250 million per quarter?  
   **A:** We aim to return a minimum of **50%** of free cash flow to shareholders. In 2023, we exceeded this by returning nearly **60%**. The $250 million quarterly buyback is a good base aligned with our improved free cash flow, which we expect to grow by about **10%** year-over-year. **(Citation:  **[HAL_3380245_9]** )**

3. **North America Gas Market Outlook**  
   **Q:** When will gas activity drive growth in North America?  
   **A:** The next significant growth in North America will come from gas development, likely in **2025 and beyond**. As the equipment fleet has shrunk due to attrition, the market will be incredibly tight when gas demand picks up, leading to strong market growth. **(Citation:  **[HAL_3380245_14]** )**

4. **Margin Expansion Drivers**  
   **Q:** What's contributing to your margin improvement?  
   **A:** Margin expansion is driven by a combination of tight market pricing and our focus on improving capital efficiency through technology. Our R&D investments have led to better returns, particularly evident in our drilling and Zeus technologies, enhancing profitability. **(Citation:  **[HAL_3380245_26]** )**

5. **Competitive Advantage of Zeus Platform**  
   **Q:** How does Zeus provide a competitive moat?  
   **A:** Zeus is a comprehensive electric platform with embedded automation and subsurface measurements via **[Sensory]**, uniquely widening our moat. Being first to market and operating at scale allows us to grow our technological advantages over competitors. **(Citation:  **[HAL_3380245_7]** )**

6. **Pricing Pressure in North America**  
   **Q:** How are you responding to North American pricing pressures?  
   **A:** While we see some pricing pressure, it doesn't alter our strategy. We focus on delivering unique technologies that create value, with **40%** of our equipment under long-term contracts, minimizing exposure. We prioritize efficiency and lowest total cost of ownership for customers. **(Citations:  **[HAL_3380245_16]** ,  **[HAL_3380245_22]** )**

7. **Visibility on Long-Term Projects**  
   **Q:** What gives confidence in growth through the decade's end?  
   **A:** We are planning work that will begin in **2025** and extend through the end of the decade, involving long-term projects that take time to initiate and execute. The consistent demand for oil and gas, along with investments in North America, supports our confidence in a resilient cycle. **(Citation:  **[HAL_3380245_25]** )**

8. **Deepwater Growth Prospects**  
   **Q:** Where will deepwater growth surprise in coming years?  
   **A:** We expect significant deepwater growth in **West Africa and the North Sea** starting in **2025 and beyond**. We're planning work now, and these projects are set to extend into the end of the decade, representing long-term opportunities. **(Citation:  **[HAL_3380245_15]** )**

9. **M&A Strategy**  
   **Q:** How do you view M&A in your growth plans?  
   **A:** No change to our strategy; we prefer organic growth and bolt-on technology acquisitions that advance our research and bring solutions to market quickly. We focus on growing our existing businesses organically, which we believe generates more shareholder value. **(Citation:  **[HAL_3380245_10]** )**

10. **Latin America Performance**  
    **Q:** What drove the outperformance in Latin America?  
    **A:** Latin America's strong performance was broad-based across several geographies, including **Argentina, Mexico, Caribbean, and Ecuador**. Our team's exceptional work and the critical importance of oil and gas to these economies contributed to this growth, and we expect more to come. **(Citation:  **[HAL_3380245_18]** )**

11. **Adoption of iCruise Technology**  
    **Q:** Is iCruise displacing competitors in North America?  
    **A:** iCruise is performing exceptionally well, with customer-driven uptake leading to more than **doubling** the footage drilled compared to last year. It's designed specifically for this market on our proven iCruise platform, enabling us to compete effectively. **(Citation:  **[HAL_3380245_20]** )**

12. **Growth in OpEx vs. D&C Cycle**  
    **Q:** How are you positioned in OpEx versus D&C?  
    **A:** We see significant organic growth in both. In OpEx, we're already engaged in lift, chemicals, and intervention businesses. The D&C cycle remains very strong and continues to grow. We balance our exposure across exploration, development drilling, and OpEx globally. **(Citation:  **[HAL_3380245_11]** )**

13. **Expansion in Production Chemicals**  
    **Q:** Will you grow your production chemicals business?  
    **A:** We plan to grow our chemicals business organically. We've built capacity that's filling up, especially in the Middle East. We believe that organic growth generates significant shareholder value, and we continue to make progress in this area. **(Citation:  **[HAL_3380245_21]** )**

14. **Impact of Saudi Arabia's Activity Shift**  
    **Q:** How does the shift to onshore in Saudi Arabia affect you?  
    **A:** The rebalancing towards gas and unconventionals in Saudi Arabia is very positive for us. We have a strong onshore business there and participate across all market aspects. Equipment remains tight, and we expect growth in Saudi Arabia in **2024**. **(Citation:  **[HAL_3380245_12]** )**

15. **Sequential Margin Expansion in D&E**  
    **Q:** What's driving D&E margin expansion this quarter?  
    **A:** The expansion is due to building a stronger foundation and broader-based work. Although we typically see a margin drop in Q2 due to software revenue recognition, this year it's muted because of weather-related softness in Q1. We expect margins to continue improving. **(Citations:  **[HAL_3380245_19]** ,  **[HAL_3380245_27]** )**

45429db8757f89489bedc3018799ee25391e179444ee7996c4d0b6a0b707727c

1. **North America Fleet Commitments**  
   **Q:** Do you have 90% of your frac fleets committed for 2025?  
   **A:** Yes, **90% of our frac fleets are committed for 2025**, with up to **50% potentially being Zeus fleets**.  **[HAL_3406579_11]**  This strong commitment gives us confidence about 2025, and we're focused on maximizing value by solving the hardest problems in unconventionals and leveraging our Zeus platform.  **[HAL_3406579_11]** 

2. **Impact of Efficiency on Profitability**  
   **Q:** How does increased efficiency impact your profitability in North American frac?  
   **A:** We're at the leading edge of efficiency, getting more reps with less capital.  **[HAL_3406579_12]**  Generating the same or more revenue with less equipment is positive and strategically aligns with why we build equipment the way we do.  **[HAL_3406579_12]**  Our Zeus platform creates outsized value for customers, and leading this efficiency keeps us busy and creates more opportunities.  **[HAL_3406579_12]** 

3. **2025 CapEx Guidance**  
   **Q:** Will CapEx remain at 6% of revenue for next year?  
   **A:** Yes, we expect CapEx to be **6% of revenue** in 2025.  **[HAL_3406579_21]**  This will be balanced between Completion & Production, Drilling & Evaluation, and between North America and international markets.  **[HAL_3406579_23]** 

4. **Stock Buybacks**  
   **Q:** Is $250 million per quarter the right run rate for stock buybacks in 2025?  
   **A:** We plan to average **$250 million per quarter** in stock buybacks, leading to around **$1 billion for the year**, significantly up from 2023.  **[HAL_3406579_18]**  We view buybacks as a systematic mechanism to return cash to shareholders through cycles.  **[HAL_3406579_18]** 

5. **International Growth Opportunities**  
   **Q:** How does international opportunity compare to North America, particularly regarding productivity?  
   **A:** Internationally, we're much further behind in technology application compared to North America.  **[HAL_3406579_15]**  We're not yet at the point where efficiency reduces demand internationally; in fact, demand is increasing.  **[HAL_3406579_15]**  We see solid growth opportunities across business lines and geographies, especially in intervention services where we're investing in R&D and developing technologies like riserless intervention.  **[HAL_3406579_13]** 

6. **Cybersecurity Incident Impact**  
   **Q:** What lessons were learned from the cybersecurity incident, and how does it affect the ERP rollout?  
   **A:** The importance of preparedness and partnering with top professionals cannot be overemphasized.  **[HAL_3406579_17]**  The incident caused our IT team to focus on restoration, delaying the ERP system rollout by **3 to 6 months**, pushing completion into **H1 2026**.  **[HAL_3406579_17]** 

7. **Offshore Business Outlook**  
   **Q:** Is there anything to be mindful of for your offshore business in 2025?  
   **A:** We see stability in our biggest offshore markets like the Gulf of Mexico, Brazil, Guyana, Norway, and West Africa.  **[HAL_3406579_19]**  We expect customers to continue drilling and developing offshore resources, and we're equipped to support them.  **[HAL_3406579_19]** 

8. **Growth in Intervention Services**  
   **Q:** Does growth in intervention services make earnings less cyclical?  
   **A:** Yes, we believe that growth in our intervention business makes earnings less cyclical, and it's part of the reason we want to continue investing to generate outsized growth.  **[HAL_3406579_14]** 

fa5e924b021f17495793f01c806751428bc548fc218c3f5b0f91ef5bac340de9

- **Halliburton expects significant growth in deepwater projects, particularly in West Africa and the North Sea starting in 2025**, with these long-term projects extending into the end of the decade, indicating strong future revenue potential.  **[HAL_3380245_15]**
- **Strong customer demand for Halliburton's advanced technologies, such as the Zeus e-fleet**, with deliveries for 2024 already secured and expectations for increased deliveries in 2025, highlights the company's market leadership and technological advantage.  **[HAL_3380245_28]**
- **Halliburton is experiencing robust, broad-based growth in Latin America**, outperforming expectations with strong activity across multiple countries, and anticipates continued growth due to the critical role of oil and gas in these economies.  **[HAL_3380245_18]**

43af831cf1a6f68a7dc7e8f8d2028c1e017000658488e461f3a2dcda609ecf88

1. **International Growth Outlook**  
   **Q:** Can you expand on your international visibility through the decade?  
   **A:** Jeff Miller highlighted that Halliburton has strong visibility into international projects extending through the end of the decade, with significant work planned for 2025 and beyond. They are working on tenders for next year and the following year, noting that markets like the North Sea and West Africa will "really wake up" in **2025**. This provides confidence in the pipeline of work planned with customers, indicating clarity on projects in 2025 and beyond.  **[HAL_3370580_10]** ,  **[HAL_3370580_15]** 

2. **Capital Returns to Shareholders**  
   **Q:** How should we think about your uses of free cash flow?  
   **A:** Halliburton increased the dividend by **6%**, reaching about **95%** of pre-COVID levels. They intend to continue buying back shares, aiming to repurchase more in 2024 than in 2023. Additionally, they plan to retire debt and strengthen the balance sheet. Overall, they expect 2024 free cash flow to be at least **10%** higher than in 2023, guided by an overall **50%** return to shareholders.  **[HAL_3370580_14]** ,  **[HAL_3370580_18]** ,  **[HAL_3370580_22]** 

3. **U.S. Business Free Cash Flow**  
   **Q:** Is your U.S. business set to deliver more consistent free cash flow?  
   **A:** Jeff Miller confirmed that Halliburton is establishing a more consistent U.S. business that generates strong free cash flow through cycles. The strategy includes deliberate investment, particularly in e-fleets like Zeus, and focusing on long-term value maximization. Despite market fluctuations, they have maintained a steady execution and cash flow delivery, and expect to continue this trend.  **[HAL_3370580_17]** 

4. **D&E Margin Improvement**  
   **Q:** Where are you anticipating D&E margins going forward?  
   **A:** Halliburton reported their best D&E margins in **15 years** and expects margins to continue firming up in 2024. They anticipate D&E margins to be materially higher in 2024 than in 2023, reflecting the payoff from investments made in recent years. While there may be quarterly fluctuations, the overall trajectory is positive.  **[HAL_3370580_16]** 

5. **Impact of E-Fleets and Long-term Contracts**  
   **Q:** How do e-fleets like Zeus affect margins and contracts?  
   **A:** E-fleets are accretive due to their efficiency and value to clients, leading to favorable pricing and contracted arrangements. Halliburton's Zeus e-fleets create significant value, resulting in long-term contracts of around **3 years**. These contracts focus on mutual returns and are not influenced by spot market dynamics. By the end of 2024, **40%** of their fleet will be Zeus, increasing to **50%** or more in 2025. This strategy provides stability and enhances margins.  **[HAL_3370580_7]** ,  **[HAL_3370580_11]** ,  **[HAL_3370580_13]** ,  **[HAL_3370580_21]** 

6. **Working Capital and Free Cash Flow Guidance**  
   **Q:** Anything to know about working capital parameters in 2024?  
   **A:** Halliburton expects free cash flow to improve by at least **10%** over 2023, driven by improved income and efficiencies in working capital. They are implementing initiatives to structurally improve efficiency, such as automating invoicing processes and rolling out demand planning software. This focus aims to enhance DSOs and DIOs, contributing to better free cash flow.  **[HAL_3370580_22]** 

7. **Minimal Exposure to Dry Gas Activity**  
   **Q:** How much of your activity is levered to dry gas?  
   **A:** Halliburton has minimal exposure to dry gas activity, with gas work not being a significant part of their portfolio. Any exposure is mostly contracted under the Zeus solution. While they haven't included potential gas activity in their outlook, they acknowledge possible upside as LNG projects come online.  **[HAL_3370580_12]** 

3149aa66ac14c770acc7f8838c716ee787b33ee2199adab69fda94d16f088d74

Halliburton Co (HAL)

Financials