The speaker, David Coleman, introduces the participants of the conference call and mentions that the recording will be available on Halliburton's website. He also mentions that there may be forward-looking statements and non-GAAP financial measures discussed. Then, CEO Jeffrey Miller takes over and highlights the company's solid first quarter results, including revenue and margin improvements in both divisions and strong cash flow and stock repurchases.

The speaker believes that the oilfield services market is strong and will continue to grow due to increasing global energy demand. They also mention the success of Halliburton's strategy and revenue growth in international markets. They expect this trend to continue in the future with potential for margin expansion.

The author highlights the success of Halliburton's technology in their international business, specifically in the Drilling and Evaluation and Completion and Production divisions. They mention the increasing demand for their advanced formation evaluation tools and artificial lift technology, which have resulted in profitable growth in various international regions. The author also notes the growing global interest in unconventional reservoirs and how Halliburton's experience in North America positions them well for long-term success in this market. They express confidence in the international upcycle continuing beyond 2024.

In North America, Halliburton's first quarter revenue increased by 5% due to a rebound in land completion activity after the holidays. The company expects steady activity levels for the rest of 2024 and is focused on maximizing value through its ZEUS platform and new directional drilling system. The ZEUS platform, with its advanced technologies such as Sensory, is deployed at scale and allows for rapid innovation, giving Halliburton a leading position in the fracturing market and creating value for both the company and its customers.

The speaker is pleased with the results of the drilling services product line in North America, which has seen a significant increase in performance and market penetration with the launch of the new iCruise CX system. This system is specifically designed for longer laterals and more complex wells, which are in high demand in the current market. The speaker thanks employees for their hard work and expects strong growth and shareholder returns for Halliburton. The company has already repurchased $250 million of common stock in the first quarter and expects to continue this trend. The call is then handed over to Eric to provide more financial details.

In the first quarter of 2024, the company's total revenue was $5.8 billion with an operating income of $987 million and an operating margin of 17%. The Completion and Production division had a revenue of $3.4 billion, down slightly from the previous year but with an operating income of $688 million, up 3%. The Drilling and Evaluation division had a revenue of $2.4 billion, up 7% from the previous year with an operating income of $398 million and an operating margin of 16%. International revenue increased by 12% with Europe/Africa, Middle East/Asia, and Latin America all seeing growth in revenue due to various factors such as higher completion tool sales, improved activity in multiple product service lines, and increased software sales.

In the first quarter of 2024, North American revenue for the company was $2.5 billion, representing an 8% decrease from the previous year but a 5% increase from the last quarter. Corporate expenses are expected to be flat in the second quarter, and the SAP deployment is on budget and schedule. Net interest expense and other net expenses are expected to be flat in the second quarter. The adjusted effective tax rate for the first quarter was 21.5%, and capital expenditures were $330 million. Cash flow from operations was $487 million and free cash flow was $206 million. The company expects free cash flow to be at least 10% higher in 2024. In the second quarter, the Completion and Production division is expected to see a 2-4% increase in revenue and a 25-75 basis point increase in margins.

Halliburton's drilling and evaluation division expects a 1-3% increase in revenue and a 25-75 basis point increase in margins. CEO Jeffrey Miller is confident in the company's performance and expects strong free cash flow and shareholder returns. Analysts are curious about the success of the ZEUS fleet and its impact on Halliburton's competitive advantage. Miller emphasizes that ZEUS is a comprehensive electric platform, giving the company an edge in the market.

The speaker discusses the benefits of embedded automation and subsurface measurements in driving efficiency and widening the company's moat. They also mention the potential growth opportunities in international unconventional fields, specifically in Saudi Arabia's Jafurah field. The speaker expresses excitement about this market and mentions the company's various ways of addressing it, including technology.

Jeff Miller, CEO of Halliburton, discusses the company's strong position in the market and its potential for growth with advancements in drilling technology. He also mentions the success of unconventional markets outside of the US and how Halliburton is looking to play a bigger role in those markets. Neil Mehta of Goldman Sachs asks about the company's share repurchase strategy, to which Eric Carre, CFO of Halliburton, explains that they aim to return 50% of free cash flow to shareholders and will continue to repurchase shares at a rate of $250 million.

The speaker expects more buybacks in dollars and overall returns to shareholders, with a similar percentage to last year. They do not plan on changing their strategy of organic growth and small acquisitions in the industry. They see significant growth opportunities in their current businesses and believe organic growth generates more value for shareholders. They do not plan on increasing their focus on OpEx and production in the future.

The speaker discusses the company's strategy for organic growth in the OpEx market and mentions their current strong presence in the lift, chemicals, and intervention businesses. They also mention their past success in acquiring smaller businesses and growing them. The speaker then addresses potential impact from the changing mix of activity in Saudi Arabia, stating that they expect continued growth in the country and that the market remains tight for equipment. They express confidence in the long-term growth of the market.

The company expects positive growth in the gas market and is focused on profitable international growth. They have seen a 12% increase in their international business and attribute this to their focus on delivering technology and expanding margins. The growth is not just due to new products, but also an expanding market and the company's ability to compete with new technology.

The company has added new products and is pleased with their progress, but they also acknowledge the importance of improving drilling technology. They do not expect a recovery in gas activity this year, but believe it will drive growth in 2025 and beyond. The current fleet is shrinking due to attrition.

Jeffrey Miller, CEO of Halliburton, is confident about the future of the North American gas market as new equipment is being built and investments are being made in LNG exports. He believes that the leading indicators of this growth will be well construction and offtake contracts for LNG. In addition, he expects to see significant growth in deepwater projects in West Africa and the North Sea in the coming years.

In this paragraph, the speaker discusses the company's performance in North America and their strategy to maintain high pricing and utilization. They also mention their focus on delivering unique technologies and solving for recovery, which they believe will create significant value for customers. The questioner asks if there is potential for increased demand for gas developments due to the growing demand for data centers, to which the speaker responds that gas is a critical fuel.

In the paragraph, the speaker discusses the growth in demand for gas and electricity and how it is becoming a significant trend. They also mention the outperformance of the Latin American market and credit their team's efforts. The speaker believes that the demand for power will continue to increase and be beneficial for the industry and their company.

During a conference call, Jeff Miller discussed the full-year international revenue growth and margin expansion for D&E, as well as the potential for new products and services like iStar and iCruise. He stated that the D&E business is growing profitably and expects to see continued growth in the future, despite challenges such as weather and new market openings. In response to a question, he also mentioned the strength of iCruise in North America, which has seen more than double the footage drilled compared to a year ago. It is unclear if this growth is due to displacing competitors or organic growth.

Jeffrey Miller, CEO of a technology company, discusses the strong performance and uptake of their new technology designed for the market. The technology is built on their iCruise platform and is all organic. Customers drive the uptake of the technology and the increase in footage drilled is a sign of their confidence in its performance. When asked about potential interest in the production chemicals market, Miller emphasizes their preference for organic growth and the success they have had in building their business this way.

The company plans to continue growing its chemicals business globally and sees opportunities for organic growth. They are also focused on delivering top-notch efficiency and lowest ECO in North America, despite some softening in the market. They expect continued margin growth in both C&P and D&E in the second quarter. The company remains confident in its strategy and does not plan to change it.

The speaker, Jeffrey Miller, is confident about the company's international growth potential for the rest of the year and beyond. He mentions various factors contributing to this growth, including completion tools, production enhancement, and equipment demand. The speaker also notes that he has a strong level of visibility and believes in the company's long-term opportunities. An investor on the call expresses interest in understanding the speaker's conviction regarding this duration of growth.

Jeffrey Miller, the CEO of Halliburton, is confident in the company's future due to the long-term projects they have planned with clients and the rising demand for oil and gas. He believes that this cycle will extend through the end of the decade and that investments in North America will also continue for the long term. The company has also seen improving margins, and Miller believes this is due to a combination of pricing and volume.

Jeffrey Miller, the CEO of a technology company, was asked about the technology value proposition and how it is driving margin improvement. Miller explained that their R&D investments over the past eight years have been focused on improving capital efficiency, which has led to better returns in their drilling and frac businesses. This deliberate choice has resulted in improved technology and increased market access. In addition, Miller believes that their strong foundation and broader-based work will continue to drive margin expansion in the future.

Eric Carre, speaking on behalf of Doug, explains that the drop in margin in Q2 is due to the reduction in software business, which is usually recognized in Q4 and Q1. However, this year the impact will be lessened due to softer margins in D&E and traditional software impact. Doug asks about the possibility of accelerating the deployment of ZEUS e-fleets in North America, but Jeffrey Miller explains that their strategy is to build to demand and they do not plan to change that. They already have contracts for 2024 and expect to see more demand in 2025.

The paragraph is a transcript of a Q-and-A session between Jeffrey Miller and Eric Carre. The operator thanks them for their participation and Miller expresses his excitement for Halliburton's future and expects strong returns for shareholders. He looks forward to the next quarter's call and ends the session.

This summary was generated with AI and may contain some inaccuracies.