The paragraph is from an earnings conference call for Halliburton Company discussing their fourth quarter 2024 performances. The call is hosted by David Coleman, Senior Director of Investor Relations. Key participants include Jeff Miller, Chairman, President and CEO, and Eric Carre, Executive Vice President and CFO. The call includes a caution that forward-looking statements are subject to risks that may result in actual outcomes differing from predictions, with references to relevant financial filings for further information. Non-GAAP financial measures will also be addressed, with reconciliations available on the company's website. Jeff Miller highlights that Halliburton had a strong 2024, with total annual revenue reaching $22.9 billion.

The paragraph highlights Halliburton's financial performance and outlook. The company achieved 6% year-over-year international revenue growth, led by an 8% increase in the Middle East/Asia region, although North America saw an 8% decline. Halliburton generated significant cash flow, repurchasing $1 billion in stock and paying $600 million in dividends, amounting to a 60% return of free cash flow. The CEO expresses gratitude to employees for their contributions to safety and service quality. Looking forward, he anticipates continued strong demand for oil and gas due to their accessibility, affordability, and reliability, despite the rise in renewable energy consumption. He is optimistic about the future, expecting Halliburton to maintain a strong market position with a solid balance sheet and competitive advantages.

The paragraph highlights Halliburton's leadership in the global services marketplace due to its strong technology portfolio and global reach. The company focuses on investments in segments where it can leverage its strengths, particularly in technology developments, electrification, automation, and digital solutions. Halliburton's alignment with customer needs enhances asset value and strengthens strategic alliances. The company excels in areas such as drilling technology, unconventionals, well intervention, and artificial lift, positioning it for future outperformance. In the past year, Halliburton saw international revenue growth, particularly in the Middle East/Asia, despite a projected flat revenue for 2025 due to decreased activity in Mexico. Halliburton is optimistic about long-term growth from its international operations and customer alliances, potentially achieving an additional $2.5 billion to $3 billion in annual revenue over the next three to five years through its core growth areas.

The paragraph highlights Halliburton's success in fostering a collaborative and innovative approach with customers, particularly in Norway, which has resulted in improved performance and value creation. This strategy, rooted in strong customer alliances and the use of advanced technologies, is expected to spread globally and differentiate Halliburton in international markets. The company has focused on developing a collaborative culture over the past decade and anticipates it will drive future growth and outperform the international services market by 2025. Despite these international successes, North America experienced an 8% revenue decline in 2024, partially due to seasonality and budget constraints.

The paragraph discusses Halliburton's outlook for North America in 2025, expecting revenues to either slightly decrease or remain flat due to lower negotiated fleet prices. Despite this, the company anticipates outperforming competitors. Halliburton's entire fleet is committed to contracts, with plans to expand its Zeus and e-fleet presence to 50% by 2025. Technologies like Octiv Auto Frac and Sensori are gaining traction, and iCruise is projected to capture a significant portion of the directional drilling market. The company sees increasing natural gas demand, driven by electrification and AI, as a growth catalyst, alongside rising LNG exports. Halliburton is confident that its technology and innovative approach will continue to attract customers and bolster its North America franchise as it moves into the later part of the decade.

The paragraph discusses Halliburton's technological advancements and business strategies. It highlights the successful adoption of technologies like Octiv Auto Frac and Sensori fracture monitoring, which are being integrated into customer workflows, particularly in North America. The company's focus is on optimizing efficiencies and productivity in unconventional resource development. Halliburton anticipates continued strong financial performance, with a focus on innovation and capital allocation, including returning significant free cash flow to shareholders. The company is optimistic about its growth and ability to deliver long-term results.

In the financial results call, Eric Carre reported that the company's Q4 net income per diluted share was $0.70, with total revenue of $5.6 billion, a 2% sequential decrease. The Completion and Production division saw a 4% revenue decline to $3.2 billion, largely due to reduced activity in North America and Latin America, despite improvements in other regions. The Drilling and Evaluation division's revenue remained flat at $2.4 billion, with stable operating income, as increased services in the Middle East, Europe/Africa, and the North Sea were offset by declines in other areas. Internationally, Q4 revenue rose 3%, with notable growth in Europe/Africa driven by improved services, while Latin America experienced a 9% revenue drop, primarily due to decreased activity in Mexico.

In the fourth quarter, the company experienced varied regional financial results, with increased revenue in the Middle East/Asia due to higher activity in certain services, whereas North America saw a revenue decline. Corporate and other expenses were $65 million, with SAP migration costs included. Expectations for Q1 2025 include reduced corporate and SAP expenses, as well as increased net interest and a higher effective tax rate due to fewer tax benefits and new tax implementations. The full year tax rate is expected to rise, but cash taxes will remain stable. Capital expenditures for Q4 were $426 million, contributing to a total of $1.4 billion for the year.

The paragraph discusses financial expectations and performance insights for different divisions of a company in 2025. It highlights anticipated declines in sequential revenue and margin reductions for both the Completion and Production and Drilling and Evaluation divisions in Q1 2025. Jeff Miller then shares confidence in the long-term outlook for the oil and gas sector, noting international growth opportunities and strong adoption of technologies in North America. The company has had strong shareholder cash returns and plans at least $1.6 billion more returns in 2025. During a Q&A session, David Anderson from Barclays queries about how the company maintained stable Completions and Production margins despite an 8% revenue decline in North America.

In the article paragraph, Jeff Miller discusses the factors affecting their business outlook for 2024 and 2025, including the introduction of Zeus pumps and enhanced efficiencies. He acknowledges the impact of pricing on their operations, but notes that all of their fleets are contracted, providing stability and high-range visibility. The strategy remains consistent over the years, ensuring solid returns. David Anderson then raises a topic concerning the efficiencies in completion processes for E&Ps, which could be deflationary to services by achieving more with less. He inquires about how the company can be compensated for enabling these efficiencies through innovations like Zeus pumps and Auto Frac. He also mentions a recent agreement with Coterra on Auto Frac and asks about future similar agreements. Jeff Miller's response to these questions is not included.

The speaker emphasizes that Halliburton is at the forefront of efficiency and value creation, which offsets potential pricing stability concerns in 2024 and 2025. They highlight the importance of investing in equipment and technology to maintain this edge, citing the Coterra announcement as an example of their technological impact. This technology allows Halliburton to engage in different, value-focused conversations with customers. Though expectations for 2025 appear slightly softer, the speaker is confident in stronger margins in the latter half of the year due to stabilized tool sales and growth in interventions. Overall, the speaker expresses confidence in their business and the positive outcomes driven by their technology.

In this paragraph, Roger Read from Wells Fargo Securities asks Jeff Miller about Halliburton's positioning as the demand for U.S. gas increases and the implications for the industry. Jeff Miller responds by noting that a rise in gas activity will likely lead to tightness in equipment availability, particularly in Frac. He mentions that Halliburton and the industry have retired equipment rather than operate in unstable markets. Roger then questions the company's pricing strategy and anticipated margins. Jeff expresses optimism that margins can improve beyond 2024 levels, potentially surpassing previous expectations, as market conditions tighten.

The paragraph discusses the potential for growth in the North American market due to increased gas activity and private operators re-entering the business by acquiring divested assets. The speaker highlights the cyclical nature of the industry and maintains confidence in their strategy to create outsized value despite pricing fluctuations. During a Q&A, Saurabh Pant from Bank of America asks Jeff Miller about four growth areas—drilling tech, unconventionals, intervention, and artificial lift—and their expected revenue contributions of $2.5 billion to $3 billion over the next three to five years. Jeff emphasizes the international growth potential of unconventionals and the global demand for improved technology, noting these opportunities aren't limited to the U.S.

The paragraph discusses Halliburton's focus on developing differentiated technology, including riserless coil and power mechanical tools, to capture more market opportunities. The company sees potential for growth in international markets, especially with its advanced drilling technologies like closed-loop drilling and automation. There is also a focus on expanding their lift operations. Saurabh Pant asks Jeff Miller about Halliburton's growth expectations in Mexico, suggesting from his calculations that Mexico's business might see a 25% year-over-year decrease. Jeff Miller attributes this potential decline to a new administration and management changes at Pemex, leading to an activity reset.

The paragraph discusses the importance of oil and gas to Mexico's economy and Halliburton's strong market position there, expressing confidence in Halliburton's future success as Pemex stabilizes. The conversation transitions to a technical discussion about Halliburton's Octiv Auto Frac service, highlighting its ability to precisely control and deliver designed fracking results. This service can be configured differently and paired with the Sensori Frac monitoring service, influencing its commercial application.

The paragraph discusses a new technology called Sensori, which allows for tracking the placement of sand in hydraulic fracturing—a capability not available before. This is compared to the importance of wellbore data during drilling. Sensori helps in design, delivery, control, and verification of sand placement, enhancing the effectiveness of hydraulic fracturing. The commercial model for this service is valuable and separate from regular frac services, but details were not disclosed. The conversation shifts to offshore business, with confidence expressed in continued strong performance without significant gaps in operations, noting that rigs moving between markets is typical.

In the paragraph, Jeff Miller discusses the company's international growth prospects, particularly in offshore areas, and mentions that there is a solid pipeline of growth expected from 2025 to 2027. He reassures that concerns about white space, or gaps in opportunities, are normal and should not cause worry. Kurt Hallead, in his question, shifts the focus to the power generation market in the Permian Basin, highlighting a competitor's recent activities in buying megawatts to sell power there. Jeff confirms that Halliburton is aware of these dynamics and is already involved in the market through its investment in VoltaGrid, describing it as an attractive area aligned with Halliburton's competencies and noting VoltaGrid as a significant player in the market.

Jeff Miller discusses Halliburton's potential to generate $2.5 billion to $3 billion in additional revenue over the next few years through a focus on continuous technology development and targeted mergers and acquisitions. He highlights the use of new and evolving technologies to create unique integration in their business areas, anticipating waves of technological advancement that will help them outgrow the market. Kurt Hallead thanks Jeff for the insights, and the conversation then shifts to Douglas Becker from Capital One, who asks about the sharper-than-expected revenue decline in the first quarter and seeks clarity on which regions are affecting this decline and expectations for revenue progression throughout the year.

The paragraph discusses a gradual revenue recovery over the year rather than a sharp increase in the second quarter. Jeff Miller explains the revenue reduction for Q1 by division. In C&P, it's due to a decrease in strong completion tool sales from Q4, partially offset by increased activity in North America and seasonal global activity. In D&E, the impact is mainly from Mexico and strong direct sales in Q4 in the Middle East and other regions. Douglas Becker inquires about the operating margin outlook for D&E, to which Eric Carre responds that margins are expected to remain flat in 2025 compared to 2024. The conversation then shifts to Stephen Gengaro from Stifel, who asks about the cost of power for frac fleets.

The paragraph is a discussion between Stephen Gengaro and Jeff Miller about Halliburton's strategic approach to power sourcing for e-fleets, specifically in relation to their partnership with VoltaGrid. Jeff Miller expresses confidence in their power availability and pricing due to their strategic decisions and partnerships, ensuring protection from potential power shortages. The conversation shifts to customer preferences regarding Frac fleets, indicating a trend towards dual fuel over electric options. Jeff Miller mentions ongoing asset deliveries scheduled for 2025, suggesting that their approach aligns with their customer's needs and asset strategy.

The paragraph discusses plans for future deliveries in 2026 and the expansion of existing fleets, emphasizing confidence in demand for their solutions. It highlights the importance of dual-fuel fleet solutions from a cost perspective and the increasing value of Auto Frac and Sensori. Jeff Miller expresses optimism about Halliburton's future, focusing on executing their value proposition, enhancing their technology portfolio, and increasing revenue. He commits to prioritizing cash flow, aiming to return at least $1.6 billion by 2025, and looks forward to future discussions.

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