Halliburton Company (NYSE:HAL) Q4 2014 Earnings Conference Call - Final Transcript

Jan 20, 2015 • 09:00 am ET


Halliburton Company (NYSE:HAL) Q4 2014 Earnings Conference Call - Final Transcript


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Good day, ladies and gentlemen and welcome to the Halliburton's Fourth Quarter 2014 Earnings Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Kelly Youngblood, Vice President of Investor Relations. Please go ahead

Kelly Youngblood

Good morning, and welcome to the Halliburton fourth quarter 2014 conference call. Today's call is being webcast and a replay would be available on Halliburton's website for seven days.

Joining me today are Dave Lesar, CEO; Christian Garcia, Acting CFO; and Jeff Miller, President. (Forward-looking Cautionary Statements)

In our prepared remarks today Dave will provide a brief update on our progress related to the pending Baker Hughes acquisition. However, the purpose of the call today is to review our quarterly financial and operational results and our outlook for 2015. We ask that you please keep your questions focused on those matters. Now I'll turn the call over to Dave. Dave.

Dave Lesar

Thank you, Kelly and good morning everyone. While the market is certainly tougher out there today, and I will discuss that in a minute. I do want to begin with a few of our key accomplishments in 2014. First, I'm very proud to say that we delivered industry-leading total company revenue growth and returns in 2014. We've finished the year with revenues of nearly $33 billion and operating income of $5 billion. Both of which are new records for the company.

Leading the improvement was North America with revenue growth of 16% and profit growth of 23%, followed by the Eastern Hemisphere with revenue and profit growth of 10% and 12% respectively. This was also a record year for both of our divisions, where 12 of our 13 product lines set new all-time highs. From an operating income perspective, we achieved new full year records in our Completion Tools, Multi-Chem, Drill Bits, and Baroid product lines.

I highlight this performance, because you want to head [ph] into any industry downturn starting from an extremely strong financial and operating platform, and that's certainly is where we are performing today. And finally during the fourth quarter, we announced the definitive agreement to acquire Baker Hughes. We believe this combination will create a bellwether oilfield services company, a stronger more diversed organization with an unsurpassed depth and breadth of services.

We are excited about this transaction and the benefits that it will provide the shareholders, customers and other stakeholders of both companies. Similarly, employees at all levels in both organizations are excited about creating a new industry leader, and the opportunities they have is part of a larger company. We've also heard from many of our customers who have expressed enthusiasm about the combination. Those who see the broader, cost effective offerings that we will be able to provide; and especially those who are looking for a compelling alternative to their current incumbent