Halliburton Company (NYSE:HAL) Q2 2019 Earnings Conference Call - Final Transcript

Jul 22, 2019 • 09:00 am ET


Halliburton Company (NYSE:HAL) Q2 2019 Earnings Conference Call - Final Transcript


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Lance Loeffler

comments. Jeff?

Jeff Miller

Thanks, Lance. To summarize our discussion today, momentum is building internationally and activity improvement should continue into 2020. Leading edge pricing is trending upward, as equipment supply and demand balance tightens in various geographies. Halliburton has the footprint and the expanded technology portfolio to capitalize on this international growth. We recognize the changing behavior of our North American customers and are executing a new playbook to keep generating returns and free cash flow.

Halliburton is taking the right actions to be successful in this market. We have cut overall capex in 2019, and plan to do so in 2020 as well. This is driving the right capital allocation decisions and pricing and returns discussions. We are reducing our operating costs, we have restructured our North American organization and are also partnering with our premier supply chain and logistics organization to reduce our input costs. We have stacked additional equipment throughout the quarter, and we'll continue to do so with a focus on returns. We are strategically growing our share of services per well by increasing the competitiveness of our non-hydraulic fracturing product service lines.

And finally, we are developing technologies that will improve well productivity, a requirement of a mature unconventional market. We remain focused on delivering consistent execution, generating superior financial performance and providing industry-leading shareholder returns.

And now let's open it up for questions.