Halliburton Company (NYSE:HAL) Q2 2019 Earnings Conference Call - Final Transcript
Jul 22, 2019 • 09:00 am ET
Thank you. [Operator Instructions] Our first question comes from James West with Evercore ISI. Your line is open. James, your line is open, please check your mute button.
James you there?
Our next question comes from Angie Sedita with Goldman Sachs. Your line is open.
Thanks, good morning guys.
Good morning, Angie.
Good morning, Angie.
So I thought it was interesting your comments. Let's start on the international side for a change in the momentum you're seeing going into even 2020, maybe you can give us a little incremental color on the degree of momentum, we could see next year. Could we see similar growth levels for revenue in the international markets as you did in 2018? And then on the pricing side, do you expect it to continue to be region specific or could it become more widespread?
Yes. Thanks Angie, the international, but move as fast as, for example, North America. So when we see a trajectory, it tends to stay on that trajectory. And I'm encouraged by 2020, because of the number of FIDs and types of things that we're seeing today that really don't get started until 2020. So the Kuwait for example, it doesn't really begin until the middle of next year, though it was one [Phonetic] now. And so, the FID's that we're seeing now that give me confidence about the trajectory for 2020. Yes, early to call growth rates for next year, but yes, I think you met 2019, what I see a similar kind of growth trajectory, the '19 that carried over into '20 and yes, that seems reasonable to me.
Okay, helpful. And then on the North America land market some first kudos for being proactive on the stacking equipment in this market versus fighting for share. You commented that you're seeing pricing is stable, and one of your peers that they're seeing some pricing softness. So maybe you could talk a little bit about pricing? And then the degree of drop-off that we could see in Q3 and even into Q4 as far as activity?
Yes, Angie. Let me start with pricing. The -- I mean, from our perspective is -- there was stable for us through Q2, that doesn't mean there is an occasionally, something that we see in terms of pricing behavior by competitor. But on balance, very stable. As we look at the balance of the year, certainly from an activity standpoint, I've said it would be down slightly in Q3, obviously Q4 always comes with weather seasonality all of that I suspect given budgets that we would see more step down, as well around that. But I think what's really important here is as you described it, kind of, the way we're approaching the market, I mean our playbook is different, we're very sharp around taking cost out. Where we see it needs to come out, we've demonstrated that we do stack equipment, we'll stack equipment and are just that focused on returns in margins.