Halliburton Company (NYSE:HAL) Q3 2019 Earnings Conference Call - Final Transcript
Oct 21, 2019 • 09:00 am ET
to date. Lower project management and stimulation activity in the Middle East and Asia offset healthy growth in Latin America and Europe Eurasia in the third quarter. North America revenue decreased 11% sequentially, primarily driven by customer activity declines. And finally, we generated approximately $530 million of free cash flow in the third quarter, a significant improvement over the first half of the year.
In the third quarter, supply and demand uncertainties continue to impact commodity prices. On the one hand, Iran sanctions, Venezuela production declines and political instability in Latin America and North Africa are constraining supply. On the other hand, there is near-term uncertainty in demand due to ongoing US, China trade tensions and negative economic data out of Asia and Europe. As the US production growth continues to weigh on supply, OPEC+ extended its agreement until March 2020 to manage production and support oil prices.
Even with these cross currents, international growth continues at a steady pace. This summer, I spent a month [Technical Issues] our customers in the Eastern Hemisphere and I'm excited by what I saw, consistently improving markets across Europe, Asia and Australia. This confirms my confidence in Halliburton delivering high-single-digit international revenue growth this year.
It is important to note that both of our divisions are meaningfully contributing to our international growth. Our Drilling and Evaluation division traditionally had the most exposure to international markets with about 70% of division revenues coming from outside North America. The revenue split has generally been the opposite for our Completion and Production division. We are pleased to see the C&P division increasing its participation in the international markets in this cycle. Year-to-date international C&P revenue has grown 13%, double the international revenue growth rate of D&E.
In today's environment, customers aim to squeeze every available barrel from their existing assets. So mature fields' development is prominent. We also see increased unconventional activity in several international regions. The technology mix required for development-focused, production-oriented and unconventional project plays to our C&P portfolio strengths.
With a focus on the international mature fields market, we are growing our production group, part of the C&P division that comprises artificial lift, specialty chemicals and well intervention solutions. Historically, Halliburton primarily participated in the drilling and completion stages of a well's life cycle. With our expansion into production services, we're tapping into a long-term later cycle market with significant growth potential.
Our well intervention business helps operators diagnose field productivity issues, and design and deliver immediate impact solutions leveraging our custom chemistries and tools. This capability is critical for mature fields with rigless intervention and well surveillance activity increasing, especially in the Middle East, Europe and Asia, we've already executed multiple contract startups in 13 different countries this year.
In Latin America, we recently deployed our SPECTRUM FUSION hybrid coiled tubing service for our customer in Colombia. In a single trip, with the well still producing, we provided real-time visualization of the shape and location of old perforations and performed production logging,