Halliburton Company (NYSE:HAL) Q3 2019 Earnings Conference Call - Final Transcript
Oct 21, 2019 • 09:00 am ET
were $345 million and our 2019 full year capex guidance remains unchanged. We told you last quarter that our capital spend in 2020 would be significantly less than $1.6 billion. We are carefully monitoring the market dynamics in North America and will exercise prudent judgment to make further adjustments, according to the anticipated activity levels in 2020.
Finally, let me provide you with some comments on our operations outlook for the fourth quarter. For our Drilling and Evaluation division, we expect sequential revenue to be flat to up low-single digits, with margin improvement in the range of 425 basis points to 475 basis points. This is driven by year-end software and product sales, combined with activity increases across our international markets, offset by lower demand in North America land.
In our Completion and Production division, we believe our sequential revenue will be down low-double digits with margins expected to decline 125 basis points to 175 basis points. As Jeff stated in North America, we have continued to stack equipment that does not meet our returns threshold and we will be proactive in reducing costs. We anticipate that higher activity in Asia and the Middle East will be offset by activity declines in North America land, Latin America and Europe and Eurasia.
Now I'll turn the call back over to Jeff for closing comments. Jeff?
Thanks, Lance. In summary, international growth continues at a steady pace across multiple regions, benefiting both our D&E and C&P divisions. Increased activity, pricing improvements, our ability to compete for a larger share of high margin services and reallocation of our assets should lead to higher international margins as we look past this year.
In North America, we expect activity reductions to continue into the fourth quarter. Halliburton is successfully executing our new North America playbook to maximize returns and free cash flow. We stacked additional equipment throughout the quarter [Technical Issues] and will continue managing utilization with a focus on returns.
We're aligning with the right customers. We're introducing new technologies to improve margins and we will continue to take actions that lower the overall service delivery cost.
I want to close by thanking our employees for their outstanding focus and dedication to our Company and our customers. Your resiliency and hard work are the foundation of our Company's strength and why [Phonetic] together, we can continue delivering on our promise to our shareholders.
And now, let's open it up for questions.