Halliburton Company (NYSE:HAL) Q3 2019 Earnings Conference Call - Final Transcript

Oct 21, 2019 • 09:00 am ET

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Halliburton Company (NYSE:HAL) Q3 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Our first question comes from James West with Evercore ISI. Your line is open.

Analyst
James West

Good morning, Jeff and Lance.

Executive
Jeff Miller

Good morning, James.

Executive
Lance Loeffler

Good morning, James.

Analyst
James West

So Jeff obviously [Technical Issues] third quarter, fourth quarter as Lance kind of described it, it's going to be fairly tough [Phonetic]. What does this mean for the exit rate and how we're going to enter 2020 and how that starts to -- how the outlook there starts to shape up?

Executive
Jeff Miller

Yeah, thanks, James. You were a little crackly there at the beginning, but you know as we look at the Q4 activity, obviously we think budget exhaustion etc starts to bring that down. I expect we'll see an uptick as we go into Q1 of 2020, and I think that's a little bit getting to that cadence of spend. So I think there will be increasing activity certainly in the first half -- first quarter and then really first half of 2020, and our playbook will have us ready to take advantage of that.

Analyst
James West

Okay. Great. That's very helpful. And then, as we talk about the playbook or think about the playbook, what are you seeing from your competition? Clearly, some of these guys can't actually perform at the same levels or will not perform at the same levels, but also some may follow you in your returns focused strategy. What have you seen so far from you showing leadership here with your willingness to walk away from the underperforming contracts or lower term contracts versus your peers?

Executive
Jeff Miller

Well, James, we're early in that process now. And I guess, my view is, we know we are extremely competitive. We have very good margins and returns in that business relative to anyone in that marketplace. And so, when we see an opportunity where it transacts well below costs, we're pretty comfortable stepping back from that just because we don't want to burn up our equipment, without making the kind of returns and cash flow that we want to make. So to be seen, I fully expect we'll see the -- we see it actually some today the flight to quality. Our service delivery is very, very good, our safety performance very, very good. And so, I think this unfolds as equipment just gets tighter. And I think we're well positioned in this market.

Analyst
James West

Got it. Thanks guys.

Executive
Jeff Miller

Thank you.

Executive
Lance Loeffler

Thanks, James.

Operator
Operator

Our next question comes from Angie Sedita with Goldman Sachs. Your line is open.

Analyst
Angeline Sedita

Good morning, guys.

Executive
Jeff Miller

Good morning, Angie.

Executive
Lance Loeffler

Good morning, Angie.

Analyst
Angeline Sedita

Good morning. So Jeff, maybe a little bit more color on the international markets and the visibility there. I think there is some debate about the pace of growth for 2020. So I'd love to hear what you're seeing out there and the prospects for having similar growth rates in 2020 as you did in 2019, and maybe you could also touch on the growth you saw on C&P versus D&E.

Executive
Jeff Miller

Yeah, thanks, Angie. Let's clear on -- we just