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
Executive
Jeff Miller

principles that we laid out early around being open architecture, evolving with partners and then clearly making returns for Halliburton are the right -- that is absolutely the right strategy.

Analyst
David Anderson

All right. Thanks, Jeff.

Executive
Jeff Miller

Thank you.

Operator
Operator

Our next question comes from Marc Bianchi with Cowen. Your line is open.

Analyst
Marc Bianchi

Thank you. I wanted to ask first on capex. I suspect you guys aren't looking to get into what you expect to spend in '20. But just looking where the run rate is here in third quarter and then saying it's going to be again lower in fourth. Is that the right way to think about the capex that you think the business needs on a go-forward basis?

Executive
Jeff Miller

Yeah, I mean I think that the timing of the spend is more weighted obviously towards the first part of the year just because that's when tools are actually going to work. And a lot of the planning goes on as we look to next year. We have a view of where we want things to be and when we want them to be there.

Analyst
Marc Bianchi

Okay. Thanks for that, Jeff. And back on the $300 million of cost saves, can -- is that the right amount of cost save for this level of revenue? Or how are you thinking about what level of revenue the business will be sized for once you complete that program?

Executive
Jeff Miller

Look, I think that we continuously take waste out of the business and look for ways to operate it at a lower cost point. So that's kind of the step that we see right now that is effective. But at the same time, we're always looking for ways to make the business more and more efficient. And we'll continue to do that almost irrespective of what we think the revenues are or will be.

Analyst
Marc Bianchi

Okay. Thanks for that. I'll turn it back.

Operator
Operator

Thank you. This concludes the question-and-answer session. I would now like to turn the call back over to Jeff Miller for closing remarks.

Executive
Jeff Miller

Yeah. Thank you, Shannon. Look, in closing, I'm excited about the international outlook and how Halliburton's positioned to benefit from these improving conditions. The combination of increased activity, pricing improvements, ability to compete for a larger share of high-margin services and reallocation of our assets should lead to higher international margins as I look toward the future.

Our North America playbook is working. We're driving lower cost, better asset utilization and market-leading returns in the near term, while concurrently developing technology that lowers our cost or is essential to our customers over the longer term, principally unconventional resource recovery, drilling and digital and all technologies where Halliburton is uniquely positioned to win.

So thank you. I look forward to talking to you again next quarter. Shannon, you can close out the call.

Operator
Operator

[Operator Closing Remarks]