• Total Company Revenue (Full Year 2024): $22.9 billion.
• International Revenue Growth (Full Year 2024): 6% year-over-year, led by Middle East/Asia with 8% growth.
• North America Revenue (Full Year 2024): $9.6 billion, an 8% decrease from 2023.
• Cash from Operations (Full Year 2024): $3.9 billion.
• Free Cash Flow (Full Year 2024): $2.6 billion.
• Stock Repurchases and Dividends (2024): $1 billion in stock repurchases and $600 million in dividends, representing a 60% return of free cash flow.
• Q4 2024 Revenue: $5.6 billion, a 2% sequential decrease.
• Q4 2024 Net Income per Diluted Share: $0.70.
• Q4 2024 Operating Income: $932 million.
• Q4 2024 Operating Margin: 17%.
• Completion and Production Division Revenue (Q4 2024): $3.2 billion, a 4% sequential decrease.
• Drilling and Evaluation Division Revenue (Q4 2024): $2.4 billion, flat sequentially.
• Q4 2024 International Revenue Growth: 3% sequential increase.
• Q4 2024 Latin America Revenue: $953 million, a 9% sequential decrease.
• Q4 2024 Europe/Africa Revenue: $795 million, a 10% sequential increase.
• Q4 2024 Middle East/Asia Revenue: $1.6 billion, a 7% sequential increase.
• Q4 2024 North America Revenue: $2.2 billion, a 7% sequential decrease.
• Q4 2024 Free Cash Flow: $1.1 billion.
• Capital Expenditures (Full Year 2024): $1.4 billion, approximately 6% of revenue.

• Warning! GuruFocus has detected 1 Warning Sign with HAL.

Release Date: January 22, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Halliburton Co (NYSE:HAL) delivered full-year total company revenue of $22.9 billion, with international business growing for the fourth consecutive year.
• The company generated $3.9 billion of cash from operations and $2.6 billion of free cash flow, demonstrating strong financial performance.
• Halliburton Co (NYSE:HAL) repurchased $1 billion of common stock and paid $600 million in dividends, returning 60% of free cash flow to shareholders.
• The company is well-positioned with a transformed balance sheet, leading returns, and strong free cash flow, setting a solid foundation for future growth.
• Halliburton Co (NYSE:HAL) is seeing strong adoption of its technologies like Octiv Auto Frac and Sensori, which are delivering significant value to customers.

Negative Points

• North America revenue decreased by 8% year-over-year, with a 7% decline in Q4 2024 compared to Q3 2024, due to seasonality and customer budget exhaustion.
• The company expects flat international revenues in 2025, with growth in most markets offset by activity reduction in Mexico.
• Lower negotiated prices for a portion of Halliburton Co (NYSE:HAL)'s fleet are expected to impact margins, particularly in the first quarter of 2025.
• Completion and Production division revenue decreased by 4% sequentially in Q4 2024, driven by lower stimulation activity in North America.
• The Drilling and Evaluation division saw flat revenue and operating income sequentially in Q4 2024, with decreased drilling services in the Middle East and Latin America.

Q & A Highlights

Q: North America revenue fell 8% last year, yet Completion & Production (C&P) margins remained flat. How did you manage this, and what changes are expected with lower negotiated prices? A: Jeffrey Miller, CEO: In 2024, we managed through a declining market by introducing efficiencies like Zeus. For 2025, all fleets are contracted, providing visibility. While we're at the high end of pricing, our strategy remains unchanged, expecting solid returns.

Q: How does Halliburton get paid for enabling completion efficiencies, and can you discuss the recent Auto Frac agreement with Cotera? A: Jeffrey Miller, CEO: Our technology, like Zeus and Auto Frac, creates outsized value, offsetting deflationary trends. The Cotera agreement exemplifies the performance and value we deliver. We expect margins to firm up in the second half of 2025 as tool sales stabilize and interventions grow.

Q: With more US gas needed, how is Halliburton positioned for increased gas activity? A: Jeffrey Miller, CEO: Increased gas activity will tighten the market quickly, especially in frac. We've seen industry-wide equipment attrition, and as gas activity picks up, we expect pricing to improve, benefiting Halliburton.

Q: Can you elaborate on the four growth engines and their potential revenue impact? A: Jeffrey Miller, CEO: We expect $2.5 billion to $3 billion in additional revenue over the next three to five years from drilling tech, unconventionals, intervention, and artificial lift. Each area offers significant growth potential, driven by technology and market demand.

Q: What is the outlook for Mexico and its impact on international revenue? A: Jeffrey Miller, CEO: Mexico faces a reset with a new administration and PEMEX management. While our outlook is cautious, oil and gas are critical to Mexico's economy. We expect activity to stabilize, benefiting from our strong market position there.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.