Q1 2026 Halliburton Co Earnings Call

April 21, 2026

Speaker #1: At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question, simply press *11 on your telephone keypad.

Speaker #1: If your question has been answered and you wish to remove yourself from the queue, simply press *11 again. As a reminder, this conference call is being recorded.

Speaker #1: At this time, I would like to turn the conference over to Mr. David Coleman, Senior Director of Investor Relations. Sir, please begin.

Speaker #2: Hello, and thank you for joining the Halliburton First Quarter 2026 conference call. We will make the recording of today's webcast available for seven days on Halliburton's website after this call.

Speaker #2: Joining me today are Jeff Miller, Chairman, President, and CEO; Shannon Slocomb, Executive Vice President and COO; and Eric Carre, Executive Vice President and CFO.

Speaker #2: Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements.

Speaker #2: These risks are discussed in Halliburton's Form 10-K for the year ended December 31, 2025, current reports on Form 8-K, and other securities and exchange commission filings.

Operator: Thank you for standing by. Welcome to the Q1 2026 Halliburton Company Earnings Conference Call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question, simply press star one one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one one again. As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Mr. David Coleman, Senior Director of Investor Relations. Sir, please begin.

Speaker #2: We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law. Our comments today also include non-GAAP financial measures.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question, simply press star 11 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star 11 again.

Speaker #2: Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our first-quarter earnings release and in the quarterly results and presentation section of our website.

Speaker #1: As a reminder, this conference call is being recorded. At this time, I would like to turn the conference over to Mr. David Coleman, Senior Director of Investor Relations.

Speaker #2: Now, I'll turn the call over to Jeff.

Speaker #3: Thank you, David, and good morning, everyone. Before I get into my thoughts on the current market and Halliburton's outlook, let me begin with a few highlights from the first quarter.

Speaker #1: Sir, please begin. Hello, and thank you for joining the Halliburton First Quarter 2026 Conference Call. We will make the recording of today's webcast available for seven days on Halliburton's website after this call.

David Coleman: Hello, and thank you for joining the Halliburton Q1 2026 Conference Call. We will make the recording of today's webcast available for seven days on Halliburton's website after this call. Joining me today are Jeff Miller, Chairman, President, and CEO, Shannon Slocum, Executive Vice President and COO, and Eric Carré, Executive Vice President and CFO. Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Halliburton's Form 10-K for the year ended 31 December 2025, current reports on Form 8-K, and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law. Our comments today also include non-GAAP financial measures.

David Coleman: Hello, and thank you for joining the Halliburton Q1 2026 Conference Call. We will make the recording of today's webcast available for seven days on Halliburton's website after this call. Joining me today are Jeff Miller, Chairman, President, and CEO, Shannon Slocum, Executive Vice President and COO, and Eric Carre, Executive Vice President and CFO. Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements. These risks are discussed in Halliburton's Form 10-K for the year ended 31 December 2025, current reports on Form 8-K, and other Securities and Exchange Commission filings. We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law. Our comments today also include non-GAAP financial measures.

Speaker #3: We delivered total company revenue of $5.4 billion, and operating margin of 13%. International revenue was $3.3 billion, an increase of 3% year over year.

Speaker #1: Joining me today are Jeff Miller, Chairman, President, and CEO; Shannon Slocomb, Executive Vice President and COO; and Eric Carre, Executive Vice President and CFO.

Speaker #3: North America revenue was $2.1 billion, a decrease of 4% year over year. During the first quarter, we generated $273 million of cash flow from operations, $123 million of free cash flow, and repurchased $100 million of our common stock.

Speaker #1: Some of today's comments may include forward-looking statements that reflect Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward-looking statements.

Speaker #1: These risks are discussed in Halliburton's Form 10-K for the year ended December 31, 2025. Current reports on Form 8-K and other securities and exchange commission filings.

Speaker #3: Now let's turn to our market outlook. To begin, I believe the situation in the Middle East will have meaningful and long-lasting implications for the global energy sector.

Speaker #1: We undertake no obligation to revise or update publicly any forward-looking statements for any reason, except as required by law. Our comments today also include non-GAAP financial measures.

Speaker #3: Here's what I expect: First, energy security is no longer simply a talking point. It demands action by every nation to ensure a reliable supply of oil and gas.

Speaker #1: Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our first quarter earnings release and in the quarterly results and presentation section of our website.

David Coleman: Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our Q1 earnings release and in the quarterly results and presentation section of our website. Now, I'll turn the call over to Jeff.

Speaker #3: I expect we will see increased investment in localized oil and gas developments and urgency to diversify sources of oil and gas for those countries without their own resources.

Speaker #1: Now, I'll turn the call over to Jeff.

Speaker #2: Thank you, David, and good morning, everyone. Before I get into my thoughts on the current market and Halliburton's outlook, let me begin with a few highlights from the first quarter.

Jeff Miller: Thank you, David, and good morning, everyone. Before I get into my thoughts on the current market and Halliburton's outlook, let me begin with a few highlights from Q1. We delivered total company revenue of $5.4 billion and operating margin of 13%. International revenue was $3.3 billion, an increase of 3% year over year. North America revenue was $2.1 billion, a decrease of 4% year over year. During Q1, we generated $273 million of cash flow from operations, $123 million of free cash flow, and repurchased $100 million of our common stock. Now let's turn to our market outlook. To begin, I believe the situation in the Middle East will have meaningful and long-lasting implications for the global energy sector. Here's what I expect. First, energy security is no longer simply a talking point.

Jeff Miller: Thank you, David, and good morning, everyone. Before I get into my thoughts on the current market and Halliburton's outlook, let me begin with a few highlights from Q1. We delivered total company revenue of $5.4 billion and operating margin of 13%. International revenue was $3.3 billion, an increase of 3% year-over-year. North America revenue was $2.1 billion, a decrease of 4% year-over-year. During Q1, we generated $273 million of cash flow from operations, $123 million of free cash flow, and repurchased $100 million of our common stock. Now let's turn to our market outlook. To begin, I believe the situation in the Middle East will have meaningful and long-lasting implications for the global energy sector. Here's what I expect. First, energy security is no longer simply a talking point.

Speaker #3: Second, recovery of oil and gas production and inventories will not be a quick or simple process. Cumulative production deficits are in the several hundreds of millions of barrels and trending towards a billion.

Speaker #2: We delivered total company revenue of $5.4 billion, and operating margin of 13%. International revenue was $3.3 billion, an increase of 3% year over year.

Speaker #3: This represents several years of meaningful incremental demand to replace strategic reserves on top of what I believe will be continued structural demand growth. Big picture, this means the world is fundamentally tighter oil and gas than it was 60 days ago.

Speaker #2: North America revenue was $2.1 billion, a decrease of 4% year over year. During the first quarter, we generated $273 million of cash flow from operations, $123 million of free cash flow, and repurchased $100 million of our common stock.

Speaker #3: In my view, that supports a durably stronger commodity environment and a far more constructive backdrop for upstream investment in oilfield services activity. I believe Halliburton will thrive in this market.

Speaker #3: We are active in all the major markets that matter, with the right service lines, strategy, and technology. In addition, we are the services leader in North America which, in my 30 years of experience, has always been the first market to respond to price signals.

Speaker #2: Now let's turn to our market outlook. To begin, I believe the situation in the Middle East will have meaningful and long-lasting implications for the global energy sector.

Speaker #2: Here's what I expect. First, energy security is no longer simply a talking point. It demands action by every nation to ensure a reliable supply of oil and gas.

Speaker #3: With that, I'll turn the call over to Shannon.

Jeff Miller: It demands action by every nation to ensure a reliable supply of oil and gas. I expect we will see increased investment in localized oil and gas developments and urgency to diversify sources of oil and gas for those countries without their own resources. Second, recovery of oil and gas production and inventories will not be a quick or simple process. Cumulative production deficits are in the several hundreds of millions of barrels and trending towards a billion. This represents several years of meaningful incremental demand to replace strategic reserves on top of what I believe will be continued structural demand growth. Big picture, this means the world is fundamentally tighter oil and gas than it was 60 days ago. In my view, that supports a durably stronger commodity environment and a far more constructive backdrop for upstream investment and oil field services activity.

Speaker #2: Thanks, Jeff. Before I get into our operational results, I want to recognize our employees around the world. But especially in the Middle East, there are executing under challenging circumstances.

Speaker #2: I expect we will see increased investment in localized oil and gas developments, and urgency to diversify sources of oil and gas for those countries without their own resources.

Speaker #2: They're staying focused on our customers and are keeping each other safe. Their fortitude and resilience represents the best of Halliburton I want to personally thank them.

Speaker #2: Second, recovery of oil and gas production and inventories will not be a quick or simple process. Cumulative production deficits are in the several hundreds of millions of barrels and trending toward a billion.

Speaker #2: Now, let's turn to our international business, where our first quarter revenue was $3.3 billion. I'll start with the Middle East, where we have remained closely engaged with our clients through disruptions.

Speaker #2: This represents several years of meaningful incremental demand to replace strategic reserves on top of what I believe will be continued structural demand growth. Big picture, this means the world is fundamentally tighter oil and gas than it was 60 days ago.

Speaker #2: Activity has been most impacted in the regions offshore markets in Qatar, UAE, Saudi Arabia, and the land markets in Iraq and Kuwait. Halliburton continues to support our customers in these areas with service capability they require to navigate current conditions and resume activity as markets recover.

Speaker #2: In my view, that supports a durably stronger commodity environment and a far more constructive backdrop for upstream investment in oilfield services activity. I believe Halliburton will thrive in this market.

Speaker #2: In the broader region, the closure of the Strait has resulted in Halliburton's use of alternative supply chain routes, which has increased logistics costs. We have also seen price increases in purchased materials and supplies related to the conflict.

Jeff Miller: I believe Halliburton will thrive in this market. We are active in all the major markets that matter with the right service lines, strategy, and technology. In addition, we are the services leader in North America, which in my 30 years of experience, has always been the first market to respond to price signals. With that, I'll turn the call over to Shannon.

Speaker #2: We are active in all the major markets that matter, with the right service lines, strategy, and technology. In addition, we are the services leader in North America, which, in my 30 years of experience, has always been the first market to respond to price signals.

Speaker #2: In my view, these are manageable disruptions as we work closely with our customers to mitigate these additional costs within the terms of a contract and agreements.

Speaker #2: With that, I'll turn the call over to Shannon.

Speaker #2: Outside of the Middle East, we saw better-than-expected results during the quarter, and we expect year-over-year revenue growth in the mid to high single digits for the full year led by Latin America.

Speaker #3: Thanks, Jeff. Before I get into our operational results, I want to recognize our employees around the world. But especially in the Middle East. There are executing under challenging circumstances.

Shannon Slocum: Thanks, Jeff. Before I get into our operational results, I want to recognize our employees around the world, but especially in the Middle East. They're executing under challenging circumstances. They're staying focused on our customers and are keeping each other safe. Their fortitude and resilience represents the best of Halliburton. I want to personally thank them. Now, let's turn to our international business, where our Q1 revenue was $3.3 billion. I'll start with the Middle East, where we have remained closely engaged with our clients through disruptions. Activity has been most impacted in the region's offshore markets in Qatar, UAE, Saudi Arabia, and the land markets in Iraq and Kuwait. Halliburton continues to support our customers in these areas with service capability they require to navigate current conditions and resume activity as markets recover.

Speaker #2: I recently returned from the region, and I came away even more confident in our outlook. Activity is strong. Customer engagement is high, and our growth engines are performing in several important markets.

Speaker #3: They're staying focused on our customers and are keeping each other safe. Their fortitude and resilience represents the best of Halliburton I want to personally thank them.

Speaker #2: In unconventionals, YPF recently awarded Halliburton a multibillion-dollar award for integrated completion services in Argentina. This award expands our position in Argentina and represents an important milestone for Halliburton.

Speaker #3: Now, let's turn to our international business, where our first quarter revenue was $3.3 billion. I'll start with the Middle East, where we have remained closely engaged with our clients through disruptions.

Speaker #3: Activity has been most impacted in the region's offshore markets in Qatar, UAE, and Saudi Arabia, and the land markets in Iraq and Kuwait. Halliburton continues to support our customers in these areas with the service capability they require to navigate current conditions and resume activity as markets recover.

Speaker #2: Under this contract, we'll deploy our full completion portfolio, including Zeus electric fracturing services for the first time outside of North America. The award also includes Octave AutoFRAC, which brings electrification, automation, and digital workflows to unconventional fracturing in Argentina.

Speaker #3: In the broader region, the closure of the Strait has resulted in Halliburton's use of alternative supply chain routes, which has increased logistics costs. We have also seen price increases in purchased materials and supplies related to the conflict.

Shannon Slocum: In the broader region, the closure of the Strait has resulted in Halliburton's use of alternative supply chain routes, which has increased logistics cost. We have also seen price increases in purchased materials and supplies related to the conflict. In my view, these are manageable disruptions as we work closely with our customers to mitigate these additional costs within the terms of our contracts and agreements. Outside of Middle East, we saw better than expected results during the quarter, and we expect year-over-year revenue growth in the mid to high single digits for the full year led by Latin America. I recently returned from the region, and I came away even more confident in our outlook. Activity is strong, customer engagement is high, and our growth engines are performing in several important markets. In unconventionals, YPF recently awarded Halliburton a multi-billion dollar award for integrated completion services in Argentina.

Speaker #2: In drilling, we continue to build momentum with our automated offerings. We recently closed our acquisition of Sakal, a global leader in rig automation. With this acquisition, our portfolio now combines Halliburton Logix drilling automation with Sakal's drilltronics platform and services.

Speaker #3: In my view, these are manageable disruptions as we work closely with our customers to mitigate these additional costs within the terms of our contracts and agreements.

Speaker #2: This means Halliburton has the technology in-house to fully close the loop for automated geo-steering. This includes the bottom hole assembly, the hydraulics, and now the rig itself.

Speaker #3: Outside of the Middle East, we saw better-than-expected results during the quarter, and we expect year-over-year revenue growth in the mid- to high-single digits for the full year, led by Latin America.

Speaker #2: We work with Sakal for several years and recently delivered this technology in offshore Guyana. Our closed-loop automation technologies delivered better-than-expected drilling times and, most importantly, better reservoir contact.

Speaker #3: I recently returned from the region, and I came away even more confident in our outlook. Activity is strong. Customer engagement is high, and our growth engines are performing in several important markets.

Speaker #2: I am confident in the power of these technologies. Working together to maximize asset value for our customers. As our drilling technology continues to advance, so does my confidence in our offshore business.

Speaker #3: In unconventionals, YPF recently awarded Halliburton a multibillion-dollar award for integrated completion services in Argentina. This award expands our position in Argentina and represents an important milestone for Halliburton.

Shannon Slocum: This award expands our position in Argentina and represents an important milestone for Halliburton. Under this contract, we'll deploy our full completions portfolio, including Zeus electric fracturing services for the first time outside of North America. The award also includes OCTIV Auto Frac, which brings electrification, automation, and digital workflows to unconventional fracturing in Argentina. In drilling, we continue to build momentum with our automated offerings. We recently closed our acquisition of Sekal, a global leader in rig automation. With this acquisition, our portfolio now combines Halliburton LOGIX drilling automation with Sekal's DrillTronics platform and services. This means Halliburton has the technology in-house to fully close the loop for automated geosteering. This includes the bottom hole assembly, the hydraulics, and now the rig itself. We worked with Sekal for several years and recently delivered this technology in offshore Guyana.

Speaker #2: Our drilling capabilities and collaborative model were key drivers of our recent win in Suriname with Petronas, who selected Halliburton and Valerius for a strategic collaboration agreement to support the development of its offshore assets.

Speaker #3: Under this contract, we'll deploy our full completion portfolio, including Zeus electric fracturing services for the first time outside of North America. The award also includes Octave AutoFRAC, which brings electrification, automation, and digital workflows to unconventional fracturing in Argentina.

Speaker #2: The agreement brings the teams together early in the development cycle and reflects exactly the kind of close alignment that creates value for customers and for Halliburton.

Speaker #2: More broadly, I am increasingly confident in our offshore outlook. Across markets, customers are choosing Halliburton for offshore projects because of our technology, our execution, and our ability to collaborate earlier and more effectively throughout the well lifecycle.

Speaker #3: In drilling, we continue to build momentum with our automated offerings. We recently closed our acquisition of Sakal, a global leader in rig automation. With this acquisition, our portfolio now combines Halliburton LOGIX drilling automation with Sakal's Drilltronics platform and services.

Speaker #2: We see that in Guyana. We see it in Suriname, and we see it increasingly in other offshore markets around the world. To conclude on international, I am confident in our business outlook based upon the strength of our growth engines.

Speaker #3: This means Halliburton has the technology in-house to fully close the loop for automated geo-steering. This includes the bottom hole assembly, the hydraulics, and now the rig itself.

Speaker #3: We work with Sakal for several years and recently delivered this technology in offshore Guyana. Our closed-loop automation technologies delivered better-than-expected drilling times and, most importantly, better reservoir contact.

Speaker #2: The value of our collaborative model and the differentiation of our technology. While the Middle East remains the key near-term variable, we see real momentum across the rest of our international portfolio, and I believe Halliburton will continue to win and deliver profitable growth.

Shannon Slocum: Our closed loop automation technologies delivered better than expected drilling times, and most importantly, better reservoir contact. I am confident in the power of these technologies working together to maximize asset value for our customers. As our drilling technology continues to advance, so does my confidence in our offshore business. Our drilling capabilities and collaborative model were key drivers of a recent win in Suriname with Petronas, who selected Halliburton and Valaris for a strategic collaboration agreement to support the development of its offshore assets. The agreement brings the teams together early in the development cycle and reflects exactly the kind of close alignment that creates value for customers and for Halliburton. More broadly, I'm increasingly confident in our offshore outlook. Across markets, customers are choosing Halliburton for offshore projects because of our technology, our execution, and our ability to collaborate earlier and more effectively throughout the well lifecycle.

Shannon Slocum: Our closed-loop automation technologies delivered better than expected drilling times, and most importantly, better reservoir contact. I am confident in the power of these technologies working together to maximize asset value for our customers. As our drilling technology continues to advance, so does my confidence in our offshore business. Our drilling capabilities and collaborative model were key drivers of a recent win in Suriname with Petronas, who selected Halliburton and Valaris for a strategic collaboration agreement to support the development of its offshore assets. The agreement brings the teams together early in the development cycle and reflects exactly the kind of close alignment that creates value for customers and for Halliburton. More broadly, I'm increasingly confident in our offshore outlook. Across markets, customers are choosing Halliburton for offshore projects because of our technology, our execution, and our ability to collaborate earlier and more effectively throughout the well lifecycle.

Speaker #3: I am confident in the power of these technologies. Working together to maximize asset value for our customers. As our drilling technology continues to advance, so does my confidence in our offshore business.

Speaker #2: Turning now to North America, where Halliburton delivered first quarter revenue of $2.1 billion. Early in the quarter, winter weather delayed services activity in the Permian and Northeast, but those impacts were more than offset by stronger-than-anticipated activity for the remainder of the quarter.

Speaker #3: Our drilling capabilities and collaborative model were key drivers of our recent win in Suriname with Petronas, who selected Halliburton and Valerius for a strategic collaboration agreement to support the development of its offshore assets.

Speaker #2: In a recovery in North America, there are several signposts I expect to see. Today, we are already seeing a couple of important ones. First, the FRAC calendar whitespace in the first half of the year is now gone.

Speaker #3: The agreement brings the teams together early in the development cycle and reflects exactly the kind of close alignment that creates value for customers and for Halliburton.

Speaker #2: As we enter this year, there was a risk that completion work might slip to the right and that gaps in the calendar could widen.

Speaker #3: More broadly, I am increasingly confident in our offshore outlook. Across markets, customers are choosing Halliburton for offshore projects because of our technology, our execution, and our ability to collaborate earlier and more effectively throughout the well lifecycle.

Speaker #2: That is no longer a concern. Second, we have seen an uptick in inbound costs for spot work. While these costs are not for committed crews, they do suggest incremental demand is building in spot markets with smaller operators.

Speaker #2: This is the leading edge of capacity tightening. While we are in the early innings, in my view, the setup for North America is constructive.

Speaker #3: We see that in Guyana, we see it in Suriname, and we see it increasingly in other offshore markets around the world. To conclude on International, I am confident in our business outlook based upon the strength of our growth engines.

Shannon Slocum: We see that in Guyana, we see it in Suriname, and we see it increasingly in other offshore markets around the world. To conclude on international, I am confident in our business outlook based upon the strength of our growth engines, the value of our collaborative model, and the differentiation of our technology. While the Middle East remains the key near-term variable, we see real momentum across the rest of our international portfolio, and I believe Halliburton will continue to win and deliver profitable growth. Turning now to North America, where Halliburton delivered Q1 revenue of $2.1 billion. Early in the quarter, winter weather delayed services activity in the Permian and Northeast, but those impacts were more than offset by stronger than anticipated activity for the remainder of the quarter. In a recovery in North America, there are several signposts I expect to see.

Shannon Slocum: We see that in Guyana, we see it in Suriname, and we see it increasingly in other offshore markets around the world. To conclude on international, I am confident in our business outlook based upon the strength of our growth engines, the value of our collaborative model, and the differentiation of our technology. While the Middle East remains the key near-term variable, we see real momentum across the rest of our international portfolio, and I believe Halliburton will continue to win and deliver profitable growth. Turning now to North America, where Halliburton delivered Q1 revenue of $2.1 billion. Early in the quarter, winter weather delayed services activity in the Permian and Northeast, but those impacts were more than offset by stronger-than-anticipated activity for the remainder of the quarter. In a recovery in North America, there are several signposts I expect to see.

Speaker #2: Premium equipment is already tightening. The commodity price is supportive, and we see signs of incremental demand. As we look to the rest of the cycle, our strategy to maximize value in North America will not change.

Speaker #3: The value of our collaborative model and the differentiation of our technology. While the Middle East remains the key near-term variable, we see real momentum across the rest of our international portfolio, and I believe Halliburton will continue to win and deliver profitable growth.

Speaker #2: Here's how we'll approach this market. First, we're going to focus on returns. Not market share. Which means our priority is to improve the returns of our existing fleets before we add capacity.

Speaker #3: Turning now to North America, where Halliburton delivered first quarter revenue of $2.1 billion. Early in the quarter, winter weather delayed services activity in the Permian and Northeast, but those impacts were more than offset by stronger-than-anticipated activity for the remainder of the quarter.

Speaker #2: Clearly, restoring price to acceptable levels is a key component of this. And second, we'll deploy differentiated technology at scale that solves for customers' greatest opportunities.

Speaker #2: Improving recovery with Zeus IQ and drilling efficiency with iCrews. In summary, I am excited about North America. We see a recovery in progress as activity grows, we believe customers will place high value on technology, efficiency, and execution, which plays to Halliburton's strengths.

Speaker #3: In the recovery in North America, there are several signposts I expect to see. Today, we are already seeing a couple of important ones. First, the FRAC calendar whitespace in the first half of the year is now gone.

Shannon Slocum: Today, we are already seeing a couple of important ones. First, the frac calendar white space in H1 is now gone. As we entered this year, there was a risk that completion work might slip to the right and that gaps in the calendar could widen. That is no longer a concern. Second, we have seen an uptick in inbound calls for spot work. While these calls are not for committed crews, they do suggest incremental demand is building in spot markets with smaller operators. This is the leading edge of capacity tightening. While we are in the early innings, in my view, the setup for North America is constructive. Premium equipment is already tightening. The commodity price is supportive, and we see signs of incremental demand.

Speaker #3: As we enter this year, there was a risk that completion work might slip to the right, and that gaps in the calendar could widen.

Speaker #2: With that, I will turn the call over to Eric to provide more details on our financial results. Eric, thank you, Shannon, and good morning.

Speaker #3: That is no longer a concern. Second, we have seen an uptick in inbound costs for spot work. While these costs are not for committed crews, they do suggest incremental demand is building in spot markets with smaller operators.

Speaker #2: Our Q1 reported net income per diluted share was $65. Total company revenue for Q1 2026 was $5.4 billion, flat when compared to Q1 2025.

Speaker #3: This is the leading edge of capacity tightening. While we are in the early innings, in my view, the setup for North America is constructive.

Speaker #2: Operating income was $679 million, and operating margin was 13%. Our Q1 cash flow from operations was $273 million, and free cash flow was $123 million.

Speaker #3: Premium equipment is already tightening. The commodity price is supportive, and we see signs of incremental demand. As we look to the rest of the cycle, our strategy to maximize value in North America will not change.

Shannon Slocum: As we look to the rest of the cycle, our strategy to maximize value in North America will not change. Here's how we'll approach this market. First, we're going to focus on returns, not market share, which means our priority is to improve the returns of our existing fleets before we add capacity. Clearly, restoring price to acceptable levels is a key component of this. Second, we'll deploy differentiated technology at scale that solves for customers' greatest opportunities, improving recovery with ZEUS IQ and drilling efficiency with iCruise. In summary, I am excited about North America. We see a recovery in progress. As activity grows, we believe customers will place high value on technology, efficiency, and execution, which plays to Halliburton's strengths. With that, I will turn the call over to Eric Carré to provide more details on our financial results. Eric?

Shannon Slocum: As we look to the rest of the cycle, our strategy to maximize value in North America will not change. Here's how we'll approach this market. First, we're going to focus on returns, not market share, which means our priority is to improve the returns of our existing fleets before we add capacity. Clearly, restoring price to acceptable levels is a key component of this. Second, we'll deploy differentiated technology at scale that solves for customers' greatest opportunities, improving recovery with ZEUS IQ and drilling efficiency with iCruise. In summary, I am excited about North America. We see a recovery in progress. As activity grows, we believe customers will place high value on technology, efficiency, and execution, which plays to Halliburton's strengths. With that, I will turn the call over to Eric to provide more details on our financial results. Eric?

Speaker #2: During Q1, we repurchased $100 million of our common stock. Now, turning to the segment results. In Q1, both of our divisions were impacted by the conflict in the Middle East, which resulted in an impact of approximately 2 to 3 cents per share.

Speaker #3: Here's how we'll approach this market. First, we're going to focus on returns, not market share. This means our priority is to improve the returns of our existing fleets before we add capacity.

Speaker #3: Clearly, restoring price to acceptable levels is a key component of this. And second, we'll deploy differentiated technology at scale that solves for customers' greatest opportunities.

Speaker #2: Beginning with our completion and production division, revenue in Q1 was $3 billion, a decrease of 3% when compared to Q1 2025. Operating income was $439 million, a decrease of 17% when compared to Q1 2025, and operating income margin was 15%.

Speaker #3: Improving recovery with Zeus IQ and drilling efficiency with iCrew. In summary, I am excited about North America. We see a recovery in progress as activity grows. We believe customers will place high value on technology, efficiency, and execution, which plays to Halliburton's strengths.

Speaker #2: These results were primarily driven by lower stimulation activity in North America and lower completion tool sales and decreased pressure pumping services in the Middle East.

Speaker #3: With that, I will turn the call over to Eric to provide more details on our financial results. Eric, thank you, Shannon, and good morning.

Eric Carré: Thank you, Shannon, and good morning. Our Q1 reported net income per diluted share was $0.55. Total company revenue for Q1 2026 was $5.4 billion, flat when compared to Q1 2025. Operating income was $679 million, and operating margin was 13%. Our Q1 cash flow from operations was $273 million, and free cash flow was $123 million. During Q1, we repurchased $100 million of our common stock. Now turning to the segment results. In Q1, both of our divisions were impacted by the conflict in the Middle East, which resulted in an impact of approximately $0.02 to $0.03 per share. Beginning with our Completion and Production division, revenue in Q1 was $3 billion, a decrease of 3% when compared to Q1 2025. Operating income was $439 million, a decrease of 17% when compared to Q1 2025, and operating income margin was 15%.

Eric Carre: Thank you, Shannon, and good morning. Our Q1 reported net income per diluted share was $0.55. Total company revenue for Q1 2026 was $5.4 billion, flat when compared to Q1 2025. Operating income was $679 million, and operating margin was 13%. Our Q1 cash flow from operations was $273 million, and free cash flow was $123 million. During Q1, we repurchased $100 million of our common stock. Now turning to the segment results. In Q1, both of our divisions were impacted by the conflict in the Middle East, which resulted in an impact of approximately $0.02 to $0.03 per share. Beginning with our Completion and Production division, revenue in Q1 was $3 billion, a decrease of 3% when compared to Q1 2025. Operating income was $439 million, a decrease of 17% when compared to Q1 2025, and operating income margin was 15%.

Speaker #3: Our Q1 reported net income per diluted share was $0.65. Total company revenue for Q1 2026 was $5.4 billion, flat when compared to Q1 2025.

Speaker #2: Partially offsetting this decreases were higher completion tool sales in the Western Hemisphere and improved pressure pumping services in Africa. In our drilling and evaluation division, revenue in Q1 was $2.4 billion.

Speaker #3: Operating income was $679 million, and operating margin was 13%. Our Q1 cash flow from operations was $273 million, and free cash flow was $123 million.

Speaker #2: An increase of 4% when compared to Q1 2025. Operating income was $351 million, flat when compared to Q1 2025, and operating income margin was 15%.

Speaker #3: During Q1, we repurchased $100 million of our common stock. Now, turning to the segment results. In Q1, both of our divisions were impacted by the conflict in the Middle East, which resulted in an impact of approximately $0.02 to $0.03 per share.

Speaker #2: These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and in the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of America.

Speaker #3: Beginning with our Completion and Production division, revenue in Q1 was $3 billion, a decrease of 3% when compared to Q1 2025. Operating income was $439 million, a decrease of 17% when compared to Q1 2025, and operating income margin was 15%.

Speaker #2: Now let's move on to geographic results. Our Q1 international revenue increased 3% when compared to Q1 2025. Europe-Africa revenue in Q1 was $858 million.

Speaker #3: These results were primarily driven by lower stimulation activity in North America, as well as lower completion tool sales and decreased pressure pumping services in the Middle East.

Eric Carré: These results were primarily driven by lower stimulation activity in North America and lower completion tool sales and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere and improved pressure pumping services in Africa. In our Drilling and Evaluation division, revenue in Q1 was $2.4 billion, an increase of 4% when compared to Q1 2025. Operating income was $351 million, flat when compared to Q1 2025, and operating income margin was 15%. These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and in the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of Mexico. Now let's move on to geographic results.

Eric Carre: These results were primarily driven by lower stimulation activity in North America and lower completion tool sales, and decreased pressure pumping services in the Middle East. Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere and improved pressure pumping services in Africa. In our Drilling and Evaluation division, revenue in Q1 was $2.4 billion, an increase of 4% when compared to Q1 2025. Operating income was $351 million, flat when compared to Q1 2025, and operating income margin was 15%. These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and in the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of America. Now let's move on to geographic results.

Speaker #2: An increase of 11% year over year. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway and improved pressure pumping services in Angola.

Speaker #3: Partially offsetting these decreases were higher completion tool sales in the Western Hemisphere and improved pressure pumping services in Africa. In our Drilling and Evaluation division, revenue in Q1 was $2.4 billion.

Speaker #2: Middle East Asia revenue in Q1 was $1.3 billion. A decrease of 13% year over year. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product lines.

Speaker #3: An increase of 4% when compared to Q1 2025. Operating income was $351 million, flat when compared to Q1 2025, and operating income margin was 15%.

Speaker #2: Latin America revenue in Q1 was $1.1 billion. A 22% increase year over year. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil.

Speaker #3: These results were primarily driven by higher project management activity in Latin America and increased drilling-related services in Europe and in the Western Hemisphere. Partially offsetting these increases were lower activity across multiple product service lines in the Middle East, lower wireline activity in the Eastern Hemisphere, and decreased fluid services in the Gulf of Mexico.

Speaker #2: And improved stimulation activity in Mexico and Argentina. In North America, Q1 revenue was $2.1 billion. A 4% decrease year over year. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US land and lower stimulation activity and decreased fluid services in the Gulf of America.

Speaker #3: Now let's move on to geographic results. Our Q1 international revenue increased 3% when compared to Q1 2025. Europe-Africa revenue in Q1 was $858 million.

Eric Carré: Our Q1 international revenue increased 3% when compared to Q1 2025. Europe-Africa revenue in Q1 was $858 million, an increase of 11% year over year. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway and improved pressure pumping services in Angola. Middle East Asia revenue in Q1 was $1.3 billion, a decrease of 13% year over year. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product lines. Latin America revenue in Q1 was $1.1 billion, a 22% increase year over year. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, and improved stimulation activity in Mexico and Argentina. In North America, Q1 revenue was $2.1 billion, a 4% decrease year over year.

Eric Carre: Our Q1 international revenue increased 3% when compared to Q1 2025. Europe-Africa revenue in Q1 was $858 million, an increase of 11% year-over-year. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway and improved pressure pumping services in Angola. Middle East Asia revenue in Q1 was $1.3 billion, a decrease of 13% year-over-year. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product lines. Latin America revenue in Q1 was $1.1 billion, a 22% increase year-over-year. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil, and improved stimulation activity in Mexico and Argentina. In North America, Q1 revenue was $2.1 billion, a 4% decrease year-over-year.

Speaker #2: Moving on to other items. In Q1, our corporate and other expense was $69 million. We expect our Q2 corporate expenses to increase about $5 million.

Speaker #3: An increase of 11% year over year. This increase was primarily driven by increased drilling-related services and higher completion tool sales in Norway, as well as improved pressure pumping services in Angola.

Speaker #2: In Q1, we spent $42 million on SAP S/4 migration, which is included in our results. For Q2, we expect SAP expenses to be about $45 million.

Speaker #3: Middle East Asia revenue in Q1 was $1.3 billion, a decrease of 13% year over year. This decrease was primarily driven by conflict-related disruptions that resulted in lower activity across multiple product lines.

Speaker #2: Net interest expense for the quarter was $82 million. Lower than expected due to favorable interest income. For Q2, we expect net interest expense to increase about $5 million.

Speaker #2: Other net expense in Q1 was $28 million. We expect Q2 expense to be about $35 million. Our effective tax rate for Q1 was 18.5%.

Speaker #3: Latin America revenue in Q1 was $1.1 billion, a 22% increase year-over-year. This increase was primarily driven by higher activity across multiple product service lines in Ecuador, the Caribbean, and Brazil.

Speaker #2: Based on our anticipated geographic earnings mix, we expect our Q2 and full year effective tax rate to be approximately 20%. Capital expenditure for Q1 was $192 million.

Speaker #3: And improved stimulation activity in Mexico and Argentina. In North America, Q1 revenue was $2.1 billion, a 4% decrease year over year. This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in U.S. land, and lower stimulation activity and decreased fluid services in the Gulf of America.

Speaker #2: For the full year 2026, we expect capital expenditures to be about $1.1 billion. Now let me provide you with comments on our expectations for Q2 2026.

Eric Carré: This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US land, and lower stimulation activity and decreased fluid services in the Gulf of Mexico. Moving on to other items. In Q1, our corporate and other expense was $69 million. We expect our Q2 corporate expenses to increase about $5 million. In Q1, we spent $42 million on SAP S/4HANA migration, which is included in our results. For Q2, we expect SAP expenses to be about $45 million. Net interest expense for the quarter was $82 million, lower than expected due to favorable interest income. For Q2, we expect net interest expense to increase about $5 million. Other net expense in Q1 was $28 million. We expect Q2 expense to be about $35 million. Our effective tax rate for Q1 was 18.5%.

Eric Carre: This decline was primarily driven by lower stimulation activity and decreased artificial lift activity in US land, and lower stimulation activity and decreased fluid services in the Gulf of Mexico. Moving on to other items. In Q1, our corporate and other expense was $69 million. We expect our Q2 corporate expenses to increase about $5 million. In Q1, we spent $42 million on SAP S/4HANA migration, which is included in our results. For Q2, we expect SAP expenses to be about $45 million. Net interest expense for the quarter was $82 million, lower than expected due to favorable interest income. For Q2, we expect net interest expense to increase about $5 million. Other net expense in Q1 was $28 million. We expect Q2 expense to be about $35 million. Our effective tax rate for Q1 was 18.5%.

Speaker #2: In the Middle East, the timing and path of a recovery to pre-conflict activity levels is unclear. In addition to lost revenue, we also expect higher costs related to supply chain logistics and fuel.

Speaker #3: Moving on to other items. In Q1, our corporate and other expense was $69 million. We expect our Q2 corporate expenses to increase about $5 million.

Speaker #2: We estimate the impact in the second quarter will be approximately 7 to 9 cents per share, which is embedded in our divisional guidance. In our completion and production division, we anticipate sequential revenue to increase 4 to 6 percent and margins to improve 50 to 100 basis points.

Speaker #3: In Q1, we spent $42 million on SAP S/4 migration, which is included in our results. For Q2, we expect SAP expenses to be about $45 million.

Speaker #3: Net interest expense for the quarter was $82 million. Lower than expected due to favorable interest income. For Q2, we expect net interest expense to increase about $5 million.

Speaker #2: In our drilling and evaluation division, we expect seasonal software sales to roll off in the second quarter. As a result, we expect sequential revenue to be flat to down 2% and margins to decline 75 to 125 basis points.

Speaker #3: Other net expense in Q1 was $28 million. We expect Q2 expense to be about $35 million. Our effective tax rate for Q1 was 18.5%.

Eric Carré: Based on our anticipated geographic earnings mix, we expect our Q2 and full-year effective tax rate to be approximately 20%. Capital expenditure for Q1 were $192 million. For the full year 2026, we expect capital expenditures to be about $1.1 billion. Now, let me provide you with comments on our expectations for Q2 2026. In the Middle East, the timing and path of a recovery to pre-conflict activity levels is unclear. In addition to lost revenue, we also expect higher costs related to supply chain, logistics, and fuel. We estimate the impact in Q2 will be approximately 7 to 9 cents per share, which is embedded in our divisional guidance. In our Completion and Production division, we anticipate sequential revenue to increase 4% to 6% and margins to improve 50 to 100 basis points.

Eric Carre: Based on our anticipated geographic earnings mix, we expect our Q2 and full-year effective tax rate to be approximately 20%. Capital expenditure for Q1 were $192 million. For the full year 2026, we expect capital expenditures to be about $1.1 billion. Now, let me provide you with comments on our expectations for Q2 2026. In the Middle East, the timing and path of a recovery to pre-conflict activity levels is unclear. In addition to lost revenue, we also expect higher costs related to supply chain, logistics, and fuel. We estimate the impact in Q2 will be approximately 7 to 9 cents per share, which is embedded in our divisional guidance. In our Completion and Production division, we anticipate sequential revenue to increase 4% to 6% and margins to improve 50 to 100 basis points.

Speaker #3: Based on our anticipated geographic earnings mix, we expect our Q2 and full year effective tax rate to be approximately 20%. Capital expenditures for Q1 were $192 million.

Speaker #2: I will now turn the call back to Jeff. Thanks, Eric. Here's what you should remember from today's call. The macro environment has changed in the last 60 days.

Speaker #2: I believe Halliburton will thrive in the market that we see. In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our international business to grow.

Speaker #3: For the full year 2026, we expect capital expenditures to be about $1.1 billion. Now let me provide you with comments on our expectations for Q2 2026.

Speaker #2: Our growth engines delivered significant milestones during the quarter, and our collaborative value proposition is winning in the offshore market. Let's open it up for questions.

Speaker #3: In the Middle East, the timing and path of a recovery to pre-conflict activity levels is unclear. In addition to lost revenue, we also expect higher costs related to supply chain logistics and fuel.

Speaker #3: Ladies and gentlemen, if you have a question or comment at this time, please press star 11 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star 11 again.

Speaker #3: We estimate the impact in the second quarter will be approximately 7 to 9 cents per share, which is embedded in our divisional guidance. In our completion and production division, we anticipate sequential revenue to increase 4 to 6 percent and margins to improve 50 to 100 basis points.

Speaker #3: Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of David Anderson from Barclays. Mr. Anderson, your line is now open.

Eric Carré: In our Drilling and Evaluation division, we expect seasonal software sales to roll off in Q2. As a result, we expect sequential revenue to be flat to down 2% and margins to decline 75 to 125 basis points. I will now turn the call back to Jeff.

Eric Carre: In our Drilling and Evaluation division, we expect seasonal software sales to roll off in Q2. As a result, we expect sequential revenue to be flat to down 2% and margins to decline 75 to 125 basis points. I will now turn the call back to Jeff.

Speaker #4: Well, thank you very much. Good morning, Jeff.

Speaker #3: In our drilling and evaluation division, we expect seasonal software sales to roll off in the second quarter. As a result, we expect sequential revenue to be flat to down 2% and margins to decline 75 to 125 basis points.

Speaker #2: Morning.

Speaker #4: Obviously, the Iran conflict isn't resolved, so it's really hard to guide for the next several quarters. But I think everybody's just trying to figure out what the other side of this looks like.

Speaker #4: I realized this early, but with global supply now a priority, kind of how does this shape your views over the next few years, and how does that really change over the last 60 days?

Speaker #3: I will now turn the call back to Jeff.

Speaker #2: Look, I think the most important change is that the supply overhangs no longer a concern. That's swept away. And demand structural demand remains intact.

Jeff Miller: Thanks, Eric Carré. Here's what you should remember from today's call. The macro environment has changed in the last 60 days. I believe Halliburton will thrive in the market that we see. In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our international business to grow. Our growth engines delivered significant milestones during the quarter, and our collaborative value proposition is winning in the offshore market. Let's open it up for questions.

Jeff Miller: Thanks, Eric. Here's what you should remember from today's call. The macro environment has changed in the last 60 days. I believe Halliburton will thrive in the market that we see. In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our international business to grow. Our growth engines delivered significant milestones during the quarter, and our collaborative value proposition is winning in the offshore market. Let's open it up for questions.

Speaker #1: Thanks, Eric. Here's what you should remember from today's call: The macroenvironment has changed in the last 60 days. I believe Halliburton will thrive in the market that we see.

Speaker #2: And so I think that combination sort of moves the rebalancing up closer that's sort of done. And when I look out, I think equally important is the view that energy security is no longer a talking point.

Speaker #1: In North America, we already see the early signs of recovery. Outside of the Middle East, we expect our international business to grow. Our growth engines delivered significant milestones during the quarter, and our collaborative value proposition is winning in the offshore market.

Speaker #2: I mean, I said that, but I mean, that's going to drive activity. And so then I think that change is not temporal, but that's a few years.

Speaker #1: Let's open it up for questions.

Speaker #2: A solid few years. So that's what's changed in the last 60 days, in my view.

Operator: Ladies and gentlemen, if you have a question or comment at this time, please press star one one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one one again. Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of David Anderson from Barclays. Mr. Anderson, your line is now open.

Speaker #3: Ladies and gentlemen, if you have a question or comment at this time, please press star one-one on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press star one-one again.

Speaker #4: And then you touched on North America. North America is kind of always the first one to see a reaction. It sounds like you're saying kind of early innings here.

Speaker #4: Shannon, you were trying to talk about some of this white space shrinking. Are you starting to see EMP customers showing signs of picking up activity?

Speaker #3: Please stand by while we compile the Q&A roster. Our first question or comment comes from the line of David Anderson from Barclays. Mr. Anderson, your line is now open.

Speaker #4: Is everybody's kind of waiting on the back part of the curve to lift up? Just kind of a little bit more color on kind of what you're seeing on the ground in US onshore.

J. David Anderson: Thank you very much. Good morning, Jeff.

David Anderson: Thank you very much. Good morning, Jeff.

Speaker #4: Well, thank you very much. Good morning, Jeff.

Jeff Miller: Morning.

Speaker #4: Thanks.

J. David Anderson: Obviously, the Iran conflict isn't resolved, so it's really hard to guide for the next several quarters. I think everybody's just trying to figure out what the other side of this looks like. I realize it's early, but with global supply now a priority, how does this shape your views over the next few years, and how has that really changed over the last 60 days?

David Anderson: Obviously, the Iran conflict isn't resolved, so it's really hard to guide for the next several quarters. I think everybody's just trying to figure out what the other side of this looks like. I realize it's early, but with global supply now a priority, how does this shape your views over the next few years, and how has that really changed over the last 60 days?

Speaker #2: Yeah. Thanks, Dave. The short answer is yes. We've seen a couple of really good signposts. As I said, white space for Q2 is all but gone.

Speaker #1: Morning.

Speaker #4: I realize it's early, but with global supply now a priority, how does this shape your views over the next few years, and how has that really changed over the last 60 days?

Speaker #2: We've seen a lot of pull forwards. We've seen inbounds. We're also seeing H2 firming up as well. I think the next flip of the coin would be rig ads and some longer-term discussions on frac activity.

Jeff Miller: Look, I think the most important change is that the supply overhang is no longer a concern. That's swept away. Structural demand remains intact. I think that combination sort of moves the rebalancing up closer. That's sort of done and when I look out, I think equally important is the view that energy security is no longer a talking point. I said that, but that's going to drive activity. I think that change is not temporal, but that's a few years, a solid few years. That's what's changed in the last 60 days, in my view.

Speaker #1: Look, I think the most important change is that the supply overhang's no longer a concern. That's swept away. And structural demand remains intact.

Speaker #2: And then I think as far as investments of the smaller and the bigger operators, the bigger operators tend to invest throughout the cycle. The smaller and medium-sized ones usually move a little quicker.

Speaker #1: And so I think that combination sort of moves the rebalancing up closer—that's sort of done. And when I look out, I think equally important is the view that energy security is no longer a talking point.

Speaker #2: But hey, I think they are looking at the front end of the curve. The back end of the curve, but they're also looking at the front end of the curve as well.

Speaker #1: I mean, I said that, but—I mean, that's going to drive activity. And so then, I think that change is not temporal, but that's a few years.

Speaker #2: We like this market. We believe being the only fully integrated service company in North America is a fantastic position for us. Along with our e-fleets, Zeus IQ, and also really the demand for iCrews as well in this market.

Speaker #1: A solid few years. So that's what's changed in the last 60 days, in my view.

J. David Anderson: You touched on North America. North America is kind of always the first one to see a reaction. It sounds like you're saying kind of early innings here. Shannon, you were trying to talk about some of this white space shrinking. Are you starting to see E&P customers showing signs of picking up activity? Is everybody kind of waiting on the back part of the curve to lift up? Just a little bit more color on what you're seeing on the ground in US onshore. Thanks.

David Anderson: You touched on North America. North America is kind of always the first one to see a reaction. It sounds like you're saying kind of early innings here. Shannon, you were trying to talk about some of this white space shrinking. Are you starting to see E&P customers showing signs of picking up activity? Is everybody kind of waiting on the back part of the curve to lift up? Just a little bit more color on what you're seeing on the ground in US onshore. Thanks.

Speaker #4: And then you touched on North America. North America's kind of always the first one to see a reaction. It sounds like you're saying kind of early innings here.

Speaker #2: So the short answer is yes. Early innings, but we like where we are.

Speaker #4: Thank you very much.

Speaker #4: Shannon, you were trying to talk about some of this white space shrinking. Are you starting to see E&P customers showing signs of picking up activity?

Speaker #3: Thank you. Our next question or comment comes from the line of Arun Jayaram from JPMorgan. Your line is open, sir.

Speaker #4: Is everybody kind of waiting on the back part of the curve to lift up? Just kind of a little bit more color on what you're seeing on the ground in U.S. onshore.

Speaker #5: Yeah. Good morning, team. Shannon, maybe I could start with you. I was wondering if you could walk us around your core international and offshore markets outside of the Middle East and perhaps elaborate on the strength in LATAM and Europe, Africa.

Speaker #4: Thanks.

Shannon Slocum: Yeah. Thanks, Dave. The short answer is yes, we've seen a couple really good signposts. As I said, white space for Q2 is all but gone. We've seen a lot of pull forwards. We've seen inbounds. We're also seeing H2 firming up as well. I think the next flip of the coin would be rig adds and some longer-term discussions on frac activity. I think as far as investments of the smaller and the bigger operators, the bigger operators tend to invest throughout the cycle. The smaller and medium-sized ones usually move a little quicker. Hey, I think they are looking at the back end of the curve, but they're also looking at the front end of the curve as well. We like this market.

Shannon Slocum: Yeah. Thanks, Dave. The short answer is yes, we've seen a couple really good signposts. As I said, white space for Q2 is all but gone. We've seen a lot of pull forwards. We've seen inbounds. We're also seeing H2 firming up as well. I think the next flip of the coin would be rig adds and some longer-term discussions on frac activity. I think, as far as investments of the smaller and the bigger operators, the bigger operators tend to invest throughout the cycle. The smaller and medium-sized ones usually move a little quicker. Hey, I think they are looking at the back end of the curve, but they're also looking at the front end of the curve as well. We like this market.

Speaker #5: Yeah, thanks, Dave. The short answer is yes. We've seen a couple of really good signposts. As I said, white space for Q2 is all but gone.

Speaker #5: I believe you mentioned that outside of the Middle East, you expect international revenues to grow mid-single to high-single digits. And just wondering how that compares to your thought process maybe before the conflict.

Speaker #5: We've seen a lot of pull-forwards. We've seen inbounds. We're also seeing H2 firming up as well. I think the next flip of the coin would be rig adds and some longer-term discussions on FRAC activity.

Speaker #2: Yeah. Thanks, Arun. Yeah. Hey, a lot to be excited about. A lot of bright spots. Latin America leading the way. Really excited about the work.

Speaker #5: And then I think, as far as investments of the smaller and the bigger operators, the bigger operators tend to invest throughout the cycle. The smaller and medium-sized ones usually move a little quicker.

Speaker #2: We're doing the Caribbean in particular, Guyana and Suriname, working in a very collaborative way. But Argentina is a really exciting we just announced a multi-year, multi-billion first-ever deployment of frac spreads in Argentina.

Speaker #5: But hey, I think they are looking at the front end of the curve. The back end of the curve, but they're also looking at the front end of the curve as well.

Shannon Slocum: We believe being the only fully integrated service company in North America is a fantastic position for us, along with our e-fleets, Zeus IQ, and also really the demand for iCruise as well in this market. The short answer is yes, early innings, but we like where we are.

Speaker #5: We like this market. We believe being the only fully integrated service company in North America is a fantastic position for us. Along with our e-fleets, Zeus IQ, and also, really, the demand for iCrews as well in this market.

Speaker #2: With YPF, that's going to be a really great business for us moving forward. The deep water work as well in Brazil. But hey, if you move east, outside of Middle East, the Norway market is one that we've had a real strong position in.

Speaker #5: So the short answer is yes. Early innings, but we like where we are.

Stephen Richardson: Thank you very much.

David Anderson: Thank you very much.

Speaker #2: We're very collaborative with a number of customers. We're starting to see rig ads coming towards the back half of this year, early next year.

Speaker #4: Thank you very much.

Operator: Thank you. Our next question or comment comes from the line of Arun Jayaram from JPMorgan. Your line is open, sir.

Speaker #3: Thank you. Our next question or comment comes from the line of Arun Jayaram from JPMorgan. Your line is open, sir.

Speaker #2: And with regard to West Africa, we're seeing some light at the end of the tunnel. Real sizable programs both in Namibia and Nigeria. We have a sizable footprint in both of those places.

Arun Jayaram: Yeah. Good morning, team. Shannon, maybe I could start with you. I was wondering if you could walk us around your core international and offshore markets outside of the Middle East, and perhaps elaborate on the strength in LATAM and Europe, Africa. I believe you mentioned that outside of the Middle East, you expect international revenues to grow mid-single to high single digits. Just wondering how that compares to your thought process, maybe before the conflict.

Speaker #1: Yeah. Good morning, team. Shannon, maybe I could start with you. I was wondering if you could walk us around your core international and offshore markets outside of the Middle East, and perhaps elaborate on the strength in LATAM and Europe, Africa.

Speaker #2: And two countries we like our contracts in. And I would just put Asia-Pac just as a really resilient market for us. Throughout the cycle, it's stayed busy.

Speaker #1: I believe you mentioned that, outside of the Middle East, you expect international revenues to grow mid-single to high-single digits. And just wondering how that compares to your thought process, maybe before the conflict.

Speaker #2: Expect that to continue. And yeah, we expect a full year mid to high single digits outside of Middle East. We think certainly a lot of unknowns in the Middle East, but still feel pretty good about where we are with that guide.

Shannon Slocum: Yeah. Thanks, Arun. Yeah, hey, a lot to be excited about. A lot of bright spots. Latin America leading the way. Really excited about the work we're doing, the Caribbean in particular, Guyana and Suriname working in a very collaborative way. Argentina is really exciting. We just announced a multi-year, multi-billion first-ever deployment of frac spreads in Argentina with YPF. That's going to be a really great business for us moving forward. The deepwater work as well in Brazil. Hey, if you move east, outside of Middle East, the Norway market is one that we've had a real strong position in. We've worked very collaboratively with a number of customers. We're starting to see rig adds coming towards the back half of this year, early next year. With regard to West Africa, we're seeing some light at the end of the tunnel.

Speaker #5: Yeah, thanks, Arun. Yeah. Hey, a lot to be excited about—a lot of bright spots. Latin America leading the way. Really excited about the work.

Speaker #3: Great. And my follow-up is in North America. We have a bit of an unusual dynamic where we have a relatively modest natural gas prices, including kind of in markets like the West Texas which are significantly below diesel prices.

Speaker #3: One of the things about Halliburton's frac fleet is you have a lot of exposure to natural gas kind of burning equipment, e-fleets that use natural gas as an input.

Speaker #3: But I was wondering if you could talk about opportunities to arbitrage this delta to the benefit of how shareholders in terms of arbitraging that delta in terms of pricing power.

Speaker #2: Well, look, I think that that just reinforces the value in our e-fleets. And yeah, clearly an opportunity. And look, we work that all of the time in terms of pricing and where is that going.

Shannon Slocum: Really sizable programs both in Namibia, Nigeria. We have a sizable footprint in both of those places, in two countries we like our contracts in. I would just put Asia Pacific just as a really resilient market for us. Throughout the cycle, it stayed busy. Expect that to continue. Yeah, we expect a full year, mid to high single digits outside of Middle East. We think certainly a lot of unknowns in Middle East, but still feel pretty good about where we are with that guide.

Speaker #2: But yeah, I would describe that as an opportunity. It's certainly a benefit for operators that are consuming natural gas. And I think just to add to that in terms of the e-fleets that we have, the Zeus platform is proving itself such a unique solution particularly with respect to Zeus IQ and the ability to move on recovery that while the ability to be more economic with the gas consumption due to the arbitrage, I think the real power in the Zeus IQ and the Zeus platform has been what it's able to do subsurface.

Arun Jayaram: Great. My follow-up is, in North America, we have a bit of an unusual dynamic where we have relatively modest natural gas prices, including kind of in markets like the West Texas, which are significantly below diesel prices. One of the things about Halliburton's frac fleet is you have a lot of exposure to natural gas, kind of burning equipment, e-fleets that use natural gas as an input. I was wondering if you could talk about opportunities to arbitrage this delta to the benefit of our shareholders in terms of arbitraging that delta in terms of pricing power.

Speaker #3: Great. Thanks a lot.

Speaker #2: Yep.

Speaker #3: Thank you. Our next question or comment comes from the line of Saurabh Pant from Bank of America. Mr. Pant, your line is now open.

Speaker #6: Hi. Good morning, Jeff, Eric, and welcome, Shannon, to the call.

Um, you know, one of the things about Halliburton's frac fleet is you have a lot of, um, uh, exposure to natural gas. Um,

Speaker #2: Yep. Thank you.

Speaker #3: Thank you.

Speaker #6: Jeff, obviously, you had your comment on North America in the press release. You gave us a lot of good color in your prepared remarks.

Kind of burning equipment, e-fleets that use natural gas as an input, but I was wondering if you could talk about opportunities to arbitrage this delta.

Speaker #6: But I recall last quarter we were talking about this, and you were talking how the supply side of the equation, again, this is mostly a frac comment, right?

Shannon Slocum: Well, look, I think that just reinforces the value in our e-fleets, and yeah, clearly an opportunity. Look, we work that all of the time in terms of pricing and where is that going. Yeah, I would describe that as an opportunity. It's certainly a benefit for operators that are consuming natural gas. I think just to add to that, in terms of the e-fleets that we have, the Zeus platform is proving itself such a unique solution, particularly with respect to ZEUS IQ and the ability to move on recovery, that while the ability to be more economic with the gas consumption due to the arbitrage, I think the real power in the ZEUS IQ and the Zeus platform has been what it's able to do subsurface.

uh, to the benefit of of, of how shareholders in terms of, you know, Arbitrage that Delta in terms of pricing, um, you know, pricing power,

Speaker #6: There's a lot tighter than people think, and it would take just a little bit of demand coming back for pricing power to come back.

Speaker #6: How are you thinking about that right now, Jeff, Shannon, maybe you want to pitch in, right? How do we move through the remainder of '26 based on what we know right now, right, on the demand side, and then on the pricing power side of things?

Speaker #2: Yeah. This is Shannon here. Yeah, we're seeing some, as I mentioned earlier, some really good signposts. What that is doing is driving some real constructive conversations with our operators.

Speaker #2: There's a handful of fleets that can go to work. And the way we think about it is first is we have to address the pricing with our existing fleets.

Well, look, I think that that just reinforces the value in our equity and, yeah, clearly an opportunity. Um, and look, we're, we're, we work that all of the time in terms of pricing, and where is that going? Um, but yeah, I would describe that as an opportunity. It's certainly a benefit for operators that are consuming natural gas. Um, and I, and I think just to add to that, in terms of the elites that we have, the Zeus platform is proving itself such a unique solution, particularly with respect to Zeus IQ and the ability to move on recovery that, uh, while the, you know, the ability to

Speaker #2: Those conversations we're having, I think the next flip of the coin, longer-term programs, more rigs being added, that creates another level of constructive conversations for us.

You know, be more economic with the gas consumption due to the arbitrage. I think the real power in the Zoo's IQ and the Zeus platform has been what it's able to do subsurface.

Arun Jayaram: Great. Thanks a lot.

Shannon Slocum: Yeah.

Great. Thanks a lot.

Operator: Thank you. Our next question or comment comes from the line of Saurabh Pant from Bank of America. Mr. Pant, your line is now open.

Speaker #2: But first things first for us is focus on the fleets we have now. And it doesn't take much attrition for things to get tight.

Yeah.

Saurabh Pant: Hi, good morning, Jeff, Eric, and welcome, Shannon, to the call.

Speaker #2: And early innings, but starting to see signs of that.

Thank you. Our next question or comment that comes from the line of SOB, Pat from Bank of America. Mr. P your line is now open.

Speaker #6: Yeah. I think just to follow that up, what in my view is even clearer than it was is sort of the availability of equipment in the market.

Shannon Slocum: Yeah. Thank you.

Jeff Miller: Thank you.

Hi, good morning. Uh, Jeff, Eric, and uh, welcome Miss Shannon to the call.

Saurabh Pant: Jeff, obviously, you had your comment on North America in the press release. You gave us a lot of good color in your prepared remarks. I recall last quarter, we were talking about this, and you were talking how the supply side of the equation, again, this is mostly a frac comment, right, is a lot tighter than people think, and it would take just a little bit of demand coming back for pricing power to come back. How are you thinking about that right now, Jeff? Shannon, maybe you want to pitch in, right? How do we move through the remainder of 2026 based on what we know right now, right? On the demand side, and then on the pricing power side of things?

Yeah, thank you.

Uh, Jeff.

Speaker #6: And that's what those early signposts are calling out is the fact that equipment is tighter. We're getting calls and I think we're within a handful of fleets of sort of premium fleets, dual-fuel type fleets of being absolutely sold out as an industry.

Speaker #5: No, that's helpful color, Shannon, Jeff. I think that's very positive for the industry and for Halliburton in particular. My second question, Jeff, Shannon, is on the international side of things.

Speaker #5: Obviously, like you said in the beginning, there's going to be almost a billion barrels of lost production from what's happening in the Middle East.

Shannon Slocum: Yeah. This is Shannon here. Yeah, we're seeing some, as I mentioned earlier, some really good signposts. What that is doing is driving some real constructive conversations with our operators. There's a handful of fleets that can go to work. The way we think about it is first, we have to address the pricing with their existing fleets. Those conversations are happening. I think the next flip of the coin, longer-term programs, more rigs being added, that creates another level of constructive conversations for us. But first things first for us is focus on the fleets we have now. It doesn't take much attrition for things to get tight. Early innings, but starting to seeing signs of that.

And press release. You gave us a lot of good color in your prepared remarks. But, uh, I recall last quarter, we were talking about this and you were talking how the supply side of the equation. Again. This is mostly a Frac comment, right. There's a lot tighter than people think and it would take just a little bit of demand coming back for pricing power to come back. How are you thinking about that right now? Jeff Shannon. Maybe you want to pitch in, right. How do we move, uh, through the remainder of 26, based on, WE based on what we know, right now, right? On the demand side. Uh, and then on the pricing power side of things.

Speaker #5: That's bound to have profound impact. If we just focus on the international side of things, which markets, which kind of customers, operators do you think would be the first to change their behavior?

Yeah, uh, this is Shannon here. Um, yeah, we're we're seeing some, as I mentioned earlier, some really good signpost. Um, what that is doing is driving some real constructive, uh, conversations,

Speaker #5: Which regions should we expect to benefit first? I know you talked about Latin America, which has been really strong for you. And then just how would Halliburton seek to benefit from that?

With our operators, um, there's a handful of fleets that can go to work. Um,

Speaker #5: I know you're collaborative approach has been really helpful in outperforming the market.

Creates another level of constructive conversations for us.

Speaker #2: Yeah. Just finished a bit of a tour around all the international location regions. Conversations that I'm having with customers and Energy Administrators are the dependency of being down to a straight is in their mind.

Jeff Miller: Yeah, I think just to follow that up, what in my view is even clearer than it was is sort of the availability of equipment in the market, and that's what those early signposts are calling out, is the fact that equipment is tighter. We're getting calls. I think we're within a handful of fleets of sort of premium fleets, dual-fuel type fleets of being absolutely sold out as an industry.

Um, but first things first, for us is focus on the fleets we have now. Um, and it doesn't take much attrition for things to get tight, um, in early innings, but starting to see signs of that.

Speaker #2: Anybody that's a net importer of oil is thinking about bringing forward programs and reevaluating their capital budgets. I think that's one. I also think our growth engines really excited about where we're heading with growth engines on how we can apply that to what would be a hopefully an improved drilling program in some of these locations.

Yeah, I think just to follow that up, what in my view is even clearer than it was is the sort of availability of equipment in the market. And that's what those early signposts are calling out—it's the fact that equipment is tighter, we're getting calls. And I think we're within a handful of fleets, of sort of premium, police, dual-fuel type fleets, of being absolutely sold out as an industry.

Saurabh Pant: No, that's helpful color from Shannon, Jeff. I think that's very positive for the industry and for Halliburton in particular. My second question, Jeff, Shannon, is on the international side of things. Obviously, like you said in the beginning, there's going to be almost 1 billion barrels of lost production from what's happening in the Middle East. That's bound to have profound impact. If we just focus on the international side of things, which markets, which kind of customers, operators do you think would be the first to change their behavior? Which regions should we expect to benefit first? I know you talked about Latin America, which has been really strong for you. Just how would Halliburton seek to benefit from that? I know your collaborative approach has been really helpful in outperforming the market.

Speaker #2: But Asia-Pac, yes, all of those are West Africa, all those areas are really markets that we see potentially picking up with what's going on in the straight.

Speaker #2: And I guess last to add is you're right. The collaborative model that we work under has been big for us. A lot of the areas that I mentioned earlier, we work very collaborative.

Speaker #2: We are invited in earlier. And I think that's been a big support of us in wanting the work we have in a number of those markets.

Speaker #5: Right. No, that makes sense. Shannon, thank you. I know we have seen that in North Sea and now in Suriname. So that's all fantastic.

Speaker #5: Good to see. Okay. Guys, I'll turn it back. Thank you very much.

Speaker #6: Thank you.

Speaker #3: Thank you. Our next question or comment comes from the line of Steve Richardson from Evercore. Mr. Richardson, your line is now open.

Shannon Slocum: Yeah. Just finished a bit of a tour around all the international location regions. Conversations that I'm having with customers and energy ministers are the dependency on the Strait is in their mind. Anybody that's a net importer of oil is thinking about bringing forward programs and re-evaluating their capital budgets. I think that's one. I also think our growth engines, really excited about where we're heading with growth engines on how we can apply that to what would be a hopefully an improved drilling program in some of these locations. Asia Pacific, yes, all of those are, West Africa, all those areas are really markets that we see potentially picking up with what's going on in the Strait. I guess last to add is, you're right, the collaborative model that we work under has been big for us.

No, that's helpful color of Shannon, Jeff. I think that's that's very positive for the industry and for halibut. And in particular uh my second question, Jeff Shannon is on the international side of things. Obviously like you said in the beginning is going to be almost a billion dollar a billion barrels of lost production from what's happening in the Middle East. That's bound to have profound impact. If we just focus on the international side of things, which markets, which kind of customers operators, do you think, uh, would be the first to change their behavior? Uh, which regions should be expected to benefit first? I know, you talked about Latin America, which has been really strong for you and then just, How would, how about and, uh, seek to benefit from that. I know your collaborative approach has been really helpful. Uh, in outperforming the market

Speaker #7: Hi. Good morning. Appreciate the guidance on 2Q in terms of the EPS impact of the conflict and how it's embedded in your guidance. Could you just talk a little bit about how you've thought about we think about the 2 to 3 cents that you experienced really just in the month of March.

Yeah, just finished a bit of a tour around all the international location regions. Um,

conversations, um, that I'm having with customers and energies and ministers are

Speaker #7: How does that roll over? What have you it's a tough situation to game. So how have you kind of thought about escalation or de-escalation and the timing at which that 7 to 9 cents will kind of be de-risked?

You know, the dependency of being down to a straight is in their mind. Um, anybody that's in that input of oil is thinking about bringing forward programs and re-evaluating their capital budgets.

Speaker #2: Yes, Steve. It's Eric. I'll take that one. So let me tell you what we saw in Q1 and what we have built in our guidance for Q2.

Speaker #2: So as you mentioned, Q1, 2 to 3 cents. Q2, 7 to 9 cents. Again, built into the guidance that we gave. There are two major buckets of impact to our business.

Um I think that's 1. Um I also think our growth engines really excited about where we're heading with growth engines on how we can apply that to to what would be a hopefully an improved drilling program and some of these locations. But you know, Asia Pacquiao, all of those are um West Africa. All those areas are are are really markets that we see, uh, you know, potentially picking up with what's going on in the streets.

Speaker #2: One is lost revenue. The second one is inflated costs, primarily through logistics, fuel costs, etc. So the assumptions we made for the Middle East for the second quarter is a bit of our best guess.

Shannon Slocum: A lot of the areas that I mentioned earlier, we worked very collaboratively. We were invited in earlier, and I think that's been a big support of us in winning the work we have, in a number of those markets.

Saurabh Pant: Right. No, that makes sense, Shannon. Thank you. I know we have seen that in North Sea and now in Suriname, so that's all fantastic to see.

And I, and I guess last to add is you're right. The collaborative model that we work under has been big for us. A lot of the areas that I mentioned earlier, we work very collaboratively. We are invited in earlier, and I think that's been a big support for us and willing to work. We have, uh, in a number of those markets.

Speaker #2: It is to assume that the level of disruptions are similar to what we had when we exited Q1. We're also building a restart of some of the offshore work kind of halfway through the quarter.

Shannon Slocum: Yeah.

Saurabh Pant: Okay. Guys, I'll turn it back. Thank you very much.

Shannon Slocum: Thank you.

Right? No, that makes sense. Shannon, thank you. I know we have seen that and not seen, and now in Sudan, so that's all fantastic to see. Yeah, okay guys, I'll turn it back. Uh, thank you very much.

Jeff Miller: Thank you.

Operator: Our next question or comment comes from the line of Stephen Richardson from Evercore. Mr. Richardson, your line is now open.

Operator: Our next question or comment comes from the line of Steve Richardson from Evercore. Mr. Richardson, your line is now open.

Thank you.

Stephen Richardson: Hi, good morning. I appreciate the guidance on Q2 in terms of the EPS impact of the conflict and how it's embedded in your guidance. Could you just talk a little bit about how we think about the $0.02 to $0.03 that you experienced, really just in the month of March. How does that roll over? It's a tough situation to game, so how have you kind of thought about escalation or de-escalation and the timing at which that $0.07 to $0.09 will kind of be de-risked?

Steve Richardson: Hi, good morning. I appreciate the guidance on Q2 in terms of the EPS impact of the conflict and how it's embedded in your guidance. Could you just talk a little bit about how we think about the $0.02 to $0.03 that you experienced, really just in the month of March. How does that roll over? It's a tough situation to game, so how have you kind of thought about escalation or de-escalation and the timing at which that $0.07 to $0.09 will kind of be de-risked?

Speaker #2: So that kind of is the what drives our 7 to 9 cents commentary. Now, I would say as well that if the restart that we are assuming around some of the offshore operations or delayed, this could mean another impact to our business of, say, 3 to 5 cents potentially.

Thank you. Our next question to comment comes from the line of Steve Richardson from Evercore. Mr. Richardson, your line is now open.

Speaker #3: Very helpful. Thanks. So what if we could follow up just quickly on the Argentina contract and YPF? I mean, clearly, the situation there has changed a lot on the ground from a regulatory and above-ground situation.

Hi, good morning. Um, appreciate the uh the guidance on 2 Q in terms of the EPS impact of the of the conflict and how it's embedded in your guidance. Could you just talk a little bit about how you thought about? You know, we think about the 2 to 3 cents that you experienced, uh, really just in the month of March. You know, how does that roll over? Um, what have you like, you know, it's a tough situation to to gain. So, how do you kind of thought about?

Eric Carré: Yes, Steve, it's Eric. I'll take that one. Let me tell you what we saw in Q1 and what we have built in our guidance for Q2. As you mentioned, Q1, $0.02 to $0.03, Q2, $0.07 to $0.09, again, built into the guidance that we gave. There are two major buckets of impact to our business. One is lost revenue. The second one is inflated cost, primarily through logistics, fuel costs, et cetera. The assumptions we made for the Middle East for Q2 is a bit of our best guess. It is to assume that the level of disruptions are similar to what we had when we exited Q1. We're also building a restart of some of the offshore work kind of halfway through the quarter. That kind of is what drives our $0.07 to $0.09 commentary.

Eric Carre: Yes, Steve, it's Eric. I'll take that one. Let me tell you what we saw in Q1 and what we have built in our guidance for Q2. As you mentioned, Q1, $0.02 to $0.03, Q2, $0.07 to $0.09, again, built into the guidance that we gave. There are two major buckets of impact to our business. One is lost revenue. The second one is inflated cost, primarily through logistics, fuel costs, et cetera. The assumptions we made for the Middle East for Q2 is a bit of our best guess. It is to assume that the level of disruptions are similar to what we had when we exited Q1. We're also building a restart of some of the offshore work kind of halfway through the quarter. That kind of is what drives our $0.07 to $0.09 commentary.

Escalation or de-escalate, which—you know, that 7 to 9 cents will kind of, uh, be de-risked.

Speaker #3: Can you talk to there's clearly other operators in the basin and also still a lot of interest in other geographies such as Australia. In terms of unconventionals, can you talk about how much you view this contract as somewhat of a template or a good baseline for how Halliburton will approach some of these other unconventional jurisdictions?

Speaker #6: Yeah. Thanks. Look, this is a huge opportunity for Halliburton and Argentina but I do believe it speaks to the maturity of that market in terms of growth.

Speaker #6: It's not mature by any means, but it's in terms of a growth trajectory it's demonstrating what it really what's really required for meaningful growth.

Yes, Steve it's uh it's Eric. I'll take that 1. So uh let me tell you what we saw in q1 and what we have built in our guidance for Q2. So as you mentioned q1 223 cents, Q2 729 cents again, built into the guidance that we gave their 2, major buckets, uh, of impact to our business 1 is, uh, loss Revenue. The second 1 is inflated costs primarily through uh Logistics. Uh, fuel costs, Etc. So uh the assumptions we made for the Middle East, for the second quarter is a bit of our best guess which is to assume that the level of disruptions are similar to what we had. When we existed q1, we're also building

Speaker #6: By that, I mean multiple fleets over multiple years. They're building out infrastructure there in order to make frack more efficient. I mean, it's going to be very competitive from a cost standpoint with the rest of the world.

Eric Carré: Now, I would say as well that if the restart that we are assuming around some of the offshore operations are delayed, this could mean another impact to our business of, say, $0.03 to $0.05 potentially.

Eric Carre: Now, I would say as well that if the restart that we are assuming around some of the offshore operations are delayed, this could mean another impact to our business of, say, $0.03 to $0.05 potentially.

Speaker #6: In addition to that, that's attracting new investors into that market, which I think are good both for the market itself in terms

Speaker #1: Terms of developing the resource , but also speaks to what I think of you as . Of how important it is to Argentina broadly , economically .

Stephen Richardson: Very helpful. Thanks. Wondering if I could follow up just quickly on the Argentina contract and YPF. I mean, clearly, the situation there has changed a lot on the ground from a regulatory and above ground situation. There's clearly other operators in the basin and also still a lot of interest in other geographies, such as Australia, in terms of unconventionals. Can you talk about how much you view this contract as somewhat of a template or a good baseline for how Halliburton will approach some of these other unconventional jurisdictions?

Steve Richardson: Very helpful. Thanks. Wondering if I could follow up just quickly on the Argentina contract and YPF. I mean, clearly, the situation there has changed a lot on the ground from a regulatory and above ground situation. There's clearly other operators in the basin and also still a lot of interest in other geographies, such as Australia, in terms of unconventionals. Can you talk about how much you view this contract as somewhat of a template or a good baseline for how Halliburton will approach some of these other unconventional jurisdictions?

A restart of some of the offshore work kind of halfway through the quarter. So that kind of is the, um, uh, what drives our 79 cents commentary. Now, I would say as well that if the restart that we are assuming around some of the offshore operations are delayed, this could mean another, um, impact for business of, say, 3 to 5 cents potentially.

Speaker #1: And so all of that very positive for Argentina . And your point about this being a template is spot on because , you know , when we look around the world , we look obviously Australia , but Algeria , Kuwait , UAE , Saudi , Qatar , all of these places are in different places along sort of a continuum .

Speaker #1: But all working towards , you know , some form of stability . And then growth and then maturation into what we're describing in Argentina .

Speaker #1: So fantastic for those countries , but more fantastic for Halliburton Co in terms of where we are technically . Clearly , one of our growth engines up and a place where we have meaningful , competitive advantage .

Contract and ypf. I mean, clearly uh, the situation there has changed a lot on the ground from a regulatory and above ground situation. Can you talk to there's clearly other operators, uh, in the Basin and also still a lot of interest in other geographies? Um, you know, such as Australia, um, in terms of unconventional can you talk about how much you view this contract as somewhat of a, a template, or a, a good Baseline for, you know, how Hal Burton approach some of these other unconventional jurisdictions?

Jeff Miller: Yeah. Thanks. Look, this is a huge opportunity for Halliburton in Argentina, but I do believe it speaks to the maturity of that market in terms of growth. It's not mature by any means, but it's in terms of a growth trajectory, it's demonstrating what's really required for meaningful growth. By that I mean

Speaker #1: And the uptake on the other electric fleets and the Zuzik platform in Argentina is a great first step to broadening that capability around the world .

Jeff Miller: Multiple fleets over multiple years. They're building out infrastructure there in order to make frac more efficient. It's going to be very competitive from a cost standpoint with the rest of the world. In addition to that's attracting new investors into that market, which I think are good, both for the market itself in terms of developing the resource, but also speaks to what I think of you as how important Vaca Muerta is to Argentina broadly, economically. All of that, very positive for Argentina. Your point about this being a template is spot on, because when we look around the world, we look, obviously, Australia, but Algeria, Kuwait, UAE, Saudi, Qatar, all of these places are in different places along sort of a continuum, but all working towards some form of stability and then growth, and then maturation into what we're describing in Argentina.

Jeff Miller: They're building out infrastructure there in order to make frac more efficient. It's going to be very competitive from a cost standpoint with the rest of the world. In addition to that's attracting new investors into that market, which I think are good, both for the market itself in terms of developing the resource, but also speaks to what I think of you as how important Vaca Muerta is to Argentina broadly, economically. All of that, very positive for Argentina. Your point about this being a template is spot on, because when we look around the world, we look, obviously, Australia, but Algeria, Kuwait, UAE, Saudi, Qatar, all of these places are in different places along sort of a continuum, but all working towards some form of stability and then growth, and then maturation into what we're describing in Argentina.

Speaker #2: Thanks so much .

Speaker #1: Thank you

Speaker #3: Thank you . Our next question or comment comes from the line of James West from Melius Research . Mr. West , your line is now open

Speaker #4: Hey , thanks . Good morning . Jeff and Eric .

Speaker #1: Good morning

Speaker #5: James

Speaker #4: Jeff . I wanted to ask a bit about , you know , obviously the year of , of what we call , you know , three months ago , rebalancing is , is no longer the year rebalancing .

Speaker #4: It's , it's a much different environment as you've , as you've noted , and you've talked about the Nam recovery and you've announced a number of major contract awards internationally .

Yeah, thanks. Look, this is a, a huge opportunity for Halliburton in Argentina but I do believe it, it it speaks to the maturity of that market. In terms of growth, it's not mature by any means, but it's in terms of a growth trajectory, it's demonstrating what it really, what's really required for Meaningful growth by that? I mean multiple fleets over multiple years, they're building out infrastructure there in order to make Frac more efficient. I mean, it's going to be very competitive from a cost standpoint with the rest of the world. Um in addition to that, that's attracting new investors into that market, which I I think are good uh both for the market itself in terms of developing the resource. Uh but also speaks to what I think of you as a how important Baka Marta is to Argentina broadly economically. And so all of that very positive for Argentina. And your point about this being

Speaker #4: And so I'm curious about the , the customer conversations . Jeff and Shannon , that you're having today . Is there a sense of urgency building ?

Speaker #4: Is it still a little bit too early ? Do they understand ? I mean , the customers , I'm assuming they do because the boardrooms have to be talking about the CEOs have to be talking about it and thinking about it .

Jeff Miller: Fantastic for those countries, but more fantastic for Halliburton in terms of where we are technically, clearly one of our growth engines, and a place where we have meaningful competitive advantage. The uptake on the electric fleets and the Zeus IQ platform in Argentina is a great first step to broadening that capability around the world.

Speaker #4: But is a sense of urgency , of getting these projects going faster , starting to unfold

Speaker #5: Yeah . James , this is Shannon here . You know , while it's still early innings , as I said , we had the signpost , but it was encouraging to us to see the white space in Q2 just really get taken out in a very short period of time .

Speaker #5: And I think another tale was really it wasn't just a short term blip , it trying to take take advantage of the current curve .

James West: Thanks much.

Steve Richardson: Thanks much.

A template is spot on because, you know, when we look around the world, we look obviously Australia, but Algeria Kuwait, UAE Saudi cutter, all of these places are in different places, along, sort of a Continuum, but all working towards, you know, some form of stability and then growth, and then maturation into what we're describing in, uh, Argentina. So fantastic for those countries, but more fantastic for, however, in terms of where we are, technically clearly 1 of our growth engines, uh, and a place where we have meaningful competitive advantage and, and the uptake on the, uh, electric fleets. And the Zeus IQ platform in Argentina is a great first step to broadening that capability around the world.

Jeff Miller: Thank you.

Thanks so much.

Operator: Thank you. Our next question or comment comes from the line of James West from Melius Research. Mr. West, your line is now open.

Speaker #5: Right now we're seeing H2 firming up as well . So so , you know , I don't know if I used the word urgency .

Thank you.

Speaker #5: I'd say just really constructive conversations about getting back to work and , and grabbing the value that's out there that they see . Not only now , but , you know , for the future

James West: Thanks. Good morning, Jeff, Shannon, and Eric.

Thank you. Our next question to comment comes from the line of James West from Melius Research. Mr. West, your line is now working.

Jeff Miller: Morning.

Shannon Slocum: Morning, James.

Thanks. Uh, good morning. Uh, Jeff, Shannon, and Eric.

James West: Jeff, I wanted to ask a bit about obviously the year of what we called three months ago. Rebalancing is no longer. The year of rebalancing, it's a much different environment as you've noted, and you've talked about the NAM recovery and you've announced a number of major contract awards internationally. I'm curious about the customer conversations, Jeff and Shannon, that you're having today. Is there a sense of urgency building? Is it still a little bit too early? Do they understand? Do the customers understand? I'm assuming they do, because the boardrooms have to be talking about it, the CEOs have to be talking about it and thinking about it. Is the sense of urgency of getting these projects going faster starting to unfold?

Good morning.

Jeff. I wanted to, um,

Speaker #4: Okay . That's very helpful . And then maybe if you could briefly talk about what you're seeing on the exploration side , it seems to me a lot of the Supermajors have at least added a few incremental dollars to their exploration budgets .

Speaker #4: Is that am I reading that correctly ? And is exploration going through a little bit of a . After a ten year lull , kind of a rebirth cycle ?

Speaker #1: Well , look , I think we're seeing a little bit of exploration , but I think , you know , exploration , you know , we've done some of that in different places .

Speaker #1: But I think a lot of the muscles around development . I mean , in terms of producing more barrels and that gets very much into what we're seeing in Namibia West Africa actually largely in , let's say , Suriname , for example , we participated in a fair amount of the .

Shannon Slocum: Yeah. James, this is Shannon here. While it's still early innings, as I said, we had the signpost. It was encouraging to us to see the white space in Q2 just really get taken out in a very short period of time. I think another tell was really it wasn't just a short-term blip of trying to take advantage of the current curve right now. We're seeing H2 firming up as well.

Ask a bit about uh, you know, obviously the year of of what we called you know, 3 months ago rebalancing is is no longer the year rebalancing. It's, it's a much different environment as you as you've noted and and you've talked about the name recovery and then you, you've announced the number of major contract Awards internationally. And so I'm curious about the the customer conversations, uh, Jeff and Shannon that you're having. Um, today, is there a sense of urgency building? Is it still a little bit too early, do they understand? I mean, do the customers I'm assuming they do because the boardrooms have to be talking about the CEOs, have to be talking about it and thinking about it, but there's a sense of urgency of getting these projects going faster starting to unfold.

Yeah, uh, James, this is Shannon here. Um,

Speaker #1: But more importantly , we're getting into the heavy lifting of development in the Caribbean broadly and elsewhere . Actually , in Brazil , we've been quite successful in Brazil as well .

You know, while it's still early innings—as I said, we had the signpost—but, um,

Speaker #1: So while some exploration . But I think I think really what we're seeing ahead of us is a lot more development and a lot of places .

James West: Right.

Shannon Slocum: I don't know if I'd use the word urgency. I'd say just really constructive conversations about getting back to work and grabbing the value that's out there that they see, not only now but for the future.

Speaker #4: Got it . Thanks , Jeff . Thanks , Shannon .

It was encouraging to us, um, to see the white space in Q2 just really get firm taken out in a very short period of time. And I, I think another tell was really, it wasn't just a short-term blip, that trying to take advantage of the current curve. Right now, we're seeing H2 firming up as well. So, um, right. So, you know, I don't know if I'd use the word urgency—I'd say just really constructive conversations about...

Speaker #5: Thank you

Speaker #3: Thank you . Our next question or comment comes from the line of Neil Mehta from Goldman Sachs . Mr. Mehta , your line is now open

James West: Okay. That's very helpful. Maybe if you could briefly talk about what you're seeing on the exploration side. It seems to me a lot of the super majors have at least added a few incremental dollars to their exploration budgets. Am I reading that correctly? Is exploration going through a little bit of a after a 10-year lull, kind of a rebirth cycle?

Getting back to work and grabbing the value that's out there that they see, not only now, but, you know, for the future.

Speaker #6: Yeah . Good morning . Greg Porter here . Jeff , I guess the first question I had is just around capital returns . The buyback at $100 million was , I think , a little bit lighter than the run rate we've seen at $250 million a quarter .

Speaker #6: Was that just a timing thing ? And just how are you guys thinking about the sheer return over the course of the year

Jeff Miller: Look, I think we're seeing a little bit of exploration, but I think exploration, we've done some of that in different places, but I think a lot of the muscle is around development, in terms of producing more barrels. That gets very much into what we're seeing in Namibia, West Africa, actually largely in, let's say, Suriname, for example. We participated in a fair amount of the exploration, but more importantly, we're getting into the heavy lifting of development, in the Caribbean, broadly, and elsewhere. Actually in Brazil. We've been quite successful in Brazil as well. While some exploration, but I think really what we're seeing ahead of us is a lot more development in a lot of places.

Okay, that that's very helpful. And then, uh, maybe if you could uh, briefly talk about what you're seeing on the expiration side, it seems to me a lot of the super Majors have at least added a few incremental dollars to their expiration budgets. Um, is, is that am I reading that correctly? It is expiration going through a little bit of a, after a 10 year law, kind of a rebirth cycle.

Speaker #7: So overall , there's been no change in our focus on shareholder returns or are overall philosophy around buybacks . So to be to be very clear , we started the year lower than our run rate .

Look, I think we're seeing a little bit of exploration, but I think, um,

Uh, you know, expiration.

Speaker #7: The run rate we were on in 2025 , that is something that we actually mentioned on the Q4 call us and we mentioned that that was our intent considering the macro situation .

Speaker #7: We were facing at the time . And , you know , some of the concerns around the speed of activity increase in the Middle East , etcetera , what you can expect from here is you can expect Q2 to be higher than Q1 .

To what we're seeing in Namibia, West Africa—uh, actually largely in, let's say, Suriname, for example. We participated in a fair amount of the exploration, but more importantly, we're getting into the heavy lifting of development in the Caribbean broadly, um, and elsewhere. Actually, in Brazil, we've been quite successful in Brazil as well. Uh, so well.

Speaker #7: You can expect H2 to be higher than H1 in terms of overall buyback . So our objective long term remains per share , value creation really

James West: Got it. Thanks, Jeff. Thanks, Shannon.

Some exploration, um, but I think, I think really what we're seeing ahead of us is a lot more development in a lot of places.

Shannon Slocum: Thank you.

Got it. Thanks, Jeff. Thanks, John.

Operator: Thank you. Our next question or comment comes from the line of Neil Mehta from Goldman Sachs. Mr. Mehta, your line is now open.

Speaker #6: Now that that's very clear . And then the follow up is just on the technology side . You guys have had a lot of success here with Volta Grid and your investment there .

Neil Mehta: Yeah. Good morning. Great quarter here, Jeff. I guess the first question I had is just around capital returns. The buyback at $100 million was, I think, a little bit lighter than the run rate we've seen at $250 million a quarter. Was that just a timing thing? Just how are you guys thinking about the share return over the course of the year?

Thank you, thank you. Our next question or comment comes from the line of Neil Mehta from Goldman Sachs. Mr. Mehta, your line is now open.

Speaker #6: And of course , you're looking to deploy that over time . Bigger in the Middle East . But any of your perspective on the power side of the business and Volta in particular , and in your perspective on driving value from that segment ?

Speaker #1: Yeah , look , we we're , we really like our position in both the grid and we like where we are today . And we like what the company is doing .

Jeff Miller: Yeah, Neil, overall, there's been no change in our focus on shareholder returns or our overall philosophy around buybacks. To be very clear, we started the year lower than our run rate, the run rate we were on in 2025. That is something that we actually mentioned on the Q4 call, and we mentioned that that was our intent considering the macro situation we were facing at the time and some of the concerns around the speed of activity increase in the Middle East, et cetera. What you can expect from here is you can expect Q2 to be higher than Q1. You can expect H2 to be higher than H1 in terms of overall buyback. Our objective long term remains per-share value creation, really.

Yeah, good. Good morning. Greg. Carter here Jeff. I guess the the first question I had is just around Capital returns. Uh, the buyback at a hundred million dollars was. I think a little bit lighter than the Run rate, we've seen it at 250 million dollars a quarter is, was that just a timing thing and just how are you guys thinking about the the share return over the course of the year?

Speaker #1: So from a shareholding position in Volta Grid , very pleased with where we are and what the company is doing . I think separate from that .

Speaker #1: But along with that is the international pursuit that we have underway and venture that we have with Volta Grid , and I'm very excited about that very much .

Any. So, uh, overall there's been no change in our focus on shareholder returns or our overall philosophy around BuyBacks. So to be, to be very clear. Uh, we started the year lower than our run rate. Uh, the Run rate we were on in, uh, 2025, that is something.

Speaker #1: On track , and I don't constrain that to the Middle East . In fact , lots of inbounds , lots of back and forth with potential customers and , you know , Australia , Japan , Canada , all around the world .

Speaker #1: And so I don't I'm actually very encouraged about that . Where we have 400MW sort of in the queue , ready to get placed and have a lot of line of sight around how that might happen .

Neil Mehta: No, that's very clear. The follow-up is just on the technology side. You guys have had a lot of success here with VoltaGrid and your investment there. Of course, you're looking to deploy that over time, bigger in the Middle East. Any of your perspective on the power side of the business, and VoltaGrid in particular, and your perspective on driving value from that side?

That we actually mentioned on the Q4 call. Uh, and we mentioned that was our intent, considering the, uh, macro situation we were, uh, facing at the time and, you know, some of the concerns around the speed of, uh, activity increase in the Middle East, etc. Uh, what you can expect from here is you can expect Q2 to be, uh, higher than Q1. You can expect H2 to be higher than H1 in terms of overall buyback. So, our objective long term remains per share value creation. Really.

Speaker #1: So very excited about that . Still

Speaker #6: Thanks , Jeff .

Speaker #1: Thank you .

Speaker #3: Thank you . Our next question or comment comes from the line of Sebastian Erskine from Rothschild and Company . Your line is now open .

Speaker #8: Yeah . Hi . Good morning guys . Hopefully you can hear me . Just to focus on on portfolio longevity . That seems to be the theme du jour for the IOC's .

Jeff Miller: Yeah, look, we really like our position in VoltaGrid, and we like where we are today. We like what the company is doing. From a shareholding position in VoltaGrid, very pleased with where we are and what the company is doing. I think separate from that, but along with that, is the international pursuit that we have underway and venture that we have with VoltaGrid, and I'm very excited about that. Very much on track, and I don't constrain that to the Middle East. In fact, lots of inbounds, lots of back and forth with potential customers in Australia, Japan, Canada, and all around the world. I'm actually very encouraged about that, where we have 400MW sort of in the queue ready to get placed, and have a lot of line of sight around how that might happen.

Speaker #8: Investors are rewarding growth . They're focused on reserve replacement ratios . And I guess Venezuela . We've kind of moved on a bit from that .

No, that that's very clear. And and then the follow up is just on the technology side. Um, you guys have had, uh, uh, a lot of success here with Volta grid and your investment there. Um, and of course, you're looking to deploy that over time bigger in the Middle East. But any of your perspective on, on the power side of the business and and volt and particular in um, in in your prospective on drive and value, uh, from that segment.

yeah, look we, uh, we're

Speaker #8: But of course with the higher commodity price environment , I presume that those barrels look more interesting now for operators . What are you hearing from your customers and what's the latest on on the Remobilization there ?

We really like our position in both the grid, and we like where we are today—um, and we like what the company is doing. So, from a

Speaker #1: Yeah , thanks . Look , making progress in Venezuela . I've spent some time there . We're having great discussions with customers . We're talking about commercial terms .

Shareholding position in Bolter Grid. Very pleased with where we are and what the company is doing. Um, I think—

Speaker #1: You know , we've been visited our bases or our facilities there . Those are in better shape than I expected . Lots of inbounds .

Speaker #1: And yeah , clearly that that that is an opportunity . You know , it's there's work to do without question . I think some of that work comes faster than others .

Speaker #1: But really , really pleased to be back in Venezuela . Have Venezuela back in business and the opportunity to work on really productive things .

Speaker #1: So share your view

Jeff Miller: Very excited about that still.

Speaker #8: appreciate that . And just a question back on the US land environment . So obviously we talked a lot about the track market and kind of the tightness there .

Separate from that. But along with that, is the international Pursuit that we have underway, and Venture that we have with Volta grid and I'm very excited about that very much on track. And I don't constrain that to, uh, the Middle East. In fact, um, lots of inbounds lots of back and forth with potential customers in, you know, Australia, Japan, Canada, all around the world. And so I, I don't, uh, uh, I'm actually very encouraged about that where, uh, we have 400 megawatts, sort of in the queue ready to get placed and, uh, have a lot of line of sight around how that might happen. So very excited about that. Still

Neil Mehta: Thanks, Jeff.

Jeff Miller: Thank you.

Thanks Jeff.

Operator: Thank you. Our next question or comment comes from the line of Sebastian Erskine from Rothschild & Co. Your line is now open.

Operator: Thank you. Our next question or comment comes from the line of Sebastian Erskine from Rothschild & Company. Your line is now open.

Thank you.

Speaker #8: Of course , the only requires a little bit to see a step up in pricing . What might that mean for your incremental margins in the CNP business ?

Speaker #8: I'm thinking about kind of 2027 . If we presume there's a little bit of a slow start , given a lot of CapEx budgets already set in the US , what might that mean for your incremental margins in CNP going forward ?

Sebastian Erskine: Yeah. Hi, good morning, guys. Hopefully, you can hear me. Just to focus on portfolio longevity, that seems to be the theme kind of du jour for the IOCs. Investors are rewarding growth. They're focused on reserve replacement ratios. I guess Venezuela, we've kind of moved on a bit from that. Of course, with the higher commodity price environment, I presume that those barrels look more interesting now for operators. What are you hearing from your customers, and what's the latest on the remobilization there?

Thank you. Our next question or comment comes from the line of Sebastian Erskine from Rothschild & Company. Your line is now open.

Speaker #1: Well , I think it'd be solid , solidly up from here . Look . And again , that's a an efficient business . We're running at the top of the market today in spite of where the market is .

Speaker #1: And it doesn't take much at all in order for Incrementals to be strong in North America . But it's the tightness that matters the most .

Jeff Miller: Yeah, thanks. Look, making progress in Venezuela. I've spent some time there. We're having great discussions with customers. We're talking about commercial terms. We've been and visited our bases or our facilities there. Those are in better shape than I expected. Lots of inbounds. Yeah, clearly that is an opportunity. There's work to do, without question. I think some of that work comes faster than others. Really pleased to have Venezuela back in business and the opportunity to work on really productive things. Share your view.

Yeah. Hi, good morning guys. Hopefully you can hear me um just to focus on on portfolio longevity that seems to be the theme kind of dour. For the ioc's investors are rewarding growth. They're focused on reserved replacement ratios and I guess Venezuela, we've kind of moved on a bit from that, but of course, with the higher commodity price environment, I presume that, those barrels look more interesting. Now, for, for, for operators, what are you hearing from your customers and what's the latest on on the remobilization?

Speaker #1: And I think that , you know , as we've described before , you know , these the frac market sizes to what's in the market pretty quickly , just because the absence of maintenance and other things , equipment runs down fairly quickly and size as to what's in the market today , one of the reasons why we're so disciplined about stacking or setting equipment aside so that we force that level of discipline and efficiency on our operations , all of the time .

Yeah, thanks. Uh, look, making progress in Venezuela. I spent some time there. Uh, we're having great discussions with customers. We're talking about commercial terms. Um, you know, we've been in, visited our bases, our facilities there. Uh, those are in better shape than I expected. Um, lots of inbounds, um,

Speaker #1: But with that said , I , you know , I it's right there . It's very close to being I would say at a sold out point for equipment that is , you know , effective and operating and maintained and all of those things

And yeah clearly that that that is an opportunity um you know it's uh there's work to do without question. I think some of that work comes back faster than others. Um but really really pleased to be

And the opportunity to work on really productive things. So, share your view.

Sebastian Erskine: Really appreciate that. Just a question back on the US land environment. Obviously, we talked a lot about the frac market and kind of the tightness there. Of course, it only requires a little bit to see a step-up in pricing. What might that mean for your incremental margins in the C&P business? I'm thinking about kind of 2027, if we presume there's a little bit of a slow start, given a lot of CapEx budgets already set in the US. What might that mean for your incremental margins in C&P going forward?

Speaker #8: Really appreciate the color there . And I'll turn it back now . Congrats on a solid quarter . Thank you .

Speaker #7: Thank you , thank you .

Speaker #3: Thank you . Our next question or comment comes from the line of Scott Gruber from Citigroup . Mr. Gruber , your line is now open .

Speaker #9: Yes . Good morning . I want to come back to the shale developments abroad , which we're picking up even before the Middle East conflict .

Jeff Miller: Well, I think it'd be solidly up from here. Look, again, that's an efficient business. We're running at the top of the market today in spite of where the market is, and it doesn't take much at all in order for incrementals to be strong in North America. It's the tightness that matters the most. I think that, as we've described before, the frac market sizes to what's in the market pretty quickly, just because the absence of maintenance and other things, equipment runs down fairly quickly and sizes to what's in the market today. One of the reasons why we're so disciplined about stacking or setting equipment aside so that we force that level of discipline and efficiency on our operations all of the time. With that said, it's right there.

Really appreciate that. Um, and just uh, a question back on the US land environment. So obviously we talked a lot about about the track market and and kind of the tightness there and of course it only requires a little bit to see a step up in pricing. What what might that mean? For your incremental, margins in the in the CNP business I'm thinking about kind of 2027. If we presume, there's a little bit of a slow start giving a lot of capex budgets already set in the US. What might that mean for your incremental margins in CNP, going forward,

Speaker #9: As you mentioned . Now , that those could accelerate , do you see the international shale opportunities ? You know , outside of Argentina utilizing more Zeus fleets , given the efficiency advantage or do you know most of those plays just simply because they're less mature than Argentina ?

Well, I think it'd be so solidly up from here. Um, look, and again, that's a—

Speaker #9: Maybe they don't have the supply chains required for Zeus . Do they end up pulling more ? You know , the legacy diesel fleets from the US ?

Speaker #9: Just some color on how you see the equipment demand evolving internationally .

Speaker #1: Well , Zeus fleet's unique solution . And because of that , it's it's time to go to work in Argentina . Their scale , there's runway of work to do and Absolute focus on improving recovery .

An efficient business, we're running at the top of the market today, in spite of where the market is. And it doesn't take much at all in order for incremental to be strong in North America, but it's the tightness that matters the most and I think that, you know, as as we've described before, you know, these, the the, the frag Market size as to what's in the market, pretty quickly. Just because uh, the absence of Maintenance and other things equipment runs down fairly quickly and sizes to what's in the market today. 1 of the reasons why we're so disciplined about.

stacking or setting equipment aside so that we

Speaker #1: And that combination is what makes it so valuable in Argentina , for example , I would argue , as others are at different places in maturity , they're not at a place where they take advantage of Zeus .

Force that level of discipline and efficiency on our operations all of the time. Um, but with that said, I, you know, I

Jeff Miller: It's very close to being, I would say, at a sold-out point for equipment that is effective and operating and maintained and all of those things.

Speaker #1: And so I , you know , you described it in an economic terms , but I'm going to describe it more in technology terms , because I think that's where it creates the most value .

Sebastian Erskine: Really appreciate the color there, and I'll turn it back now.

It's right there, it's very close to being, I would say, at a sold-out point for equipment that is, you know, effective and operating and maintained and all of those things.

Jeff Miller: Yeah.

Sebastian Erskine: Congrats on a solid quarter. Thank you.

Jeff Miller: Thank you.

Speaker #1: And quite frankly , the reason it commands a premium is because of its ability to measure where the sand is going , move the sand around and create a closed loop fracturing environment that's very different than simply the arbitrage on gas to oil .

Pretty appreciate the color there, and I'll turn it back now. Congrats on a solid quarter. Thank you.

Neil Mehta: Thank you.

Neil Mehta: Thank you. Our next question or comment comes from the line of Scott Gruber from Citigroup. Mr. Gruber, your line is now open.

Operator: Thank you. Our next question or comment comes from the line of Scott Gruber from Citigroup. Mr. Gruber, your line is now open.

Thank you.

Scott Gruber: Yes, good morning. I want to come back to the shale developments abroad, which were picking up even before the Middle East conflict, as you mentioned. Now that those could accelerate, do you see the international shale opportunities outside of Argentina utilizing more Zeus fleets, given the efficiency advantage? Or do most of those plays, just simply because they're less mature than Argentina, maybe they don't have the supply chains required for Zeus? Do they end up pulling more, the legacy diesel fleets from the US? Just some color on how you see the equipment demand evolving internationally.

Thank you. Our next question or comment comes from the line of Scott Gruber from Citigroup. Mr. Gruber, your line is now open.

Speaker #1: And I would say the , you know , markets that are in the earlier stages , let's call it exploration phase , for lack of a better word , really don't demand that level of capacity .

Yes, good morning. Um, I want to come back to the shell developments abroad, you know, which we were picking up even before the Middle East conflict. As you mentioned now, those could accelerate.

Speaker #1: And so for that reason , you know , we , we've taken the exact same approach to Zeus internationally that we did in the US , which is we deploy Zeus to contracts that have the duration to return the cost of capital and the capital during the term of the first contract .

Speaker #1: And so we view that the same around the world . And and we just don't see those conditions in a lot of other markets , doesn't mean we don't get to that .

Jeff Miller: Well, Zeus fleet's a unique solution, and because of that, it's time to go to work in Argentina. There's scale. There's runway of work to do and absolute focus on improving recovery, and that combination is what makes it so valuable in Argentina, for example. I would argue as others are at different places in maturity, they're not at a place where they take advantage of Zeus. You described it in economic terms, but I'm going to describe it more in technology terms because I think that's where it creates the most value. Quite frankly, the reason it commands a premium is because of its ability to measure where the sand is going, move the sand around, and create a closed-loop fracturing environment. That's very different than simply the arbitrage on gas to oil.

Do you see the international shell opportunities—you know, outside of Argentina—utilizing more Zeus Fleet to give them the efficiency advantage? Or do you know most of those plays? Um, just simply because they're less mature than Argentina. Maybe they don't have the supply chains required for Zeus. Did they end up pulling more, you know, the legacy diesel fleets from the U.S.? Just some color on how you see the equipment demand evolving internationally.

Speaker #1: In fact , I feel certain we will get to that . But that may not be today .

Well, the Zeus Plate's unique solution, and because of that, it's time to go to work in Argentina. There's scale, there's runway of work to do, and

Speaker #9: Gotcha . And , you know , the the YPF contract sounds meaningful to your your business and country . Can you mention that at all for us ?

Absolute focus on improving recovery, and that combination is what makes it so valuable?

Speaker #9: You know , just how , how much bigger it'll it'll grow your business in the country . The , the timing of that growth and you're just giving the integrated nature and the efficiency gains that you're , you're going to deliver .

Speaker #9: How do you think about the margin profile in the contract ? You know , relative to your , your CMP segment average of around 15% ?

Speaker #5: Yeah , huge win for , for Halliburton there . We had a good foot footprint before the award . We have even a better footprint now .

Jeff Miller: I would say, the markets that are in the earlier stages, let's call it exploration phase, for lack of a better word, really don't demand that level of capacity. For that reason, we've taken the exact same approach to Zeus internationally that we did in the US, which is we deploy Zeus to contracts that have the duration to return the cost of capital and the capital during the term of the first contract. We view that the same around the world, and we just don't see those conditions in a lot of other markets. Doesn't mean we don't get to that. In fact, I feel certain we will get to that, but that may not be today.

Speaker #5: This is already being rolled out . Got fleets coming in throughout coming in literally now and then towards the end of the year and into next year .

Speaker #5: So , and the way I , we kind of think about our , our fleets just generally is it's going to go to the , the best place as far as returns and pricing .

Speaker #5: And so we're moving that equipment out of North America as we believe we have good pricing there . And a sustainable program . So , and I think it also just demonstrates the importance of our technology and improve recovery .

Argentina, for example, I would argue is others are at different places in maturity, they're not at a place where they take advantage of Zeus and so, um, you know, you described it in in, in economic terms. But I'm going to describe it more in technology terms because I think that's where it creates the most value. And quite frankly, the reason the commands a premium is because of its ability to, uh, measure where the sand is going move the sand around and create a closed loop fracturing environment, and that's very different than simply the Arbitrage on gas to oil. And I would say the, you know, markets that are in the earlier stages, let's call it, exploration phase. Um, for lack of a better word, uh, really don't demand that level of uh, capacity. And so for that reason, you know, we we we've taken the exact same approach to Zeus internationally that we did in the US, which is

Speaker #5: IPS sees that and should be some really long term work . And really that win . Huge win for us .

Speaker #9: Great . Appreciate the color . Congrats on the win .

Speaker #1: Thank you .

Speaker #10: Thank you .

Scott Gruber: Got you. The YPF contract sounds meaningful to your business and country. Can you dimension that at all for us? Just how much bigger it'll grow your business in the country, the timing of that growth, and just given the integrated nature and the efficiency gains that you're going to deliver, how do you think about the margin profile and the contract relative to your C&P segment average of around 15%?

We deploy ZOOs to contracts that have the duration to return, the cost of capital, and the capital during the term of the first contract. And so we view that the same around the world, and we just don't see those conditions in a lot of other markets. Doesn't mean we don't get to that. In fact, I feel certain we will get to that, but that may not be today.

Speaker #3: Thank you . Our next question or comment comes from the line of Stephen Gengaro from Stifel . Stephen Gengaro . Your line is now open

Speaker #11: Thanks . Good morning everybody . I think two for me and one just going back to the US prac business and pricing potential .

Speaker #11: What are your customers willing to take diesel if you had any diesel available and and how how much are they thinking about the price arbitrage and which should we I would think lead to higher obviously higher prices for gas burning .

Jeff Miller: Yeah. Hey, huge win for Halliburton there. We had a good footprint before the award. We have even a better footprint now. This is already being rolled out. We've got fleets coming in literally now and then towards the end of the year into next year. The way we kind of think about our fleets just generally is it's going to go to the best place as far as returns and pricing. We're moving that equipment out of North America, because we believe we have good pricing there and a sustainable program. I think it also just demonstrates the importance of our technology and improved recovery. YPF sees that and should be some really long-term work and really pleased with that win. Huge win for us.

Gotcha. And, you know, the, the ycf contract sounds meaningful to your, your business and Country. Um, can you Dimension that at all for us? You know, just how, how much bigger it'll, it'll grow your business in the country. The, the timing of of that growth and it just giving me integrated nature. And, um, the efficiency gains that, that you're, you're going to deliver. You know, how do you think about the, uh, the margin profile in the contract? You know, relative to your your CMT segment average of around 15%

Speaker #11: But how are how are customers thinking about that right now ?

Speaker #1: Well , look , I think our customers are always looking for the most effective solution they can find . That's certainly the case .

Speaker #1: But I don't know that that is what would motivate tightness in the market . So I think that's more of a decision between equipment and less of a decision about ad equipment .

Speaker #1: And so I think the more important point is if we just look at oil exports today and kind of where the market is in terms of the value that the price of the commodity and , you know , the demand for the commodity , I think that's more of the driver than it is .

Speaker #1: You know , arbitrage in terms of pickup of fleet . Don't pick up a fleet . I think it's certainly valuable and it makes it more economic .

This is already being rolled out, um, got fleets coming in, throughout the coming in literally now and then towards the end of the year and into next year, so. Um, and the way I, we kind of think about our our fleets just generally is it's going to go to the the best place as far as returns and pricing. And so we're moving that equipment out of North America. As we believe, we have good price in there and a sustainable program. So and I think it also just demonstrates, um, the importance of our technology and improved recovery, wipees sees that and uh, shouldn't be some really. Um, it's a long-term work and

Scott Gruber: Great. Appreciate the color and congrats on the win.

Really pleased with that win. Huge win for us.

Jeff Miller: Thank you.

Speaker #1: And it should create more pricing opportunities or your willingness to pay more . But I don't know that that's what's driving what we see as tightness .

Great, appreciate the caller. Congrats on the win.

Operator: Thank you. Our next question or comment comes from the line of Stephen Gengaro from Stifel. Mr. Gengaro, your line is now open.

Stephen Gengaro: Thanks. Good morning, everybody. I think two for me and one just going back to the US frack business and pricing potential. Are your customers willing to take diesel if you had any diesel available? How much are they thinking about the price arbitrage and which should, I would think, lead to obviously higher prices for gas burning. How are customers thinking about that right now?

Thank you. Thank you. Thank you. Our next question or comment comes from the line of Steven Jarreau from Stifel. Mr. Jarreau, your line is now open.

Speaker #1: Two separate ideas , in my view .

Uh, thanks. Good morning everybody.

Speaker #11: Okay , great . Thank you . And any other question , you know , we've heard for years now about E&P capital discipline and kind of being unwilling to add a lot of rigs and frack fleets back .

Speaker #11: Are you seeing any shift in that ? Like , how should we be thinking about this over the next several quarters ? And obviously , we'll listen to what the MP say , but how are you viewing that , especially in what was probably a tighter oil market for the next couple of years ?

Um I think 2 for me and and 1 just going back to the US Frac business and pricing. Potential are your customers willing to take the diesel if you have any diesel available and and how how much are they thinking about the the the price Arbitrage and

Jeff Miller: Look, I think our customers are always looking for the most effective solution they can find. That's certainly the case. I don't know that that is what would motivate tightness in the market. I think that's more of a decision between equipment and less of a decision about add equipment. I think the more important point is, if we just look at oil exports today and kind of where the market is in terms of the value, the price of the commodity, and the demand for the commodity, I think that's more of the driver than it is arbitrage in terms of pick up a fleet, don't pick up a fleet. I think it's certainly valuable, and it makes it more economic, and it should create more pricing opportunities or your willingness to pay more.

Which should should we? I would think lead to a higher. Obviously higher prices for gas burning but how are how are customers thinking about that right now?

Speaker #1: Well , like I said , we're in the early innings and and we are in the early innings . And by that I mean big public companies typically would come later in that cycle .

Look, I think our customers are always looking for the most effective solution they can find. That's

Speaker #1: And so but but the early movers are the smaller companies . And but that's an important move because that early move by small operators are what take capacity out of the market and , and creates tightness .

Speaker #1: And so , you know , timing of big operators , etc. is , you know , less clear today . However , what is clear is commodity prices are structurally higher than what it was .

Speaker #1: And there's going to be more demand growing and fewer barrels in the market . And that's going to create an opportunity for operators of all sizes to make more money .

Jeff Miller: I don't know that that's what's driving what we see as tightness. Two separate ideas in my view.

Speaker #1: And so I think that that tightness that we're seeing created by smaller operators shouldn't be overlooked . And I think the front edge of what we're seeing here , a lot of inbounds are smaller operators taking capacity out of the market .

Stephen Gengaro: Okay, great. No, thank you. The other question, we've heard for years now about E&P capital discipline kind of being unwilling to add a lot of rigs and frack fleets back. Are you seeing any shift in that? Like, how should we be thinking about this over the next several quarters? Obviously, we'll listen to what the E&P say, but how are you viewing that, especially in what was probably a tighter oil market for the next couple of years?

Certainly the case. Um, but I I don't know that, that is what would motivate tightness in the market. So I think that's more of a decision between equipment and less of a decision about add equipment. And so, I, I think the the more important point is, you know, if we just look at oil exports today and kind of where the market is, in terms of the value that, that the price of the commodity, and, you know, the advance of the commodity, I think that's more of the driver than it is. You know, Arbitrage, in terms of pick up a fleet, don't pick up a fleet. I think it's certainly valuable and it makes it more economic and it should create, uh, more pricing opportunities or your willingness to pay more, um, but I don't know that. That's what's driving what we see as tightness 2 separate ideas in my view.

Speaker #1: And that's a good thing . That's that's really good for Halliburton Co .

Speaker #11: Great . Thank you for all the details

Okay, great, thank you. And the other question—you know, we've heard for years now about E&P, capital discipline, and kind of being unwilling to add a lot of rigs and frac fleets back. Are you seeing any shift in that? How should we be thinking about it?

Speaker #3: Thank you . Our next question or comment comes from the line of Marc Bianchi from TD Cowan . Mr. Bianchi , your line is now open

Speaker #12: Hello . Can you hear me ?

Jeff Miller: Look, I said we're in the early innings, and we are in the early innings. By that I mean big public companies typically would come later in that cycle. But the early movers are the smaller companies. That's an important move because that early move by small operators are what take capacity out of the market and creates tightness. Timing of big operators, et cetera, is less clear today. However, what is clear is commodity price is structurally higher than what it was, and there's going to be more demand growing and fewer barrels in the market. That's going to create an opportunity for operators of all sizes to make more money. I think that tightness that we're seeing created by smaller operators shouldn't be overlooked.

This, over the next several quarters, and obviously what was said with the EMP, but how are you viewing that? Especially in what was probably a tighter oil market for the next couple of years.

Speaker #5: Yep .

Speaker #1: Loud and clear

Speaker #12: Okay . Great , guys . Thanks . I guess the first one is , you know , if the state were to open tomorrow and it were kind of a green light to get back to , to normal operations in the Middle East , how how quickly could that happen ?

Speaker #12: Maybe walk us through some of the industrial challenges and opportunities that exist there

Speaker #5: Yeah . This is Shannon here . You know , it's really I'll start with it's really kind of unclear how quickly that comes back .

Well, look, I said we're in the early Innings and, and, and we are in the early Innings and by that, I mean, big public companies typically would come later in that cycle. And so, but the, but the early movers are the smaller companies. And but that's an important move because that early move by small. Operators are what take capacity out of the market and, uh, and creates tightness. And so, um,

Speaker #5: I'd say that , hey , we're ready . Our for Halliburton's operational footprint is intact . Most of our business is working today .

You know, timing of big operators, etc., is, you know, less clear today. However, what is clear is commodity prices.

Speaker #5: Our biggest hit areas was in Iraq and Qatar , but we are in constant contact with our customers and their to support them when they're ready and able to go back to work .

Structurally higher than what it was, and there's going to be more demand growing and fewer barrels in the market. And that's going to create an opportunity for

Operators of all sizes to make more money. And so I think that, um,

Speaker #5: But the things that you'll start seeing first moving is probably just turning back on Wells , and that'd be a well buy . Well situation of how they produce and how they flow .

Jeff Miller: I think the front edge of what we're seeing here, a lot of inbounds are smaller operators taking capacity out of the market. That's a good thing. That's really good for Halliburton.

Speaker #5: I'd say the longer they get shut in , the more more complex that that gets . So that would be probably the first thing .

Uh, that tightness that we're seeing, created by smaller operators, shouldn't be overlooked, and I think it's the front edge of what we're seeing here. A lot of inbounds are smaller operators taking capacity out of the market and, uh,

Stephen Gengaro: Great. Thank you for all the details.

That's a good thing. That's—that's really good for Alberta.

Speaker #5: And I think that puts Halliburton in a fantastic position . We're market leaders when it comes to intervention work in the Middle East with our HWO and Cole tubing work .

Great. Thank you for all the details.

Operator: Thank you. Our next question or comment comes from the line of Marc Bianchi from TD Cowen. Mr. Bianchi, your line is now open.

Speaker #5: So that would probably be first . And then you would start seeing customers offshore starting to drill more in the deeper reservoir sections .

Thank you. Our next question to comment comes from the line of Mark Biyani from TD Cowen. Mr. Biyani, your line is now open.

Jeff Miller: Hello. Can you hear me? Yep, loud and clear.

Hello, hello. Can you hear me?

Speaker #5: For the most part , the work that is going on offshore is on top holes . But like I said , unclear , but we're ready .

Marc Gregory Bianchi: Okay, great, guys. Thanks. I guess the first one is, if the Strait were to open tomorrow, and it were kind of a green light to get back to normal operations in the Middle East, how quickly could that happen? Maybe walk us through some of the industrial challenges and opportunities that exist there.

Marc Bianchi: Okay, great, guys. Thanks. I guess the first one is, if the Strait were to open tomorrow, and it were kind of a green light to get back to normal operations in the Middle East, how quickly could that happen? Maybe walk us through some of the industrial challenges and opportunities that exist there.

Yep, loud and clear.

Speaker #5: And it would just take time to figure that out .

Speaker #12: Yeah , great . Thanks for that . Yeah .

Speaker #1: Thank you .

Speaker #12: Go ahead . Eric . Sorry , Jeff . Go ahead please .

Speaker #1: No that's fine . I think that the you know , the turning back on just at a high level is not immediate by any means .

Shannon Slocum: Yeah. This is Shannon here. I'll start with it's really kind of unclear how quickly that comes back. I'd say that, hey, we're ready. Halliburton's operational footprint is intact. Most of our business is working today. Our biggest exposure was in Iraq and Qatar. We are in constant contact with our customers and there to support them when they're ready and able to go back to work. The things that you'll start seeing first moving is probably just turning back on wells. That'd be a well-by-well situation of how they produce and how they flow. I'd say the longer they get shut in, the more complex that gets. That would be probably the first thing, and I think that puts Halliburton in a fantastic position. We're the market leaders when it comes to intervention work in the Middle East, with our HWO and coiled tubing work.

Okay, great guys. Thanks. Um, I I, I guess the first 1 is, uh, you know, if the straight were to open tomorrow and and it were kind of a green light to get back to, um, to normal operations in the Middle East. How, how quickly could that happen? Maybe walk us through some of the industrial challenges and opportunities that exist there.

Speaker #1: And there's certainly a gap in the supply chain in terms of oil to market . And so , you know , I , again , I don't think that's an overnight matter , but I think what's equally important to the turning back on timing of that , you know , again , important , however , the change in perception , I think is equally important with respect to energy security .

Yeah, and this is Shannon here. Um,

Clear. Um, how quickly that comes back. Um, I’d say that, hey, we’re ready, our first Halliburton’s operational footprint, uh, is intact. Most of our business is working today. Uh,

Speaker #1: And I think it would not take that lightly . I think that is the probably bigger overriding impact on supply and demand and pricing .

Our biggest city areas were in Iraq and Qatar, um, but we are in constant contact with our customers and are there to support them when they're ready and able to go back to work. Um, but the first things that you'll start seeing moving is probably just turning back on wells. Um,

Speaker #12: Yep , yep . Okay , great . And then one one for Eric on on CapEx . So you reiterated the 1.1 billion , which would imply an uptick in spending for the balance of the year .

Speaker #12: Is there a shot that we end up doing better than the , the 1.1 billion , or is that just timing ? And then just remind us if the Volta grid , the part of the spend for the 400 is is in happening in that guidance .

Shannon Slocum: That would probably be first, and then you would start seeing customers offshore starting to drill more in the deeper reservoir sections. For the most part, the work that is going on offshore is on top holes. Like I said, unclear, but we're ready, and it would just take time to figure that out.

Speaker #7: Yeah . Mark . So again , the target right now for CapEx in 26 is 1.1 billion . It was a bit higher than the 1 billion we had initially guided to .

Marc Gregory Bianchi: Yeah. Great. Thanks for that, Shannon.

Marc Bianchi: Yeah. Great. Thanks for that, Shannon.

And that'll be a well, by well situation of how they produce and how they flow, I'd say the the longer they get shut in, uh, the more more complex, that that gets. Um, so that would be probably the first thing. And I think that puts Halliburton in a fantastic position, we were Market leaders, when it comes to intervention work in the Middle East, uh whether HW and cold tubing work. So that would probably be first and then you would start seeing uh, customers offshore starting to drill more in the deeper Reservoir sections. For the most part, the work that is going on offshore is on top holes. Um, but like I said unclear, but we're ready. And it will just take time to figure that out.

Shannon Slocum: Yeah.

Marc Gregory Bianchi: Go ahead, Eric. Or sorry, Jeff, go ahead, please.

Marc Bianchi: Go ahead, Eric. Or sorry, Jeff, go ahead, please.

Speaker #7: That is really not related to the situation in the market , is simply that we had some delayed delivery of capital equipment . I think the way to think about it is we intend to stay our range of 5 to 6% of revenue for CapEx spend .

Yeah, great. Thanks for that. Um, I think—yes, sir.

Jeff Miller: No, that's fine. Look, I think that the turning back on just at a high level is not immediate by any means. There's certainly a gap in the supply chain in terms of oil to market. Again, I don't think that's an overnight matter. I think what's equally important to the turning back on timing of that, again, important. However, the change in perception, I think, is equally important with respect to energy security, and I think I would not take that lightly. I think that is the probably bigger overriding impact on supply, demand, and pricing.

Go ahead, Eric. I'm sorry, Jeff. Go ahead, please.

Speaker #7: We guided 26 on the low side of that range . So depending on , you know , how things shape up , depending on opportunities , you know , we might move slightly within that range .

No, that's fine. Let's—I think that the, you know, the turning back on, just at a high level, is not immediate by any means. Um, and there's certainly a gap in the supply chain in terms of oil to market, and so, um,

You know, I—I, again, I don’t think that’s an overnight matter, but I think,

What's equally important to the turning back on timing of that, um,

Speaker #7: That is not , you know , impossible to think about , particularly with , you know , the macro picture that we see today .

Speaker #7: So we'll just , you know , see how that evolves . And I think the other way is to think the other dimension , to think about is the fact that the CapEx is really been overweight towards the growth engines that we keep discussing .

Marc Gregory Bianchi: Yep. Okay, great. One for Eric on CapEx. You reiterated the $1.1 billion, which would imply an uptick in spending for the balance of the year. Is there a shot that we end up doing better than the $1.1 billion, or is that just timing? Just remind us if the VoltaGrid, the part of the spend for the 400 is happening in that guidance.

Marc Bianchi: Yep. Okay, great. One for Eric on CapEx. You reiterated the $1.1 billion, which would imply an uptick in spending for the balance of the year. Is there a shot that we end up doing better than the $1.1 billion, or is that just timing? Just remind us if the VoltaGrid, the part of the spend for the 400 is happening in that guidance.

You know, again, important. However, the change in perception I think is equally important with respect to energy security. And I would not take that lightly; I think that is probably the bigger, overriding impact on supply and demand and price.

Speaker #7: So we're really feeding the areas of growth in our business .

Speaker #12: Okay . And that does incorporate your proportional spend of this 400MW , whatever happens in 26 .

Eric Carré: Yeah, Mark. Again, the target right now for CapEx in 2026 is $1.1 billion. It was a bit higher than the $1 billion we had initially guided to. That is really not related to the situation in the market. It's simply that we had some delayed delivery of capital equipment. I think the way to think about it is we intend to stay within a range of 5% to 6% of revenue for CapEx spend. We guided 2026 on the low side of that range. Depending on how things shape up, depending on opportunities, we might move slightly within that range. That is not impossible to think about, particularly with the macro picture that we see today. We'll just see how that evolves.

Eric Carre: Yeah, Mark. Again, the target right now for CapEx in 2026 is $1.1 billion. It was a bit higher than the $1 billion we had initially guided to. That is really not related to the situation in the market. It's simply that we had some delayed delivery of capital equipment. I think the way to think about it is we intend to stay within a range of 5% to 6% of revenue for CapEx spend. We guided 2026 on the low side of that range. Depending on how things shape up, depending on opportunities, we might move slightly within that range. That is not impossible to think about, particularly with the macro picture that we see today. We'll just see how that evolves.

Yep. Yep. Yep. Okay, great. And then 1, 1 1 for Eric on on capex. So you reiterated, the 1.1 billion, um, which would imply an uptick in spending for the balance of the year. Uh, it is, is there a shot that we end up doing better than the, the 1.1 billion or is that just timing? And then just remind us if the voltage grid? The part of the spin for the 400 is is in happening in that guidance.

Speaker #7: It does not , because we yeah , we don't we don't see that happening in 2026 . So we kind of kept it separate .

Uh, yeah, Mark. So, um

Speaker #12: Got it , got it . Great . Thank you very much .

Speaker #7: Thank you .

Speaker #3: Thank you . Our next question or comment comes from the line of Keith Mackey from RBC Capital Markets . Mr. Mackie , your line is now open .

Speaker #13: Good morning . Just curious if you can expand a little bit more on your off shore comments . And you mentioned a few markets where you're seeing incremental demand , but can you just expand on that a little bit more and specifically how the market is shaping up versus what you might have thought three , three months ago or so

Speaker #1: Well , look , we really like our position in offshore . And so , I , you know , I view offshore business from our perspective of what we're winning and the kind of work we have in the Q and we won a lot of work last year .

Speaker #1: And that's very strong for us . And we continue to be quite successful in the offshore market , led by , I think , a couple of things .

Again, uh, the target right now for capex in ’26 is $1.1 billion. It was a bit higher than the $1 billion we had initially guided to. Uh, that is really not related to the situation in the market—it's simply that we had some delayed, uh, delivery of capital equipment. Uh, I think the way to think about it is we intend to stay within our range of 5 to 6% of revenue for, uh, capex spend. Uh, we guided ’26, um, on the low side of that range. So, depending on, uh, you know, how things shape up—depending on opportunities—uh, you know, we might move slightly within that range. Uh, that is not, uh, you know, impossible to think about, particularly with, uh, you know, the macro picture, uh, that we see today.

Eric Carré: I think the other dimension to think about is the fact that the CapEx has really been overweight towards the growth engines that we keep discussing. We're really seeding the areas of growth in our business.

Eric Carre: I think the other dimension to think about is the fact that the CapEx has really been overweight towards the growth engines that we keep discussing. We're really seeding the areas of growth in our business.

Speaker #1: Number one , our value proposition , which is to collaborate and engineer solutions , maximize asset value for our customers , is proven to be meeting an unmet market need in terms of how we work and perform with our customers .

Marc Gregory Bianchi: Okay. That does incorporate your proportional spend of this 400MW, whatever happens in 2026 related to that?

Marc Bianchi: Okay. That does incorporate your proportional spend of this 400MW, whatever happens in 2026 related to that?

So, we’ll just, you know, see how that evolves. And I think the other way is to think—the other dimension to think about is the fact that the capex is really being overweight towards the growth engines that we, uh, keep discussing. So we’re really seeing, uh, the areas of growth in our business.

Speaker #1: But I think second , and maybe equally important has been the progress we've made with technology and particularly closed loop automated geosteering . I know that's a mouthful , but you'll hear it more and more because truly a significant step forward in terms of reservoir contact .

Eric Carré: It does not because we don't see that happening in 2026, so we kind of kept it separate.

Eric Carre: It does not because we don't see that happening in 2026, so we kind of kept it separate.

Marc Gregory Bianchi: Got it. Great. Thank you very much.

Marc Bianchi: Got it. Great. Thank you very much.

Okay. And that does incorporate your proportional spend of this, 400 megawatts. Whatever happens in in 26, really? That it does not because we yeah we don't we don't see that uh, happening in 2026 so we kind of kept it separate.

Eric Carré: Thank you.

Eric Carre: Thank you.

Got it, got it. Great. Thank you very much.

Operator: Thank you. Our next question or comment comes from the line of Keith Mackey from RBC Capital Markets. Mr. Mackey, your line is now open.

Speaker #1: And I think that's a big deal . So feel good about the offshore business , really like our position . And we do see solid growth .

Thank you.

Thank you. Our next question comes from the line of Keith Mackey from RBC Capital Markets. Mr. Mackey, your line is now open.

Keith Mackey: Morning. Just curious if you can expand a little bit more on your offshore comments. You mentioned a few markets where you're seeing incremental demand, but can you just expand on that a little bit more and specifically how the market is shaping up versus what you might have thought three months ago or so?

Speaker #1: 26 2728 in the offshore market , just from what we're going to be doing .

Speaker #13: Got it . Appreciate the color And just one more on on the Middle East . I don't know if investors have a real good sense of what it will actually require to restart production .

Morning, just curious. If you can expand a little bit more on your offshore comments, um, and you mentioned a few markets where you're seeing incremental demand. But, uh, can you just expand on that a little bit more and specifically how the market is shaping up versus what you might have thought, uh, three months ago or so.

Jeff Miller: Well, look, we really like our position in offshore. I view the offshore business from our perspective of what we're winning and the kind of work we have in the queue. We won a lot of work last year, and that's very strong for us. We continue to be quite successful in the offshore market. Led by, I think, a couple of things. Number one, our value proposition, which is to collaborate and engineer solutions, maximize asset value for our customers, is proven to be meeting an unmet market need in terms of how we work and perform with our customers. I think second, and maybe equally important, has been the progress we've made with technology, and particularly closed-loop automated geosteering.

Speaker #13: You know , when when it is safe and feasible to do so in many places . Can you just walk us through a little bit more about some of the things you think will be required , whether it's work and , and other items like that , and ultimately , how will that translate into service line potential for Halliburton ?

Speaker #1: Well , look , I think that there's , you know , the work that we do , we are , you know , drilling in the upstream .

Speaker #1: I think there's clearly some storage and facility work that has to happen before us . Then , you know , as far as bringing Wells back on , that might be shut in again , I think as Shannon described , that's going to span the spectrum of how quickly they come on or don't come on .

I think a couple of things. Number one, our value proposition, which is to collaborate and engineer solutions.

Jeff Miller: I know that's a mouthful, but you'll hear it more and more because truly, a significant step forward in terms of reservoir contact, and I think that's a big deal. I feel good about the offshore business. Really like our position, and we do see solid growth, 2026, 2027, 2028, in the offshore market, just from what we're going to be doing.

Speaker #1: And it would be irresponsible for me to project what I think that might be , just because it would be a absolute guess .

Speaker #1: I do believe what happens , though , is the longer things are shut in , typically the more complex they are to bring back on .

Maximize asset value for our customers is proven to be meeting an unmet market need in terms of how we work and perform with our customers. But I think second and maybe equally important has been the progress we've made with technology, and particularly closed-loop automated G steering. I know that's a mouthful, but you'll hear it more and more because it's truly a significant step forward in terms of—

Reservoir contact, and I think that's a big deal. Um, so

Speaker #1: But there's a lot of capacity , certainly with Halliburton in the Middle East to participate in bringing those wells back on whatever that whatever might be required .

Uh, feel good about the offshore business, uh, really like our position. And we do see solid growth in '26, '27, '28, uh, in the offshore market, just from what we're going to be doing.

Keith Mackey: Got it. Appreciate the color. Just one more on the Middle East. I don't know if investors have a real good sense of what it will actually require to restart production, when it is safe and feasible to do so in many places. Can you just walk us through a little bit more about some of the things you think will be required, whether it's workovers and other items like that? Ultimately, how will that translate into service line potential for Halliburton?

Speaker #13: Got it . Appreciate the comments . Thanks a lot .

Speaker #10: Thank you .

Speaker #3: Thank you . This concludes the Q&A portion of our call . This time , I would like to turn the conference back over to Mr. Jeff Miller for any closing comments .

Got it, appreciate the color. And just one more on the Middle East.

Speaker #1: Yeah . Thank you . Howard , before we wrap up today's call , let me close with this . I believe the oil and gas markets are structurally tighter , and I am convinced that Halliburton has the right service lines strategy and technologies across the key oil and gas basins around the world .

Jeff Miller: Well, look, the work that we do, we are drilling in the upstream. I think there's clearly some storage and facility work that has to happen before us. Then, as far as bringing wells back on that might be shut in, again, I think as Shannon described, that's gonna span the spectrum of how quickly they come on or don't come on, and it would be irresponsible for me to project what I think that might be, just because it would be an absolute guess. I do believe what happens, though, is the longer things are shut in, typically, the more complex they are to bring back on. There's a lot of capacity, certainly with Halliburton in the Middle East, to participate in bringing those wells back on, whatever might be required.

Um, I don't I don't know if investors have a real good sense of what it will actually require to restart production, you know, when when it is uh safe and feasible to do so in many places, can you just walk us through a little bit more about some of the things you think will be required, whether it's work overs and and other items like that. And and ultimately, how will that translate into uh service line potential for Halbert?

Speaker #1: I believe this is a market where Halliburton will thrive . I look forward to speaking with you again next quarter . Thank you .

Look, I think that, you know, there's—

Speaker #1: Howard , you can close out the call .

Speaker #3: Ladies and gentlemen , thank you for participating in today's conference . This concludes the program . You may now disconnect Everyone have a wonderful day .

Uh, you know, the work that we do, we are, you know, drilling in the upstream. I think there's clearly some, uh, storage and facility work that has to happen before us. Um, then, you know, as far as bringing wells back on that might be shut in—um, again, I think as Shannon described, that's going to span the spectrum of how quickly they come on or don't come on, and it would be irresponsible for me to project what I think that might be, just because it would be an absolute guess. I do believe what happens, though, is the longer things are shut in, typically, the more complex they are to bring back on.

Keith Mackey: Got it. Appreciate the comments. Thanks a lot.

Uh, but there's a lot of capacity—certainly with Halliburton in the Middle East—to participate in bringing those wells back on, whatever that, whatever might be required.

Jeff Miller: Thank you.

Got it. Appreciate the comments. Thanks a lot.

Operator: Thank you. This concludes the Q&A portion of our call. At this time, I would like to turn the conference back over to Mr. Jeff Miller for any closing comments.

Thank you.

Jeff Miller: Yeah. Thank you, Howard. Before we wrap up today's call, let me close with this. I believe the oil and gas markets are structurally tighter, and I am convinced that Halliburton has the right service lines, strategy, and technologies across the key oil and gas basins around the world. I believe this is a market where Halliburton will thrive. I look forward to speaking with you again next quarter. Thank you, Howard. You can close out the call.

Thank you. Uh, this concludes the Q&A portion of our call. At this time, I would like to turn the conference back over to Mr. Jeff Miller for any closing comments.

Yeah, thank you, Howard. Uh, before we wrap up today's call, let me close with this. I believe the oil and gas markets are structurally tighter, and I am convinced that Halliburton has the right service lines, strategy, and technologies across the key oil and gas basins around the world.

I believe this is a market where Halliburton will thrive.

Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone, have a wonderful day. Speakers stand by.

Uh, I look forward to speaking with you again next quarter. Uh, thank you, Howard. You can close out the call.

Ladies and gentlemen, thank you for participating in today's conference. This concludes the program. You may now disconnect. Everyone have a wonderful day. Speaker, stand by.

Q1 2026 Halliburton Co Earnings Call

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