Halliburton Company (HAL) Q2 2023 Earnings Call Transcript

For the period ending June 30, 2023

July 19, 2023 9:30 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day, and thank you for standing by. Welcome to the Halliburton Company, Second Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. After the presentation there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today David Coleman, Senior Director of Investor Relations.

David Coleman

Hello! And thank you for joining the Halliburton Second Quarter 2023 Conference Call. We will make a 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 and Eric Carre, Executive Vice President and CFO. Some of today's comments may include forward-looking statements reflecting 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 December 31, 2022, form 10-Q for the quarter ended March 31, 2023, recent 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.

Our comments today also include non-GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures are included in our second quarter earnings release and in the quarterly results and presentation section of our website.

Now, I'll turn the call over to Jeff.

Jeff Miller

Thank you, David, and good morning everyone. In the second quarter Halliburton once again delivered strong results driven by service quality, outstanding execution and strong global demand for high quality and high performance oilfield services. Let's get right to the highlights.

Total company revenue increased 14% year-over-year. Operating income grew 41% compared to second quarter of 2022 adjusted operating income. International revenue grew 17% year-over-year with strong activity in all markets. North America revenue grew 11% year-over-year.

Our Completion and Production division revenue grew 19% year-over-year, while margins expanded by 320 basis points. Our Drilling and Evaluation division revenue grew 7% year-over-year, while margins expanded nearly 300 basis points. Finally, we generated $1.1 billion of cash from operations, $798 million of free cash flow, and repurchased approximately $250 million worth of shares during the quarter.

Halliburton delivered an impressive first half of 2023. I'd like to thank our employees for these outstanding results. Thank you for executing on our mainstays and strategy delivery.