Halliburton Company (HAL) Q1 2023 Earnings Call Transcript

For the period ending March 31, 2023

April 25, 2023 9:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Call Participants:

David Coleman - Senior Director, IR

Jeff Miller - Chairman, President & CEO

Eric Carre - EVP, CFO

Arun Jayaram - JP Morgan - Analyst

Chase Mulvehill - Bank of America - Analyst

Dave Anderson - Barclays - Analyst

James West - Evercore ISI - Analyst

Luke Lemoine - Piper Sandler - Analyst

Neil Mehta - Goldman Sachs - Analyst

Roger Read - Wells Fargo - Analyst

Scott Gruber - Citi - Analyst

Stephen Gengaro - Stifel - Analyst

Operator

Good day, and thank you for standing by. Welcome to the First Quarter 2023 Halliburton Company Earnings Conference Call. [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. Please go ahead.

David Coleman

Hello, and thank you for joining the Halliburton first quarter 2023 conference call. We will make the recording of today's webcast available on Halliburton's website after this call.

Joining me today are Jeff Miller, Chairman, President and Chief Executive Officer; and Eric Carre, Executive Vice President and Chief Financial Officer. 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, 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 first 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. Halliburton's performance in the first quarter again demonstrated the earnings power of our strategy, strong competitive position and execution for our customers. Here are some highlights from the first quarter. Total company revenue increased 33% compared to the first quarter of 2022 with strong activity in both North America and international markets. Operating income grew 91% year-over-year.

Operating margin was 17%, a strong start to the year and 530 basis points over the first quarter of last year. International revenue grew 23% year-over-year with strong activity in all markets. North America revenue grew 44% year-over-year with growth across every basin. The Completion and Production division posted 20% margins, an increase of nearly 700 basis points year-over-year. The Drilling and Evaluation division grew revenue 17% year-on-year while margins expanded more than 100 basis points.