Halliburton Company

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the first quarter 2025 Halliburton Company Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question, you will need to press star 1-1 on your telephone keypad. At this point, I would like to turn the conference over to Mr. David Coleman. Sir, please begin.

Hello, and thank you for joining the Halliburton first quarter 2025 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, and Eric Correa, 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, 2024, 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.

Well, thank you, David, and good morning, everyone. I'll begin today's discussion with our highlights from the first quarter. We delivered total company revenue of $5.4 billion and adjusted operating margin of 14.5%. International revenue was $3.2 billion, a decrease of 2% year over year due to lower activity in Mexico. Excluding Mexico, international revenues grew by mid-single digits. North America revenue was $2.2 billion, 12% lower than the first quarter of 2024. Finally, during the first quarter, we generated $377 million of cash flow from operations, $124 million of free cash flow and repurchased approximately $250 million of our common stock. Before we take a closer look at our geographic results, I'd like to take a moment and talk about the macro environment for oil and gas. The last three weeks have been highly dynamic as the trade environment injected uncertainty into markets, raised broad economic concerns, and along with faster than expected return of OPEC production, weighed on commodity prices. These market forces impact us all, but here's what I know to be true. First, oil and gas will play a fundamental role in global economic growth and prosperity. Second, the world is consuming more oil and gas than ever before. And finally, decline curves are real, and in many basins, significant. And adequate supplies today do not guarantee adequate supplies tomorrow without ongoing investment. Given these realities, I know that our technology will continue to transform the industry and it will unlock new sources of value for us and our customers. I know our unique collaborative approach improves outcomes and deepens customer relationships. And finally, I know that safety and service quality form the cultural bedrock of Halliburton, and they are key differentiators to our customers. On that note, I would like to take a moment to thank the Halliburton employees for their outstanding safety and service quality performance last quarter. I firmly believe that despite recent pressures on the energy macro, Halliburton's consistent focus on technology, collaboration, and service quality execution create value for our customers, and drive long-term success for Halliburton under any market conditions. Turning to our results, I'll begin with the international markets, where Halliburton delivered solid quarterly revenue of $3.2 billion. As I look at the balance of this year, while our overall international outlook has not materially changed, it is reasonable to assume that there is more risk embedded in our outlook today than three months ago. As a result, I expect our year-over-year international revenue to be flat to slightly down. Our Q1 international tender activity remains strong. Halliburton won meaningful work extending through 2026 and beyond. Customers awarded Halliburton several contracts that demonstrate the strength of our value proposition and the power of our service quality executions. Shell awarded Halliburton significant scopes of work this quarter, including development and intervention work for Gato do Mato in Brazil and exploration work in Suriname and West Africa. Halliburton also won additional integrated offshore exploration work with another major in Suriname. These integrated offshore contracts rely on Halliburton's advanced technologies like our intelligent completions and comprehensive directional drilling technology, including the iCruise and Logix drilling automation and remote operation platform, among multiple other well construction, reservoir evaluation, and intervention product lines. Furthermore, I expect that projects like these, awarded based on the demonstrated execution of our value proposition, will be the core of how Halliburton wins integrated work with customers. Our value proposition to collaborate and engineer solutions to maximize asset value for our customers resonates with customers and is directly tied to our company culture. It is core to our competitive advantage, and I am pleased it is winning in the marketplace. In addition to these offshore examples, our international growth engines also delivered in Q1. Over the next several years, We expect these engines, unconventional, artificial lift, intervention, and directional drilling to grow faster than other parts of our business. To give you a few examples of our progress in these areas, in unconventionals, we mobilized Zeus equipment to the Middle East and expect trials in the near term. In artificial lift, We were direct awarded new offshore work in Ghana, and we expect strong double-digit international growth in this product line in 2025. In intervention, we closed the acquisition of OPTIME Subsea, a technology we expect will transform deepwater interventions. And finally, in directional drilling with our partners, We delivered a first closed-loop automated drilling system and drilled a well with it in Norway. Then we did it again in the Middle East. To summarize international markets, we had a solid start in 2025. Our first quarter contract awards add visibility and give me confidence for this year and beyond. Our growth engines are strong, and my discussions with customers tell me we are focused on the right thing. collaboration, execution, and technology, and I am confident in the future of our international business. Turning to North America, our first quarter revenue increased 1% sequentially. Seasonal increases in frac activity were offset by seasonal declines in Gulf of America completion tool sales. Looking forward, Many of our customers are in the midst of evaluating their activity scenarios and plans for 2025. Activity reductions could mean higher than normal white space for committed fleets, and in some cases, the retirement or export of fleets to international markets. Nevertheless, I expect Halliburton to outperform the North America services market, and I believe this because our clear strategy to maximize value in North America has demonstrated success under a variety of market conditions. Our Zeus fleets, which represent more than 40% of our overall frac fleet, operate under term contracts. And finally, our technology is highly differentiated and drives value for our customers. Halliburton's recognized leadership was on display recently when in partnership with our customer range resources and others, we were honored to host Secretary of the Interior Doug Burgum on a field visit in Pennsylvania. The visit featured our Zeus electric frack equipment, which we proudly build in Duncan, Oklahoma, and demonstrated the industry's ability to deliver reliable and affordable energy in the United States and around the world. We were pleased to host Secretary Burgum, and I was energized by his vision and support for advancing American energy. I am also excited by the adoption of our latest technologies, which are a cornerstone of our strategy to maximize value in North America. In the first quarter, we achieved a significant milestone with the successful completion of the first closed-loop autonomous fracturing operation in the world. To put it plainly, Closed loop means that the Zeus platform utilizes real-time feedback from the reservoir that directs pump activity to control where water and sand are placed, all without human intervention, effectively reading and responding to the reservoir. I expect that this technology, known as Zeus IQ, will change the game in unconventionals. I believe Zeus IQ provides customers both the measurements and controls critical to their journey to improve productivity and production per lateral foot. I am excited about the future of this technology and we have several other deployments now underway. I would like to thank our Zeus IQ customers for sharing our vision and bringing this technology to the forefront. We look forward to our continued collaboration to improve asset performance with this unique technology. To finish my thoughts on North America, our strategy to maximize value is unchanged. This strategy means we focus on returns, not share. Our plan is to retire or reallocate equipment rather than operate it on economic levels. We focus on safety, service quality, and efficiency. We maintain equipment and invest in training. I am confident that our customers value our execution, and it differentiates Halliburton in this market. We lead technology innovation in North America, which means we develop technologies that maximize the value of our customers' assets and deploy them at scale. Before I turn the call over to Eric, let me close with this. I am confident in our strategy to maximize value in North America, drive our growth engines internationally, and deliver technology that creates value for our customers and Halliburton. I expect Halliburton generates solid free cash flow in 2025, and we are on pace to return at least $1.6 billion of cash to shareholders through buybacks and dividends. With that, I'll now turn the call over to Eric to provide more details on our financial results. Eric?