Halliburton Company

Today's webcast is 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 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 December 31, 2024, Form 10-Q for the quarter ended September 30, 2025, 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 except as required by law. 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 fourth quarter earnings release and in the quarterly results and presentation section of our website. Now, I'll turn the call over to Jeff.

Thank you, David, and good morning, everyone. I am pleased with Halliburton's fourth quarter performance and the way we closed out 2025. We outperformed our expectations with stronger than anticipated activity and solid execution in both our North America and international completion and production businesses. It is clear that Halliburton's strategy and value proposition deliver differentiated results. Here are some of the highlights from 2025. We delivered total company revenue of $22.2 billion and adjusted operating margin of 14%. International revenue was $13.1 billion, down 2% year over year. North America revenue was $9.1 billion, a decrease of 6% year over year. During the year, we generated $2.9 billion of cash flow from operations, $1.9 billion of free cash flow, and repurchased $1 billion of our common stock. Finally, we returned 85% of our free cash flow to shareholders, reducing our share count to its lowest levels in 10 years. These results reflect Hard work and dedication by the men and women of Halliburton all around the world. I want to thank each Halliburton employee for your dedication to safety and our value proposition, maximizing value for our customers and delivering returns for our shareholders. Now let's turn to our macro outlook for 2026. We believe 2026 will be a year of rebalancing. The return of OPEC spare capacity and higher non-OPEC production have created a market with abundant supply. We expect supply increases to moderate this year as demand continues to rise. Near term, absent geopolitical disruptions, we expect commodity prices are unlikely to rise. We anticipate moderate softness in some key markets, particularly North America. We expect international activity to be stable year over year. Medium term, we believe supply and demand will rebalance. We expect the combination of steeper decline rates, diminishing reservoir quality, and limited exploration success to create favorable tailwinds for oilfield services. I expect the next cycle to begin where it always has, in North America, followed by a global push to meet the growing demand. Let me close our macro outlook with this. I am confident in the future of oilfield services and excited about Halliburton's opportunities now and in the years ahead. Let's turn to our international business. Halliburton delivered another solid quarter, underscoring the strength of our global franchise and the resilience of our strategy. For the full year, international revenue was $13.1 billion. a decrease of 2% year-over-year, outperforming a 7% decline in rig count. While we experienced notable declines during the year in Saudi Arabia and Mexico, the remainder of our international business demonstrated strong growth of about 7%. Looking ahead to 2026, we expect total international revenue to be flat to up modestly. I am confident in the outlook for our international business. First, our collaborative value proposition is winning. What began as alliances with independents has expanded to include IOCs and NOCs across all of our regions. Today, this collaborative approach consistently drives outperformance for Halliburton and our customers. Deep collaboration is in our DNA, and we believe it is the future of oilfield services. I am confident Halliburton is uniquely positioned to lead and thrive through this collaborative strategy. Second, our drilling and formation evaluation technology is now a differentiator for Halliburton in all markets. The depth of our drilling portfolio allows us to compete and win in the most technically demanding integrated projects worldwide. Finally, I believe the market structure is evolving in a way that differentially favors Halliburton. We see consistent international growth in unconventionals, development drilling, and intervention, all of which are directly aligned with Halliburton's strengths. Let's take a closer look at our international growth engines, unconventionals, drilling, production services, and artificial lift, where we have a clear line of sight to outperform the overall market. we continue to make great progress. In unconventionals, Halliburton uniquely brings North America technology to the international market. Today we operate in seven countries and see growing adoption of simulfrac and continuous pumping operations along with our autofrac and sensory technology. In drilling, we completed the first fully autonomous geosteering run for a customer in the Caribbean. where we maximized reservoir contact and delivered outstanding performance for the customer. Finally, Artificial Lift delivered record international quarterly revenue and is now active in 15 countries. Turning to our international power business, our strategic collaboration with VoltaGrid continues to gain momentum. I am pleased with our progress so far. Customers recognized that Halliburton's global footprint and reputation for execution are a strong complement to VoltaGrid's distributed power platform. The Opportunity Pipeline is expanding rapidly across the Eastern Hemisphere with several projects already in engineering review. During the quarter, Halliburton and VoltaGrid secured manufacturing capacity for 400 megawatts of modular power systems. I am convinced, more than ever, that these opportunities will manifest and provide a significant avenue for future growth. To summarize, Halliburton's international business is strong. Our collaborative value proposition is winning, our technology is delivering, and our growth engines are aligned with the evolution of the market. I am confident that Halliburton will outperform in 2026. Before we leave international, here are a few of my views on Venezuela. I have always believed that oil and gas is the key to Venezuela's economic recovery. I'm excited about the tremendous opportunity for Halliburton in Venezuela. Halliburton entered Venezuela in 1938 and only exited in 2019 because we are an American company in compliance with U.S. sanctions. Halliburton knows this market well. and we will grow our business there as soon as commercial and legal terms are resolved, including payment certainty. The early steps are already well underway. Now moving on to North America. Halliburton delivered a strong fourth quarter, supported by less than anticipated white space and solid execution. For the full year, revenue was $9.1 billion, down 6% year over year. As we look towards 2026, we expect North America revenue to decline high single digits compared to 2025. This outlook reflects the full-year impact of reduced customer activity in land operations, our decision to stack uneconomic fleets, and the timing of customer programs in the Gulf of America. Here are three observations on North America that shape our view and strategy. Attrition is accelerating at a time when new capital investment is falling. Equipment is working harder than it ever has due to widespread adoption of continuous pumping and simulfrac. This is why I believe a small increase in demand will tighten the market quickly. Second, the largest opportunity for the industry is to increase recovery, and I believe that this is only possible with technology adoption. This is why I am so excited about Zeus IQ. Third, when the commodity outlook improves, we believe North America will be the first to recover. We have seen this countless times in the past, and the same drivers are in place today. Our strategy in North America is to maximize value. This means that we prioritize returns over market share, and we develop technology that addresses customers' most critical opportunities improving recovery and drilling longer, faster, more precise wells. Let's look at how we do that. First, with respect to return, as we have done in the past, we will continue to stack equipment that is uneconomic. Prudent stacking of equipment preserves it for the recovery in North America and becomes an avenue to feed our growing international unconventionals business. With respect to technology, Our differentiated Zeus platform is driving value through automation and subsurface measurement. Only Halliburton's Zeus platform directly measures and automates the control of sand placement, which I believe are critical building blocks for improving recovery. This quarter, customer adoption of Zeus IQ, Sensory, and AutoFrac increased by 18%, which tells me it is working. We are also differentiated with our iCruise rotary steerable system and Logix automation, which deliver precision and reliability in long laterals. No trend in unconventionals is more clear than the growth of lateral lengths along with complex geometries such as horseshoe wells. We see this trend in every major basin. The impact of iCruise has been dramatic on our North America drilling services business. which grew meaningfully this year despite a 6% decline in rig count. The high performance of iCruise and Logix and the secular trend towards rotary steerable drilling in North America give me great confidence in the continued success of our drilling services business. To summarize North America, our priority is clear. We will maximize value. We have consistently executed this strategy and delivered differentiated results. I am confident this strategy will deliver value for our customers, Halliburton, and our shareholders. Before I turn the call over to Eric, let me close with this. I've never been more excited about the future of Halliburton, and here's why. Oil and gas have a critical and recognized role to play in the energy mix of the future. The shift from idealism to pragmatism is refreshing and consistent with the reality that there will be growing demand for oilfield services for decades to come. Our value proposition is clear. We collaborate and engineer solutions to maximize asset value for our customers. The proven outperformance of our strategy and the ongoing shifts towards collaborative work means Halliburton is squarely where the market is headed. And finally, Our differentiated technology delivers exceptional value for our customers and for Halliburton. I am confident Halliburton will deliver leading returns and capitalize on future growth opportunities. Finally, I am also pleased to announce an important leadership update. Shannon Slocum has been promoted to Chief Operating Officer effective January 1st. Shannon's COO role will be important to our success as we execute our strategy, and I look forward to him joining us on future earnings calls. With that, I'll turn the call over to Eric to provide more details on our financial results.

Eric? Thank you, Jeff, and good morning. Our Q4 reported net income per diluted share was 70 cents. Adjusted net income per diluted share was 69 cents. Total company revenue for Q4 2025 was $5.7 billion, flat when compared to Q3 2025. Adjusted operating income was $829 million, and adjusted operating margin was 15%. Our Q4 cash flow from operations was $1.2 billion, and free cash flow was $875 million. During Q4, we repurchased $250 million of our common stock. For the full year, we repurchased approximately 42 million shares at an average price of $23.8 per share. Now turning to the segment results. Beginning with our completion and production division, revenue in Q4 was $3.3 billion, flat when compared to Q3 2025. Operating income was $570 million, an increase of 11% when compared to Q3 2025, and operating income margin was 17%. Revenue improvements were primarily driven by higher year-end completion tool sales globally and offset by lower stimulation activity in the Western Hemisphere. Operating income increased due to activity mix improvements from completion tool sales. In our drilling and evaluation division, revenue in Q4 was $2.4 billion, flat when compared to Q3 2025. Operating income was $367 million, an increase of 5% sequentially, and operating income margin was 15%. Revenue improvements driven by higher wireline activity in the eastern hemisphere and increased year-end software sales were offset by lower fluid services in North America. Operating income increased due to better activity mix from our wireline business in the eastern hemisphere and the year-end software sales. Now let's move on to geographic results. Our Q4 international revenue increased 7% when compared to Q3 2025. Europe-Africa revenue in Q4 was $928 million, an increase of 12% sequentially. This increase was primarily driven by higher completion tool sales in the North Sea and improved activity across multiple product service lines in Africa. Middle East-Asia revenue in Q4 was $1.5 billion, an increase of 3% sequentially. This improvement was primarily driven by increased well intervention services and higher stimulation activity in the Middle East and improved activity across multiple product service lines in Asia. Latin America revenue in Q4 was $1.1 billion, a 7% increase sequentially. This increase was primarily driven by higher completion tool sales in Brazil and the Caribbean and higher software sales in Mexico. In North America, Q4 revenue was $2.2 billion, a 7% decrease sequentially. This decline was primarily driven by lower stimulation activity in U.S. land and Canada, decreased fluid services in the Gulf of America, and lower well intervention services in U.S. land. Moving on to other items. In Q4, our corporate and other expense was $66 million. We expect our Q1 corporate expenses to increase about $5 million. In Q4, we spent $42 million on SAP S4 migration, which is included in our results. For Q1, we expect SAP expenses to be about $45 million. Net interest expense for the quarter was $86 million. For Q1, we expect net interest expense to increase about $5 million. Other net expense in Q4 was $25 million. We expect Q1 expense to be about $35 million. Our normalized effective tax rate for Q4 was 19.8%. Based on our anticipated geographic earnings mix, we expect our Q1 and full year 2026 effective tax rate to be approximately 21 percent. Capital expenditures for Q4 were $337 million, which is $100 million lower than expected due to late equipment deliveries. For the full year 2026, we expect capital expenditures to be about $1.1 billion, consistent with our prior guidance adjusted for the timing impact of late deliveries. This guidance excludes any capital spending necessary for a potential reentry into Venezuela. Now let me provide you with comments on our expectation for Q1 2026. In our completion and production division, in Q1, we anticipate a higher than normal roll-off of year-end completion tool sales and lower international activity. As a result, we anticipate sequential revenue to decrease 7 to 9 percent and margins to decline about 300 basis points. In our drilling and evaluation division, we expect sequential revenue to decline 2 to 4 percent and margins to decline 25 to 75 basis points. I will now turn the call back to Jeff.