The conference call discussed Halliburton's Q1 2026 financial performance, highlighting total revenue of $5.4 billion, an operating margin of 13%, and cash flow from operations of $273 million, along with stock repurchases. International revenue grew by 3% to $3.3 billion, while North America revenue decreased by 4% to $2.1 billion.

Global energy sector faces tighter oil and gas supply, prompting increased investment in localized developments and source diversification. Halliburton poised to thrive in constructive market with North American leadership and strategic service lines.

Despite disruptions in the Middle East, Halliburton anticipates strong international growth, particularly in Latin America, driven by strategic acquisitions, technological advancements, and collaborative customer relationships. Notable wins include a multi-billion dollar contract in Argentina and partnerships in offshore Guyana and Suriname, showcasing the company's commitment to innovation and value creation.

Halliburton observes a recovery in North America, with increased demand and tightened premium equipment. The company emphasizes improving returns over market share, leveraging differentiated technology to enhance customer opportunities, and anticipates a constructive market setup driven by commodity prices and incremental demand.

The company's Q1 net income per diluted share was 65 cents with total revenue of $5.4 billion, stable compared to the previous year. Operating income was $679 million with a 13% margin. The Middle East conflict significantly affected both divisions, particularly the Completion and Production Division due to lower stimulation activity and completion tool sales, and the Drilling and Evaluation Division due to reduced activity in multiple product service lines. International revenues saw mixed results, with Europe-Africa and Latin America showing increases driven by higher drilling-related services and completion tool sales, while North America experienced a decline primarily due to lower stimulation and artificial lift activities.

Corporate expenses are forecasted to rise, with detailed projections on SAP expenses, net interest, and tax rates. Capital expenditures for 2026 are estimated, alongside divisional guidance for completion, production, drilling, and evaluation, considering seasonal impacts and regional recovery timelines.

The dialogue discusses the changing macro environment and Halliburton's optimistic outlook on the North American market. The supply overhang concern is alleviated, with structural demand intact, signaling a market rebalancing. Early signs of recovery are noted, particularly in North America, where white space is shrinking and customer activity is picking up. The company's integrated service capabilities position it favorably for growth, focusing on the front and back of the demand curve.

The dialogue underscores robust growth expectations in international markets excluding the Middle East, with particular emphasis on Latin America, Africa, and Asia Pacific. Key projects in Argentina, Brazil, Norway, and West Africa are driving optimism. The company anticipates mid to high single-digit revenue growth, reflecting strategic expansions and resilient market conditions.

The dialogue discusses how Halliburton's frac fleets, with significant natural gas input, can capitalize on the current price disparity in North America, particularly in West Texas, to enhance profitability through strategic pricing. The Zeus platform, especially Zeus IQ, is highlighted for its economic gas consumption and subsurface capabilities, offering operators substantial benefits.

Discusses current market conditions focusing on supply-demand dynamics, particularly in North America, highlighting signs of constructive conversations with operators regarding pricing and fleet management. Also explores international market impacts, emphasizing regions like Latin America, Asia, and West Africa, where collaborative approaches are expected to drive improved drilling programs and market opportunities.

Discussed the financial impacts of regional conflicts, emphasizing adjustments in guidance based on operational disruptions and cost inflation. Highlighted Argentina's YPF contract as a blueprint for unconventional resource development, noting its applicability to markets like Australia, Algeria, and the Middle East, underscoring Halliburton's strategic growth and technological edge.

Discusses the current sense of urgency among industry customers to move forward with projects amidst a recovering environment, noting constructive conversations about value realization. Highlights increased activity in development projects, particularly in regions like Namibia, West Africa, Surinam, and Brazil, with some exploration but a stronger focus on development.

The dialogue discussed the company's approach to shareholder returns, with a focus on share buybacks, noting a lower-than-expected buyback in Q1 due to macroeconomic concerns, but with plans for increased activity in Q2 and H2. It also highlighted successful investments in grid technology and international expansion, expressing optimism about future growth opportunities in various regions.

The dialogue highlights investors' focus on growth and reserve replacement, Venezuela's economic opportunities post-sanctions, and the tightness in the US land market leading to strong incremental margins.

Discusses the strategic deployment of Zeus fleets in international shale markets, emphasizing technology's role in creating value and the conditions required for successful market entry.

Discussions revolve around the impact of contracts on business expansion, margin profiles, and market tightness, emphasizing technology, pricing strategies, and customer preferences in the energy sector.

The dialogue highlights the impact of smaller oil and gas companies on market dynamics, taking capacity out of the market and contributing to a tighter oil market. It discusses the structural increase in commodity prices and growing demand, which creates opportunities for operators of all sizes. The conversation also touches on the delayed entry of larger public companies into the cycle, emphasizing the significance of smaller operators' actions in shaping market conditions.

The dialogue explores the potential timeline and operational hurdles for resuming normal oil activities in the Middle East post-shutdown, emphasizing readiness for intervention work and drilling deeper reservoirs as key recovery strategies.

Speakers discuss the gradual recovery of energy supply, emphasizing the significant impact of changing perceptions on energy security. They also address CapEx spending, noting a slight increase from initial guidance due to delayed equipment deliveries, with a focus on growth areas within the business.

Speakers agree to exclude a 400 MW proportional spend from future projections due to uncertainty in 2026, deciding to keep it separate in planning.

The dialogue highlights the robust growth in the offshore business, driven by a strong value proposition and technological progress, particularly in closed-loop automated geosphere, which is expected to continue into the future.

Discusses the complexities of restarting oil production in the Middle East post-shutdown, highlighting the need for drilling, storage, and facility work. Emphasizes Halliburton's capacity to aid in recovery, contingent on the duration and severity of shutdowns, suggesting significant service line potential.

The speaker expresses confidence in Halliburton's strategic service lines, technologies, and market positioning, anticipating success in structurally tighter oil and gas markets. The conference concludes with an invitation to reconnect in the next quarter.