Q: What is Halliburton (HAL) Q4 2024 Earnings Call Transcript Summary?
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Halliburton delivered full-year total company revenue of $22.9 billion.
2. International business grew for the fourth year in a row with 6% year-over-year revenue growth, led by Middle East/Asia with an 8% increase.
3. Generated $3.9 billion of cash from operations and $2.6 billion of free cash flow.
4. Repurchased $1 billion of common stock and paid $600 million of dividends, representing a 60% return of free cash flow.
5. Strong adoption of technologies like Zeus, Octiv Auto Frac, and Sensori.
6. All fleets are working under committed or contracted programs.
7. Expect to return at least $1.6 billion of cash to shareholders in 2025.
8. Confident in the long-term outlook for oil and gas and the pragmatic development of hydrocarbon resources.
9. Strong performance in international markets with expected growth in most regions, excluding Mexico.
10. Positive outlook for growth engines like drilling technologies, unconventionals, well intervention, and artificial lift.
Bearish Points:
1. North America business declined 8% year over year.
2. Fourth quarter 2024 revenues were 7% lower than third quarter 2024 due to seasonality and customer budget exhaustion.
3. Expect North America revenue to decrease low to mid-single digits from 2024 levels.
4. Lower negotiated prices for a portion of the fleet expected to impact margins in the first quarter of 2025.
5. Q4 total company revenue decreased 2% sequentially.
6. Completion and production division revenue in Q4 decreased 4% sequentially.
7. Drilling and evaluation division revenue in Q4 was flat sequentially.
8. Latin America revenue in Q4 decreased 9% sequentially, primarily due to lower activity in Mexico.
9. Expect flat international revenues for 2025 with growth in most markets offset by activity reduction in Mexico.
10. Effective tax rate for 2025 expected to increase to approximately 25.5%, up 300 basis points from 2024.
For more information about Halliburton(HAL)'s earnings call, you can read the relevant news: Halliburton (HAL) Q4 2024 Earnings Call Transcript
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
