Key Technology and Innovations: In Q1 2024, Halliburton (HAL) introduced a few techniques and innovations, including Reservoir Xaminer, a formation testing service to provide precise formation pressure measurements of the reservoir fluid in less time. In the carbon capture, utilization, and storage (or CCUS) portfolio, its CorrosaLock cement system will enhance cement sheath elasticity to withstand downhole forces during cyclic injection and provide increased anchoring force. The company’s SuperFill II diverter will minimize frictional pressure loss through the length of the landing string for the auto-fill float equipment.

A Slight Revenue Uptick As Management Stays Positive: Quarter-over-quarter, the rise in revenues in the company’s Completion and Production operating segment was higher than the Drilling and Evaluation segment in Q1. Geographically, North America and Latin America witnessed a rise (5.1% and 7.6% up), while Europe/Africa/CIS  and Middle East/Asia saw a topline decline.

Higher completion tool sales and pressure pumping services led to growth in North American sales. In contrast, lower demand for drilling services in Europe/Africa and decreased project management activity in India And Saudi Arabia pushed the company’s revenue growth lower. HAL’s management continues to see multi-year activity plans through the “strength and duration of this upcycle.”

Cash Flows And Balance Sheet Continue To Strengthen: HAL’s cash flow from operations strengthened robustly (3x up) in Q1 2024 compared to a year ago. As a result, its FCF turned significantly positive in Q1 2024. Debt-to-equity (0.79x) also showed improvement from FY2023 due to higher shareholders’ equity. During Q1, it repurchased shares worth $250 million to improve shareholder returns. You may read more about the company in our previous article here.

Thanks for reading the HAL take three, designed to give you three critical takeaways from HAL’s earnings report.  Soon, we will present a second update on HAL earnings highlighting its current strategy, news, and notes we extracted from our deeper dive.