Key projects in Q1 and digital initiatives: In Q1 2023, Halliburton (HAL) implemented the Auto Pumpdown service, which controls fluid pumps and a wireline unit to improve plug and perforating performance and efficiency. It also introduced the RockJet family of reservoir-optimized shaped charges during the quarter. Repsol implemented the company’s DecisionSpace 365 Well Construction Suite in digitals solution. Petrobras will soon use its iEnergy digital platform to access the DecisionSpace 365 Well Construction Suite.
Segment revenue diverged, but management stays positive: The company’s Completion and Production segment saw a quarter-over-quarter revenue rise in Q1 (7% up) versus a 5.5% fall in revenues in the Drilling and Evaluation segment. Geographically, only North America witnessed steady growth (6% up), while Latin America saw the steepest decline (3% down). In North America, pricing traction, increased well construction services, artificial lift activity, and wireline services kept its topline upward. Despite some hindrances, its management exhibited optimism by quoting, “expect the execution of our strategy will deliver significant and growing free cash flow generation for Halliburton.”
Impressive cash flow growth and leverage goes down: HAL’s cash flow from operations turned significantly positive in Q1 2023 compared to a negative CFO a year ago. Its FCF remained in the negative territory but showed improvement year-over-year. Debt-to-equity (0.94x) also showed improvement from a quarter ago due to higher shareholders’ equity. 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.
