Key Technology and Digital Initiatives: In Q3 2023, Halliburton (HAL) introduced Intelevate, a new data science-driven platform for the electrical submersible pump (ESP) monitoring solutions. It also introduced new products related to the measurements of wellbore positioning, nanocomposite wellbore sealant, PulseStar for high-speed streaming of downhole data, and a multilateral completion system to address complex well scenarios.

International Activity Gains And Management Stays Positive: Quarter-over-quarter, revenues in the company’s operating segments were nearly unchanged in Q3. Geographically, North America witnessed a decline (3.3% down), while Latin America and Europe/Africa/CIS saw a similar rise (more than 5% up). In contrast to lower pressure pumping activity in North America, pressure pumping activity improved in Argentina, and completion tool sales increased in Brazil. Similarly, well construction services, completion tool sales, and wireline activity increased in some parts of Europe. Its management sees “continued demand growth for oilfield services in 2024 and beyond.”

Cash Flow Strengthens, And Leverage Goes Down: HAL’s cash flow from operations improved remarkably (90% up) in 9M 2023 compared to a year ago. As a result, its FCF turned increased by 156% in 9M 2023. Debt-to-equity (0.85x) also showed improvement from a quarter ago due to lower long-term debt and 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.