Halliburton 1Q13 Earnings Call Notes

posted in: Notes | 0

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

“North America margins improved substantially as we worked through the guar issue and got our equipment back to work as customers refreshed their budgets.”

“We believe that the oil directed rig count will grow moderately from current levels as our customers continue to evaluate the pace which they can more efficiently drill in complete wells.”

“natural gas drilling will not be a major activity driver in 2013 in the U.S”

“Across the Europe, Africa, and CIS region, we’re seeing an uptick in the adoption of unconventional technology. For example, we’re seeing increased use of multistage fracturing across the region, and expanded application of rotary steerables and sliding sleeve technology in developing the tight oil fields of Russia.”

“Over the past month or so, we’ve participated in court-facilitated settlement discussions with some of the parties included in the multidistrict litigation, with the goal of resolving a substantial portion of the private claims against us in this matter. These discussions are at an advanced stage, although they’ve not yet resulted in a settlement, and the accrual is based on where we are in the negotiations at the present time….we believe that an early and reasonably valued resolution is in the best interest of our shareholders….we continue to believe that…BP is contractually required to indemnify us…Therefore, if our settlement discussions are not successful, we’re fully prepared to see this matter to conclusion in the courts…reserve estimate also does not include any potential recoveries from our insurers.”

“The conversations that we’re having with clients these days are becoming more geared towards making better wells”

“Certainly North America is getting better, but we’ve still got excess capacity in the North America market that we’ll be dealing with, so there is some pricing pressure that they’re facing.”

“And we’ve said for years we only deal with what we call the fairway players in the U.S., North America market. These are the folks that are going to keep rigs up and their budgets up, through thick and thin, but also are those that are dealing with some of the lowest lease cost opportunities there…I really wouldn’t get too concentrated and focused on geography. It’s really what our customer base is. And I think has Mark has said, our customers that we’re working for are increasing their rig counts. They’re increasing their budgets, and we sort of know what their plans are for the remainder of this year.”

“I think that what we’ve demonstrated over the years is that when we get focused on a market and put the capital to it, that we basically are going to be a player.”