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.
“Mexico activities are expect to pick up significantly as the mega tender projects ramp up in the first part of 2014. Although we do not expect a material impact next year, the recent reform discussions signal a strong opportunity in Mexico shale and deepwater markets.”
“In North America, we are expecting the typical seasonal decline in the fourth quarter that we have experienced in previous years, however there are some additional transitory issues we are currently facing. Due to the recent floods in Colorado, logistical disruptions in the Niobrara, where we have a very high market share our lingering into the fourth quarter which is continuing to impact our efficiency in cost structure in that basin. These cost inefficiencies should be fixed by the end of the year.”
“the North America market continues to have excess supply of pressure pumping equipment, and although this is improving, we anticipate pricing pressure will continue as contracts review during the next quarter or so.”
“We are still in an oversupplied market today. With as much as 20% excess pressure pumping capacity. Nevertheless we believe that an increase in wells drilled per rig combined with greater service intensity driven by increased fluids and profit volumes per well will ultimately help balance the market. We believe that these trends play to Halliburton’s strength as the leading service provider North America.”
“Yes. For 2014, the outlook is fairly strong. The discussions we are having now sees confidence in the oil window continuing to invest. So we certainly have a positive outlook for 2014.”
“we believe oversupply in the market now though we do see increasing drilling efficiency sort of the rate that is greater than increasing completion efficiency and because of that, we expect to see attrition continue. You know at what point that is? I expect, certainly out into next year, late next year or beyond though any spiking gas activity will certainly take that out very quickly.”
“if we think that the drilling efficiencies up in that 20% range and we look at completion efficiency somewhat less than that, we will see it probably about in that 7%, 8% sort of efficiency in drilling that’s outpacing the efficiency in completions. I think one of the things that tempers completion efficiency is going to be the size of jobs and the amount of activity requires completion actually get in some cases bigger rather than smaller and this where the frac purification [ph] happens. So again, my outlook is that we continue to add equipment over time as opposed to the other.”