Halliburton at Barclays Energy Conference Notes

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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.

“we expect to see continued increases in [rig count] in the out years on now through 2015”

“over a third of all land rigs in the world today are drilling horizontally. This is up from less than 8% in 2005.”

“revenue multiplier or basically the service intensity associated with horizontal rigs versus vertical rigs, we see about a three to four times multiplier compared to conventional rig”

“we’re seeing as a continuing bias towards deepwater capable rigs.”

“East Africa is another key market that holds great promise in our view, but I expect a softening in the activity level until infrastructure is able to actually catch up with the discovery rates that they’ve had in East Africa, nevertheless an important market.”

“it’s clearly a national effort [in China] to replace coal and oil with natural gas and expect the gas plays a substantially larger role in their next five-year outlook. ”

“when I think about the current year the big story has been around drilling efficiency. And basically what that means is, drilling more wells with the same rigs.”

“It looks like customer spending plans in some cases are up. There are other customers who have eased their spending a little bit as they’ve improved their capital discipline and they’re also seeing the effects of some of the efficiencies that they’re achieving in drilling.”

“As long as there is over capacity we’re going to continue to fight service companies on the pricing front, and we’re still seeing some pricing weakness in some key basins.”

“we firmly believe within Halliburton that the guy who’s going to win in this space is the lowest cost service provider. Not just into the way that the customers look at that, but also as we look at it internally.”

“When we think about excess capacity in North America it’s probably in the order of 20% — high teens to 20% in excess capacity today…any increase in rig count which could come I think would take that out pretty quickly”

“With respect to Mexican reform I mean obviously this is as excited as I’ve been about it in my career. I think we’re as close as we’ve ever been to seeing real reform in Mexico and opening up that market”