Halliburton at UBS Conference Notes

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Jeff Miller – CEO

Greater rig productivity means fewer rigs for same production

“Yes. I think I certainly feel like I was a little high on my number. 800 feels very busy. And it’s happening like we thought in terms of the rig efficiency is there, which is driving substantially more completion activity. Fewer rigs drive more completion activity. We’re seeing that today not only in terms of number of stages, but sizes of stages has also compounded the level of activity. We’re up about three times what we were in 2014 in terms of sand volume, just pure volume. And so the demand is there and it’s driven off again, as I said, that lower rig count. And I don’t know that that it makes – it’s going to continue to move up, but it’s simply going to drive more and more activity.”

Momentum around pricing continues to move up

“I mean the momentum around pricing continues to move up. And so very positive. It really started in Q4 of last year where we really tried to probe the market to see if there was room to move. We saw some green shoots, but I’d describe it as a bar room brawl. It absolutely was brawling in Q4 last year to see if prices would move. As they started to move, that’s what precipitated our move in Q1 to accelerate reactivation simply as our team on the ground started to get a better sense of customer urgency, which ultimately drives pricing momentum. We were able to react very quickly then.”

*International going to tread water for a bit

“Look, I think international is going to unfortunately tread water for a bit. I don’t know that it needs to come back. We’ll continue to trim cost internationally. That team is working very hard. That team knows how to execute kind of in any market and I think will be effective. The infrastructure that we’ve built out doesn’t go away, but we will certainly scale that back as we look at markets that either have a – look at the timing form coming back. Some may never come back just given the producing power of the Middle East, North America and probably Russia will likely be more dominant. So there are some marginal markets that may not come back, but by and large, we manage in that every day in terms of where to be.”

Anyone that thinks they’re a commodity probably is

“anyone that thinks they’re a commodity probably is”