Halliburton at UBS Conference 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.

“we are very, very confident inside of Halliburton that there are three key areas where our business is going to grow more than other places…deepwater, unconventionals, and mature fields.”

“deepwater is much more service-intensive than other areas and provides a higher margin and higher technology opportunities in other areas”

“Unconventionals, that’s been the story in North America but we think over the next five to ten years will be the story of the international markets as well…we’re the unconventional leader in North America…it’s an important strategic thrust for us to…be ready to work for customers around the world in unconventionals.”

“many customers who last year were still drilling wells to delineate their acreage and where the reservoir had moved to pad drilling this year. And with that you’ve seen an increase in our 24-hour operations and the efficiency of when you go to pad drilling it allows us to create a factory approach to the way that we conduct our business.”

“As we look at Latin America, our largest issue right now is Mexico…in the project management areas which we kind of consider Burgos, the Chicontepec area, the Tertiary and Mesozoic areas – the project management rig allocation is dropping from like 80 some odd rigs to 30 some odd rigs, about a 47- to 50-rig drop. Pretty dramatic.

So we know our rig allocation overall in the project managements has dropped from 17 to 6; Schlumberger’s has dropped from 16 to 7; Weatherford’s has dropped from 22 I think down to 14, I think something like that.”

“In the Eastern Hemisphere we’re continuing to feel pretty good. It’s a slow and steady ramp-up. The Saudi area we’re continuing to see rigs coming into that market and anticipating that it will be to about 170 rigs by the time we get to the end of the year.”

“the Eastern Hemisphere story kind of remains intact, a slow and steady increase. We’ll be increasing margins as we do that as activity goes. We’re not seeing a real price inflection, not seeing an opportunity for a significant price inflection. Big tender activity continues to remain competitive and therefore it’s not that pricing is going down but certainly not many opportunities to increase pricing on the big tenders.”