With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Energy sector dominated this year for the first time since 2008, with 28 companies featured on the list.

100 Fastest-Growing Companies

Industries included in the sector are mining, oil and gas exploration and services, pipelines, refining, and utilities.

Fortune Sector Leaders: Energy

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The Fortune 500, in its 69th year in 2023, ranks the biggest U.S. companies by revenue.

This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

F500 2021-211-Halliburton

Operating in over 70 countries with more than 40,000 employees worldwide, Halliburton is one of the world's largest oilfield services companies. The 102-year-old company dropped 69 spots on the Fortune 500 list after reporting a 36% drop in sales and a loss of nearly $3 billion for 2020.

This year's Fortune 500 marks the 66th running of the list.

F500-2020-142-Halliburton

The world's second-largest oilfield services company.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune Global 500 generated $27.6 trillion in revenues and $1.5 trillion in profits.

Fortune Global 500

This year's Fortune 500 marks the 62nd running of the list.

The world's 500 largest companies generated $31.2 trillion in revenues and $1.7 trillion in profits in 2014. Together, this year's Fortune Global 500 employ 65 million people worldwide and are represented by 36 countries.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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Founded in 1919 by Erle P. Halliburton, a pioneer in oil well cementing, Halliburton is a global provider of products and services to the energy industry. Halliburton is considered one of the big three global oilfield services firms along with SLB and Baker Hughes. It operates through two main segments: completion and production, and drilling and evaluation. The completion and production segment specializes in production enhancement, cementing, sand control, and well intervention services, while the drilling and evaluation segment focuses on drilling fluid systems, directional drilling, wireline and perforating, and advanced digital solutions. Halliburton is widely viewed as the U.S. leader in hydraulic fracturing completions, better known as fracking. Halliburton’s technological innovations include achieving the world’s first closed-loop, autonomous fracturing operation, and pioneering AI tools that optimize exploration, drilling, and production workflows. Its DS365.ai platform enables data management, scalable AI/ML model deployment, and app development.

Q2 2026

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Q4 2024

Halliburton (HAL): Company Profile, Stock Price, News, Rankings

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Halliburton

halliburton

Good day and thank you for standing by. Welcome to the Q4 2024 Halliburton Company Earnings Conference Call. At this time, all participants are in a listen only mode. Please be advised that today's conference is being recorded. After the speakers' presentation, there will be a question and answer session.

I would now like to hand the conference over to your speaker today, David Coleman, Senior Director of Investor Relations.

Hello, and thank you for joining the Halliburton 4th quarter 2024 conference call. We will make the recording of today's webcast available for 7 days on Halliburton's website after this call. Joining me today are Jeff Miller, Chairman, President and CEO and Eric Corre, Executive Vice President and CFO. Some of today's comments may include forward looking statements reflecting Halliburton's views about future events. These matters involve risks and uncertainties that could cause our actual results to materially differ from our forward looking statements.

These risks are discussed in Halliburton's Form 10 ks for the year ended December 31, 2023, Form 10 Q for the quarter ended September 30, 2024, recent current reports on Form 8 ks and other Securities and Exchange Commission filings. We undertake no obligation to revise or publicly update any forward looking statements for any reason. Our comments today also include non GAAP financial measures. Additional details and reconciliation to the most directly comparable GAAP financial measures are included on our Q4 earnings release and in the Quarterly Results and Presentations section of our website. Now I'll turn the call over to Jeff.

Thank you, David, and good morning, everyone. 2024 was a solid year for Halliburton. Here are the full year highlights. We delivered full year total company revenue of $22,900,000,000 Our international business grew for the 4th year in a row with 6% year over year revenue growth led by Middle East Asia, which delivered an increase of 8%. Our North America business declined 8% year over year, but outperformed the rig count and completion activity.

Halliburton generated $3,900,000,000 of cash from operations and $2,600,000,000 of free cash flow. Finally, we repurchased $1,000,000,000 of our common stock and paid $600,000,000 of dividends to our shareholders, representing a 60% return of free cash flow. Before we move on, I would like to thank our employees for their extraordinary work this year, delivering record performance in both safety and service quality. You, our employees, are the ones that deliver our value proposition every day to collaborate and engineer solutions to maximize asset value for our customers. Thank you for your commitment and hard work.

Let me begin with my outlook for the industry and for Halliburton. I expect energy will continue to play a critical role in economic growth and prosperity and per capita energy consumption to grow for decades to come. We see this trend today as oil and gas consumption reached record highs alongside growth in renewable energy. I believe the accessibility, affordability and dependability of oil and gas are simply too compelling to ignore. I'm confident that as we move forward, the attitudes and approaches to hydrocarbon development will be pragmatic rather than idealistic.

I believe there is no way we meet the energy demands around the world without oil and gas in large quantities for a long time and that gives me great confidence. This is a great environment for Halliburton and we begin the second half of this decade in a strong position with a transformed balance sheet, leading returns and strong free cash flow. In the years ahead, I am confident Halliburton will strengthen its competitive advantage and financial position for 3 fundamental reasons. 1st, the depth of our technology portfolio combined with our global reach make Halliburton a leader in the global services marketplace. We focus our investments in market segments where our unique strengths generate attractive returns, and I expect our targeted technology developments in electrification, automation and digital solutions to further increase these advantages.

2nd, our unique value proposition aligns Halliburton with our customers to deliver leading results and maximize asset values. We see the value of this alignment demonstrated again and again in the deepening of our customer strategic alliances. Lastly, I see customer activity shifting towards drilling technology, unconventionals, well intervention and artificial lift, all of which are areas where Halliburton excels today and where we are uniquely positioned to outperform in the future. Turning to our results. I'll begin with the international markets where Halliburton delivered another year of profitable growth.

Our full year international revenue grew 6% year over year led by the Middle East Asia region, which grew 8%. I am pleased with our performance and the growth of our international business. In 2025, we expect flat international revenues for Halliburton year over year with growth in most international markets offset by activity reduction in Mexico. Absent Mexico, we expect our international franchise will grow low to mid single digits next year. Beyond 2025, I am confident in the long term outlook for Halliburton, in particular, the next 5 years based on the growth engines in our international business and the power of our customer alliances.

These growth engines include Halliburton's drilling technologies, unconventionals, well intervention and artificial lift businesses. I believe these growth engines could collectively generate an additional $2,500,000,000 to $3,000,000,000 of annual revenue in 3 to 5 years. Even more exciting than the growth I see in these areas is the trend I see of customers embracing our value proposition to work in increasingly more collaborative and innovative ways. They adopt this way of working because it has proven to consistently improve performance and create value for them. While the power of our collaborative value proposition has traction all around the world, it's most visible in Norway.

Halliburton has a growing and profitable business in Norway built on strong customer alliances. These alliances apply leading technologies and collaborative work environments. Together with our customers, we have successfully pioneered several advances that have delivered significant improvements in performance and safety. Over time, I see the rest of our international business moving in the same direction. What is clear to me and equally so to a growing group of operators is that the future of performance lies in deep collaboration.

For the last decade, we have made strategic choices in the development of our people, processes and technology to reinforce a culture that is highly collaborative and creates exceptional performance in these environments. I expect this change will create unique value for Halliburton and our customers. To summarize international markets, I expect our value proposition driving deep collaboration will further differentiate us and create clear value for both Halliburton and our customers. And our growth engines will contribute meaningfully to our international business in the years to come. I'm excited about these opportunities and I believe Halliburton has a terrific platform to outperform the international services market in 2025 and beyond.

In North America, our full year revenue of $9,600,000,000 was an 8% decrease from 2023. Q4 2024 revenues were 7% lower than Q3 2024 due to seasonality and customer budget exhaustion. As we look to 2025, I expect our North America revenue to decrease low to mid single digits from 2024 levels or approximately flat with the second half of twenty twenty four. This lower revenue for the year is driven in part by lower negotiated prices for a portion of our fleet and we expect to see the majority of the margin impact from these price revisions in our Q1 results. Despite pricing, I am confident our financial performance will widely outpace our competition.

If I step back from the numbers for a minute, I'm excited about several things Halliburton is doing in North America this year. Let me tell you what's going on under the hood that has me so excited. First, we are sold out. All of our fleets are working under committed or contracted programs. Next, Zoos.

We're extending and renewing contracts for existing fleets, making new Zoos deliveries and expect our market leading e fleets will comprise 50% of our fleet by the end of 2025. Next, technology. Octave Auto Frac and Sensory are being widely adopted by customers and delivering value. Next, directional drilling. High Cruise rotary steerables are on a pace to capture about 30% of the North America rotary steerable business by year end.

And finally, I believe the next catalyzing inflection for North America services will be up, not down. I believe the most pressing energy problem in North America today is the power shortage driven by electrification and power demand for AI and this cannot be solved without significant amounts of natural gas. This is on top of the expected increases in LNG exports. These are all very good things for Halliburton in 2025. These are the bedrock of our North America franchise as we move into the second half of the decade.

When I think about the North America market through this period, several themes are crystal clear to me. First, our customers rely on our technology, innovation and collaborative work processes to deliver leading performance and lower total well costs. I expect further adoption of these technologies as our customers fully integrate them into their workflows where they drive stable long term work programs for Halliburton. Octave AutoFrac is a great example of this. Launched last year, it is already used on over 50% of our Zoos spreads with more growth expected this quarter.

Our sensory fracture monitoring is another example. Customers are adopting this technology at scale to optimize well completion designs on multi well pads. In the Q4 alone, Sensory was used on more than 2,500 frac stages in North America. The second trend I expect to continue is the rising importance of North America and our large customers' development plans and budgets. I expect our large customers will continue the industrialization of unconventional resources and seek even greater efficiencies and productivity.

I believe Halliburton is uniquely positioned to innovate and deliver these improvements at scale. A final trend I expect to see through the rest of the decade is the durability and strength of Halliburton's financial performance. I believe there is little doubt that our margins and cash flow generation to date have marked a step change from prior cycles. While markets and margins will fluctuate, I am confident Halliburton strategy will deliver attractive financial results over the long term. Let me close my remarks with this.

I'm excited about both the year ahead and the long term for Halliburton. We expect to execute our value proposition, deepen our technology portfolio and deliver incremental revenue through our growth engines, drilling technology, unconventionals, well intervention and artificial lift. Finally, we remain disciplined in our capital allocation, prioritizing cash flow and return of free cash flow to shareholders. In 2024, we returned $1,600,000,000 or about 60% of free cash flow to shareholders in stock repurchases and dividends, and I expect we will return at least $1,600,000,000 of cash in 2025. With that, I'll now turn the call over to Eric to provide more details on our financial results.

Thank you, Jeff, and good morning. Our Q4 reported net income per diluted share was $0.70 Total company revenue for Q4 2024 was $5,600,000,000 a decrease of 2% sequentially. Operating income was $932,000,000 and operating margin was 17%. Now turning to the segment's results. Beginning with our Completion and Production division, revenue in Q4 was $3,200,000,000 a decrease of 4% sequentially.

Operating income was $629,000,000 a decrease of 6% sequentially. Operating margin was 20%, a sequential decrease of 49 basis points. Revenues were primarily driven by lower stimulation activity in North America and decreased pressure pumping services in Latin America. Partially offsetting these decreases were improved artificial lift activity in North America and increased stimulation activity in Africa and the Middle East. In our Drilling and Evaluation division, revenue in Q4 was $2,400,000,000 and operating income was $401,000,000 both flat sequentially.

Operating margin was 16%, a sequential decrease of 44 basis points. Revenues were driven by increased fluid services in the Middle East and Europe Africa and improved drilling related services in the North Sea, offset by decreased drilling services in the Middle East and Latin America. Now let's move on to geographic results. Our Q4 international revenue increased 3% sequentially. Latin America revenue in Q4 was $953,000,000 a decrease of 9% sequentially.

This decrease was primarily due to lower activity across multiple product lines in Mexico. Partially offsetting these decreases were higher activity across multiple product lines in Brazil. Europe Africa revenue in Q4 was $795,000,000 an increase of 10% sequentially. This increase was primarily due to improved drilling related services in the North Sea as well as increased pressure pumping services and higher fluid services in Africa. Partially offsetting these increases were lower cementing activity and decreased pipeline services in the North Sea.

Middle East Asia revenue in Q4 was $1,600,000,000 an increase of 7% sequentially. This increase was primarily due to higher stimulation activity, fluid services and completion tool sales in the Middle East, partially offset by decreased drilling throughout Asia. In North America, Q4 revenue was $2,200,000,000 a decrease of 7% sequentially. This decline was primarily driven by lower stimulation activity across the region, partially offset by higher artificial lift activity and increased completion tool sales. Moving on to other items.

In Q4, our corporate and other expense was $65,000,000 We expect our Q1 2025 corporate expenses to decrease slightly. In Q4, we spent $33,000,000 or about $0.04 per diluted share on SAP S4 migration, which is included in our results. For Q1 2025, we expect SAP expenses to be about $25,000,000 For the full year 2025, we expect SAP expenses to be approximately $100,000,000 Net interest expense for the quarter was $84,000,000 For Q1 2025, we expect net interest expense to be about $90,000,000 Other net expense for Q4 was $47,000,000 which was driven by unfavorable foreign exchange movements in multiple currencies. For Q1 2025, we expect this expense to be approximately $40,000,000 Our effective tax rate for Q4 was 22.6 percent and we expect our Q1 2025 effective tax rate to be approximately 23%. For the full year 2025, we expect our effective tax rate to be approximately 25.5%, an increase of 300 basis points over our 2024 effective tax rate.

This increase is driven in equal parts by fewer anticipated discrete tax items, the implementation of Pillar 2 taxes and the shift in geographic earnings mix. Importantly, I expect full year cash taxes to be approximately flat with 2024. Capital expenditure for Q4 were $426,000,000 which brought our full year CapEx total to $1,400,000,000 or about 6% of revenue. For the full year of 2025, we expect capital expenditures to remain approximately 6% of revenue. Our Q4 cash flow from operations was $1,500,000,000 driven by exceptionally strong collections during the quarter.

Our free cash flow in Q4 was $1,100,000,000 bringing our full year free cash flow to $2,600,000,000 a 16% increase over 2023. Now let me provide you with comments on our expectations for our divisions for Q1 2025. In our Completion and Production division, we anticipate sequential revenue to decline 3% to 5% and margins to decline 175 to 225 basis points. In our Drilling and Evaluation division, we expect sequential revenue to decline 8% to 10% and margins to be flat to down 50 basis points. I will now turn the call back to Jeff.

Thanks, Eric. Here are the key points I would like you to take away from our discussion today. I am confident in the long term outlook for oil and gas and I am pleased with the shift towards a pragmatic development of hydrocarbon resources. In the international markets, we see long term growth as a result of the broader adoption of our collaborative value proposition and our growth engines. In North America, we are sold out on our frac capacity.

We see strong adoption of both our completions and drilling technologies and I am confident our financial performance will widely outpace our competition. Finally, we had a strong year for cash returns to shareholders and expect to return at least $1,600,000,000 to shareholders in 2025. And now let's open it up for questions.

Thank you. Our first question comes from David Anderson with Barclays. You may proceed.

So this past year, you had North America revenue fell 8%, a bit worse than you expected yet. C and P margins fell pretty flat compared to 2023. Pricing, I guess, can you maybe talk about a little bit kind of how you did that?

Was pricing more resilient cost structure? Then secondarily, you just talked about lower negotiated prices and you see C and P margins coming down this year. So what changed here? Can you talk about kind of what part of your fleet was renegotiated? Was it the Zeus pumps?

Was it kind of something? Or was it certain customers? If you could provide a little color on that around that, please?

Yes. Thanks, David. Look, 2025, we were able to manage through a market that has been falling actually for 18 months in 2024. And in 2025, we expect our outlook is down slightly. I think it was the ability to introduce Zoos.

It was our efficiencies. It was our where we create value in the marketplace. But to be clear, we're not immune to pricing. And so as we think about that, as I look at 2025, all of our fleets are contracted, which is a terrific place to be, number 1. We've got great visibility and there's no question we're at the high end of the range.

We know we're at the high end of any range, but we really don't operate in a vacuum looking forward. And so our plan is to stick with the strategy. The strategy didn't change in 2023, 20 24 or 20 25. And I think what you're going to see are solid returns from our business in 25.

So one of the things that a big topic out there is completion efficiencies around the E and Ps. It's continued to be kind of a story out there. And I think that topic for a lot of investors means it's deflationary to services. They basically being able to do more with less. On the other hand, Halliburton, you're enabling a lot of these efficiencies through your Zeus pumps, through AutoFrac.

The question is kind of how do you get paid for these efficiencies? And is it enough to offset some of these deflationary trends? And if you could please just touch on the recent announcement you had with Cokera on AutoFrac and would you expect more of those agreements to be announced this coming year?

Yes, David. I mean, clearly, our the efficiency we want to be at the leading edge of that efficiency. In some ways, I would argue the opposite with you in the sense that what we are doing is at the leading edge and creating outsized value for us. So it clearly offsets the stability of pricing in 2024 and quite frankly, the very muted impact of pricing in 2025 relative to what I expect the market is, is on the basis of driving that efficiency and creating more evolutions for Halliburton and the ability to create more value. And quite frankly, it requires investment in equipment and technology to achieve that.

And so look, I'm pleased with where we are. And when I look at the market, things like the Kotera announcement are a great example of what that technology does. I mean, that's precisely the type of performance and value that we're creating, not only in efficiency, but ultimately pointed towards recovery. I mean, and I think that's when I think about our technology and where we sit in the marketplace, we're able to have a very different conversation with customers. Clearly, efficiency is part of that, but there's also a more important dialogue to have around the answer products that we're able to achieve with our technology.

And answer products are not typically something people talk about with respect to frac equipment. And so this is not just frac equipment. It is, in fact, a platform delivering real answers. And so that's what gives me confidence as I even look ahead into 2025. I think that CMP looks a little bit softer than 2024, but I also expect margin in the second half to firm up relative to the first half as we see the full impact of getting back to work and then more broadly tool sales stabilize and then we see growth in interventions and other things.

So look, I'm really confident in the business that we have and that the this technology is driving a differential outcome for Halliburton.

Thank you. Our next question comes from Roger Read with Wells Fargo Securities. You may proceed.

Yes, thanks. Good morning. I'd like to follow-up, Jeff, if

you can on your comments about more U. S. Gas needed and how we should think about how Halliburton is positioned for that. Meaning, as Dave was asking about, productivity and efficiency trends have been impressive, but a lot of it's also been above ground, not just below ground. So as we ultimately have to increase activity in gas areas, how do you think that works through for you and for the industry?

Look, I think it tightens it meaningfully and quickly. I mean, I think from availability of equipment, this market is always shrinking in effect to what's required or demanded at a point in time. And we've seen attrition. We've talked even at Halliburton about how we have retired equipment rather than work in the spot market, but that's broadly across the industry. And so I think you'll see a lot of tightness in frac, for example, as we see gas activity pick up.

And one of the probably also getting kind of at the question Dave was asking about, making sure you get things priced properly, you get the right returns for your company and for shareholders. What's the right way for us to think about where pricing is today versus what you would consider more equitable or even theoretically advantaged situation for Halliburton. Just obviously you've got pricing pressure now that's worked into the system, it's worked into expectations. But when things start to reverse, kind of where do you maybe another way to ask the question, where do you think margins can go?

Yes. Look, I think margins can move up. And I expect that what we had been seeing, I'd always thought that in the right kind of market and the pricing would move up well above where we were, even in 2024. And so, I don't think it takes a lot of tightness to see that. And when I think about the catalysts of North America, I think that we are more likely to move up than down.

And so the combination of gas activity and we don't talk enough about, but private operators getting back into the business is assets are divested. I'm quite aware of several groups that have raised money that are in the market looking for assets and that's going to drive activity as well. And so as you described it, we're at a place in the cycle where yes, we are not immune to pricing, but the reality is we haven't changed our strategy around that and we expect that we create outsized value and expect to get paid for that.

All right. Appreciate it. Turn it back. Thanks.

Thank you. Our next question comes from Saurabh Pant with Bank of America. You may proceed.

to touch on the 4 growth engines that you talked about on your call, Drilling Tech, unconventional, Intervention and then artificial lift. It's really interesting, I think, Jeff, correct me if I'm wrong, but I think I heard you talking about $2,500,000,000 to $3,000,000,000 in additional revenue over the next, I think you said, 3 to 5 years. Maybe talk to that a little bit and give us a little more color on which of those 4 growth engines you see the most opportunity and which ones you think are going to be the most powerful over the next couple of years?

Well, I think all 4 of them are going to have meaningful impact. Let's start with unconventionals just internationally. We're a global leader today and we see that market growing. And we also see demand for the technology that we talked about in North America. That same demand for technology and better recovery is universal.

And so that's certainly not limited to the U. S. I'd also talk about intervention. And again, this is an area where we've developed technology. We continue to develop technology that is differentiated.

For example, we talked about riserless coil last quarter, but there's a whole suite of power mechanical tools, our overall focus on execution. And we think that's just a market where we'll see more dollars spent, and we'll probably see more of that in sooner rather than later. And then Lyft, in some ways, just given our relative size internationally, we've seen growth, but we've got a lot more upside for Halliburton uniquely as we grow that business and really take the same leadership technology that we see in North America internationally. And so and the drilling technology, there's a lot that we're doing around our drilling offering, whether it's closed loop drilling and automation and that's really where we see outsized growth for Halliburton. And so again, I think there's real value to be created there and I think they're all right in our wheelhouse to go do.

We're well positioned and have a great suite of technology.

Great. No, that's very helpful context, Jeff. And then maybe one question on Mexico. Jeff, Eric, if I understood your guidance right, I think you said, excluding Mexico, international, you expect to be up low to mid single digit, right? And including Mexico, it's flat.

If I'm doing the math right, I know I don't have all the numbers right, but if I'm doing the rough math right that implies Mexico maybe is down like 25% year over year. First thing, can you maybe validate that kind of math and then what's exactly the expectation for Mexico through 2025? Do you expect things to improve in the back half of the year? Or do we not have any visibility there?

Look, I think that what we see in Mexico is a new administration, new management team for Pemex and a bit of our activity reset. I say all of that and that is our outlook today, but at the same time, oil and gas is hypercritical to the economy in Mexico. And so it's hard for me to imagine that they don't find their footing as we work through the year. And we have a fantastic market position in Mexico, one of the reasons it's important to us. And we have a great team there.

And so I'm quite confident Halliburton will execute well in that market. But I think it's more a question around timing in terms of as Pemex finds its footing. And that's certainly not clear today, but I expect that it happens. It has in the past and I expect it will again.

Thank you. Our next question comes from Arun Jayaram with JPMorgan Securities. You may proceed.

Yes, good morning. Jeff, I have a follow-up maybe to David's question. Could you give us a sense we understand in talking to E and Ps that the Octave Auto Frac service can be deployed with different kind of configurations. So I was wondering maybe you could briefly describe how it works and if you do pair it with the Sensory Frac Monitoring service, the different configurations and maybe just talk a little bit about the commercial model if you do it on a standalone basis again versus combining it with Sensory because I think you mentioned it's now running on 50% of your e fleets.

Yes. Look, effectively, it gives you perfect control over the fracking. So this is Octave Auto Frac. And so the result is that the frac fleet is programmed to deliver what is designed and because of the ability to control the horsepower, it can deliver what is designed. And so I think that is something that's never been done before in terms of having the confidence that precisely what is designed is in fact what is delivered.

And then sensory in effect is the ability to verify where the sand is going at its core. And again, that's an answer product we've never had in hydraulic fracturing since its inception. Where did the sand go? I think of it not too different from an MWD log in some ways. You wouldn't drill a well without an MWD log of where the well where the bit went, where the wellbore is.

And quite frankly, why would you not want to know and how is that not part of the solution? Where did the sand go? Since that's the only really active ingredient in creating production? And so I think we have together, you've created sort of the design, the delivery, the control and the verification around where did the sands go in the wellbore. And because of that, now when you can change design, you know that the change design actually got delivered as well.

I think this is something we've never been able to know or control in the frac business before. I hope that's helpful.

Yes. And just maybe the commercial model on how you're pricing this kind of service?

Yes. It's priced for sure. I'm not going to get into the details here, but it's yes, it's a look, it's a valuable solution. It is yes, standalone separate from the frac service delivery. And that's really all I'm going to say about that.

Fair enough. Jeff, my follow-up, I was wondering if you could give us some thoughts on what you're seeing offshore. I believe about 50% of your international business is tied to offshore markets. Obviously, some white space concerns in second half of the year. But any thoughts on how offshore revenues could trend industry wide in 2025?

And how's revenue how it would fare offshore in 2025?

Look, we have a strong business offshore as you described. And I think that from our perspective, we don't see white space. What we see are rigs that move from market to market, which is not too unusual. We see quite a few FIDs sort of in the hopper as we get into, well, early 2025 and then even activity beginning even more so later in 2025 into 2026 and 2027. So solid pipeline of growth internationally and part of that international growth that we see obviously will be tied to offshore.

And so look, I think we'll fare well. I think that's going to be an important component of our international growth, save Mexico. And so I wouldn't over worry about the the white space because that sort of occurs all the time, I think.

Thank you. Our next question comes from Kurt Halle with Benchmark. You may proceed.

Hey, good morning, everybody. Thanks for the time here this morning. I had a question related to some of the dynamics at play with respect to the opportunity related to the power generation, sale of power in the Permian Basin, cut to the chase, right? You had one of your smaller competitors basically go out and buy some megawatts to sell power in the Permian. Is that something that's on your radar screen, Jeff?

And if not specifically on your radar screen, how do you think that plays out? And is there an opportunity for Halliburton to participate?

Yes. Certainly, it's on my radar screen, and we are in that business today with bolted grid. And we have a front row seat. And so the exposure to that market through our participation investment in Vault2Grid is solid. And we like the business a lot.

And fortunately, through Vault2Grid and sort of what we do, we are getting a view of this with what I would describe as a real player in that market, which is Vault2Grid. And so, look, that's stay tuned, but that's an area that is attractive to us and very consistent with our core competencies at Halliburton. We think we're aligned with and invested in far and away the largest player in that business today.

Okay. That's great. Appreciate that color. Now the follow-up as well, you referenced that you see an opportunity for Halliburton to generate an incremental, which is a $2,000,000 $2,500,000,000 to maybe $3,000,000,000 of revenue over the next couple of years predicated on 3 specific areas of focus. Can you just give us a sense as to is that going to be with new products and technologies already in place and then with the adaptation or adoption of that?

Or is it going to be continued incremental evolution of those technologies over time or some combination of both? Just looking for a little bit of incremental color on how you see that evolving.

Yes, fair enough. And I see that as a continued drumbeat of technology development and introduction along with we do bolt on type M and A. We're doing that all of the time, but more targeted at these areas to create technology and integration of technology that I believe will be unique and continue to be unique in these spaces. And so it's we've talked about a few of them. We'll continue to talk about technology deliveries in this space.

And we've been working at sort of the technology development for a few years. And so I think we're set up with sort of waves of technology over the next 2 to 3 years that will give us better opportunity to outgrow the market. They are businesses that we are in today, but I think we have a we're positioned both technically and from a value proposition standpoint to deliver outsized growth.

Great. Always appreciate the color, Jeff. Thank you.

Thank you. Our next question comes from Doug Becker with Capital One. You may proceed.

Halliburton (HAL) Q4 2024 Earnings Call Transcript

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