Halliburton's 2025 Q2 Earnings Call: Key Contradictions in North America Frac Activity, Pricing Strategies, and Market Outlook

North America Frac Activity and Market Outlook, Technological Differentiation and Pricing Strategy, Completion and Production Services Margins, Mexico Market Outlook, and C&P Margin Expectations are the key contradictions discussed in Halliburton's latest 2025Q2 earnings call.



Market Outlook and Demand Fundamentals:
- Halliburton's CEO, Jeff Miller, noted that the oilfield services market is softer than expected due to factors such as trade and tariff uncertainty, geopolitical unrest, and reduced activity from large NOCs.
- Despite these challenges, he expects conditions to improve as additional OPEC+ production is absorbed and operators work to replace declining production.
- The demand fundamentals for both oil and gas remain strong, and Halliburton is confident in its strategic alignment with future themes like unconventionals and complex drilling services.

International Revenue and Growth Engines:
- Halliburton's international revenue in Q2 was $3.3 billion, with a 2% sequential growth.
- The company's growth engines in international markets include unconventionals, drilling, production services, and artificial lift, demonstrating strong performance in Latin America and Europe/Africa.
- However, the company anticipates a mid-single digits contraction in international revenue year-on-year, primarily due to activity reductions in Saudi Arabia and Mexico.

North America Revenue and Activity Trends:
- North America revenue in Q2 was $2.3 billion, flat when compared to Q1.
- Halliburton expects North America revenue to decline significantly in the second half due to lower drilling and completion activity, despite increased gas activity.
- The company plans to address these challenges by not working equipment at uneconomic returns, reducing costs, and focusing on free cash flow and returns.

Technological Innovations and Collaboration:
- Halliburton highlighted advancements in its technology, such as the Sensori fiber optic fracture monitoring service and the completion of a 67-stage stimulation in Australia.
- The company emphasized its commitment to collaboration and engineering solutions to maximize asset value for customers, which is a key driver of both customer and shareholder value.