Halliburton (HAL) This fall 2023 Earnings Name Transcript

Halliburton (HAL 2.29%)
This fall 2023 Earnings Name
Jan 23, 2024, 9:00 a.m. ET

Contents:

• Ready Remarks
• Questions and Solutions
• Name Individuals

Ready Remarks:

Operator

Good day, and thanks for standing by. Welcome to the Halliburton Firm fourth quarter 2023 earnings convention name. [Operator instructions] Please be suggested that right this moment’s convention is being recorded. I’d now like handy the convention over to your speaker right this moment, David Coleman, senior director of investor relations.

David Coleman — Senior Director, Investor Relations

Whats up, and thanks for becoming a member of the Halliburton fourth quarter 2023 convention name. We’ll make the recording of right this moment’s webcast obtainable for seven days on Halliburton’s web site after this name. Becoming a member of me right this moment are Jeff Miller, chairman, president, and CEO; and Eric Carre, govt vice chairman and CFO. A few of right this moment’s feedback could embrace forward-looking statements reflecting Halliburton’s views about future occasions.

These issues contain dangers and uncertainties that would trigger our precise outcomes to materially differ from our forward-looking statements. These dangers are mentioned in Halliburton’s Type 10-Okay for the yr ended December thirty first, 2022, Type 10-Q for the quarter ended September thirtieth, 2023, current present reviews on Type 8-Okay, and different Securities and Alternate Fee filings. We undertake no obligation to revise or replace publicly any forward-looking statements for any motive. Our feedback right this moment additionally embrace non-GAAP monetary measures.

Further particulars and reconciliation to essentially the most immediately comparable GAAP monetary measures are included in our fourth quarter earnings launch and within the quarterly outcomes and presentation part of our web site. Now, I am going to flip the decision over to Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks, David, and good morning, everybody. 2023 was an excellent yr for Halliburton. Each of our divisions achieved their highest working margins in over a decade, and we returned $1.4 billion to shareholders. Listed here are the highlights.

We delivered full yr complete firm income of $23 billion, a rise of 13% yr over yr; and working revenue of $4.1 billion, a rise of 33% in comparison with 2022 adjusted working revenue. Our worldwide enterprise demonstrated sturdy progress with our income up 17% yr over yr regardless of our exit from Russia in August of 2022, finishing two consecutive years of excessive teenagers progress. Our North America enterprise confirmed power with income up 9% yr over yr regardless of rig depend declines. Completion and manufacturing income grew 18% yr over yr, and margins expanded 312 foundation factors.

Drilling and analysis grew 7% yr over yr, and margins expanded 171 foundation factors. Turning now to This fall, the place Halliburton delivered distinctive margin efficiency, supported by better-than-anticipated completion instrument gross sales globally, sturdy efficiency throughout a number of high-margin product strains, and favorable climate in North America. Completion and manufacturing margins completed the yr virtually 100 foundation factors increased than This fall of 2022. Worldwide income grew 12% yr over yr, led by the Europe/Africa area, which grew income 17%.

Lastly, through the fourth quarter, we generated $1.4 billion of money from operations, $1.1 billion of free money move, and repurchased roughly $250 million of frequent inventory and $150 million of debt. Earlier than we proceed, I wish to take a second and thank the Halliburton workers around the globe who made these outcomes doable. Our success final quarter and all through 2023 was a direct results of your exhausting work and dedication. Thanks on your relentless concentrate on security, operational execution, buyer collaboration, and repair high quality efficiency.

Let me start with my views on the power of the oilfield companies market. As we glance previous the brand new cycle and near-term commodity value volatility, the basics for oilfield companies stay sturdy. Listed here are two the explanation why. First, we see a rise in service depth in all places we function.

Whether or not it is longer laterals in North America, smaller and extra complicated reservoirs in mature fields, or offshore deepwater, clients require extra companies to develop their assets, not fewer. Second, long-term growth of the worldwide financial system will proceed to create monumental calls for on all types of vitality. I anticipate oil and fuel stays a essential part of the worldwide vitality combine with demand progress nicely into the long run. With this constructive macro outlook, I consider Halliburton’s sturdy execution, main expertise, and collaborative method will drive demand for Halliburton’s services and products around the globe.

Now, let’s flip to worldwide markets, the place Halliburton’s efficiency delivered one other yr of worthwhile progress. Halliburton’s full yr worldwide income grew 17% yr on yr, and our quarterly income grew 12% in comparison with the identical quarter of final yr. Every area delivered year-on-year income progress all through 2023, and each divisions delivered improved worldwide margins yr on yr. Our leads to 2023 display the effectiveness of Halliburton’s worthwhile worldwide progress technique, the power of our world competitiveness throughout product strains, and the facility of our price proposition with clients.

In 2024, we anticipate worldwide E&P spending to develop at a low double-digit tempo and foresee a number of years of sustained exercise progress. Though we anticipate regional variations in progress charges for 2024, we consider the Center East/Asia area will possible expertise the best will increase in exercise with different areas carefully behind. As we glance out to 2025, we anticipate Africa and Europe, amongst others, to display above-average progress. Past 2025, we see an energetic tender pipeline with work scopes extending by the top of the last decade, which supplies me confidence within the period of this multiyear upcycle.

Whereas we anticipate general exercise progress, we additionally see above-market progress inside our nicely development product strains, the place clients select Halliburton to enhance the reliability, consistency, and effectivity of their drilling operations. One such expertise is LOGIX’s autonomous drilling platform, which is now used on 90% of our iCruise runs worldwide. Clients additionally depend on Halliburton’s subsurface experience to develop right this moment’s most complicated reservoirs. This requires applied sciences to cut back uncertainties, equivalent to our DecisionSpace 365, unified ensemble modeling, and superior formation analysis techniques like our iStar logging nicely drilling platform, and reservoir Xaminer formation testing service.

These applied sciences allow clients to focus on small reservoirs, determine bypassed reserves and collect reservoir properties in actual time. We see reservoir complexity growing worldwide, and I anticipate the capabilities of those techniques will proceed to ship buyer worth and lead in general progress inside our formation analysis portfolio. For completion and manufacturing, we additionally anticipate elevated adoption of our applied sciences like clever completions, multilateral options, and synthetic elevate. Our clever and multilateral completions allow clients to provide, inject, and management a number of zones in a wellbore, which is essential for offshore developments, a phase we anticipate to outpace the general market.

In synthetic elevate, our technique targets markets just like the Center East and Latin America, the place our differentiated efficiency and present footprint create a strong basis for worthwhile progress. We additionally anticipate sturdy demand for our companies in carbon seize and storage, the place Halliburton’s main capabilities to design, ship, and validate dependable limitations play an important position. As our clients spend money on carbon storage, our tailor-made cement designs and casing tools expertise allow them to handle the distinctive challenges of long-term carbon sequestration. With this exercise progress, the supply of apparatus and skilled personnel stays tight.

We anticipate asset-intensive offshore exercise to extend, which is able to additional tighten the market. As offshore represents over half of our enterprise exterior North America land, we anticipate this exercise to drive improved pricing and better margins for our enterprise. I’m assured in Halliburton’s technique for worthwhile worldwide progress, and I’m enthusiastic about our efficiency in 2024 and nicely into the long run. Turning to North America.

Halliburton’s technique yielded sturdy leads to 2023. Our full yr North America income of $10.5 billion was a 9% enhance when in comparison with 2022 regardless of sequentially decrease rig depend. Fourth quarter margins in North America land had been comparatively flat quarter over quarter regardless of decrease income. Our full yr and fourth quarter outcomes demonstrated the power of our differentiated enterprise and the profitable execution of our technique to maximise worth.

The dynamic North America market continues to evolve with bigger clients and secure packages, elevated high quality expectations and larger demand for expertise to enhance restoration and nicely productiveness. This evolution matches completely with Halliburton’s worth proposition. Our Zeus electrical fracturing resolution is extremely wanted on this market, the place its seamless mixture of electrical frac, automation and real-time subsurface measurements uniquely tackle buyer necessities. We consider clients demand Zeus as a result of it gives the bottom complete value of possession and it is proven to be essentially the most confirmed and dependable resolution out there.

The market pull for this expertise has been sturdy. The mix of Zeus fleets working within the area right this moment and Zeus fleets contracted for 2024 supply characterize over 40% of our fracturing fleet. I anticipate nicely over half of our fleets might be electrical in 2025 with all of those e-fleets on multiyear contracts producing full return of and return on capital throughout their preliminary contract phrases. In step with our technique from the start, we plan for our Zeus deliveries in 2024 to exchange present fleets slightly than add incremental fleet capability.

That is how we maximize worth in North America. The expansion of Zeus and our business method has remodeled the North America completion companies market. Know-how is just transformative when adopted and is just adopted on the price of Zeus when it really works and creates significant worth for our clients. Zeus’ fast adoption, each by new and repeat clients, tells us our resolution is the suitable one for North America.

Turning to our 2024 North America outlook. We anticipate a continued sturdy enterprise with the mix of secure ranges of exercise out there and the contracted nature of Halliburton’s portfolio. We anticipate this leads to a flattish income and margin surroundings for Halliburton. To shut out, I’m assured in our methods to maximise worth in North America and for worthwhile progress internationally.

In 2023, Halliburton demonstrated the facility of those methods, the consistency of our execution and the worth of our differentiated expertise. We generated about $2.3 billion of free money move through the yr, retired roughly $300 million of debt and returned $1.4 billion of money to shareholders by inventory repurchases and dividends, which represents over 60% of our free money move. At the moment, I’m happy to announce that our bard of administrators accepted a rise of our quarterly dividend to $0.17 per share. Our outlook for oilfield companies stays sturdy, and I anticipate we are going to deepen and strengthen our price proposition and generate vital free money move.

Now, I am going to flip the decision over to Eric to supply extra particulars on our monetary outcomes. Eric?

Eric Carre — Chief Monetary Officer

Thanks, Jeff, and good morning. 2023 was a robust yr for Halliburton. A number of monetary and operational metrics confirmed one of the best enterprise efficiency in current reminiscence, any one among that are worthy of highlighting. Extra necessary than any single metric, nonetheless, the general enterprise efficiency demonstrated the effectiveness of our technique.

Listed here are a number of highlights. In our C&P division, our 2023 margins of 20.7% had been the best since 2011. In our D&E division, 2023 margins of 16.5% had been the best since 2008. In North America, our technique to maximise worth is about structurally altering the chance and return profile of our enterprise.

We delivered regular margins by the yr regardless of decrease exercise, pushed by the rollout of our Zeus fleet and their related contract phrases and the power of our nicely development enterprise. Internationally, our worthwhile progress technique drove income and margin enchancment throughout all of our geographies. Income was the best within the final 8 years, and revenue margins had been the best in over a decade. Past pricing and exercise, that is the results of the multiyear funding in our drilling enterprise and expertise differentiation throughout a number of product strains.

Our concentrate on capital effectivity allowed this income progress and structural margin enchancment, whereas capital spending remained inside our goal vary of 5% to six% of income. Collectively, these outcomes generated about $2.3 billion of free money move, the best money era within the final 15 years. Let’s flip now to our fourth quarter outcomes. Our This fall reported internet revenue per diluted share was $0.74.

Web revenue per diluted share, adjusted for losses in Argentina primarily as a result of forex devaluation, was $0.86. Complete firm income for the fourth quarter of 2023 was $5.7 billion. Working revenue was $1.1 billion, and the working margin was 18.4%, a 95 foundation level enhance over This fall 2022. Starting with our completion and manufacturing division, income in This fall was $3.3 billion, working revenue was $716 million, and the working revenue margin was 22%.

Our better-than-anticipated outcomes had been pushed by one of the best fourth quarter of completion instrument gross sales in 9 years, sturdy efficiency throughout a number of product strains, and favorable climate in North America. In our drilling and analysis division, income in This fall was $2.4 billion, working revenue was $420 million, and the working revenue margin was 17%, a rise of 122 foundation level over This fall final yr. These outcomes had been consistent with our expectation and pushed by worldwide software program gross sales, increased challenge administration exercise within the Japanese Hemisphere, and elevated fluid companies within the Western Hemisphere. Now, let’s transfer on to geographic outcomes.

Our This fall worldwide income elevated 4% sequentially, which was our highest worldwide income quarter since 2015 and tenth consecutive quarter of year-on-year income progress. This fall sequential progress was led by the Center East area pushed by improved exercise throughout a number of product strains and robust year-end completion instrument gross sales. Europe/Africa demonstrated sequential progress per the general worldwide market with increased exercise in Africa offsetting decrease product gross sales in Europe. Latin America income declined barely within the fourth quarter, the place decreased completion-related exercise following a really sturdy third quarter exercise enhancements within the Caribbean.

In North America, income in This fall decreased 7% sequentially pushed primarily by a decline in U.S. land exercise because of typical holiday-related slowdowns. Nevertheless, we skilled fewer weather-related occasions than anticipated. As weather-related downtime is costlier than deliberate downtime, this implies our This fall North America land margins had been increased than anticipated.

Moreover, completion instrument gross sales within the Gulf of Mexico delivered the strongest quarter in three years. Shifting on to different objects. In This fall, our company and different expense was $63 million. For the primary quarter of 2024, we anticipate company bills to be flat.

Our SAP deployment stays on finances and on schedule to conclude in 2025. In This fall, we spent $15 million or about $0.02 per diluted share on SAP S4 migration, which is included in our outcomes. For the primary quarter 2024, we anticipate these bills to be roughly $30 million or $0.03 per share as a result of timing related to accelerated phases of the rollout. In 2024, we anticipate to spend $120 million and $80 million in 2025.

Web curiosity expense for the quarter was $98 million, barely increased than anticipated primarily as a consequence of premiums related to debt buybacks. For the primary quarter 2024, we anticipate internet curiosity expense to be roughly $85 million. Different internet expense for This fall was $16 million decrease than our prior steering as a result of non-GAAP therapy of the Argentinian peso devaluation. For the primary quarter 2024, we anticipate this expense to be about $35 million.

Our adjusted efficient tax price for This fall was 17.9%, decrease than anticipated as a consequence of discrete objects. Based mostly on our anticipated geographic earnings combine, we anticipate our first quarter 2024 efficient tax price to be roughly 21%, barely decrease than our anticipated full yr efficient tax price. Capital expenditure for This fall had been $399 million, which introduced our full yr capex complete to $1.4 billion. Roughly 60% of our capex was deployed to worldwide and offshore markets in 2023, and we anticipate this ratio to stay comparable in 2024.

For the complete yr of 2024, we anticipate capital expenditures to stay roughly 6% of income. Our This fall money move from operations was $1.4 billion and free money move was $1.1 billion, bringing our full yr free money move to about $2.3 billion. For 2024, we anticipate free money move to be directionally increased. Now, let me offer you some feedback on our expectations for the primary quarter.

As is typical, our outcomes might be topic to weather-related seasonality and the roll-off of serious year-end product gross sales. Consequently, in our completion and manufacturing division, we anticipate sequential income to be flat to down 2% and margins decrease by 125 to 175 foundation factors. In our drilling and analysis division, we anticipate sequential income to say no between 1% to three% and margins to be decrease by 25 to 75 foundation factors. I’ll now flip the decision again to Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks, Eric. Let me summarize our dialogue right this moment. 2023 was an excellent yr for Halliburton. We generated about $2.3 billion of free money move and returned over 60% of free money move to shareholders by dividends and inventory repurchases.

We’re dedicated to return over 50% of our free money move to shareholders in 2024. For our worldwide enterprise, we anticipate low double-digit progress pushed by the facility of our price proposition, world competitiveness throughout all product strains and our worthwhile progress technique. In North America, we anticipate a continued sturdy enterprise pushed by secure exercise, our differentiated technical place with our Zeus electrical frac resolution and the more and more contracted nature of our enterprise. And now let’s open it up for questions.

Questions & Solutions:

Operator

[Operator instructions] First query comes from Dave Anderson with Barclays. It’s possible you’ll proceed.

Dave Anderson — Barclays — Analyst

Thanks. Good morning, Jeff. How are you?

Jeff Miller — Chairman, President, and Chief Govt Officer

Good morning, David.

Dave Anderson — Barclays — Analyst

So, a query on the C&P margins that held flat through the quarter, and also you mentioned U.S. land was holding flat. I hoped you could possibly speak a bit bit in regards to the affect of your rising e-frac fleet on the underside line. We all know the operational benefits, however I used to be questioning when you might speak about the way it impacts financially.

How does e-frac, say — in comparison with, say, your Tier 4 twin gas, the diesel fleets simply by way of pricing and working prices, making an attempt to get a way of how accretive the brand new tools is. And type of secondarily on that, with E&P consolidation nicely underway and we glance out, say, 12 to 24 months, would you anticipate the vast majority of your e-frac fleets to be with these bigger operators underneath multiyear contracts?

Jeff Miller — Chairman, President, and Chief Govt Officer

Yeah. Nicely, thanks, Dave. Look, e-fleets are accretive. They’re accretive for a few causes.

Primary, extremely environment friendly to function from our standpoint. And so, that makes them extra accretive. Clearly, the are bringing a whole lot of worth to shoppers, and due to this fact, they’re, you already know, priced and considered otherwise within the market. And so, look, I anticipate that, that can proceed into the long run.

However I feel what’s most necessary is the contracted nature of the fleets, which imply a few issues additionally. Primary, that the pricing is sticky, however it’s sticky as a result of it is contracted over time and the worth is considered. And so, subtle procurers can have a look at that and mannequin that, and we will mannequin it as nicely and comfy with the worth created. However I feel the second factor, as we take into consideration what sorts of clients have a look at e-fleets, these aren’t a spot market resolution.

I imply the businesses which can be thinking about e-fleets are those who have regular packages, work by cycles, have a transparent imaginative and prescient of the place their enterprise must go and are prepared to decide to the expertise to ship that over the long run. And so — and actually, it is a whole system. If we take into consideration an electrical fleet, it is — clearly, it is an environment friendly, lowest TCO electrical resolution, however it’s additionally automated, which drives the extent of precision round fracking that, you already know, I’ve by no means seen earlier than. And so, you already know, the shoppers know that they are delivering what they anticipate to ship.

After which, lastly, the subsurface measurement. However I deliver all of that up as a result of that is a part of what drives it being accretive. A, it creates much more worth, due to this fact, is extra accretive than a Tier 4 diesel fleet clearly, after which additionally a unique set of circumstances, which additionally modifications the return profile of those property as we go into the market. I hope that helps, Dave.

Dave Anderson — Barclays — Analyst

It does. A transparent differentiation there. So, a separate query right here. I observed in your launch, you introduced two new collaborations with different service firms, one in reservoir evaluation, the opposite MPD.

It type of successfully fills a number of of your weaker spots of your portfolio. And if I simply assume again to final cycle, we noticed a variety of acquisitions, however I do not recall too many collaborations on the market. I imply, on the one hand — I assume, from my perspective, on the one hand, possibly you are testing the waters a bit, however on the opposite, it looks like it is a fairly good strategy to fill product strains with out spending a whole lot of capital. I used to be questioning when you might speak in regards to the technique and why it is totally different through the present cycle.

And would you anticipate to enter extra collaborations within the coming years?

Jeff Miller — Chairman, President, and Chief Govt Officer

Nicely, look, I feel it is extra a perform of the expertise that we now have and after we see — you already know, we have developed some issues round, you already know, digital cores and the power to judge them digitally, for instance, however making an attempt to purchase our means into the complete core area. We might slightly accomplice with who we expect the premier core evaluation firm is. And so we’re capable of deliver our expertise to that. And successfully, it is a complementary technique the place we make higher returns doing the issues that we have developed and know how you can do.

And clearly, we consider Core Lab is a implausible firm. And so, we’re capable of deliver one thing to that that we consider creates extra worth slightly than making an attempt to enter into a unique sort of association. You talked about the opposite one was Oil States. Related sort of factor, they obtained terrific expertise, however we do not know that we wish to attempt to plow that a lot capital into the remainder of their enterprise.

However we do know the place we will generate outsized returns for Halliburton. Yeah, I’d throw in one other comparable sort factor is subsea with TechnipFMC, who — I actually consider TechnipFMC is absolutely the premier subsea firm on the planet. And we work carefully with them, creating joint IP, delivering on electrical completions, all electrical completions. And so there are a whole lot of issues we’re capable of do the place we will mine what I feel is our core competency or aggressive benefit together with others with out making an attempt to broaden our means into issues that are not actually strategically match.

Hope that helps, Dave.

Dave Anderson — Barclays — Analyst

Very useful. Thanks very a lot, Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Definitely.

Operator

Thanks. One second for questions. Our subsequent query comes from Neil Mehta with Goldman Sachs. It’s possible you’ll proceed.

Neil Mehta — Goldman Sachs — Analyst

Good morning, Jeff and crew. Recognize the time. The primary query is round a extra macro query, which is likely one of the issues that shocked us final yr was the exit to exit of U.S. oil manufacturing, which got here in above, I feel, the place consensus expectations had been.

You’ve got distinctive visibility into U.S. completion and volumes. What do you assume occurred there? And as we take into consideration 2024, how do you concentrate on exit price of U.S. progress? And possibly speak in regards to the transferring items, together with DUCs.

Jeff Miller — Chairman, President, and Chief Govt Officer

Yeah. Look, if I am eager about manufacturing progress in ’24, you already know, manufacturing is a perform of service depth. So, merely put, extra sand, extra barrels. And we noticed peak ranges of service depth all through final — actually within the first half of final yr.

And a whole lot of that comes on within the latter half. And I feel a few of that is effectivity within the sense that we’re delivering extra sand to the reservoir. And that is available in a whole lot of kinds. E-fleets are a part of that and a number of the expertise that we dropped at market.

However I additionally assume that the market that we see for subsequent yr, it is exhausting for me to forecast at this level precisely what operators will do as a result of each operator performs their very own recreation. However on the similar time, you already know, I’d most likely be over on rigs as a result of I feel that we’ll run out of DUCs sooner or later. I feel I’d take the underneath solely manufacturing solely as a result of no matter you assume it’s, I am going to take the underneath solely as a result of what we see are secure clients delivering to their plans. However what we do not see as a whole lot of the smaller firms coming into the market in an effort to actually ramp up manufacturing.

So, I feel, you already know, from our perspective at Halliburton, very secure market. However from a manufacturing standpoint, as we watch it unfold, will probably be a matter of how a lot incremental sand will get pumped to beat what’s clearly going to be a decline price that comes with after we add barrels quickly, clearly, they fall off quickly.

Neil Mehta — Goldman Sachs — Analyst

Thanks, Jeff. Good coloration there. And then you definitely made a remark that you simply really feel like you could have worldwide visibility by the top of the last decade. Are you able to increase there and assist give the market a bit extra confidence about what the post-2024, 2025 profile appears like?

Jeff Miller — Chairman, President, and Chief Govt Officer

Nicely, look, I imply we’re engaged on tenders right this moment for work all of subsequent yr and the next yr. I imply after we speak with clients, I take into consideration what is going on to occur. Actually, I do not assume the North Sea and West Africa even actually get up till 2025. We have seen sturdy in these markets.

Nevertheless, the true progress we’re engaged on planning right this moment would not even begin till ’25. And all of these items are three- and four-year-type efforts. I imply these aren’t particular person wells in locations like that. These are packages.

And so we spent — we’re truly on contract with a shopper engaged on simply the planning of logistics for ’25, ’26, and past. And so I’ve simply obtained a whole lot of confidence by way of what we see in hand, the tender pipeline after which the pipeline of labor that we’re planning with clients which will or could not even be tendered. It is simply extra a matter of will probably be performed. And we have readability on that in ’25 and past.

Neil Mehta — Goldman Sachs — Analyst

Thanks, Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Sure, sir.

Operator

Thanks. One second for questions. Our subsequent query comes from Arun Jayaram with JPMorgan. It’s possible you’ll proceed.

Arun Jayaram — JPMorgan Chase and Firm — Analyst

Yeah, good morning. Jeff, you talked about that 40% of your contracted fleets this yr might be Zeus going to 50% or extra in ’25. I used to be questioning when you might give us a way of how your business mannequin for Zeus has advanced. And one of many issues we get questions on is simply the numerous quantity of completion effectivity good points that the business is generated.

And what’s the sharing of that between E&P and repair firm?

Jeff Miller — Chairman, President, and Chief Govt Officer

Nicely, look, I feel, primary, it is the worth created by Zeus is what drives the contracting nature. A few issues. You already know, after we began to develop Zeus, we began, like I mentioned, fairly some time again, our view was we wish to maximize worth to North America, primary. And to be able to try this, we simply needed to — we consider that the expertise created sufficient worth, a lot worth that we aren’t going to construct it except it is demonstrated for patrons.

And I feel the contracting nature of the longer-term contracts, three-year-type contracts is as a result of we let the market pull slightly than making an attempt to push factor into the market. It’s that totally different and particular. And as that system continues to develop and evolve, that means automation, measurement, all of these items that drive actually significant worth, that’s what’s creating, I feel, the totally different dialogue round Zeus with our clients as a result of it would change into increasingly integral to how they create worth as nicely. After which from an effectivity standpoint or like quantity standpoint, our tools could be very environment friendly.

So, as we go from zipper frac to simo frac to, on this case, trial frac with the shopper, you already know, that’s not a one-to-one enhance in horsepower necessities. So, we change into extra environment friendly as these volumes go up. However that can also be a singular function, although, of Zeus and its means to scale up, however it’s not one for one. And so from Halliburton perspective, we do create outsized worth for Halliburton and likewise for our shoppers as a result of we’re utilizing much less tools than we’d had we gone at it in a standard style.

So, I feel, you already know, that the mix of reliability but in addition automation, as a result of it is — as these fracs — as fracs get bigger, the precision will get extra necessary. There are an entire lot of issues that begin to occur. And so very collaborative efforts with our shoppers to make the most of that expertise. Within the case of a trial frac, actually groundbreaking sort work, tremendous excited to do it with this buyer.

Arun Jayaram — JPMorgan Chase and Firm — Analyst

Nice. Jeff, my follow-up, pure fuel is on individuals’s minds in North America. Simply given the contango out there, 2024 is simply above 2 50. I used to be questioning when you might give us a way of how a lot of your exercise is levered simply to dry fuel.

And what are a number of the dangers to the earnings image from a comfortable marketplace for fuel this yr?

Jeff Miller — Chairman, President, and Chief Govt Officer

Look, we have little or no fuel publicity in our enterprise. At the moment, those — the publicity that we do have is contracted underneath — is type of the Zeus resolution considerably after which we have, I assume, a bit little bit of different issues. However look, the fuel work that we now have shouldn’t be a major a part of our general portfolio. And so, we plan for what we will see.

I feel, you already know, legitimately, there could possibly be equal upside on fuel as LNG comes on. However we’ve not baked it into our outlook right this moment. However I’d say that is clearly one of many upsides to North America, possibly extra so than a draw back to North America.

Arun Jayaram — JPMorgan Chase and Firm — Analyst

Truthful sufficient. Thanks, Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks.

Operator

Thanks. One second for questions. Our subsequent query comes from Roger Learn with Wells Fargo. It’s possible you’ll proceed.

Roger Learn — Wells Fargo Securities — Analyst

Thanks. Good morning. And really, I had the chance final week to go to a tribal frac web site and noticed the e-fleet. So, fairly spectacular setup.

One of many issues the shopper talked about was a barely totally different, I assume, type of price-to-value contract construction. Seems like from a margin standpoint, you are doing positive on that. However is there something you possibly can sort of enlighten us on, on possibly how we considered conventional stress pumping contracting and a whole lot of spot publicity versus, you already know, sort of how that is going by? What does it imply by way of sharing good points with the shopper? What’s the suitable means for us to consider that on sort of a value —

Jeff Miller — Chairman, President, and Chief Govt Officer

Look, from our standpoint, our — Roger, thanks. We cannot create worth for our clients. I feel it’s important to create significant worth for patrons to be able to be a long-term provider and accomplice to a buyer. So, we begin from that place.

And as you mentioned, strong contract for us over the very long run. We went into this targeted on maximize worth, which in our view, means maximize returns, which we’re capable of do underneath all these environments. And so, slightly than play type of the spot — we do not intend to play the spot recreation. That spot recreation is sort of a — it is a win-lose on both aspect of the market.

Actually, when the market is getting tight, most likely operators are shedding. When it is going the opposite path, service firms lose loads. And our technique is to remain out of that. And so, these proper contracts with clients that, in our view, are honest and ship a whole lot of worth each by way of pumping worth and likewise restoration worth.

And I feel that we’re uniquely positioned to do this. And so, enhancing restoration per foot or manufacturing per foot is a long-term recreation, and we wish to play that long-term recreation with clients which can be engaged on that long-term recreation. And we’re ecstatic in regards to the clients we now have and who we get to work with, attempt to clear up what we expect are the true urgent problems with the long run in North America frac. And so we do not get to play that recreation.

That recreation would not get performed efficiently if it is, you already know, the frac is certain. We have to be a part of that course of, and our shoppers permit us to do this.

Roger Learn — Wells Fargo Securities — Analyst

Recognize that. The follow-up query I’ve, it is unrelated, however I feel sort of essential to the announcement this morning elevating the dividend. What’s the proper means for us to consider your makes use of of free money move between, as you probably did within the fourth quarter, type of elective repurchases of debt versus, you already know, maturities? However as we’re considering debt, dividend is fairly fastened right here after which share repurchases. What means would you like us to consider the return of free money move?

Eric Carre — Chief Monetary Officer

Yeah. Thanks, Roger. It is Eric. So, give it some thought in a reasonably comparable means as what we did in 2023, besides increased.

So, we elevated the dividend 6%. We’re now again to about 95% of the place we had been pre-COVID. When it comes to buyback, we intend to proceed shopping for again share. Our intention right this moment is to purchase again extra share in greenback phrases in 2024 than we did in 2023.

On the similar time, as we did additionally in 2023, we intend to proceed to retire debt and proceed to strengthen the stability sheet. So, general, pretty comparable construction in ’24 as what we did in ’23 however sort of bump up every part a bit increased.

Roger Learn — Wells Fargo Securities — Analyst

Nice. Thanks.

Operator

Thanks. One second for questions. Our subsequent query comes from James West with Evercore ISI. It’s possible you’ll proceed.

James West — Evercore ISI — Analyst

Hey, good morning, Jeff and Eric.

Jeff Miller — Chairman, President, and Chief Govt Officer

Good morning, James.

Eric Carre — Chief Monetary Officer

Good morning, James.

James West — Evercore ISI — Analyst

So, Jeff, it — you talked about West Africa, North Sea not awakening till ’25. A whole lot of tendering or simply conversations about ’25, ’26. I do know a number of the — your companions like FTI are bidding for deliveries that would not occur till ’29 and ’30. The offshore rig firms, they’re getting locked up into ’26, ’27.

I imply the visibility this cycle appears to me to be considerably unprecedented. And I am curious if that is constant along with your view of how issues are taking part in on how clients are behaving and the way your conversations are going. As a result of it looks like the business is on board with — is it going to be a protracted cycle? What we acknowledge, after all, macroeconomic occasions might derail issues. However no less than for now, with this oil value vary that we’re in, it is sort of all techniques go for a very long time.

Jeff Miller — Chairman, President, and Chief Govt Officer

Look, I am cautious talking for the complete business. However I’d say I’ve this, together with Halliburton, very targeted on working return — companies for sturdy returns over the long run, which is exactly what all of us do. And I feel that is good for our shoppers and it is good for us as nicely. And so, that stage of visibility shouldn’t be inconsistent with firms planning a future round how you can make cash for shareholders.

And that is what we’re doing as nicely. And so, I feel it is an excellent setup for the remainder of this decade, fairly frankly, simply because, a, we all know there’s demand; b, we’re capable of — our entire worth proposition round is how we collaborate and engineer options to maximise asset worth for our clients. And any such setup permits us to do this. The opposite factor that occurs, although, after we run a enterprise for returns is we do not overinvest within the enterprise.

And so, we have advised you sort of the place our capex will fall and stage of progress that we’re taking a look at. And so, we’re very considerate in regards to the progress as a result of we’re holding worthwhile worldwide progress firmly in hand. And so, I feel property are tight and so they’ll stay tight for these very causes. It’s totally pure financial causes for an business that is working their companies for return, which is clearly what we’re doing.

After which, I feel our stage of capex, the best way that structured drives that stage of considerate funding and manages the contracts that we win not directly. And it additionally maximizes returning money to shareholders. So, it is an excellent surroundings in my opinion.

James West — Evercore ISI — Analyst

OK. That is — we actually agree with that. After which, possibly a follow-up for me and doubtlessly, I do not know if Eric goes to take this one. However the D&E margins, which I do know are extra levered towards worldwide, the place a whole lot of the amount progress is actually going to return from.

And you are going to have pure working leverage from that and inflation. It appears to be cooling considerably so it’s best to — incremental ought to enhance right here. You already know, the place are you — I do know you gave this quarter steering, however that is seasonal. The place do you anticipate margins? Or possibly if you wish to speak about incrementals, nonetheless you wish to focus on it, for D&E going ahead as we undergo ’24 and into ’25?

Eric Carre — Chief Monetary Officer

Yeah, Jim. So, to your level, when you simply have a look at Q1, clearly you get seasonal impact. So — however extra importantly, trying on the yr on yr and the final pattern of the D&E margins. So, first, I feel it is price noting, as Jeff talked about within the script, that we had our greatest D&E margins in 15 years.

So, it signifies that a whole lot of the funding we now have performed in the previous couple of years are paying off. So, what to look at actually is the final trajectory of margins within the enterprise. And for us, it is a matter of balancing income progress, enhancements in margin, enhancements in returns as we proceed to spend money on the D&E enterprise. So, all of that to say that anticipate margins to proceed to agency up as we get into ’24.

And we’re anticipating our margins to be materially increased in D&E in 2024 than they had been in 2023. Now, there could be some bumps alongside the street from one quarter to the subsequent, and many others. It is a enterprise that usually tends to have a whole lot of transferring components. However directionally, margins might be increased in 2024 than they had been in 2023.

James West — Evercore ISI — Analyst

Acquired it. OK, thanks, Eric. Thanks, Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks.

Operator

Thanks. One second for questions. Our subsequent query comes from Scott Gruber with Citigroup. It’s possible you’ll proceed.

Scott Gruber — Citi — Analyst

Sure, good morning.

Jeff Miller — Chairman, President, and Chief Govt Officer

Good morning, Scott.

Scott Gruber — Citi — Analyst

So, Jeff, as I step again and take into consideration the outlook on your U.S. enterprise, it seems that you are on a pathway to establishing a enterprise that can ship extra constant and higher free money move within the years forward than we have seen traditionally, partly that is given the e-frac funding funding throughout the portfolio. So, I am questioning when you’d simply give some coloration sort of, you already know, round that. We’re seeing the consistency now.

If I heard accurately, the capex coloration doesn’t mean a fabric discount in home capex into ’24. So, curious sort of round sort of bending that curve decrease and simply sort of general serving to this enterprise mannequin that is far more constant and fewer capex-intensive finally.

Jeff Miller — Chairman, President, and Chief Govt Officer

Yeah. Thanks. And that’s exactly what we got down to do, and that is what’s taking part in out now. And so by way of a constant enterprise that generates sturdy free money move by the cycle, and that is been our intent all alongside.

With the best way we deliver Zeus fleets to market, the best way we spend money on North America broadly, we’re very deliberate about how we maximize worth over the long run in North America. And I feel you noticed that play out within the final two quarters as we have seen the market transferring round. However nonetheless, regular drumbeat of execution and money move supply by Halliburton. And I anticipate to proceed that as a result of that’s exactly our technique.

And so, on the subject of money move, our capital allocation of our capital finances, we will allocate it to these issues the place we see that chance, which we actually see that with Zeus fleets. However bear in mind, that is a requirement pull, not a push technique. So, we do not construct fleets till we now have contracts for fleets. And so, you already know, that is a unique — fully totally different surroundings than possibly we’d have seen in prior cycles from Halliburton, anything we do in North America.

Like we have developed some excellent, in my opinion, fit-for-purpose drilling expertise for North America. However we’re not going to overbuild it. We’re promoting it into the market because the market will take it. It is a whole lot of pleasure about it, however our method remains to be going to be constant supply of margins and free money move in North America.

And so, I feel you will see us proceed to do this. And which means, you already know, we put e-fleets out there, we retire type of the fleets which can be on the backside of the stack and proceed that march ahead.

Scott Gruber — Citi — Analyst

Acquired it. OK. Recognize the colour. Unrelated follow-up right here.

Leverage is right down to about 1x now, which is nice to see. And it sounds just like the money return might step up a bit. Are you able to simply sort of stroll us by your ideas as you progress ahead in time, the cycle continues, you will generate extra free money move, leverage continues to return down, you already know, exterior of any M&A, ought to we take into consideration that shareholder return as a share of free money move transferring increased, on condition that, you already know, you may be trending considerably on leverage on a go-forward foundation?

Eric Carre — Chief Monetary Officer

Yeah. I imply simply beginning with free money move, I feel that you may anticipate 2024 free money move to be no less than 10% over ’23. So, that’s going to principally assist us return — enhance returns on a greenback foundation. Now, by way of the proportion, we’re nonetheless guided by our general 50% return to shareholder.

However directionally, it could make sense to consider that we’ll do no less than what we did in 2023 by way of the proportion return.

Scott Gruber — Citi — Analyst

OK. Thanks, Eric. Thanks, Jeff.

Eric Carre — Chief Monetary Officer

Thanks.

Operator

Thanks. One second for questions. Our subsequent query comes from Luke Lemoine with Piper Sandler. It’s possible you’ll proceed.

Luke Lemoine — Piper Sandler — Analyst

Good morning, Jeff and Eric. Jeff, your North America rev considerably outperformed the U.S. land rig depend in ’24. And I’d guess a number of the components had been Zeus fleet, service high quality, extra secure buyer base and a pickup within the Gulf of Mexico.

However might you speak about every other components that drove this? After which, with the U.S. land rig depend almost certainly down in ’24, do you assume North America revs could possibly be up in ’24 for you?

Jeff Miller — Chairman, President, and Chief Govt Officer

Yeah. Look, the outperformance is simply the soundness of the enterprise as I described it. And so an enormous a part of that’s 40% of our fleet by the top ’24 underneath long-term contracts. That creates a gradual surroundings.

So, the rig depend goes to maneuver round and do what it does, however our largest a part of our enterprise, very secure. And the fact is the North America enterprise could be very huge. We noticed progress Gulf of Mexico and different offshore environments. Nevertheless, you already know, a really giant, secure North America enterprise — land enterprise goes to mute a few of that.

And as we go into ’25, I anticipate the identical sort of efficiency out of our North America enterprise type of regardless of what rigs do. Now, I do consider a repoint the place DUCs are drawn down, they’re largely drawn down. And I feel that we’ll see rig depend enhance solely as a result of it is supplying the stock of DUCs required to run a really easy, stable-type enterprise. And I’d say our clients largely plan their enterprise round turning wells into manufacturing greater than they do numbers of rigs within the air.

And so, I feel there’s a whole lot of planning that goes on to ship a really secure enterprise of finishing wells. And so, I feel one of many causes I’d say I might take the over on rig depend, I do not assume — I will not attempt to forecast rig depend at this level. However I do assume there’s upside in North America. We plan the enterprise for what we will see, and we anticipate it to be secure.

However that being mentioned, I feel there are clearly components that would push that up. Like fuel exercise is clearly on the market and I’d pull the tempo at which LNG vegetation come on-line, however we all know that they’ll. Is it ’24 occasion or a ’25? I feel we’ll get to that time and see that Halliburton participates in that upside, and that would occur this yr. However at this level, you already know, we’re planning the enterprise round returns.

Luke Lemoine — Piper Sandler — Analyst

OK. And I assume a follow-up with this extra secure North American enterprise, you speak about your North American land margins you are ascribing flat in 4Q. May you speak about the way you see this progressing in ’24 sort of with that secure enterprise?

Jeff Miller — Chairman, President, and Chief Govt Officer

Nicely, look, let’s simply depart it at regular and secure transferring ahead. I feel that we have a really sturdy worldwide enterprise as nicely that contributes, and I feel that continues to develop and increase margins. However we’re actually happy with the place we’re. However, you already know, U.S.

income and margins flattish by any cycle, I feel, is, you already know, the place we needed to get this enterprise. Clearly, there’s upside. And I do anticipate from a C&P standpoint, we will see the good thing about our market management positions in PE, cementing, baroid and different issues that we do around the globe. So, I feel that we will proceed to take part in that meaningfully, significantly from a margin standpoint.

However once more, our key in North America is stability by cycles. And I feel we’re demonstrating — I do not assume, I do know we’re demonstrating that now.

Luke Lemoine — Piper Sandler — Analyst

Nice. Thanks loads, Jeff.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks.

Operator

Thanks. One second for questions. Our subsequent query comes from Stephen Gengaro with Stifel. It’s possible you’ll proceed.

Stephen Gengaro — Stifel Monetary Corp. — Analyst

Thanks. Good morning, gents.

Jeff Miller — Chairman, President, and Chief Govt Officer

Good morning, Stephen.

Stephen Gengaro — Stifel Monetary Corp. — Analyst

Two for me. Needed simply to observe up on the prior query round type of margins in C&P and the Zeus fleets. If you speak about these property being contracted, are there any distinction in type of the pricing dynamic versus type of prior cycles and value openers quarterly? And the way ought to we simply take into consideration the pricing for these property in an surroundings the place possibly there’s a bit extra capability close to time period from some, fairly actually, possibly not as aggressive property however older property out there? Does it matter — is pricing fairly secure? Are you able to speak about {that a} bit?

Jeff Miller — Chairman, President, and Chief Govt Officer

Look, these are long-term offers that we go into realizing the price of the asset and realizing what the return must be. So, now it simply turns into a little bit of a math downside round period. And so, there are variable prices out there that we do not management and we do not attempt to personal. We simply move by to clients, whether or not it is sand value and plenty of different issues.

However for — the place we create aggressive benefit for our tools is we go into these long-term automobiles. We do not want value opener and all of that type of jazz. There is not any motive for it. We actually sit down and work by what’s the return for shopper, return for Halliburton, after which we repair that and transfer ahead.

That does not change over time. And so, you already know, the remainder of the market, the spot-type market, all of that’s going to do what it may do. However I feel that is after we take a protracted view of the market in worth creation, that is math that each shoppers and the way can do. And I feel that is what makes it so very totally different, our method in North America.

You already know, It is not significantly differentiated, if in any respect, within the spot market. And consequently, it is simply sort of does what it does. It is on a free for all. However I’d say, out there the place we wish to play, which is technology-driven, lowest complete value of possession and dealing on, I feel, most necessary, which is productiveness per foot.

That is a unique recreation. That is a long-term recreation.

Stephen Gengaro — Stifel Monetary Corp. — Analyst

Nice. After which only one fast one, most likely for Eric, on the money move assertion. Something we must always learn about working capital parameters in ’24 versus ’23 that will be a lot totally different as we sort of construct out the fashions, whether or not it is DSOs or payables, and many others.?

Eric Carre — Chief Monetary Officer

No. I feel what’s necessary round free money move for ’24 is, as I discussed earlier, is we’re anticipating the free money move to be no less than 10% over ’23. That is going to be on the again of improved revenue. It may be on the again additionally of improved efficiencies round working capital.

So, we spend a whole lot of time engaged on enhancing DSOs, engaged on enhancing DIOs. And after I communicate like this, I do not imply simply pushing the group, I imply implementing totally different initiatives. For instance, I am going to provide you with a few examples on DSO. We spend a whole lot of time on automating the invoicing course of on built-in companies.

For instance, invoicing on built-in service is extraordinarily difficult. Now we have a number of product strains, a number of components of our group, buyer group, so it takes a whole lot of time. And to the extent that you may automate that after which take away — scale back cycle time, then you definitely enhance DSO. We simply rolled out 18 months in the past a companywide demand planning software program, which when mixed with the rollout of S4 sooner or later goes to present us completely totally different capabilities to plan our enterprise and scale back stock whereas not growing the chance from an operation perspective.

So, these are the issues the place we’re spending a whole lot of our time to principally structurally enhance the effectivity of working capital. So, that is going to be the opposite part of why we’re anticipating our free money move to enhance subsequent yr.

Stephen Gengaro — Stifel Monetary Corp. — Analyst

Wonderful. Thanks for the colour.

Operator

Thanks. One second for questions. Our subsequent query comes from Marc Bianchi with TD Cowen. It’s possible you’ll proceed.

Marc Bianchi — TD Cowen — Analyst

Thanks. I simply needed to first make clear on the North America outlook that you simply offered for it to be flat. That is a remark for the complete yr. Is that right? Or was {that a} remark from the place run charges are right this moment?

Jeff Miller — Chairman, President, and Chief Govt Officer

Look, we expect that Q1 is up from This fall. So, there’s exercise that comes again to seasonal in This fall. As we have a look at the stability of the yr, I feel that there are — as we plan the enterprise for what we obtained visibility of and we will see our fleets are largely contracted for ’24, that is what we all know. Are there components which will add to that? I feel — if it’s important to try this, I feel if manufacturing ranges are low, shoppers could pace up.

There’s a whole lot of variables that would occur that, I feel, are to the constructive. However nonetheless, as we glance out to ’24 and we plan a enterprise that generates the sort of returns we anticipate to generate, you already know, that is what we see.

Marc Bianchi — TD Cowen — Analyst

OK. The opposite query I had was on D&E within the first quarter right here. I feel, traditionally, there have been some onetime gross sales that proceed for D&E within the first quarter. After which, margin could possibly be down within the second quarter.

Is that type of the bottom case outlook right here? Or is there one thing uncommon happening this yr versus the prior years?

Eric Carre — Chief Monetary Officer

No, there’s nothing uncommon. I feel when you — truly, when you had been to return and have a look at the Q1 ’24 over This fall ’23 steering that we simply gave, it is rather a lot consistent with the standard This fall to Q1 seasonality that we noticed previous to COVID, so that you return to 2020, 2019, 2018. So, what we’re seeing right here is known as a enterprise that is totally consistent with historic pattern. What’s taking place on the D&E aspect, the affect of software program gross sales in This fall usually is maintained in Q1.

However we’re having a whole lot of weather-related points within the Japanese Hemisphere and the North Sea, and many others., that’s influencing our D&E margins. However once more, very a lot in line by way of quarter-on-quarter steering as we now have had traditionally in our enterprise, nothing uncommon.

Marc Bianchi — TD Cowen — Analyst

Acquired it. Thanks very a lot. I am going to flip it again.

Operator

[Operator instructions] Our subsequent query comes from Kurt Hallead with Benchmark. It’s possible you’ll proceed.

Kurt Hallead — The Benchmark Firm — Analyst

Hey, good morning, all people.

Jeff Miller — Chairman, President, and Chief Govt Officer

Good morning, Kurt.

Kurt Hallead — The Benchmark Firm — Analyst

Hey. A whole lot of good things to digest right here to make. Jeff, respect all that coloration. I feel my query right here, sort of what piqued my curiosity was, once more, a few issues that you simply — one among which you place within the press launch, which was a sort of AI-driven dynamic that you’ve got happening with ADNOC.

And possibly begin with that one within the context of how you’re seeing AI evolving as a instrument for the shopper base, as a instrument on your firm. You already know, the — how do you see the adoption of that? And the way do you see the monetary affect of that evolving over the course of the subsequent couple of years?

Jeff Miller — Chairman, President, and Chief Govt Officer

Sure. Thanks, Kurt. Look, I feel software program and automation, and I say it that means as a result of software program enterprise is robust and targeted on enterprise options, which is able to undertake all type of AI and generative AI as we proceed to maneuver ahead. And that can create effectivity and [Inaudible] in a whole lot of methods for our clients.

Internally, as we undertake automation and AI into our instruments and repair supply, I anticipate that it’s going to have a significant affect. In all probability over the subsequent two, three to 5 years, simply as these issues are adopted, it may scale back service prices, it may drive demanding. And it is also going to enhance service high quality, and I feel will truly enhance the aptitude of instruments, which I feel is so basic to how we generate long-term returns.

Kurt Hallead — The Benchmark Firm — Analyst

Recognize that coloration. Additionally observed that Halliburton Labs entered right into a enterprise to some direct lithium extraction. So, curious as to the way you may see Halliburton, you already know, get entangled in that course of as nicely.

Jeff Miller — Chairman, President, and Chief Govt Officer

Nicely, look, that is one among our Hal Labs firms. We’re excited to have them right here. We make a really, very small funding in firms that be a part of our labs, however it’s very small. It is round $100,000.

So, it is — we’re a tiny piece of their Sequence B, which we’re excited for them. However Hal Labs continues to draw, in my opinion, extra high quality investable firms over time. We’re watching them enter Sequence As, and in some circumstances, Sequence B. And it is a journey.

We’re doing loads totally different industries, however we’re cautious. That is clearly not company enterprise capital. We aren’t investing within the firms that be a part of Hal Labs aside from small 3% to five% stake that we get from them usually for the companies that we offer to them as a member of Halliburton Labs. So, tremendous enthusiastic about the place that is going.

However, you already know, we simply have to let that proceed to progress by itself.

Kurt Hallead — The Benchmark Firm — Analyst

All proper. Truthful sufficient. Thanks, Jeff. Recognize it.

Jeff Miller — Chairman, President, and Chief Govt Officer

Thanks.

Operator

I’d now like to show the decision again over to Jeff for any closing remarks.

Jeff Miller — Chairman, President, and Chief Govt Officer

Yeah. Thanks, Josh. Let me shut the decision with this. I am enthusiastic about 2024.

I imply our outlook for oilfield companies is robust, and I anticipate Halliburton will generate vital free money move for shareholders in 2024. Look ahead to talking with you subsequent quarter. Let’s shut out the decision.

Operator

Thanks on your participation. [Operator signoff]

Period: 0 minutes

Name members:

David Coleman — Senior Director, Investor Relations

Jeff Miller — Chairman, President, and Chief Govt Officer

Eric Carre — Chief Monetary Officer

Dave Anderson — Barclays — Analyst

Neil Mehta — Goldman Sachs — Analyst

Arun Jayaram — JPMorgan Chase and Firm — Analyst

Roger Learn — Wells Fargo Securities — Analyst

James West — Evercore ISI — Analyst

Scott Gruber — Citi — Analyst

Luke Lemoine — Piper Sandler — Analyst

Stephen Gengaro — Stifel Monetary Corp. — Analyst

Marc Bianchi — TD Cowen — Analyst

Kurt Hallead — The Benchmark Firm — Analyst

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