Halliburton (HAL) Q1 FY26 earnings call: guidance and Q&A

How does the conflict shape views on the global energy sector over the next few years, and how has this changed in the last 60 days?

Jeff Miller stated that the supply overhang is no longer a concern, and structural demand remains intact, accelerating market rebalancing. He emphasized that energy security is now a priority, driving increased activity for several years, which is a fundamental shift.

“I think the most important change is that the supply overhang is no longer a concern. That's swept away. And demand -- structural demand remains intact.”

asked by John Anderson · answered by Jeffrey Miller

Are E&P customers picking up activity in North America, and what are the signs on the ground regarding U.S. onshore?

Shannon Slocum confirmed that the Q2 frac calendar white space is gone, with pull-forwards and H2 firming up. He noted that smaller operators are moving quicker, and the market is seeing an uptick in inbound calls for spot work, indicating tightening capacity.

“The short answer is yes. We've seen a couple of really good signposts. As I said, white space for Q2 is all but gone. We've seen a lot of pull forwards. We see inbounds. We're also seeing H2 firming up as well.”

asked by John Anderson · answered by Shannon Slocum

Elaborate on strength in LatAm and Europe/Africa, and how the mid-single to high-single-digit international revenue growth expectation compares to pre-conflict views.

Shannon Slocum highlighted strong activity in Latin America (Guyana, Suriname, Argentina with YPF's multi-billion dollar award), Norway (rig adds expected H2/early next year), and West Africa (Namibia, Nigeria). He reiterated the mid-to-high single-digit full-year growth expectation outside the Middle East, despite uncertainties in the region.

“Yes, a lot to be excited about a lot of bright spots, Latin America leading the way. Really excited about the work we're doing the Caribbean, in particular, Guyana and Suriname, working in a very collaborative way.”

asked by Arun Jayaram · answered by Shannon Slocum

How is Halliburton thinking about the supply side tightness in the North America frac market and the potential for pricing power through the remainder of 2026?

Shannon Slocum stated that constructive conversations are happening with operators, and the focus is on improving pricing for existing fleets. Jeff Miller added that equipment is tighter, with premium dual-fuel fleets being close to sold out for the industry, indicating a strong setup for pricing.

“I think we're within a handful of fleets of sort of premium fleet, dual fuel type fleets are being absolutely sold out as an industry.”

asked by Saurabh Pant · answered by Jeffrey Miller

How did Halliburton arrive at the $0.07-$0.09 EPS impact for Q2, and what are the assumptions regarding escalation/de-escalation and timing of derisking?

Eric Carre explained the Q2 estimate assumes similar disruption levels to late Q1, with a partial restart of some offshore work halfway through Q2. He noted that a delay in offshore restarts could add another $0.03-$0.05 EPS impact.

“The assumptions we made for the Middle East for the second quarter is a bit of our best guess it is to assume that the level of disruptions are similar to what we had when we exited Q1. We're also building a restart of some of the offshore work kind of halfway through the quarter.”

asked by Stephen Richardson · answered by Eric Carre

The Q1 buyback was lighter than the 2025 run rate; was this timing, and what is the outlook for share returns for the year?

Eric Carre clarified there's no change in the buyback philosophy. The lower Q1 amount was intentional due to macro conditions and Middle East concerns. He guided for Q2 buybacks to be higher than Q1, and H2 to be higher than H1, maintaining the objective of per-share value creation.

“What you can expect from here is you can expect Q2 to be higher than Q1. You can expect H2 to be higher than H1 in terms of overall buyback.”

asked by Neil Mehta · answered by Eric Carre

If the Strait were to open tomorrow, how quickly could normal operations resume in the Middle East, and what industrial challenges/opportunities exist?

Shannon Slocum stated that a quick return to normal is unclear, but Halliburton's operational footprint is intact. He expects turning wells back on to be the first step, with complexity increasing the longer they are shut in. Jeff Miller added that the supply chain gap means it's not an overnight matter, and the change in perception regarding energy security is a bigger, overriding impact.

“It's really -- I'll start with really kind of unclear how quickly that comes back. I'd say that we're ready as far as Halliburton's operational footprint is intact.”

asked by Marc Bianchi · answered by Shannon Slocum