International revenue increased by 12% in Q1 2024, driven by improved activity in Latin America, the Middle East, and Europe. This highlights the company's successful expansion and diversification strategy.

Halliburton is investing in key strategic technologies, including Zeus electric fracturing systems, iStar Intelligent Drilling and Logging Platform, and iCruise Intelligent Rotary Steerable System. Capital spending for 2024 is expected to be approximately 6% of revenue.

Halliburton continues to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which allows participation in the energy mix transition at relatively low risk. As of March 31, 2024, Halliburton Labs had 32 participating companies and alumni.

Halliburton continues to maintain capital discipline and monitor the rapidly changing market dynamics, and may adjust capital spend accordingly. The company is focused on generating returns rather than prioritizing production growth.

Halliburton is migrating to SAP S4, with expected completion by the end of 2025. During Q1 2024, $34 million in expense was incurred on the SAP S4 migration, with a total project investment estimated at approximately $250 million.

The Board approved a capital return framework with a goal of returning at least 50% of annual free cash flow to shareholders through dividends and share repurchases. The company expects returns to shareholders will be in line with the capital return framework for 2024.

As of March 31, 2024, there have been no material changes in risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

The IRS proposed an adjustment to reclassify approximately 95% of the $3.5 billion termination fee paid to Baker Hughes in 2016 from an ordinary expense deduction to a capital loss, which could result in cash taxes due of approximately $650 million plus interest.

During the three months ended March 31, 2024, Halliburton incurred a charge of $82 million primarily due to impairment of an investment in Argentina and currency devaluation in Egypt.

The industry Halliburton serves is highly competitive with many substantial competitors in each segment of its business. Halliburton continues to innovate and adapt to maintain its position.

Capital discipline by major oil and natural gas producers continues to underpin a more durable and less volatile upstream spending cycle versus prior cycles, benefiting Halliburton's competitive position.

Halliburton expects strong oil and natural gas demand growth for the rest of 2024 as concerns about a potential economic slowdown ease, supporting demand for its services.

Working capital had a negative impact of $341 million, primarily due to increased receivables, indicating potential challenges in collecting payments from customers.

Halliburton is focusing on technological advancements and process changes that reduce manufacturing and maintenance costs and improve how the company moves equipment and responds to market opportunities.

Halliburton continues to be impacted by extended supply chain lead times for the supply of select raw materials, requiring ongoing mitigation efforts.

Halliburton continues to invest in key strategic technologies, including the construction and deployment of Zeus electric fracturing systems, iStar Intelligent Drilling and Logging Platform, and iCruise Intelligent Rotary Steerable System.

Halliburton continues to drive differentiation and efficiencies through the deployment and integration of digital and automation technologies, both internally and for customers.

Halliburton continues to focus on accelerating the success of clean tech start-ups via Halliburton Labs, which allows it to participate in the energy mix transition at relatively low risk.

Halliburton repurchased 7.0 million shares of its common stock for $250 million during Q1 2024, with approximately $3.8 billion remaining authorized for repurchases.

Halliburton paid $151 million in dividends to shareholders, maintaining a quarterly dividend rate of $0.17 per common share.

Halliburton currently expects capital spending for 2024 to be approximately 6% of revenue, allocated towards strategic technologies.

In 2021, Halliburton announced its target to achieve a 40% reduction in its Scope 1 and 2 emissions by 2035 from the 2018 baseline.

Halliburton develops and deploys solutions to help lower the carbon intensity of its customers' businesses, aligning with broader energy transition goals.

Halliburton participates in carbon capture, utilization, and storage, hydrogen, and geothermal projects globally, diversifying its portfolio and contributing to sustainability efforts.

Oil prices strengthened in Q1 2024, but geopolitical unrest in the Middle East and the Russia-Ukraine conflict continue to be major sources of volatility for the oil and natural gas markets.

In the U.S., in the first quarter of 2024 natural gas producers responded to lower prices by reducing rig count in natural gas basins even as oil focused basins saw an increase in active rigs.

The international rig count continued steady growth in the first quarter of 2024 largely driven by the Middle East/Asia and Africa, indicating strong demand in these regions.